Inside the Industry - Chat w/ Don Bright

Really looking forward to reading this chat transcript if I am not around to ask some pointed questions. If I'm not logged in someone please ask him (likely he read this and address some of the questions) if there are any market on close strategies that are working these days and ask him his thoughts about the NYSE liquidity quote.

Regarding the open only strategy, are there bright offices with traders that are really putting out 100 or more orders every morning? If so how are they handling it when they are getting 10-20 fills all of a sudden. At what point does the ability to effectively manage the fills just break down. Are they marketing out of the positions, bidding or offering them out. What is the consensus on the number of fills you can get and still manage them somewhat effectively?

Also would be interested in Don's thoughts on the application of NYSE open book in the lower volume names. I know it is of little value in the most liquid issues but it seems to have a lot of value in the less liquid stocks according to some.

Hope this chat lives up to its promise and Don can give us a real glimpse into what really is working for traders lately. He is certainly in a unique position to know what is working for their traders and what is not.

Also would be nice if he could give us a profile of a trader there that is netting six figures? As in, does he trade just a few stocks, one or two sectors, or what? He typically trades 100K shares a day or is it closer to 250K shares? His typical share size is "XXX", etc. Also as a firm what is their breakdown internally NYSE volume to Nasdaq? >90% nyse or about what?

A million different ways to make or lose money but it seems like the high volume traders are the more consistent and most profitable from what I have heard.
 
Quote from spreadem:

Don,

I am a futures trader, one who has never traded stocks. Are there any tips or techniques that pro stock traders use that would translate into the world of stock index futures traders?

How could a futures trader benefit from tape reading for example?
:)
More...

I will address this during the chat session, please remind me today...

Don
 
You could start by putting a smile on Bob's picture (see their sight)! That would be closer than the Marines, probably. . . .

Good news, they may look like everyday guys (NOT the 'up-tight' Wall Street types), but, they's a whole lot smarter (and more honest)!!
 
I wonder how they do that? I'm subscribing to the WJS currently, and they use that effect for all their mug shots. They can't be drawing them each time. There must be a program that makes them black and white, and then just a bit grainy, using dots instead of solid lines. It's very distinctive.

Opps, sorry... totally off topic!

<b>André</b>
 
My top priorities are to find out the following before I give money to the firm I am supposed to start trading with soon:

1) Why should I find out if my account will be a sub-LLC in their
Omnibus account?
2) Is my capital contribution always subject to risk?
3) Would I ever be subject to losses my the firm in whole?
Meaning, in excess of what I lost and be responsible for other
members losses as well?
4) Can you take your money out whenever you want?
5) Am I responsible for a loss in excess of $5,000 dollars if I
only contribute 5K to my account.
Meaning, I put up 5K but subsequestly run a loss of
15K, do I owe the firm 10K or can I walk away?

Thanks.

P&D
 
Are you guys still using ...Track Data? (I think that's what it was anyway). I was in the SF office late 90's and found the tech analysis software to be way below par. Other than that, I had no problem with the desk fee. Just curious in case I ever go back to stock trading.

Jay
 
Don here is my question. Describe the 'tipping point' of a trader who moves from gross breakeven (x commission) to slightly net profitable (McDonald's wages) to reliably net profitable (several hundred bucks a day).

What changes does such a trader make in his trading? How long does this take- from the point where one starts to get it, to the point where you can trade reliably?
 
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