Trading Firms

[DOTTT]

I’m looking for information on firms that allow you to trade their money or ones that give a lot of leverage for your own initial capital, I’m not really sure what they call them. I was thinking of giving this a shot, as I’ve had success in the past day trading and would like the experience of trying it full time, at least for a couple of months. What was the pay out arrangement? Can you point me out to any info on these firms on the net, or share your own experience if you’ve ever worked for one of them before. Thanks in advance for any info you can provide.

[GeorgeF]

Go to you local library and read 'market wizards'.

Also a good source on why you are likely to fail as a trader:
http://www.fooledbyrandomness.com/

As to getting hold of other peoples money, try a low down payment, low doc, real estate loan.

[DOTTT]

Thanks for the encouragement [img]/images/graemlins/grin.gif[/img].

Seriously though, I've read all three market wizard books, as well as the article you mentioned. I still believe I can day trade and make a profit over the long term. So do you hanve any info on my questions? Thanks.

[cwsiggy]

I believe Broadway Trading went out of business as did Momentum trading. You'll need to do a search for the newer firms. Be careful!!!! Many firms trade out of Red Bank NJ so maybe you can do a search that way.

You may want to call the big clearing houses and ask them what day trading firms are still left.

Good Luck

[GeorgeF]

Reread the market wizard books and pay attention to how people capitalized themselves.

[tek]

Daytrading firms will probably wait to see how you do with your money before they let you risk blowing their money.

And when you trade your money at these firms, read the contracts carefully. You may have to subsidize losing traders who blow out on margin...There's a firm called NDX with offices in various cities. I continued to trade at home after reading their contract.

[mrbaseball]

[ QUOTE ]
I’ve had success in the past day trading

[/ QUOTE ]

This is obviously very important. And to get backing arrangements these days you will need documentation to prove it along with a strategy and trading plan that you can communicate to guys who will be able to see through bs.

I have worked for trading firms with backing arrangements for the past 20 years. I started out as an options market maker on the floor at the CBOT. The business has changed a lot over the years. The pits are all but dead now and it's all electronic for the most part although futures options are still primarily floor traded. Over the years I have traded just about every commodity there is along with their options as well as stocks and stock options.

For futures trading your best bet is to sniff around the clearing firms in NY since I see you are from NY in your sig. Knowing someone is obviously good. Pretty much required these days. For stocks I'm not sure? There are a few firms that specialize in the stock market trade and I know a few guys here who have gone to that electronically. But most of them have been having a tough time since the tech crash a few years ago. Before that it was gravy but now they seem to be struggling.

It takes time and good performance to get a good deal. Sometimes they will give you a crappy deal and little latitude to try and prove yourself. If you can break even or better the clearing firm will make money on the juice your trading gives them and with good risk management they have little to no risk.

My advice is to write up a business plan and trading strategy coupled with documented trading success and try to sell yourself to every clearing firm member at every exchange and do the same with the stock market firms that have their own electronic trading platforms and trader arrangements. The backers make their money on the juice and anything you make them on top of it is just the frosting. They just don't want maniacs who will bury them with losses. So the more professional and documented presentaion you can make will greatly increase your chances.

Good luck! If you think tilt can kill you in poker you should see it in trading [img]/images/graemlins/smile.gif[/img]

[DOTTT]

Thanks for the reply. I was thinking of joining Bright Trading or maybe Hold Brothers here in NYC. Both offer training and monitor their traders very closely to determine their weakness, and how they can improve. I'm leaning towards Hold Brothers because they don't require their traders to pass the series 7 exam right away so I can see if this right for me without wasting anytime.