I am looking to get into prop trading. I'm graduating from college this year and am interviewing with some places in NY. Can I make enough money in my first year to live off of and how much capital will I be expected to put down? Any insight would help.
Every shop varies. First NY Securities and Bright Trading seem to be the two most reputable ones out there at this point in time. You're going to hear a ton of garbage from people on this site so take everything with a grain of salt. It's not an easy business to be profitable in unless you've done your due diligence and studied some things. Best of luck and skill to you.
this is what ive gathered from some interviews ..... 5k min capital .. and despite what some firms will tell you ... you better have about a year of living expenses banked up because the first 6 months to a year is going to be tough
1st year....no way. First year is a learning year. Your goal is to absorb all you can, learn market relationships and patterns and try not to lose too much in the process. Honestly, do not bank at all on making any money your first year. If you dont lose too much, the hole you will have to dig out wont be so bad. If you make it through your first year and have gotten the experience necessary, you may be on your way to making money.
You dont have to go to Bright and 25k. There are many that let you start with much less. Try Hold Brothers, get with Dave over there. You can trade remote with Hold Bros. Start with 5-10k, minimum. There is no hand holding so come with your own methodology. EF
Plan on 6 to 12 months of no income. If you are young and do not have enough to cover living expenses get a part time job at night. If and when you become profitable save 50% of everything you make to build a bank roll. Try to get it to between 250k - 500k before you start to buy nice things like new cars etc. and pay cash for those things (this is not government work and your income will change from month to month year to year). Find a firm that will train you, within that firm find a mentor that has a successful track record and learn from him. Change and adapt as the market changes and learn from your mistakes. Good luck.
Let me know how it goes. I am also graduating college this year and was going to interview in January but I declined because my parents did not want to give me money for any speculative venture. I wish you all the success though, let us know how the interview went. Any advice on the questions would also be appreciated. I am going to interview for several investment banking positions (market research) in May, but I much rather be a trader. Probably won't be even be hired considering the shape of the economy.