What exactly did WorldCo do wrong?

Quote from spyderman:

Question....how many other prop shops have gone under? Broadway? Hartland? Lions group? Harbor? How is shonfeld and hold brothers doing?

My point is give amateurs 10 or 20:1 margin....we all know 90% will fail? So can I assume in the end.....when the final chapter is written that 90% of prop (chop) shops will fail?
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They will fail to make money for themsevles, but what about commissions?

Churn and burn was Worldco's hiring strategy. Just does not work.
 
Quote from alanm:

There's lots of talk about Worldco management being crooked, criminal, communist, evil-smelling, etc.

What exactly did they do, other than manage their (and their members') business badly? Did the members get regular copies of the financials, and did they reveal a business that apparently was in trouble for some time, or did they hide it from everyone?
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I think the fact that they were still recruiting new traders (i.e. taking new traders' money) in the same month they declared bankruptcy is just wrong.

Why the business crumbled: lack of an effective training program I imagine. From what I have heard from a few friends I knew that worked there, training at worldco amounted to just a few trading videos that traders could download from the worldco website. If you take in lots of new traders and don't give them at least some guideline as to how to trade profitably, what do you expect?
 
Quote from burnin:



sorry silk,
it couldnt happen to every firm, every firm dosent have BLOATED FIXED COSTS. Its true the environment has gotten tougher for everyone but the dopes who ran worldco couldnt run a lemonade stand
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bruan family is extremely wealthy. they made alot of money from worldco and the market. your remark is dopey,
 
Quote from burnin:



sorry silk,
it couldnt happen to every firm, every firm dosent have BLOATED FIXED COSTS. Its true the environment has gotten tougher for everyone but the dopes who ran worldco couldnt run a lemonade stand
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Well, given the fact that they ran the business for over 10 years, I am inspired to start a trading firm of my own (i.e. since you imply that running a trading firm sucessfully for 10 years is easier than running a lemonade stand, even I, with no experience, could manage it)

Thanks for the inspiration! :)
 
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