Proprietary Trading Firms

Quote from marketsurfer:

i believe don bright offers a "nothing down" program for traders who dont have the capital to put up. not sure if this is still available, but you should ask him about it.

:D
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Oh yeah, and I'm pretty sure that McDonalds offers free franchises to those with no money to put up.....I'll have to call, LOL.

(Serious now)...we have engaged in various programs over the decades, and have found that "medium" capital being invested by the trader seems to bring in more focused and serious traders. We have some lower capital programs available here in Vegas for college guys and recent grads, etc. But, if a 30-50 year old hasn't been able to put a few bucks aside to go into business, perhaps he/she may not be disciplined enough for this type of business venture (there are, of course, exceptions).

All the best,

Don
 
mr bright
do all prop firms require that their prop traders share in one prop trader's catastropic loss? does BT partake in this type of practice? i would understand why for the prop firm's sake, but again, i wouldn't want to help out another prop trader cause they didn't heed to risk mgmt or due to a stupid trade or two? never did receive a response on this, so i'm askin again. thx
 
Quote from optionzztrader:

mr bright
do all prop firms require that their prop traders share in one prop trader's catastropic loss? does BT partake in this type of practice? i would understand why for the prop firm's sake, but again, i wouldn't want to help out another prop trader cause they didn't heed to risk mgmt or due to a stupid trade or two? never did receive a response on this, so i'm askin again. thx
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NEVER MIND, I just found out the answer to my question. makes sense to share in losses. not a prob, really makes me feel a little nauseas tho. rethinkin about trading with prop firm now, but margin sounds so tempting.
 
You realy have allot to think about champ. There isnt a worse feeling in the world than losing upper 6 figures because some putz blows up on an esoteric trade. Ive been down that road not at a prop and on a much larger scale and it is infuriating.

If it is a prop with a decent risk management concept you shouldnt have to swallow the sword for some one else. If it is a place with seperate groups spme carrying huge long term spreads and a group of day traders beware. It is my experience the guys swinging the long term trades are the ones supporting them firm and if they blow up the whole place is screwed.
 
Quote from optionzztrader:

NEVER MIND, I just found out the answer to my question. makes sense to share in losses. not a prob, really makes me feel a little nauseas tho. rethinkin about trading with prop firm now, but margin sounds so tempting.
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Where did you find the answer?

So in a prop firm you cannot manage your own risk? Your risk is managed by the group? If I only want to risk 1% on a position, but someone else wants to risk 5% on a position, I am also responsible for their risk level?
 
Quote from diputs:

Where did you find the answer?

So in a prop firm you cannot manage your own risk? Your risk is managed by the group? If I only want to risk 1% on a position, but someone else wants to risk 5% on a position, I am also responsible for their risk level?
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ur profits help minimize the catastrophic losses of a prop trader in a prop firm since it is a pool of all the prop traders money. note i said catastrophic loss, not just any loss. it has to be detrimental to firm.
 
Quote from optionzztrader:

mr bright
do all prop firms require that their prop traders share in one prop trader's catastropic loss? does BT partake in this type of practice? i would understand why for the prop firm's sake, but again, i wouldn't want to help out another prop trader cause they didn't heed to risk mgmt or due to a stupid trade or two? never did receive a response on this, so i'm askin again. thx
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We are the only firm that I know of that puts up $10Million of our own cash with the traders side of the LLC. This equates to 100 times "SIPC" protection.....so a trader would have to lose all his money, plus $10 million of ours before even having a potential loss assigned....and, of course, why would we allow anyone to even have that potential. In our 29 years we have never had anyone blow through more than a couple hundred grand (which they either repaid, or quit trading forever).

That's why I preach..."Due Diligence - Check Balance Sheets - If the firm does not give you copies after signing up - run away"

Oh yeah, we don't even have to use the traders money "pool" anyway, never have...and at current count, still have about $150-$200 Million going unused...leaving room for more traders. Again, beware of firms who lock up money for 12 months or have more traders money than their own....bad, very bad.

All the best,

Don
 
Quote from Don Bright:

We are the only firm that I know of that puts up $10Million of our own cash with the traders side of the LLC. This equates to 100 times "SIPC" protection.....so a trader would have to lose all his money, plus $10 million of ours before even having a potential loss assigned....and, of course, why would we allow anyone to even have that potential. In our 29 years we have never had anyone blow through more than a couple hundred grand (which they either repaid, or quit trading forever).

That's why I preach..."Due Diligence - Check Balance Sheets - If the firm does not give you copies after signing up - run away"

Oh yeah, we don't even have to use the traders money "pool" anyway, never have...and at current count, still have about $150-$200 Million going unused...leaving room for more traders. Again, beware of firms who lock up money for 12 months or have more traders money than their own....bad, very bad.

All the best,

Don
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Mr Bright
You have made BT sound like a great firm to trade with. Just curious if BT allows options trading (all I want to do is spreads/long option positions plus shorting/buying stock, simple strategies). If your firm allows spread trading, I will be with your firm shortly. Scrounging up that much capital will not be a problem. Thank you very much for volunteering so much informaton.

YOU THE MAN!!!

It sounds like you have it made there in Vegas. Trade during day then dabble in some poker at night. What a life!!! Must be fun.

Anyway, talk to ya later.
 
Quote from Don Bright:

Since around 1998 a S7 is required to trade, or being an exchange member..except for some extremely rare cases.

Optionzz.....thanks,, keep the "day job" for a while...the markets will be here when you're ready to go...

Don:)
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What kind of rare cases...:)


NK
 
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