You churned out 68K from $2300 in 6 months and subsequently 100K from 15K in 4 months before blowing out and giving it all back. You're using leverage like crazy with no respect to risk. You're going for the quick buck and focusing too much on the reward and not enough, if any, on the risk. If you trade the same way and neglect risk management again, I guarantee you'll have account-blowing experiences again and again and again. I'm not trying to put you down, but just trying to give you a wake up call if you really want to do this for a living. Your priority right now should not be wondering which firm to go to, but finding a better strategy that will help keep your shirt on. Loading up on out of the money calls like lottery tickets (I think that's what you're doing) is a low probability game.
Many, many thanks to all who have replied. It's one of the things I have noticed about trading: it's a fairly good community (and deeply empathetic, lol). As ristaker implied, I do have the itch. When I was trading my cafe tasted better in the morning, I looked forward to my day when I rolled out of bed and flipped on cnbc and the hours I spent working flew by. I genuinely enjoy trading. I like the community as well (I have received lots of good thoughtful advice here). Newguy: my system can't be boxed since I can't quantify it. The data I would need to even try would be so massive as to not be worth it. I agree with your take on discipline: I need it etched into my but with a mirror attached if that's what it takes. Is there a firm I can get on with that has good training, provides some liquidity for the account and takes an interest in seeing traders develop? As I mentioned I saw some ads for FXCM and Assent LLC. I may be more valuable in fx because of language skills if there is afirm worth applying for. Choad: Thanks for the wisdom in your post. I know that I would have to give up a lot to trade full time, but my job is 12 hours a day and I am so wiped out that the 10 hours a day I get at home isn't enough. I also don't have the 500k. More like 100k, and in the past I did use a lot of leverage (options). If I am to go through with this where should I go? DO I get a lot of benefit working for another firm? FXCM is looking for a French speaking trader's assistant (for a tiny 35k/yr): would that be a place to start? Or should I just open up my own account again taking a more disciplined approach?
Ok, i have a minute to set you straight. The previous poster summed it up more or less. First, you have nothing to offer a firm. Let's get that out of the way. Second, and this is crucial, you need to trade 1/10th of what you normally would trade until you get in the black consistently. If not, you are simply throwing good money after bad. This is not to say that you cannot learn from a firm if they choose to take you on or an LLC but you have to take it slow until you prove yourself. Find the "prop shop" that has a CEO you like and can get along with and learn from them if this is your choice. Better yet, keep your job and trade small lots until you either get bored and move on or consistently get in the black--then increase your stake in the market and your operations. For you, it obviously takes time so don't rush to increase your size after only 12 months of consistency--take it slow sizzle chest. Find a good mentor(s) but ultimately know that only you can make trading happen, not anyone else, but you. Good Luck to you. I wish you all the best.
Working in the average prop firm wil make that B2B sales job seem like a vacation at the Playboy Mansion. It sounds like you would like to transition into a real trading job with a big investment bank. They will not be impressed by prop experience. You need to evaluate why you blew up. Perhaps read a couple of mark Douglas's books. Either you were just damn lucky not to blow up before you made some dough, or perhaps you have some psychological issues that sabotage you when you reach the point of being successful. My advice is to forget the prop gig, focus instead on whether or not you were just lucky in making money and why you blew up. I concur with another poster who advised you to withdraw funds as your account grows. That way you build a cushion against a drawdown. At your age it's not the worst thing in the world to be making decent jack, plus being able to trade on the side. Hopefully yu can accumulate enough so that if you get canned at some point in the future, youcan trade fulltime and make a go of it. Good luck.
Deringer wrote: "If you trade the same way and neglect risk management again, I guarantee you'll have account-blowing experiences again and again and again. Your priority right now should not be wondering which firm to go to, but finding a better strategy that will help keep your shirt on. " Thank you for the critique Deringer: it's hard to read some of this stuff, but I know I have to suck it up if I want to grow into a successful trader. Do you think I would benefit by seeing what other strategies are out there? And why not get some experience at a firm? I know my chances of getting on somewhere reputable are slim, but won't the time put in one of these places help to refine and discipline me somewhat?
Honestly, I would keep your job and figure out a way to trade while working full time. Try changing to nights, try shifts, or starting late... anything to let you trade a bit during the day. Even if it's only the open or something... I'd exhaust this avenue long before I looked to prop shops, but someone with a more positive experience there may want to guide you better. Any person who's thinking about quitting a good job to trade I give the same advice: Trade and work until it's no longer possible to do both. Once you are making so much money trading that it is IMPOSSIBLE to stay working, quit. Quitting up until that point is very, very risky imho. Remember, this is a game that can make people feel like they have a winning system at any time, even if the system has a negative expectancy over time. Like people have pointed out on this thread, blindly buying calls on the SP could have been a very profitable strategy during certain times in the past. It's up to the trader to plan for the day it doesn't work, and mitigate the impact of that event, if they want to survive. dang, now I think I'm up to 4 cents.... -The New Guy
That you have already twice blown up has significantly damaged your potential to work with other people's money. You'll need a LONG period of sustained success and risk control to repair your reputation.
Hey, I wasn't critquing you, man, but just wanting to pass on crucial information. Yes, I think everyone would benefit from seeing other strategies out there. If your intentions for entering a prop firm is increasing capital, then that's reasonable. But if you're hoping to learn how to make a lot of money from a prop shop, I don't think you'll find too many available. They'll probably teach you high risking strategies and force you to trade size because that's what they want you to do. They collect more commissions that way. Their methods want you to trade size and catch mini micro moves. How many people are successful doing that? Probably less than 3%. At prop firms, the turnover rate is pretty high.
It might also help if you described what trades blew out your account, if you feel comfortable that is. Be warned tho, you're gonna get a lot of negativity from the bashers out there.... but you'll probably get some great advice hidden in the middle too... -The New Guy