SMB Capital New York

  • Thread starter Thread starter brutusmaximus
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Quote from Roark:


If there were no up front fees and the shop's only return was a percentage of each trainee's profits, think how much different the program would be. There probably wouldn't be any training. Trainees would immediately be plopped in front of a computer next to a competent trader for intensive learn-while-doing.
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Welcome to Canadian prop trading... but sssssshh... its our little secret
 
Quote from Roark:

What do you mean back by 100%? The trader keeps a percentage of the profits he makes, and doesn't have to put up his own capital? Sounds like a good program.

The problem with the up front fees for training is that the training doesn't work because the prop firm doesn't care if it works. They don't care because they have no incentive to care. Once they have the wannabe trader's money, it's not going to be returned. So they put together something called training, in which they send in their least useful members to teach. They're going to keep any competent traders they have, trading, not teaching. If a competent trader does any teaching, it's going to be briefly, during market doldrums while eating a sandwich.

If there were no up front fees and the shop's only return was a percentage of each trainee's profits, think how much different the program would be. There probably wouldn't be any training. Trainees would immediately be plopped in front of a computer next to a competent trader for intensive learn-while-doing.

That's the problem with education in general in the US. Get the students to pay up front and provide something that looks like teaching. Who cares if the students graduate deep in debt with no job prospects? The schools and universities already got their money. It's not like they're going to be forced to provide refunds for poor-quality training.
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It is my understanding, and I might be wrong here, but I think if you produce trading sheets that show net profitability, you get backed 100%. That means no 10k for training. You just come in and trade with their capital from day one. I might be wrong, but a few different guys told me that.
 
that is where the money is for outfits like SMB and T3Live :


Introductory PricingYou are elible for our introductory pricing, listed below. These prices apply to your first three months, then revert to our standard prices.Introductory Packages Active Trader
Everything From Your Free Trial
Virtual Trade Floor
T3 TV
$125 / month
monthly subscription Trading Tools
Virtual Trading Floor$99 / month
monthly subscription Daily Market Analysis
T3 TV$29 / month
monthly subscription Training Online Trading CourseMomentum Trading Course$999
lifetime access Technical Trading Course$1499
lifetime access Coaching ProgramsActive Trading Course$2995
includes retakesActive Trading Lab$4995
includes retakesAdvanced Trading Lab$4995*Active Trading Elite Package$9985
includes retakes
I love the ............ include retakes part.... just like a money back guarantee :-)
 
Quote from Roark:

What do you mean back by 100%? The trader keeps a percentage of the profits he makes, and doesn't have to put up his own capital? Sounds like a good program.

If there were no up front fees and the shop's only return was a percentage of each trainee's profits, think how much different the program would be. There probably wouldn't be any training. Trainees would immediately be plopped in front of a computer next to a competent trader for intensive learn-while-doing.

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Absolutely, and although there are firms similar to what you're describing, they are geared for recent college grads and not experienced traders. This is also why some prefer the Canadian model, where the trader places zero risk capital, gets training, and gives up a larger percentage of profits than U.S. based prop firms.

Most of the U.S. based props have enough traders who are willing to put up their own capital and pay for training in exchange for gaining access to the firm's buying power, so it's a supply/demand issue.
 
Todays stab in the dark from SMB

"Our best AM Idea for today, which we highlighted in our AM Meeting is to get long NVLS as long as it is holding above 37.25"


How meaningless is this call? Do we buy at 38? Where do we sell?
 
In another post they ask for 'help' in how to handle being sodomized by the folks that smell them coming a mile away.

Why are they asking noobs when they are the masters of the universe?
 
Quote from stock777:

Todays stab in the dark from SMB

"Our best AM Idea for today, which we highlighted in our AM Meeting is to get long NVLS as long as it is holding above 37.25"


How meaningless is this call? Do we buy at 38? Where do we sell?
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That would have been great advice had it been "buy@37.25." The day's low was 37.23. It would have been easy to have lost money on NVLS since there was a false breakout early in the day:

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3078671">
 

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That's my point. These 'trade suggestions' are , at best, a pointless exercise.

They do it that way, so the n00bs will think that they would have traded in and out at the best possible times.

When they go to actually trade, they are back at the counter of MacDonalds within 30 days.
 
Quote from stock777:

That's my point. These 'trade suggestions' are , at best, a pointless exercise.

They do it that way, so the n00bs will think that they would have traded in and out at the best possible times.

When they go to actually trade, they are back at the counter of MacDonalds within 30 days.
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A more honest and direct approach is to make a call as the trade occurs LIVE in the market.

Otherwise, as you mention, any "trade suggestion" is pointless especially if it has no guidance on entry, stop and target.
 
SMB is expanding their educational lineup to include options. According to SMB's blog:

<blockquote>SMB is proud to announce the addition of a new trading educator to our blog. Seth Freudberg, a graduate of the Wharton School of Business, is the Director of the SMB Options Training Program (available in the Spring). He has mentored over 100 options traders and presented strategies to numerous traders throughout the world.

Seth will be blogging about what distinguishes successful options traders from those who are underperforming. He will answer any questions from readers on options trading. Seth will also present options strategies that he is currently employing or contemplating. His goal is to help new and developing options traders think about how they can improve their trading game.</blockquote>
My guess as to SMB's business model is that their trading barely breaks even, and the real profit is from training fees. The blog, videos, and book is just advertising to get more paying students.
 
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