OT:
couple things on the daytrading firm:
1) how much is percent pay out?
2) how do they calculate the payout? e.g., one month, you might have a bad month. Does that bad month, carry foward? Or are you able to clear the slate at a certain level? (very important)
3) do you have to pay for the quotes/tools?
4) Do they force you to follow their own stock list to play? Do they impose a certain type of trading strategy?
5) Are you able to short? What stocks do they allow you to play?
6) What is the margin buying power?
7) They probably start you off at a low-share amount to "test you out". How do they move you up to higher share amounts?
8) Do they provide "critiquing" of your performance? Do you work with a mentor trader to learn from?
9) How much are ticket charges? Do they force you to do a certain amount of trades?
10) Do they get PAYMENT OF ORDER FLOW for the trader's trades? (IMPORTANT). Some firms say, "you have to do 10 trades a day, regardless of profit or loss". Thus, they give it to their own market makers to make money off the trades. The firm actually survives b/c of the payment of order flow, however, your gain is that you're trading the firm's money, not yours. (win/win situation, i guess)
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11) What licenses do you need?
12) Can you carry positions overnight? Can you trade via ECN's?
13) Finally, at what point do they "fire you"?
14) If you trade on TA, do they provide with good charting system?
15) If you trade on Level 2, do they provide that for you?
16) How are execution times? Can you direct orders?
17) Remember, you have to pay taxes on the gains too.
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HAVE ANSWERS BEFORE YOU DECIDE. YES! PASSION AND YOUR HEART FIRST. BUT MAKE SURE YOU HAVE A *WINNING CHANCE* TO DO YOUR "JOB" EFFECTIVELY. TOO MANY RESTRICTIONS FROM THE FIRM ITSELF CAN HURT PERFORMANCE. |
