Stocks & Commodities V. 24:6 (71): Q&A by Don Bright
Product Description
Stocks & Commodities V. 24:6 (71): Q&A by Don Bright
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
PROFESSIONAL VS. RETAIL
Q: I have read some of your articles where you refer to “professional” trading, and wonder what that actually means. In addition, what is the reason for allowing your traders to use a million dollars of your firm’s capital to trade with? Isn’t that awfully risky, like too much margin?—dtcryer82
A: Good questions! I haven’t written here about “professional” trading in a while, so here goes. When referring to professional trading I mean professional versus “retail” trading, not versus “amateur” trading. Since around 1998 or so it’s been a requirement that all traders have licenses (at least a Series 7), or else they are stuck trading with a retail brokerage. The inherent restrictions on retail traders make it virtually impossible for most traders to make money. The main restrictions affect a trader’s use of capital and market access, which leads into your other question.
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
PROFESSIONAL VS. RETAIL
Q: I have read some of your articles where you refer to “professional” trading, and wonder what that actually means. In addition, what is the reason for allowing your traders to use a million dollars of your firm’s capital to trade with? Isn’t that awfully risky, like too much margin?—dtcryer82
A: Good questions! I haven’t written here about “professional” trading in a while, so here goes. When referring to professional trading I mean professional versus “retail” trading, not versus “amateur” trading. Since around 1998 or so it’s been a requirement that all traders have licenses (at least a Series 7), or else they are stuck trading with a retail brokerage. The inherent restrictions on retail traders make it virtually impossible for most traders to make money. The main restrictions affect a trader’s use of capital and market access, which leads into your other question.
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