Man, are you ever right about that. $130,000 per contract since June 1. This exactly what you will not learn at a prop equity firm. Why? Because they don't have the skills. Sure, everyone and his mother knows the opening only NYSE trick, but there is a big 'ol wide world out there. To follow and tag along with the inexorable global trend of deflation/disinflation has been like taking candy baby. Or otherwise stated, this trend has been incredibly rewarding. Plus my handicap has gone down by 3 strokes this summer. Regards, Dr. Zhivodka
as far as i can tell i dont think this is totally accurate because you can gain access to capital/leverage, bullets, and some firms will provide training, sharing of strategies, etc...you cant get at home with retail. or am i just a fool? i understand that for soem trader here they have plenty of capital on their own, their own profitable trading strategies etc.. and wouldnt need a prop. firm, but for a trader who has limited funds and has traded for about 2 years and is looking to transition and try to make a living off it, is htere a better way?
Don't do anything original at a prop firm if it's successful. If it works you'll kick yourself in the ass for not fading away and finding the means to do it for yourself. Nothing like having 100 other guys in 4 offices riding you out of the niche you created for yourself.
If you choose the right prop firm you'll be very happy at one. As others have stated, you get more leverage, which is the biggest advantage, and if it's a successful firm, you'll get to trade idea's with other traders in the firm which will improve your performance. Unfortunately, some prop firms have given others a bad name, and it's hard to get the trust of new or even experienced traders. But, believe me, there are definately some good firms out there that will do everything they could to make you a happy and profitable trader. Just do your homework before jumping in.
Dear EliteTrader, I have been very interested in a prop firm and have actually spoken with some representatives. One firm I liked in particular and was making plans to visit the office, although I would be operating as a remote trader. I was interested in trading their proprietary strategies, bullets, and the whole thing, working my butt off for the benefit of all; but I am not interested in spending a lot of my own money in the process. So I asked for an assurance from the two principles I spoke with - not a guarantee - but as a matter of integrity - that I would be profitable trading their proprietary strategies. To date, I have not heard back from either of them regarding this assurance. Ever the optimist, I am hoping that the case is that neither fellow received the message... ! Am I asking too much? If in the course of a discussion, both guys are telling me that everyone is making money using the proprietary strategies, big money, then am I wrong to make it a matter of integrity - and not just a sales pitch? I like both guys and my impression is that they are straight shooters, but even at my age I am too trusting. Signed, Anxiously Waiting
No firm can give you that gaurantee. It's impossible. There's no way, that just from meeting you, they can tell whether or not you will succeed. The only guarantee that you should get, is that they will deliver on their promises with the systems, training, and whatever else talked about.
No guarantees asked - just assurance, and there is a difference. It is not semantics. That is why I specified that in the post. "I guarantee if you employ our proprietary strategy you will make big money" - this is a guarantee. "The guys at our firm that employ our proprietery strategy are making big money" - that is an assurance. See the difference?
Prop firm is nothing more than a retail account with additional leverage. For what its worth, listen to actual TRADERS at the firm you are looking at, not owners or employees. This includes office managers - they may trade, but remember - they get paid to sign you up. Most of the prop firms' offices are all trading the same old tired strategies. I wouldn't say that the talent is any better at prop firms vs retail. Also,the best traders are not usually willing to share their secrets (understandable), but the additional leverage makes prop a good choice for some traders. oh, and anyone who tells you you can't make $$ trading Nasdaq (and they will) is incorrect, just lacks the skills necessary!