Benefits of trading Prop

Discussion in 'Prop Firms' started by Rowan128, Jul 27, 2005.

  1. nbates

    nbates

    Two good benefits of trading with a firm vs. trading on your own are training and exposure to experienced traders and/or mentors...of course, this will vary by organization, but can be a big-plus if you are just starting out (imo).
     
    #11     Jul 27, 2005
  2. Truff

    Truff

    If you lose enough money, they fire you. lol
     
    #12     Jul 27, 2005
  3. nbates

    nbates

    Another benefit is risk-management...with a firm, they'll generally have an impartial party monitoring (and controlling) your exposure when you get over-extended or "at risk" in your trading account.
     
    #13     Jul 27, 2005

  4. 100% of losses 50-70% of profits.

    Impartial risk manager isnt exactly true. if you are losing money the firms principals will either be staring at you or ignore you completely.
     
    #14     Jul 27, 2005
  5. I hate people that been here for a while and have an ego.....always scoffing at newer traders... :mad:
     
    #15     Jul 27, 2005
  6. Rowan128

    Rowan128

    Thanks for the help....


    Do any of you trade with a Prop Firm?
     
    #16     Jul 27, 2005
  7. Truff

    Truff

    I used to for seven years, no money down, no responsibilites for losses
     
    #17     Jul 27, 2005
  8. Rowan128

    Rowan128

    Where you with a firm that payed you salary and a portion of your profits, and no ties to losses

    or a

    firm that you use your own capital and your losses are your own money?
     
    #18     Jul 27, 2005
  9. lescor

    lescor

  10. Considering you are your own business and being in business is about the bottom line. I personally believe trade on your own.

    You will know your costs. Risk management is the most important. 200,00bp can net you approx 8-10k monthly if you pick your trades....people forget not taking a position is a position

    I tell my traders to trade stocks max. 35 dollar range with a beta of around 2... million plus volume

    most average 500/800 dollars daily..

    in the end you are the one having to be responsible and accountable....doing it on your own...even if you are in an office seems in my opinion to be the best..

    traders will and do influence each other ..perception...many times one of the traders is long and one short at the same time in the same stock and not always but often both make money...
     
    #20     Jul 27, 2005