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Neal: Sid, stage three, that is your graduation? |
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Neal: How many contracts a day are some of your big traders doing now? |
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Sid: We have some very good traders down there. They'll do hundreds, two hundred, five hundred. But the thing is, many of them still scratch 70 to 80% of their trades. |
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Neal: What's amazing is that the public thinks we are making money every day and not scratching at all. |
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Sid: That's a common misconception. The reason is that the public hears about the 5% who've become extremely successful. They do not focus on the other 95%. This industry does have a high turnover. It has been said that there is approximately a 75% turnover every two to three years. We've been very fortunate. Because of our training, we have had a much higher success ratio. When I meet with people who come to our firm, I explain that we do have a philosophy of trading. Now, if you want to be a position trader and clear through our firm, we can do that, but you need more money in your account for margining purposes. Because if you put a 5-lot on and you only have $5000 in your account, imagine what's going to happen. We've lived through limit moves, so we know what it's like. A guy off the street doesn't understand that. He's never been caught in a market long when it's limit down for two days in a row. |
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Neal: What are some of the characteristics, qualities, and background you look for in a person? |
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Sid: There is really no academic preparation that would prepare you for trading on the floor. Undoubtedly, there are people here on |
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