Another newbie

Discussion in 'Prop Firms' started by kodatius, Jun 12, 2008.

  1. kodatius


    Hey guys, once again another newbie to the prop firms has a question. The company i recently got accepted to join, who's name ill keep private for now because i don't want bashing, offered me a position at their firm. Of course, as most do, they want the 5k but after some training i will be working with 100k of their money and if i progress more then i will have more to spend. Also, they will be sponsoring me to take the series 7 and will pay for all the books/shit for it. They also mentioned something about starting with 100 blocks..i guess that means 100 stocks?.. i have no idea. Also, the commission split is 80/20 in my favor. I forgot to ask them, and maybe you guys can help me with the question but regardless i will email them about it, is what if i lose more than the 5k? Would i owe them money or something or just get fired.

    I'd appreciate the advice as to whether or not this sounds like a bad deal or not!
  2. kodatius


    Hey guys, i just went through interview #2 and these guys offer basically the same thing except for : commission rate of .008 and full ECN rebates.. any good?
  3. C- kid

    C- kid

    all of that is fine

    but for the life of me I can't imagine how you will make money


    don't you think you should learn to TRADE

    Jesus krist these kids now a days :confused:
  4. kodatius


    what do you mean learn to trade lol..thats the whole point of joinin the firm
  5. C- kid

    C- kid

    firm won't teach to trade

    what firm will teach you is to think like hundreds of thousands if not millions of idiots

    but since you don't know this, which is basic common sense

    you ain't got a chance

    when I was like you, I also didn't know how to trade, but big difference between us is that I knew from the start that chop shop will not teach me to turn market into my own ATM machine and not need them anymore

    it seems you don't have potential

    most don't
  6. kodatius


    thanks for the support. since im still ambitious im going to do it regardless. If it doesn't work out then its just another good experience checked off the list. Its good to be young
  7. "just get fired"
    How do you get fired from a firm that you are paying to be your broker?

    "offered me a position at their firm"
    So they are nice enough to take your five thousand dollars and charge you about twice the normal commission rate?

    As I have stated before there is nothing wrong with prop firms and they are invaluable to certain traders. The question for the newbie is whether the training you will receive is worth the five thousand you will most likely lose. If they are doing their job you will be shut off before you have lost more than your deposit.
  8. Hi,

    C-kid may sound like an a$$hole, but he is being honest. The prop industry is a very sketchy business. Although on the job posting they may advertise that no experience is necessary, in all reality, knowledge and great interest in the markets is certainly required. Even those traders who follow the market, the vast majority (probably 90%) fail in the prop business. Your success depends on how much more you know than others and how much more skilled you are.

    If you're a total beginner, I would think about trying to join a firm that requires ZERO money down. Also, you must make sure that the firm is reputable!!! There are a bunch of sketchy places that fool young traders by essentially stealing their money in the form of commissions. You can also lose your entire $5,000 (thats their insurance policy).

    What I disagree with C-Kid about is the notion that firms won't train you. The TOP TIER firms do actually train you, but introductory type stuff (I'm actually going to start at a prop firm where the first three months is all training and I don't trade any real money unless I am profitable with a demo account after that period). You can't expect to become a millionare right away from prop-firm taught strategies, but they will teach you conservative "scalping" methods that may be profitable. In order to be truly successful, however, you're much better off ultimately developing your own trading plan. That is way experience is essential.

    If you're new to the prop industry check out this following link:

    Hope that helps. Good luck
  9. Blocks lol... You mean lots, and yes that just means 100 shares (round lot).

    Anyway, you are obviously new to this. I would be patient and learn more about the market before you join any firm. You can always find a place in a prop firm.

    Regarding whether it is a good deal, the commission split is decent (the higher the usually more sketchy the firm is), commissions are a little above average, and I don't like the 5,000 down. The most important factor is the training in your case. That of course is questionable. Never pay for training courses though. Another thing I will point out is that your better of disclosing the firm. People can immediately tell if the firm is legit. If you don't want it to be told here on ET, try to google it and do a lot of research. Like I said in the earlier post, the majority of prop firms are very sketchy and just make money from their traders in form of commissions.

    Modern day bucket shops in a way :D

    I recommend you read some books... Check out the Books/Classics section on elitetrader!
  10. kodatius


    monty, thanks for the advice. If C-kid put it like you did then i wouldnt have been insulted. Your right about the industry but im not going in with 0 knowledge of trading. I do have some experience and know prop trading is risky, especially with the 5k investment. If i take the job i just think of it as an intern position where i will learn even if i dont necessarily gain money. To me experience is what matters.

    From what the firm told me, they will be training me for a few months even before i start shooting cans with my toy gun. However i will check out the link that was provided and look into zero investment prop firms because they probably do train much better considering one doesnt have to invest their own money to start off.

    However, my questions from before werent answered. Also, how would one know if the company is reputable or just another faux firm
    #10     Jun 12, 2008