If a trader is extensively trained and mentored on site at a proprietary firm with a group of very successful traders and then performs extremely well as a proprietary trader for his own account for a couple of years on site with them, is there a big advantage to him of continuing to trade on site with them, as opposed to trading from the comfort of his home or relocating and trading from another more convenient site with a group of less talented traders? For purposes of this discussion, assume the following: 1. The equipment and data feeds are equal in all settings. 2. The trader's economic deal is the same in all settings, in terms of the cost of doing business (commissions and other costs relating to trading) and any split of profits with the firm. 3. The capital available to the trader is the same in all settings. I am particularly trying to determine to what extent, if any, an experienced and successful trader would continue to benefit from being in a room with other very successful traders, in terms of exchanging trading ideas with them, learning promptly of news developments, having moral support during especially tough trading times, having on-site support, etc. To what extent, if any, would his gross (and corresponding net) trading profits be greater by continuing to trade in a room with other successful traders?
You need this type of environment until you understand the business. The next step simply depends upon your preferences and needs. If you work with a great bunch of talented people, are making money, and you have some type of arrangement that rewards you well for building the business then there might be no reason to change things.
I would keep trading with the guys at the firm. Assuming that everything stays the same: Profits, Expenses, etc. Trading on the floor keeps up the discipline, the exchange of ideas, and mostly, it keeps you awake up during the dull days. Don't see a reason to leave... do you?
Possible reasons to leave would be these: 1. Perhaps the other traders, although very successful for their own accounts, could be a distraction. 2. The initial opportunity is in New York City. a. This is probably not a great place to raise a family. b. Commuting is time consuming and not fun. c. Living expenses are relatively high in and near New York City. d. The trader's home town is a great place to live, with lots of lifelong friends. 3. Convenience. Trade from a home office and avoid all the time and energy of going to an office somewhere.
I traded for several months at proprietary shops and now I am trading from home. In my case, trading from home is the best way because when it gets boring I can take a walk and make as much noise as I can without annoying people around me. Also, I save a lot of commuting time and I am planning to relocate. Trading is an individual sport and thanks to online forums and communities I see no advantage of going to an office after you understood the basics about discipline and using stops all the time.
I stated in my initial post: "I am particularly trying to determine to what extent, if any, an experienced and successful trader would continue to benefit from being in a room with other very successful traders, in terms of exchanging trading ideas with them, learning promptly of news developments, having moral support during especially tough trading times, having on-site support, etc. To what extent, if any, would his gross (and corresponding net) trading profits be greater by continuing to trade in a room with other successful traders?" I am simply trying to determine whether possible tangible benefits of staying would outweigh the intangible benefits of leaving. In order to do this, I am asking whether experienced traders have found that they continuously benefit significantly in their trading by having other successful traders physically present when they are trading.
Only you can answer those questions, since everyone is different. If you are the type of person who is self-motivated and enjoys working alone, then you should trade from home. However, if you are the type of person who needs that constant feedback from other traders, then you should stay in a trading room atmosphere. Do you enjoy working alone or with a group? Answer this question and you will automatically answer the other. CharlesTrader