Day Trading Business Centre

[Ddan 10]

I've often thought of converting our now vacant office space of 6000 sq.ft into a Day Trading Business centre where all traders would have thier own booth with 4 monitors along with various LCD's around the offices broadcasting business news and also having an espresso bar, lounge, gymnasium etc.. Kind of like a business club

 

Am I nuts or is this a good idea?\

 

Dan

[brownsfan019 17]

It could work for those that want to socialize w/ other traders.

 

So what's in it for you? That's the question - what would it cost me, a trader, to trade there?

[Ddan 10]

I would bennifit for having the space leaseed which would solve my #1 problem,

Cost structure would be no different from leaseing office space c/w common areas. It would be a tad bit more for the reasons of having the booths setup for trading with Monitors, internet connections etc..

 

Dan.

[brownsfan019 17]

I would bennifit for having the space leaseed which would solve my #1 problem,

Cost structure would be no different from leaseing office space c/w common areas. It would be a tad bit more for the reasons of having the booths setup for trading with Monitors, internet connections etc..

 

Dan.

 

Right - I see what's in it for you. So what's in it for me? I get to pay someone's lease, pay for their internet, computers, etc.? All for the chance of socializing with others? And do I really want to be socializing when I'm trying to trade and make money?

 

Just giving you the other side of the coin.

[Ddan 10]

I guess there are two train of thoughts; Trading alone and networking online or trading in an office enviroment with other traders and networking in person. There are really only a few hours throughout the day where day traders make their moves and the balance of the day can be spent networking in person along with the perks in the common areas.

[brownsfan019 17]

I guess there are two train of thoughts; Trading alone and networking online or trading in an office enviroment with other traders and networking in person. There are really only a few hours throughout the day where day traders make their moves and the balance of the day can be spent networking in person along with the perks in the common areas.

 

I get what you are saying but I'm having trouble seeing why I would want to do this as a trader myself. Now if you used this as an avenue to offer new traders a place to work AND be taught, that could work. And then once they get comfortable there, it will become habitual to just 'go to work'. But I think it would be hard getting experienced traders to just up and leave what they know.

[sep34 10]

Providing trading education via in-house seminars, invited guest etc. would motivate the new and intermediate , or those that need hand holding traders.

 

providing an atmosphere for networking would be atractive to the seasond trader that suffers from isolation i.e. those traders that are profitable yet they work from home all by themself.

 

From my perspective the only motivation I can see for a seasoned trader to abandon the convenience of his home office is.....

1. To network.

2. To solve the isolation. Which can become a serious problem if its not nipped in the butt sorta speak.

 

From your standpoint as the business owner. you would need to figure out how many clients(traders) you would need to make your business profitable....and figure out if you can get that many clients in your region.

 

For example I live in the DC metro area....not an infamous place for Traders, however the closer to the center of the metro area there is a higher population of traders per capita then there is the farther one moves from that center.

 

My point is that your office space location and how far a client would need to tradvel may be an important consideration.

 

Most seseaond trader are set in their ways and they most likly would want to use their own Hardware/favorit brand of hardware. some would require dual monitor while others would want 8monitors and one Desktopsand one Laptop or multiple desktops etc.. therefor you would need to be flexiable in this area.

 

 

Regards

[enochbenjamin 10]

I've often thought of converting our now vacant office space of 6000 sq.ft into a Day Trading Business centre where all traders would have thier own booth with 4 monitors along with various LCD's around the offices broadcasting business news and also having an espresso bar, lounge, gymnasium etc.. Kind of like a business club

 

Am I nuts or is this a good idea?\

 

Dan

 

what city are you talking about?

[Tams 20]

there are busy traders (daytraders, scalpers),

and there are easy traders (3-4 days swing traders, option traders, overnight stock traders, etc.)

 

 

Busy traders are the high concentration traders -- they are focused during the market hours -- they don't have time to talk, and they don't want to socialize with strangers because they are a distraction. Most importantly, they don't want/need people gawking over their shoulders.

 

 

6000 ft is a lot of space...

you can easily divide it into quiet trading spaces, and BS trading spaces, seminar space, or even a workout space, etc.,

 

 

But seriously... I don't see how this can work.

Here are my 2c...

 

1. most wannabe start out traders are under capitalized... they can't even afford proper software, let alone pay your rent.

 

2.most serious traders want to trade... not hang out.

 

 

if you are offering space, it is not going to be an attractive proposition, because space is not a problem to most traders... all they need is a small desk at the corner of their home.

 

to make it viable, you have to offer value-add that traders cannot readily obtain elsewhere or otherwise.

 

let's run through a quick list of what a trader can use... (not a comprehensive list)

 

1. computer/LCD? You don't want to get into the IT equipment rental/maintenance business.

 

2. FO internet, datafeed, bloomberg, reuters? used to be a precious commodity 10 years ago... but anybody who wants it can get it now.

 

3. software? well... everybody wants to play with that $10,000/month artificial intelligence all mighty pattern recognition software. Are you going to have that in house?

 

4. tutor/mentor? those who have arrived don't need it. Those who needs it can't afford it. This is an area where you can provide value add.

 

5. as a resource center with video, books, seminars, workshops, etc.,? maybe an attraction

 

 

Finally, your proposition has to be pervasive enough to motivate people (especially experienced and profitable traders) to travel from all over the city, beating traffic both ways, to your office.

 

I take up trading because I don't want to travel to an office !!!

 

 

.

Edited October 23, 2009 by Tams

[brownsfan019 17]

The equipment is another great consideration - personally, I want my machine and my use only. If I joined your place and take a day off, is anyone able to just hop on my workstation? What if your specs don't meet my requirements? I don't want to be hauling my computers (yes, plural) and monitors (also plural).

 

I think this could work if the niche is targeting brand new traders who need mentoring, teaching, etc. and also do not have a routine yet. You want to make your place the routine. So if I was to do this, that's how I would approach it - target those that want to learn about trading and need help... then provide it.

 

Basically a quasi trading office / teaching office / networking office in one. While at it, you mind as well open up a prop and get a rip on all the trades.

 

I guess I just suggested opening up a prop shop. That would accomplish what you seek out to do while attracting new and old talent. I know very little about prop, but have heard decent things about Bright Trading and SMB.

[Ddan 10]

Thank you all for yoru replys.

I appreciate all the feedback. The space that i own is in Cambridge Ontario. Its currently setup with pod partitioned offices. So you do have some privacy. Each user would have access to thier pod 24/7 and noone else would use it except the indivdual trader. I like the ideas of inviting mentor's, guru's to speak and possibly hold confrences etc..

Alot to think of that's for sure. Just trying to figure out what to do with the open space and its very difficult finding leasee's in today's market. One of my biggest concern's is how to market the idea?

 

D.

[brownsfan019 17]

Thank you all for yoru replys.

I appreciate all the feedback. The space that i own is in Cambridge Ontario. Its currently setup with pod partitioned offices. So you do have some privacy. Each user would have access to thier pod 24/7 and noone else would use it except the indivdual trader. I like the ideas of inviting mentor's, guru's to speak and possibly hold confrences etc..

Alot to think of that's for sure. Just trying to figure out what to do with the open space and its very difficult finding leasee's in today's market. One of my biggest concern's is how to market the idea?

 

D.

 

Well your niche is being a local trading office so you have to market it locally. It all comes down to how you are going to form it - if you are going to train/prop type thing, then the marketing is straight forward. You are looking for new traders and people that want 'financial freedom'. If you are just creating a hangout/office then you have to reach established traders which could be harder IMO b/c this is a local thing.

 

I'm not entirely sure how you find established traders locally that you could even market to, let alone invite in for a test drive. That's why I think targeting brand new people would be easier as long as you are willing to train them. And obviously that requires some profitable trading strategies to give them.

[BrianNC 10]

It's not a new idea. I remember places like that from 10 years ago in the .com bonanza. I don't know if you remember the story of the daytrader in Atlanta that went berserk and killed several people on a shooting spree at the brokerage he traded at, but they had that kind of setup. Here is a paragraph from one of the stories:

 

"Houtkin said that people come in to All-Tech's Atlanta branch office and trade stocks for their own accounts. "From what I heard from my staff here he had not traded since the end of April. So I don't think it had anything to do with a down day in the market," he said. "Dealing with the stock market is difficult enough. Dealing with something like this is a nightmare."

 

He would go into the branch office and trade. I remember a few of these in Atlanta back around that time. So the idea is not new. I think these kind of trading places were pretty popular at the time.

 

One of the firms he traded with was Momentum Securities. Here is a paragraph from a story on them from 1998:

 

"With over 100 on-site trading customers and an 8,000 square foot facility located directly across the street from the University of California, Irvine campus, the newest Momentum Securities office is the largest on-site electronic day trading facility in the country...The Irvine facility currently operates the world's largest and most successful day-trading school, with a 20-day intensive course producing over 40 graduates per month."

 

It seems they trained them and provided a place for them to trade. If you are interested, if you never read the story about the daytrader that went beserk and killed his family and several other people at the trading offices, the link is below. You have to scroll down a little for the story.

 

CNN - Suicide of Atlanta shooting suspect ends 'unspeakable day' - July 29, 1999

[JBWTrader 10]

Hey D

On utilising the space Question you pose, what has been you work history background before coming across this space..?

Is this office space within the CBD ?

 

Ever thought of leasing sections of it on EBay for office rental..?

How are you trying to sell this space now ? ie via Agents or brokers , by yourself ?

What are you currently offering as your best deal etc ?

What rate of return are you wanting from it ?

 

I think the trading idea is somewhat limited and requires good management together with the right opportunity,...I think you are better off finding other avenues for leasing it other than to form a trading meeting place...the rent market is a function of market timing for real estate, The type of agent used, the sophistication of the potential consumers, the type of business this space suits etc

 

Its all about Return on Assets....even losses can be beneficial to the asset holder...

Would you borrow to set up the new trading business ? Did you borrow to get the space in the first place ? When are you forecasting this renting slump to end ? All of these variables and more are important...and need to be weighed up...

 

good luck !

 

All the Best

John

 

 

Thank you all for yoru replys.

I appreciate all the feedback. The space that i own is in Cambridge Ontario. Its currently setup with pod partitioned offices. So you do have some privacy. Each user would have access to thier pod 24/7 and noone else would use it except the indivdual trader. I like the ideas of inviting mentor's, guru's to speak and possibly hold confrences etc..

Alot to think of that's for sure. Just trying to figure out what to do with the open space and its very difficult finding leasee's in today's market. One of my biggest concern's is how to market the idea?

 

D.