worldco going out of business??

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I have talked to a couple of prop firms in the last two weeks about a prop trading deal for a futures trader.....then I read this kind of a thread. This is exactly what I would not want to have to deal with after joining a prop firm. It does seem that the prop trading side of the trading industry has more downside shakeout left before a good uptrend. Maybe I am wrong, but at this point I do not see the advantages of joining a prop firm for the type of trading that I do (ES). The last thing I would want during each trade day, is the distractions from doubt about the welfare of the company I trade for. I will continue to do more research into the possibilities for going the prop trading route at this point in my life, and I think meeting with different company reps in Vegas (20th - 23rd of November) should help. In the end, I will look at the big picture and make a decision by the end of the year (no rush for me with all the holidays ahead), but this type of news only makes the waters murky for me. :confused:

Chris

BTW, best wishes to all the traders at Worldco, and I do hope things will work out for the best. Worldco needs to handle this in a professional manner for all that are concerned!
 
I am also quite amazed how such a large prop firm could go down. I personally know a few WorldCo traders(profitable traders), who trade a huge amount of volume every month, but still have a very high commission rate!! Isn't being self-clearing supposed to save the firm and traders money? I assume the fixed costs of operating a self-clearing business have become too high compared to the trading volume. Thus there are no longer benefits of economies of scale.

Even if this rumor is not true, this is very bad news for WorldCo. Just think, do you think any trader in their right mind would continue to keep any capital in a firm with signs of failure?? I wouldn't be surprised if by years end half of their traders have abandoned ship!! In any case, hopefully all the traders get their money back!

xbrxx
 
Chris:
I am yet to find a prop firm that lets you trade futures.
Real pro firms still have you post a performance bond as they call it, to trade. So why get involved with a firm with anything less than a shiny reputation? How many ES are you looking to trade?
You only need a performance bond of $50K to trade decent size(40-50 mini contracts) at a REFCO or other reputable firm.
STAY away from these bucket shops! Keep ripping 'em up in the ES.

best,

ebo
 
I have had no prior knowledge of how the prop trading business works other than what I have read on ET. I decided to talk to several prop firms after receiving an e-mail recently in regards to joining with a prop firm. My interest with talking to different firms was to learn what they have to offer a person that would like to continue to trade futures. I do believe that a person can learn new ideas and concepts from being exposed directly to other traders, and this was also a reason I thought that trading prop could be a possible route to take. Trading from home full time is great in my opinion, but I do want to consider all possible options for moving my trading in a new more professional and focused matter (trying to move to the next level). I do also feel that trading from home with large size (25 to 50 lots per trade or more) has some downside risks also (no specific onsite technical support/ distractions from family members/ indirect dealings with broker for incorrectly processed trade orders, etc.). I do not have a computer or IT background, and I find at times that I would love to have an expert near by for assistance with issues during the week. Also, I am more of the type that likes to interact with people during the day so trading by myself locked in a coat closet is getting old.....JK :D

Chris

BTW, yes there are prop firms that have futures traders (I have talked with some of these traders recently), but I do agree with some of your post. So far I do not see enough advantages for trading through a prop firm....and yes I will research Refco. Thanx!
 
First firm representative to circle the not-dead-yet carcass is?

Traders BEWARE! The grass is brown on the other side too.

Over the entire period of years at Bright I saw a balance sheet card (about 3" X 5") at Bright. I'd like to see Don's face if you were to ask him for up-to-date financial info. every quarter. Be real, Don Bright doesn't even get the K1 out until 6 months into the following year.
 
Quote from MVP:

First firm representative to circle the not-dead-yet carcass is?

Traders BEWARE! The grass is brown on the other side too.

Over the entire period of years at Bright I saw a balance sheet card (about 3" X 5") at Bright. I'd like to see Don's face if you were to ask him for up-to-date financial info. every quarter. Be real, Don Bright doesn't even get the K1 out until 6 months into the following year.
More...

Why not just write it into your contract ? If the other party wont agree then just dont do the deal. Its that simple ......
 
Tough times for prop firms. Volume is way way down at my firm. We just had a trader quit with 3 yrs experience and now there are only 2 traders left in our office doing significant volume averaging over 40k per day. I think the last thing I would do right now is open up my own trading office. Most people in the office are just getting by this year daytrading NYSE stocks. I think it will be a big competition for firms to lure in high volume traders to survive. I think finally next month I will switch to remote prop to save on commissions and try to ride this storm out. Plus that long drive into the office is getting harder and harder knowing my day doesn't have the upside it did last year.

Good luck to all the WorldCo traders. It will be interesting too see how this shakes out.



:cool:
 
I've seen a steady decline in volatility and day trading all year long. Friday all trading seemed to come to a halt. Its as if the "day trading financial system" is shutting down. Stocks stay in penny ranges for hours at end. Only to make a move on thin air and no volume. Even specialists can't make money (I.e. LAB latest quarter report). I trade about 35-40% the volume i did last year and i'm way overtrading at that.

I'm a worldco trader and have no news to report. I will be the last to know i'm sure if there is any truth to the rumors. I hope they arn't because my Boca office is a great office to work at. But i'm really starting to fear that all day traders have a bigger issue here to deal with than whether or not their firm goes belly up. Has our job become too impossible that even a good trader can't make a few dimes.
 
I have the same sad thoughts. I do not feel like going to work anymore. I tried to stay in business hoping for the market to improve (trading wise) but now I have more and more doubts about this. I am wondering what prop shops can offer to new traders, I mean 3 years ago they could show people making millions as an inspiration but now somebody who makes $300 - 400 a day is a super trader.
Nevertheless new traders come to office hoping to make big money, the hope dies last.
 
There is a difference between not being able to trade and a firm or firm's interfering with your trading. Worldco and other firms like them are certainly interfering with there traders ability to trade. They could have told their traders last week what was going on. What did they do? In the midst of all the rumors, they told their traders that they have to wait till Monday to find out the fate of this. Even then I am sure they may not get the real story of what is going on.

Sure the market is tougher to trade then 3+ years ago. But, you all make it sound like it is a impossible fete to make money. I do not agree with this. Friday, you had CFC move more than 6+pts, CA got rocked more than 2pts. If what you do is trade stocks for a living you have to stop making excuses or blaming external factors for not making money and find out the real reason(more likely within yourself) your not making money. I find when I am having a tough day or week or month it is usually 90-95% my fault. Maybe I have alot of outside stress, or I am afraid to take rsik, or I don't feel well, or I stayed out late. Too many people blame there failure or moments of unsuccess on a "tough market day". Hey, if you are losing money, there is someone else out there in the maket making it.

If Worldco goes under it really should demonstrate that none of these prop firms are invincible. Worldco was huge, and they still are pretty big. I know alot of traders there that are going to lose a ton of money if a worse case scenario plays out. Even traders who have been there less then two years who really haven't made too much cash may lose 30k plus. It is simply disgusting.

If Worldco doesn't pay it's traders their money that they had as capital it will be a total travesty. If they don't pay it will truly show that the family that runs that shop are fat pigs who stole all these people money.
 
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