What is needed to set up a pro firm?

Quote from qll:

i have decided. here is my plan:

i am setting up a pro firm, not a prop firm.
$250 to $500 is enough for they guys i will hire.
instead of hiring a trader, i will hire a programmer, basic C, Perl programmer to analyze RAW, 10Q, S4 data.
instead of day trading, i will use the programmer for position trades. less trades via Retail Firms, so less commissions paid.

$100k investment.
$250 for 1 programmer. $3k per year.
borrow space from my existing business, so rent/internet is free of charge.

My cost of capital is 6%, so this plan will break even at 9% ROI.
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Why dont you just open a prop account somewhere, get leveraged (if you want) and contract out any programming you need. I dont understand what the point of what your doing is.
 
Quote from qll:

i have decided. here is my plan:

i am setting up a pro firm, not a prop firm.
$250 to $500 is enough for they guys i will hire.
instead of hiring a trader, i will hire a programmer, basic C, Perl programmer to analyze RAW, 10Q, S4 data.
instead of day trading, i will use the programmer for position trades. less trades via Retail Firms, so less commissions paid.

$100k investment.
$250 for 1 programmer. $3k per year.
borrow space from my existing business, so rent/internet is free of charge.

My cost of capital is 6%, so this plan will break even at 9% ROI.
More...

LOL. All figured out huh? Let us know how you'll keep a programmer who could make $250 a day trading by paying him $250 a month.
 
Jesus, you come to a web forum for advice on how to start a business. Why don't you do this, get some experience develop your professional acumen and then maybe you will have a fighting chance. This is a perfect example of why most traders and businesses fail. You want someone else to do your work, get a clue.
 
Quote from Szeven:

Why dont you just open a prop account somewhere, get leveraged (if you want) and contract out any programming you need. I dont understand what the point of what your doing is.
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1. I hate leverage. TIME is my enermy in overnight position trading.
2. I found that outsourcing is more expensive than hiring employees directly in the outsourcing country.
3. It takes too much time to train a trader to be good. During the process, the trader may lose my capital. On the other hand, position trading programmer's picks will be reviewed before trades are entered. Very safe.
 
Quote from Dogballoon:

LOL. All figured out huh? Let us know how you'll keep a programmer who could make $250 a day trading by paying him $250 a month.
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Most programmers cost $250-500 a month.
New college graduates cost 250.
Programmers with 2-3 years experience cost 500.
If you need one, I can charge you $1000 a month.
 
Quote from brokerboy:

This is a great business plan on Fantasy Island. Will you have midget throwing too. I don’t think many gamers are the people sitting on 100k or more to put up in a prop firm. You would have to be a fool to put up more then 5k for 250k in buying power. Any basic day trader putting up 10 to 1 for prop is retarded because your money is commingled and can be lost or taken away from you for not even making a trade. They would be better off in IB putting up 25k and having unlimited day trading power and still having your money protected under the retail costumer laws. Now if you’re a real player and you trade with millions in buying power having a few 100k up is not that crazy.
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"unlimited daytrading power"
what are you talking about?
 
Quote from Szeven:

Probably referring to the PDT rule, hence suggesting 25k/retail.
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still limited to 100k buying power not unlimited. don is right you need a sense of humor nowadays.
 
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