Worldco Going Out of Business
- Thread starter Thug_Life
- Start date
I feel the same way. Despite some minor inconveniences I had to put up at Worldco, I actually liked trading there. Worldco was a daytrading titan. At it's peak, Worldco had about 800 traders and the top 20 traders there were making 1k to 20k every day (on those rare great days, they were making 5k to 100k).
I enjoyed it too. Too bad ownership family turned out to be thieves and liars that belong in prison. Walter never even did show his face again. Meanwhile, the owners were still taking money from and bringing in new traderse as recently as the last month. They lied and deceived everyone till the end. And chances are the traders won't even get 1/2 their capital back. The Bruins have crazy millions and still have a successful hedge fund (among other things), and yet they will screw every middle class trader for every $1 they can. Hopefully, the smirk on their faces for stealing thousands of dollars will be wiped away (even if years down the road) after a lawsuit for their millions. May they rot in hell!!
that's just the last 6 mos. The farther you go back, the higher the bottom of the top 30 list used to be on TYPICAL days (not just especially good days).
WorldCo is no surprise. Neither was Schonfeld when they went under....or semi under....i believe they are now finished.
I mean.....if you just take anyone and give the 10:1 or even 20:1 odds are, they will blow out before they become profitable. To give rookies leverage and to give 400 traders leverage is just not smart., UNLESS THEY ARE PROVEN....THEY HAVE A TRACK RECORD.
Besides...the Day Trading model of the 99 run is finished.
IMHO the survivers will be the smaller firms....of 20 traders or less, that are not given huge leverage and that pay very low commissions so they can scratch all the time vrs losing.
The WorldCo blow out is not the first and it will not be the last.
I mean.....if you just take anyone and give the 10:1 or even 20:1 odds are, they will blow out before they become profitable. To give rookies leverage and to give 400 traders leverage is just not smart., UNLESS THEY ARE PROVEN....THEY HAVE A TRACK RECORD.
Besides...the Day Trading model of the 99 run is finished.
IMHO the survivers will be the smaller firms....of 20 traders or less, that are not given huge leverage and that pay very low commissions so they can scratch all the time vrs losing.
The WorldCo blow out is not the first and it will not be the last.
a firm that small wouldn't be able to compete on rates.
Actually, Worldco did not give crap of leverage to rookie traders. There were actually people who spent months trading 100 or 200 shares. Also, the biggest disappointment is not THAT they went out of business, but rather in HOW they went out of business. The fact that teh filthy rich ownership and upper management did nothing but lie, steal and cheat middle income traders just shows what weasels and criminals they were all along. And the fact that they are are so obviously proud of their job in closing the firm, that is, they are proud of saving themselves money by being dishonorable and screwing the traders, it just shows what people can still get away with on Wall Street.
Quote from Cdntrader:
hmm ..let me guess and the other 780 were losing (20 x1-20k/780 traders) a day
ummm, no. it was actually a top 30 list till not long ago, and it was a LIST of top traders for the day, NOT ALL PROFITABLE TRADERS. And only this year did it get so bad that people making around $1,500 were often on the list. It used to be you had to make around $3,000 just to make the top 30 on an average day. Also, by February this year there were only around 400 traders, NOT 780. So please review the facts and statements actually made.
true.