Just as an update, I closed my account with Keystone and received my check within a week. Reading all the posts on ET, I guess I now realize that a lot of risks go into prop trading. Not just the trading, but more of the possibility of getting involved with an unstable firm. It also seems like these kinds of firms have a lot of trouble with the SEC.
keystone trading group
- Thread starter bonds
- Start date
Of course, Erik Solomon and Pete Renzulli are gentlemen. They were smart enough to escape the tempations of Charlie Vaccaro and the allure of Velez Capital Management.
Keystone is fine. I tried it for 2 months and just like most of the other trading I've done, I usually break even on the trades and lose all my money in commissions and fees. In the past I would have kept trading until my account was completely depleted. Now I've learned that if something isn't working, trying it more and more won't change the results, so I cut my losses. I have come to the conclusions after much trading and backtesting, that market direction can't be accurately predicted with any kind of certainty (I certainly welcome anybody to refute that). And besides, it's way too stressful. I'm 23 and already everytime I go to the doctor they say my blood pressure is too high. I am going to start trading option strategy's. The odds seem a little more in your favor that way.
Yes they are fine, but after reading many of the other threads about prop trading, I have begun to question it's legitimacy. Correct me if I'm wrong, but I think I read that Tuco was shut down just because the SEC thought they were venturing into retail brokerage under the disguis of prop trading. I think it is legitimate to ask how they can allow 10:1 leverage when SEC only allows 4:1. I know that they will say it is the firms money that is being traded, but considering the risk deposit is what determines how much you trade, I don't know if the SEC will buy that. I never did figure out who pays if the account goes into debit. At 3:1 overnight leverage in BSC a $5000 account is $9000 in the hole overnight. Also I'm assuming they will use the same excuse to get around the pattern day trading rules. The SEC in all of it's infinite wisdom has determined that the little people should not be allowed to daytrade. So if they think retail clients will go to prop firms to get around this, they will probably do something. I'm just worried they'll get shut down and I'll lose my my deposit or probably more likely it will get siezed and I'll have to wait forever to get it. This reminds me of an MLM company I joined awhile ago. They claimed they had a great product and I signed up and bought about $500 worth of products. They had about a 6 week backlog of orders, and in the meantime as I was waiting to get my order, the state Attorney General shut the company down and seized its assets. After a quick hearing it was supposed to go to trial several months later. Eventually they settled it and the company went back in business and everybody had to file a claim to get their money back. Well with 8 million in the bank the AG wasn't in any hurry to pay it out. So the moral of the story is the government thought they were doing the public a favor, but the company would have shipped the product in a month, with the government stepping in, it took a year and a half to get my money back. I am not worried at all about my money at Tradestation or Think or Swim.
Reggie808
How long have you been trading for?
Im a current keystone trader recently got a call from Eric basically saying that keystone is not allowing people to trade without at least $30k or a license ie. Series 7 starting June 1st. But will be offering trading for currenet members to trade firm capital.
These guys are thinking long term and thats great to see.
These guys are thinking long term and thats great to see.