I am currently a senior in college and am facing probably the hardest decision of my life..... I have been offered a propritary trading position, which is great for me because I always wanted to get into investments. I am receiving other job offers at entry level positions, but the idea of unlimited amount of earning potential really wants me to become a day trader. I am skeptical because they require me to open an account with their company for $5000, while they give me leverage to deal with $100,000. Another main reason that is making my skepitism grow is their training program: they said that they only train for a week and then they put me out there (however for the first few months I can only trade very minimal amounts. I am getting a mixed opinion from my peers and would MOST DEFINATELY like the opinion of some day traders.
I worked @ a mutual fund for 5 years first. You should do the same. Build a good capital base and then when you are well capitalized, prop will be there waiting for you. Good luck.
this idea of it being a job is the wrong idea unless your getting a salary. think of it more like a chance. you have a chance to make alot of money you have a chance to lose alot of money you have a chance to only make it a few weeks,months or years. you have a chance nothing more, its all on your schoulders and no one elses. when your 5k is gone so r you.
Do you have any experience trading? Good at controlling emotion and staying disciplined? If not, this could be an great way to loose 5000$ quickly.
When I was a senior in college. I had the same tough decision. My brother recommended that I get a regular job first and save some money. Then go into trading. In case trading didn't work out, I could always fall back on a stable job. I will pass on the same recommendation. You have unrealistic expectations. "Unlimited Earnings Potential" 1. Don't expect to make any money your first year as a prop trader but learning as much as you. 2. They're going to ask you for more money once you blow that 5k which won't take long. 3. Even the best traders will have trouble making a living with a 5k account and 100k working capital. Good Luck!
If you have economical living arrangements for the first couple of years then go for it! The potential is extremely attractive. If you have a high rent, bills situation then maybe not. All depends. Good Luck
I've said this before: You need to you avoid any prop shop that markets its services as a 'job' you get 'hired' into. That's just dishonest and sleazy. Lies are like ants- if you find one, you know there's an entire nest full of 'em lurking nearby. Deceptive marketing, 'hiring' for 'jobs', as seen on the website of a bucketshop notorious for screwing their clients: www.hlvcapital.com Solid & trustworthy firms never pretend they're 'hiring' their clients: www.echotradeonline.com See the difference?
Taking a "job" with a "prop" firm is no different than trading futures or forex by yourself. In all cases you use your own money and the broker/"prop" firm gives you extra leverage. As a newbie you will lose the $5000 within a couple of months whichever of those options you take.