Day Trading Blog

Welcome to Day Trade The World™ day trading blog. Please click on an article to read it.

PPro8 Client Release: ZenoriaStreet 0.42.17 for Live and TMS

PPro8 Client Release: ZenoriaStreet 0.42.17 for Live and TMS

We are proud to announce the release of the PPro8 ZenoriaStreet 0.42.17 client for trading in the Live and TMS environments on Friday, July 21, 2017. This client includes important bug fixes, as below.

Bug Fixes

Miscellaneous

  • Fix: scroll bar issue corrected in all tool windows.

Order Status

  • Fix: office and trader IDs now appear for OPC rejects.

Summary

  • Fix: improved performance.

Time of Sales

  • Fix: colour issue corrected.
Top of Book

Top of Book for ARCE in OTC

Effective Monday, July 24, 2017, PPro8 will display the Top of Book for ARCE in the OTC market.

Traders will not need a new entitlement enabled to see the Top of Book for ARCE.

If a trader cannot see ARCE on Monday, you can try disabling and re-enabling the OTCL1 entitlement for the affected trader.

If you have any questions or comments, please create a mojo.

Communication post

Thailand Equities Market Release

Day Trade The World™ is proud to announce the release of the Thailand equities market for trade date July 20, 2017.

The gateway fee for Thailand is 4.9 BP, and entitlements for the market will be subsidized by Day Trade The World™ until end of year 2017. Market rules remain the same as before.

Be sure to encourage your traders to trade this profitable equities market in Live.

For more information, read the Stock Exchange of Thailand market guide.

If you have any questions or comments, please create a mojo.

Trading blog crock lessons

Important Lessons from Big-Time Trading Crooks

Important Lessons from Big-Time Trading Crooks – Introduction

The financial world is full of many people who have made a fortune as traders. People like Ray Dalio, Paul Tudor Jones, and Carl Icahn have made a fortune in the financial market. They are respected people in the society.

The world is also full of people who have used the financial market in the wrong way. Bernard Madoff is the biggest crook of all. In his scheme, more than $63 billion was lost. Today, Madoff is serving a 150-year sentence. His two sons, Mark and Andrew have died.

On a smaller scale, Martin Shkrelli, also known as the pharma bro, is currently in court – not for jerking prices of drugs – but for the crimes he committed while running his hedge fund. He faces more than 10 years in jail.

A few years ago, a movie, Wolf of Wall Street was released. At its peak, it was one of the best-performing movie in the United States. The movie was based on the true story of Dana Giaccheto. Dana was a money manager for celebrities like Leonardo DiCaprio and Cameron Diaz. At his peak, he used to manage a lot of money before he lost it all. He was locked up for five years. After his release, he tried to rebuild his life before meeting his death.

Recently, one of my best friend disappeared without a trace after losing more than a million for her investors.

As a trader – especially if you have ambitions for managing other people’s money – this article is very important to you. In the article, I will provide a summary of key lessons you can learn from these people.

  • No one starts as a crook

No one who ends as a financial crook starts his career wishing to be a crook. They all start with a very noble desire of making money. They have a desire to be the next Carl Icahn, George Soros, or Warren Buffet. Bernard Madoff’s goal was to run the most profitable fund in Wall Street. The same with all the crooks mentioned in this article.

The trend is usually the same. They start out innocently, make a fortune for themselves, and then reach out to potential investors. They show their performance and promise their investors that they will protect their money. After receiving the funds, they start making money for their investors.

Then along the way, a mistake happens. They make a single bet that ruins their streak. To avoid being found out, they start falsifying their data and sending clients reports that are incorrect. Happy about the returns, the investors bring in more money and introduce their friends to the scheme.

At a point, some investors will want their money back. The manager will then take money from the account and pay them.

The problem comes when a large investor wants to redeem all his funds and the trader does not have it. This prompts panic calls.

  • Need for honesty

To avoid being in this position, honesty is key. It is the most important attribute that you must have. You must be ready to face your investors and tell them that the performance has not been good. Doing this is not easy.

The best way to start this is by talking to your investors when they sign up. You should tell them these realities of the financial market. First, there is no pro in the market. When the market opens, we are at the mercies of the market. Anything can happen. Second, you should let them know that the past performance is not always an indication of your future performance. Third, you should tell them that you are not a bank. Banks are tasked with protecting people’s money. As a trader, your task is to grow the funds. As you strive to grow these funds, you can lose them too.

When the investors know this, chances are high that they will be hoping for the best while still expecting the worst.

  • Don’t game the system

Most trading crooks go wrong when they start gaming the system. Unfortunately, no one can efficiently game the system without being caught. As I have mentioned before, the world of trading crooks can be traced to centuries ago. They have always been there. Only a few of them have gone without being caught.

To stay in line with the system, you should be open with your investors. The best way to do this is to send them regular updates. These updates could be on a monthly or quarterly basis. You should ensure that the updates are accurate. Even when you make a loss, you should be open to your investors by telling them the truth.

  • Legal opinion

Money is a very serious issue. People are emotionally attached to it. To avoid being sued by your traders, the best thing for you to do is to have a legal opinion. When you sign up new customers, ensure that you use the experience and expertise of a lawyer. The lawyer should ensure that you are not sued when the trades don’t work out.

These are the practices that have been performed by the best investors and traders. For example, hedge fund managers release their quarterly letters to their investors. In these letters, they explain their ideas and the performance of their funds.

Important Lessons from Big-Time Trading Crooks – Useful Tips:

Trading blog confidence

How to Rebuild Your Trading Floor After Weak Performance

How to Rebuild Your Trading Floor After Weak Performance – Introduction

Running a trading floor can be fun. It is especially better when you have a lot of interests in finance and investments. Although I am biased, I believe running a trading floor or being a trader is the most interesting careers anyone can take. Consider that you don’t need to pay for an office. In most countries, you don’t need to pay taxes and above all, all you need is a computer and a high-quality internet connection.

However, like in all businesses, having a trading floor has its own ups and downs. In certain times, the market will go against you and unfortunately, you will make losses. Many trading floors have been shut after a series of mistakes. In this article, I will highlight the key steps you need to follow when rebuilding your trading floor.

  • You are not the only one

It is said that misery loves company. This means that when you are in trouble, chances are that you will be at peace knowing that other people are in trouble also. The pain is usually much if you are alone. If your trading floor is going through challenges, you are not the only one. Also, you are not the first. The fact is that many trading floors and hedge funds have gone through worse challenges and emerged successfully. A good example is Bill Ackman who runs Pershing Square Capital, a hedge fund with more than $10 billion in assets. Before starting the fund, Bill used to run another fund called Gotham Partners with his friend. After a series of bad investments in real estate, Bill was forced to shut down his fund. Today, Bill is one of the most prominent people in Wall Street and his fund has had major wins in the stock market.

  • Identify the mistakes

To be in the current situation, chances are that you made one or several mistakes. It could be you or one of your traders. To start over again, you need to identify the source of the mistakes. Without doing this, chances are that you will continue making the same mistakes. Perhaps you hired the wrong people. Could be that your management skills were not the best. It could also be that you encouraged your traders to take very big risks. There are many mistakes that you could have done. The right thing is to identify these mistakes and work towards correcting them.

  • Start afresh

After establishing the mistakes, you need to start afresh now. Do the best that you can to ensure that everything in the new floor is new. If the mistake came from a trader, ensure that you fire them. It is better for you to make enemies than make friends in a business that is deteriorating. The new floor should have a new way of doing things. In all, you should introduce a new culture in the floor.

  • Grow slowly

One of the main reasons why most trading floors fail is because of the amount of risks investors take. To achieve the goal of high returns, traders end up taking too much risks. The higher the risks, the higher the returns. Equally, the higher the risks, the higher the chances of losing money. Therefore, the goal of your new floor should be to achieve slow but steady growth.

  • Be extremely vigilant

Since this is your new attempt to rebuild your fund, you should ensure that you are extra-vigilant. Being this vigilant ensures that the past mistakes are not repeated. It also means that you should go an extra mile to prevent making mistakes. For example, you should set new rules to your traders. The new rules should be about returns and preventing mistakes from happening.

How to Rebuild Your Trading Floor After Weak Performance – Useful Links: