Well, supposedly they have good experience and you can gain from that...or if they have a great trading platform..... However, I've not found these not to be the case.
Clairfying, do you mean they dont have neither the experience nor great trading platform ? (I am sorry I dont quite get your triple negative statement. however-not-not)
Unless you are wealthy or can raise money quickly---or want to work as a trader at a real firm-- how else do you propose to access enough capital to execute the strategies needed to make a living other than a prop shop? surf
By "I have been trading part-time as non-pro for 8 years. Have been consistently making profits in the last 2 years. ", did you lose the rest 6 years? What is your annually compounded profit rate as percentage, based on total 8 years?
What are the costs of becoming pro? This isnt something I have heard about as I dont live in the states. Biggest plus of prop firms is you get professional tuition and are surrounded with performers, the atmosphere is (or should be) conducive to growth. And ofc, you get financial backing + zero downside, if its a proper prop shop. They are paid by profit split. Oh and you also get cheaper commissions compared to trading your own account I would think. Spots for such an opportunity are usually scarce, there will be quite a bit of competition, get it if you can. I think the guys there are interested in how competitive you are and how coacheable you are (i.e. do you have a growth mindset? That means acknowledging skills are developed and that without work talent is nothing. If they perceive you as here to make an easy buck you got no chance... getting a position or trading on your own).
Yes. I lost a lot in the first 6 years. Nearly 80% of total. Decided to leave the rest in leaps, hold, and quit trading. Then on year 7th, miracle happened. I gained all those loses back. Year 8th gained some more. Yep, the Market does ordain by fire.
Sounds like quite a few benefits as a pro. May I ask which region do you live ? In the States, the costs of being pro are : 1. Have to pay expensive for brokerage quotes ($100 - $200/mo). Some brokerages only feed delayed quotes once they know you are pro. 2. Have to take FINRA exam (series 56, series 7, etc) 3. Have to continue education every 3 years 4. Long 40-pages U4 paperwork everytime you move firms. 5. Not sure what else ..
During the first 6 years, annual compounded PL is roughly -10% if you lost 80%. During the first 7 years, annual componded PL is roughly 0%. Suppose you win 20% at the 8 th year with original seed. Then during the 8 years, you total annually compounded PL is roughly 2.3% ( x=0.023 from (1+x)^8=1.2) but you spent time. Probably you did not make min hourly wage (e.g. $10/hour in US) over the 8 years, as most traders do. May I ask you the total expense(commission and tax) over the 8 years?