Professional Margin rates of 10-1

Well when I was at the Chicago Board of Trade there is also that herd mentality, and I found it sickening.


To give you a quick statistic about 80% of the floor who are traders (not brokers) turns around each year on the floor. The interesting thing is that about 15% or so is the same year after year.

I see that happening in most brokerage/trading firms. It wouldn't make too much of a difference to me to hang around someone. I wouldn't trade my system --I'd probably start to coattail them but they would always be one step ahead of me. :( I don't need that.

One of my friends used to be at All tech and had the same problem. The market would be done and everyone would have this negative energy. I need to seperate myself from that.

For a beginner who doesn't know what he is doing -it could be wise to be on the floor. I prefer to not have bad traders around me.

Rtharp
 
Sure, we all have preferences. Now doubt.I think
we all need some edge and one could get that edge a little "closer to the fire", so to speak. I tried home based trading and it's not for me.
 
My feelings are shared in some of the posts on Bright. Check out the Broker recommendation post. Emotional Blackholes was how someone put it. 83% negative that isn't a good sign.

Trading in an office can be good if the majority of traders are good. The office has to grow slowly. Having the good traders teach others. This takes time. If an office grows too quickly than the majority of traders will be losers and that emotional black hole will be felt.

rtharp
 
Hi,

Does anyone know the web address to Echo Tradeonline? I'm currently trading on NYSE but considering trading with Bright (which my colleague does), but I'd like to check out Echo first.

Regards,
Oddmund Grotte
 
Broadway Trading is a LLC but they are insured with the SIPC. I feel more comfortable trading with ECHO and Bright if they are also members of the SIPC.
 
ALL firms that are setup as a (JBO)L.L.C.
are not SIPC insured by definition. When
you join a L.L.C. , you are becoming a
partner of the L.L.C. and trading firm capital .

The firm is extending leverage
to L.L.C. members. The firms risk
management is your protection. Even
if a SIPC insured firm goes out of
business , you will not get funds
immediately. SIPC insurance is $100,000
in cash and $500,000 in securities.
Since you are putting up much less capital
up at a L.L.C. to get the same buying power ,
less of your capital is at risk at the firm.
If the L.L.C. is properly managed , you
should have no problems. How long has the
firm been in business? Who is the firms
clearing broker? There is a minimum
capital requirement for firms to form a
Joint Back Office(JBO) trading L.L.C.
Clearing firms that clear JBO L.L.C.'s
are required to have certain capital
requirements under SEC guidelines. Go to
http://www.sec.gov/news/studies/daytrading.htm#seciv .
This SEC report should answer most of your
questions. I would be glad to answer any
questions on daytrading L.L.C's. Remember
"leverage" is to be used not abused.




Gene Weissman
Managing Member
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net


See us at http://www.stocktrade.net



 
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