Regarding Block versus Attain, rates and equipment, specifically
the Seattle offices. Given a two hour presentation at each
location, I noticed the following differences:
(1) Customers at Attain had only a single monitor, and it seemed
smaller than the larger of the two monitors the customers
at Block had. I think the secondary Block monitor was for
news feeds and the like, I should have asked more. My
preference would be the ability to receive a personalized
news feed, according to my own requirements. I would also
like the ability to look up SEC reports and out of date news
without getting up from my seat. I don't know if Block has
that, but it was clear that Attain did not.
(2) Attain has a much more complete training program, and
I suspect, is better at getting novices running on their program.
But I really don't think that's an issue, both companies had
what appeared to me to be obvious and intuitive interfaces.
I can hardly wait to try trading on one, it must be awesome.
(3) Block seemed less formal, in every way from how the
employees dressed to how the classes are run. This is the
way I would prefer, and since the trainers are up from Texas,
I got along with them instantly. Who you work with is really
important to me, and the Attain crowd did not impress me
much.
(4) Attain was obviously more stable, as they have been
running for longer up here. At Attain, it almost looked like
you are a member of a trading firm that would replace you
with a machine but the SOES rules forbid it. I think they
really want you to be successful, while the Block people
are more likely to let you sink or swim. But I like jumping
into deep water, it gets my adrenalin up. That's why I
like to play dead cat bounces. (Wish me luck for
Monday, I picked up "sticks" on SIMN and MICA this
week, but am down a quarter on HRSH and holding
over the weekend.)
(5) Block charges about $.15 per share, with extra fees for
ECNs, if needed, while Attain charges $25 per trade. It
looked to me like Block would be much cheaper if you
were "paper" trading with 100 share lots, for instance,
and was much closer to the company's costs.
(6) The Block office was smaller, but had far fewer seats,
while the Attain office looked like it would require massive
air conditioning to keep the heat down with all those tightly
spaced computers and customers.
(7) Block returns your class fee ($3500) by giving you 30
trading days without having to pay a seat fee. (Which is
eliminated if you do something like 20 round trip 1000 share
lots per day.) Attain, on the other hand, does something
like reducing your commissions for 6 months, but the
class fee is $5000.
(8) My ideal would be to position trade for 24 to 72 hour holdings,
when I find incredible bargains, and try to pick up eighths on
more or less stable value stocks the rest of the time. The Attain
people basically suggested that position traders are losers, but
my suspicion is that they are looking for the commission volume.
Maybe they are right, and SOES is not ideal for position trading.
But when I look at how much commissions I am sending C.
Schwab, and the lousy order status I get at Ameritrade, my
conclusion is that the commission costs are not that much
higher than what I am used to, and I have been holding down
a more than full time job.
My guess is that the Block office may not survive, but I could
easily transfer to the Attain office, if required. Basically, these
companies are looking for traders, and they don't look to
be too picky about who they try. Attain suggests you leave
if you draw down by 20%, and throws you off if you go down
by 40%. When I looked at the other people who showed
up for the seminars, I thought I saw <<LOSER>> tattooed on
most of their foreheads. For instance, Attain said they had
a technique for allowing hedges that would take 4.5 hours
of class to explain. I noted that if I wanted to trade 100K
of a stock at C.Schwab, and wanted to start out hedged,
it would require 150K of margin to allow me to go 100K
long or 100K short on any tic. But in 5 minutes Attain
explained that they only required 5% margin on hedged
positions, so I calculated that it would only require 55%
margin to go 100% long or 100% short. For this they are
going to talk to me for 4.5 hours? Forgive me, but my
conclusion was that were trying to teach people who
don't know jack about stocks or investing how to trade
them. But they claim a 40% success rate among class
members, and a 50% success rate among account
starters.... (I don't think so.)
Suffice it to say that I immediately wrote a check to the Block
people for their class starting March 15th. If this doesn't work
out, I'll go back to designing electronics. My feel is that losing,
say 30K trying this isn't a big deal. I expect to have a great time,
win or lose, but I am about as competitive as they come, and I
don't mind having reality rubbed in my face daily. (I.e. I don't
mind admitting my mistakes.) Hey, I lost a lot more than 30K
getting divorced, and I'm still great friends with the ex. One
good design contract, and it's back in the bank. I believe
I've got a customer who is praying that I fail miserably at
day trading. :)
Sorry for the length, I'm going back to read previous comments
here, I'm sure you've heard it all before.
-- Carl |
