Quote from squadron leader:
just checked out your previous comments on this thread artis74....
http://www.elitetrader.com/vb/showthread.php?s=&threadid=55618
you practically threatened someone there with legal action due to their "slanderous" comments.
mr kamikaze had it right when he saw you off later in the thread and accused you of being on some sort of "ghco hit squad" (lol).
do not come in here spreading falsehoods about employment contracts. the originator just wanted to know about the firm. and deserves to know that the ghco employment contract is f-ing watertight, and what he is getting himself into.
i have said, it is a fairly decent firm. but there are two things to watch out for. the fact you will be on 30-40%, and the fact that the GHCO contract is unbreakable.
do you really think ghco would risk teaching people how to trade, and then lose their profitable ones to other houses after a year - leaving the not so profitable ones to sit around collecting their basic salary?
i don't think so.
All true Squadron Leader, all true. And to think that me, you artis74 and nonotechno most likely know each other is even more laughable. Squadron Leader I presume that you at least once upon a time worked at GHCO as I did, and the other two are still flying the flag it seems - although nonotechno is more reasonable in his assessments.
I pose a simple question to all who read this post and that is how many fair businesses go broke trying to provide a fair and cheap service. In fact one of the easiest ways to go broke in business is to try and offer overly fair deals to your customers who in turn show very little loyalty. In turn there are many very tight fisted monopolies that charge scandalous prices without shame and still prosper. So the fact they GHCO is still going since the 80's and Elite Derivatives is new says nothing at all. I am of course not making accusations here all I am saying is that you cannot presume a good reputation based off of their age, after all Barings was over 200 years old when Leeson came along.
I know both the GHCO and Elite owners well enough and I would choose Elite given the choice without question. Lots of very good traders choose Elite having been at other firms and they are willing to share their knowledge, plus the deals are competetive with no trade restaints.
The contract does stick, and cannot be broken as I have known many people who have attempted to tackle this issue and failed. Ask GHCO about the contract in the interview or when you receive a job offer and let their response tell you what you should do. That way your decision on whether or not to accept the job can only be based on their response which in my experience was the same as others who asked. Ask them have they ever sued anyone because if they say no they are lying, alos why have the clause if they won't sue. Also ask how many they have sued and what the outcome was. I also suggest asking to speak with some of their new hires and maybe touring the dealing room floor as the IB's let you do - see if they allow that as part of them selling you the job. After all shouldn't you see where you would work and meet potential colleagues before you sign up for a restrictive deal of 4-5 years.
I don't think that such requests or questions are unreasonable after all. Quite simply ask all the questions you can about them and the deal and see what they say. If they are open then you can make a decision given knowldge of what to expect, and if they are defensive or secretive then you may not have enough information to make a fair decision on whether or not to join.
Personally I would suggest that you go elsewhere as the salary although a perk at first becomes of no importance at all if you are any good. The salary only seems good while you are new. If I was you I would get a part-time job, live with parents etc anything to save and fund myself for that first year while taking a deal at a firm that offers no salary but a great deal. In the long-run it will be way better for you financially to be able to steer your own career.
GHCO have had quite a few good traders, but the truth be told those people were naturals who would have made good at any firm. Also no firm that I know of can claim to have created a higher proportion of good traders. All firms recruit people who by natural talent become good, or even great traders. So the fact that GHCO has produced some good guys means nothing, as good traders emerge from all prop firms as do bad ones too. In fact it was Refco who trained the best trader that I know of and look how that turned out. This is trading after all and there is no secret formula that any firm can teach so teh whole wonderful training sales pitch shopuld be ignored because ultimately if you are the 5% who make it it will be because of you and only you.
My thoughts on prop trading and GHCO are well known. For people who want to hear more of my views please feel free to read my past posts and the posts of those who either agreed or disagreed with me. I wish you all well, especially those wannabe traders because this game is very tough and getting tougher all the time. For those who disagree with me you are all entitled to your opinion but so am I and having worked at GHCO in the past I can say that although I don't regret the experience I would rather have started my trading career elsewhere - the main reason being that I would have been able to leave after a year and get a higher % once I had my experience. All the above is my own opinion and I state that I don't work at GHCO or Elite - fact - so I am not promoting one over the other. However I do prefer the structure of the Elite deal and the freedom that they offer based on what I know of each deal.
