Newbie in Need of Advice

Makr · Apr 1, 2002

Is a 35% payout without commission a good deal, or is a higher payout (I've seen some up to 90%), but with a commission be better. There's no capital up front, I'd be working with a trader that's been in the game for approximately 5 yrs. I haven't been an active trader, but do possess my 7, 63, and 55 and am very well studied in technical and fundamental analysis. I'd be starting small - 200 shs. Any more is contingent upon performance. Because I'd be trading small lots, I would rather pay the commission and earn a higher payout. This would seemingly only benefit volume traders. Or should I even worry about it at this point?

In addition, which firms offer the best opportunities/programs for an entry level trader, and which are not worth their salt? Any advice is greatly appreciated. Thanks in advance.

nitro · Apr 1, 2002

Is a 35% payout without commission a good deal, or is a higher payout (I've seen some up to 90%), but with a commission be better. There's no capital up front, I'd be working with a trader that's been in the game for approximately 5 yrs. I haven't been an active trader, but do possess my 7, 63, and 55 and am very well studied in technical and fundamental analysis. I'd be starting small - 200 shs. Any more is contingent upon performance. Because I'd be trading small lots, I would rather pay the commission and earn a higher payout. This would seemingly only benefit volume traders. Or should I even worry about it at this point?

In addition, which firms offer the best opportunities/programs for an entry level trader, and which are not worth their salt? Any advice is greatly appreciated. Thanks in advance.

This sounds like a Schoenfeld deal.

IMHO, if you don't feel that you are ready to trade, then I would go with the best training. What good would it do you to trade 2000 shares if you are going to loose? On the other hand, how much is this guy really going to teach you? If he is trading, you need to sit behind him for a month or so and get to the point where you are both pressing the same keys at the same time.

Therefore, without knowing your level of experience it is hard to say. I will venture though that you are not confident about your ability to make money at this point.

If I were you, I would go to Bright or Echo, do their training, then make up your mind. If this guy is good, then I will vote for going with this deal.

nitro

Makr · Apr 2, 2002

I feel that I'm prepared as much as one can be without actually swimming with the sharks. That's the true test, and when there's blood in the water. There is no aspect of technical analysis that I have not studied, it's more the application, particularly in a day trading environment. And like I said before, I have my 7, 63, and 55. I am also taking the Level II CFA this year. Consider it professional hedging.

I'm starting to put together some of my own trading programs now, which is based on end of day pricing through reuters. But like I said, we all know what the true test is, and end of day trading is a far cry from intraday. Trading's not something you can learn from any book, or any person. The ability lies within oneself.

Academically, I'm way ahead of the curve for someone in my position so I feel that I'll have a good idea whether or not I can make it in this business in relatively short order. I am confident that I will succeed. I do not view failure as being an option, in trading, or anything else. I feel if there's money to be made in this business, I'm the guy to make it. This is not to say that I feel that it will be easy, nor do I underestimate my competition or overestimate my abilities. I'm simply comfortable with my knowledge of, and dedication to, the markets.

Another problem is the capital that I can put put behind myself. I can put together maybe 1K. This would eliminate me from consideration at Echo or Bright. I'm presently looking into opportunities at Schoefeld, Generic, and Worldco among others.

So that's where I stand. From my perspective, it's difficult to comprehend the most profitable pay structure coming in as an outsider, and considering I have not defined my trading strategy. I feel that I would be more of a swing trader though, but it would be naive for me to say that with the utmost certainty.

Any personal reflections or experiences would be greatly appreciated from any of you. Along with any individual input about the above mentioned firms if anyone is familiar with them. Thanks everyone.

Makr.