The latest issue of Active Trader magazine has a full piece on the pitfalls you might run into trading at a prop firm. Check it out.
That was an interesting article. I've read a lot here from prop traders here and I don't know that any have addressed the big issue they brought up in the article...losing a lot of $$$. According to the article, everything is peachy as long as you are positive. When you're ($25K?) "deposit" is used up, you may be asked to leave. I had always wondered how far you could go to the downside before being shown the door. It can't be far because the firm has to stay positive...they have expenses and overhead. How long are they going to finance a losing account? I realize every firm is different and the article seemed to generalize about a few areas. It would be interesting to hear from some prop traders here who can shed some light on the points raised.