They have a book out, they're famous so you pay to live the dream.
Buy the book, it's cheaper.
Mav's Combine Proposition
- Thread starter Maverick74
- Start date
They have a book out, they're famous so you pay to live the dream.
Buy the book, it's cheaper.
What I don't understand is there are equity firms out there that let you come in with 5k and a 99% payout no? So why pay 11k to basically deposit 6k only to get a 50% payout?
70% payout is the next level, after a year I believe. They basically upsell how you will learn a lot from them and have a 'mentor', they have daily AM meetings with trading ideas and can listen to a few traders trade during the day (same technology as T3's virtual trading floor). The mentoring isn't much, most of those guys haven't been trading for more then a few years, and they get assigned to anyone who pays for Development, so its not a one on one type environment, if you are in remote you can basically email them to get ahold of them. Can you actually learn this way? Its debatable.
Like I said, a handful of guys there make money, and after fee's I can't imagine its much, then after the split its probably peanuts. I know they have a tough time keeping guys that have potential to stick around, why would they? Instead they could just go next door to T3 (literally), put up a few bucks and keep 90-95%. SMB has a good business model if you ask me, if the business isn't necessarily developing top traders in the business, but as long as they keep getting people through the door they will still be around. I guess it should be a clue when the partners, besides gman, don't really trade much after the first 30mins of the day, because they have other 'business' responsibilities. If you look at other firms with active traders, Marc Sperling or Redler for example since I mentioned T3 earlier, they are partners, but trade all day and have others run the business side. I suspect its because they can still consistently pull out big numbers from the market, I know sperls had a 6 figure week this week after the monster move. I'd be curious to see the numbers at places like SMB, but that will probably remain a mystery and they will continue to sell the dream.
So wait, why can't they go straight to T3? If T3 will give you access to Sperling and Redler via webex or whatever that's far more educational then any trading content. Can you just deposit 5k and go directly to T3? They must have some kind of agreement with them blocking guys from doing that or SMB wouldn't be in business.
I can't comment directly about that. If you trade with SMB, you money is at T3. SMB isn't a CBSX, they are purely an educational firm, your 56 is held at T3. I can't imagine SMB enjoying losing traders to T3 (if you want to say it like that), and would assume that if someone would leave SMB to go to T3, SMB maybe gets a small small % from T3 for a few months? That would be my guess. I would also think that T3 agreeing to holding SMB traders 56 wasn't necessarily a business decision, but more of a courtesy being they share the same floor and were there before CBSX licensing requirements.
As far as why someone would chose SMB over T3, I would again assume its the sales tatics by SMB. Mentoring for example, something T3 charges for via their classes that are a $2kish plus a mentoring fee per month, but often can get deals for under $1k if you are on their email list. But again, you are getting mentoring from traders in the biz for 10+ years with proven track records, were as I would be surprised if track records were available next door.
You know, maybe this model would work for the "trader" if their offices were located in Kansas City, MO. But NY? Man, that is brutal. I assume most of these guys must be remote and living somewhere very very cheap.
Just read the thread out of curiosity. I'm not a pro, not even close. Have no asperations at this stage of the game to be one. Have gambled and got lucky. Have gambled and lost. 13 years and counting and I'm up, so all is well, but then I don't make my living at it.
To the thread. Just from a simple business perspective you have you manage your own risk before you can figure out how to manage someone else's. Evidently Mav saw that relatively quick in this model, so this little idea died on the vine. Secondly, size matters. Most people go a little squirrely as the comma keeps moving left. Lastly, reality changes everything. It's one thing to simulate live fire with someone shooting a machine gun over your head. It's quite another thing when they start shooting AT your head. My observation, completely unscientific, through many years of life from combat to management training classes, those that shine the brightest in the classroom usually fail in the real deal. It's the grinder in the back of the class that usually does the best. Little dumb luck don't hurt either.
Thanks for the interesting read on this Sat. nite.
To the thread. Just from a simple business perspective you have you manage your own risk before you can figure out how to manage someone else's. Evidently Mav saw that relatively quick in this model, so this little idea died on the vine. Secondly, size matters. Most people go a little squirrely as the comma keeps moving left. Lastly, reality changes everything. It's one thing to simulate live fire with someone shooting a machine gun over your head. It's quite another thing when they start shooting AT your head. My observation, completely unscientific, through many years of life from combat to management training classes, those that shine the brightest in the classroom usually fail in the real deal. It's the grinder in the back of the class that usually does the best. Little dumb luck don't hurt either.
Thanks for the interesting read on this Sat. nite.
Damn Captain. That's a long flight up here from P&R.
Quote from Maverick74:
Damn Captain. That's a long flight up here from P&R.
Sometimes even I need a break from the crazy train.
