I found out about Prosper through Shane's blog. Prosper serves as a middle men and provides a marketplace between borrowers and lenders. This model looks like an excellent idea. I think it is similar to Ebay's model.
Borrowers who are punctual at paying off their loans get good ratings that would help them get better rates. Some people are able to get loans at 5-8% which is better than bank rates. Guys like Trader Dan and Tapeworm could use this site to score some trading capital.
Trader-X and Stock Coach can put some of their spare money to work by becoming lenders earning 8% or more in interest.
- I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.