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I'm with Bright and want to address some of your statements:
> you have to be licensed and i think you get 1-10
> and....circa ( street talk ) one year ago...
You get capital in relation to your performance... the better you do, and if you
demonstrate that you are not "wild", then you should be able to get what you
need. As it's a professional firm, the term "margin" really doesn't apply.
> all money goes into Mr. Bright account as i have heard
> ( might not be correct )
> it's very typical for smaller type outfits.
> the way it works is this: if Mr. Whatever gets to find
> say 50 traders he can then trade on the remaining
> balance of unused equity, typically enough to
> trade good size without having his own money
> in the account ( or very little of his own money )
> since most traders never use full margin. sort of like a bank
> using your cash in your checking account just for holding
> it and charging you fees on top of that. so as far as that
> he is really a bright fella. nothing wrong with that as long as
> you are ok with that setup.
Bob Bright started Bright Trading with his own capital because he likes trading
and wanted to make the low fees and capital available to professional traders
or give people an opportunity to become professional traders. He doesn't
need anyone's money to fund the firm. It used to be Bright Trading, Inc., but
the regulators just didn't like the idea of that corporate structure and so after
years of resisting, Bright became an LLC. They didn't become an LLC to get
other trader's money to use to trade. When it was an Inc., you never traded
your own money, only the firm's and the firm's money didn't come from it's
traders, it came from Bob Bright.
> also beware of loc type setups, a group of licensed traders
> who roll their accounts into one and trade 1-10 margin.
> if one guy really screws up he can wipe the rest of group out
> real fast, happened before.
This is true. If you do look at Bright, you will see in their operating
agreements, that all of Bob Bright's money in the firm has to get wiped out
before one trader's funds can get touched. (I still don't like the idea of the
LLC, but what can you do about regulators). Also, Bright watches all traders
risk like a hawk and carrying naked positions overnight is strongly
discouraged. They emphasize the "day" in day-trading. And your capital
requirement's are relatively low, so if this is an issue, you can keep your risk
to a minimum.
> > I'm looking at trading with these folks. Has anyone had any experience
> > with them? Is the Series 7 certification worth the effort?
> >
If you are a high-volume trader, like 200K plus shares per month, I think it's
worth it. If you're not, it's probably not a good deal for you. I didn't find the
series 7 to be a big deal. I put in 60-70 hours of study time using the Pass
Perfect study guides and got an 84. I just found it annoying to have to do it
(another regulatory thing) as 95% of it has nothing to do with trading like we
do.
As I said, I've been with them for a while, so I may be biased, but I always
keep my eyes open and have not found a better deal on the street.
I'll stop here so as not to spam the list. Just wanted to clarify some info and
answer the original questions.
Cash
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