Am I dreaming? when I was watching this video : He said : They are 7-figure traders meaning they are making more than $1 Million per year Wow, if he has traders making millions per year , why is he offering his service for public ?! I don't know how and who believe in those guys. they are selling dreams for sure.
If they are making seven figures a year why are they still with a prop firm? If you had that track record you would go off and trade your own funds after a relatively short period of time. If the firm had strategies that produced these kinds of results they wouldn't be teaching it to traders. They would close their doors to customers and operate as a hedge fund.
at first i thought by 7 figures they would mean they trade a notional size of over $1m, perhaps leveraged stocks or futures. but i guess they specifically said the team leaders make over a million a year, where they sometimes make "tens of thousands a day." by way of comparison, to get $1mm all-in on wall street as a regular employee (not sure what these guys' setups are, perhaps they are classified as independent contractors), usually would have to be some kind of pm / trader managing own book in top tier fund, or managing director level at i-bank that said, total comp. is always so smoke & mirrors - you've got some guys pretending they are making a mint (even the guest interviewees on TV), while others are flying under the radar but making boatloads before the norwegian power trader went bust (allegedly, who knows what his real net worth is currently), when he was the verified #1 highest income earner in the country of Norway, he was reportedly just trading at home & keeping a super low profile.
This isnt entirely accurate, the part about how they wouldn't sell strategies is very true but why they would stay at a prop firm there are many reasons. I worked at a prop firm and saw multiple traders who made 7 figures and stayed. Reasons: - Lower commission agreements due to size of prop firm - Strategies were arb based or required large amounts of intraday capital which the prop firm could provide. Traders kept 500K in account to use 20x intraday for strategies which they couldnt get other places. - Set up to use prop firm trading systems which makes it a pain to move - Better market access or more market access than they could get at other shops. Prop firms are effectively your own small business, they have a number of benefits but no firm will provide you a system that will make a lot of money.
If you need 20x intraday leverage to make money it is only a matter of time before you run into real trouble. As they say - there are old traders and there are bold traders, but vey few old bold traders.
after alot of thought about trends i have come to conclusions. trends only exist over weeks, months and years. this is what trends are. anything less is momentum moves. this is often what is mistaken for trends. basically there are 3 states of market movement - reversion, momentum and trend.
This is also not accurate, if you have a strategy where you put on 400 individual names equally long short and hedging sector risk holding nothing overnight is less risk than being 2 or 3x leverage holding overnight in concentrated positions.