Here are some questions for the Thursday session) (in no particular order):
I hope that you will provide a brief overview of the entire prop trading industry, not just Bright Trading in particular. I'm sure you are much more familiar with your competition than we are. (For example, what categories of prop trading career paths exist -- salaried jobs, trader investment required w/profit split, no investment required w/profit split only, etc).
It would be great if you could provide some statistics on your own firm to give examples of success rates.
Are Series 3 or Series 7 licenses always required for prop trading? Both? Either? Differences?
Is it an SEC rule that prop trading requires a license? What trading restrictions then occur for licensees?
How important is it to find a prop firm whose trading systems coincide or agree with the trader's own preferences?
What questions to ask of any prop firm one is considering joining.
What is the role of prop firms in the securities marketplace. What is their "raison d'etre?" For example: Let's say a firm like yours has $110 million to invest. Why would two partners be managing $50M each, along with 10 prop traders each handling $1M using approved strategies, when a hassle-free alternative would be to simply have each partner manage $55M?
In your business model, what percentage of your gross revenue (or profit) is derived from (a) trading profits by principals, (b) trading profits by prop traders, (c) brokerage commissions, (d)seminar tuition, and/or (e) other? Which do you consider your main business?
Are prop traders expected to use the strategies provided by the firm or do they develop their own trading style over time? What if a trader already has a successful strategy or style?
At what point in a trader's career is a stint at a prop firm indicated:
When you start out and know little or nothing about trading (and are probably unaware of the existence of prop firms)?
After you've struggled for a while and are not yet successful (but why would anyone take you if all you've shown is that you can't do it)?
Immediately after you have successful strategies but haven't yet built up your capital (it won't take long to build it up)?
After you've been successfully trading a long time but want to use more capital (re lescor's post about risk/reward)?
What is the best argument for a trader to decide to become a prop trader?
What characteristics do you find most closely correlated with a trader's success or failure in your system?
Thinking of the prop traders who have left your firm, what are their most common reasons for leaving, and their most common subsequent career moves?
I intend all these questions in a sincere and interested way. I have a healthy level of skepticism about everything. If you consider these questions too brusque or intrusive, I guess you don't have to answer them.
Thanks.
I hope that you will provide a brief overview of the entire prop trading industry, not just Bright Trading in particular. I'm sure you are much more familiar with your competition than we are. (For example, what categories of prop trading career paths exist -- salaried jobs, trader investment required w/profit split, no investment required w/profit split only, etc).
It would be great if you could provide some statistics on your own firm to give examples of success rates.
Are Series 3 or Series 7 licenses always required for prop trading? Both? Either? Differences?
Is it an SEC rule that prop trading requires a license? What trading restrictions then occur for licensees?
How important is it to find a prop firm whose trading systems coincide or agree with the trader's own preferences?
What questions to ask of any prop firm one is considering joining.
What is the role of prop firms in the securities marketplace. What is their "raison d'etre?" For example: Let's say a firm like yours has $110 million to invest. Why would two partners be managing $50M each, along with 10 prop traders each handling $1M using approved strategies, when a hassle-free alternative would be to simply have each partner manage $55M?
In your business model, what percentage of your gross revenue (or profit) is derived from (a) trading profits by principals, (b) trading profits by prop traders, (c) brokerage commissions, (d)seminar tuition, and/or (e) other? Which do you consider your main business?
Are prop traders expected to use the strategies provided by the firm or do they develop their own trading style over time? What if a trader already has a successful strategy or style?
At what point in a trader's career is a stint at a prop firm indicated:
When you start out and know little or nothing about trading (and are probably unaware of the existence of prop firms)?
After you've struggled for a while and are not yet successful (but why would anyone take you if all you've shown is that you can't do it)?
Immediately after you have successful strategies but haven't yet built up your capital (it won't take long to build it up)?
After you've been successfully trading a long time but want to use more capital (re lescor's post about risk/reward)?
What is the best argument for a trader to decide to become a prop trader?
What characteristics do you find most closely correlated with a trader's success or failure in your system?
Thinking of the prop traders who have left your firm, what are their most common reasons for leaving, and their most common subsequent career moves?
I intend all these questions in a sincere and interested way. I have a healthy level of skepticism about everything. If you consider these questions too brusque or intrusive, I guess you don't have to answer them.
Thanks.
