My advice for you is read as much as you can about the Prop firm business model in this forum. Asking yourself why most trader don't made money and disappear while why prop firm is still around? Before you made any decision joining a prop firm...ask around here for Credit check. I'm sure reader had already involved with the firm and have the insight advise for you.. just my cents.
Great article. The "true prop" firm models I've seen are Chimera, First NY Securities, and Trillium. There are probably others in NY, and maybe Chicago, perhaps Maverick would know.
My perception of prop firms (at least the respectable ones) is that's where you go after you have achieved some success in trading and you want to leverage the firm's capital to scale up your positions. I never regarded prop firms as a training school for beginners or under-capitalized traders seeking a low-cost alternative to a retail trading account. Tell me if I'm wrong ...
Yes, i can totally understand this & i agree with you, if you don`t already have a working system for daytrading you`ll most likely loose money both in short term but also long term. I have been working myself for a while now building a system/strategy that will help me in my daytrading and so far it`s working good. But, of course i can`t use this strategy in a full scale because of the limitations of trades i can do. And that`s where i can see the prop giving me this advantage making as many trades as i want to. In other words, i`m hoping the prop will be a tool for me to build my account to the $25k level and then i will move back to retail broker again as i can`t see that i will need them after that. Thanks everyone for your input and help. I have not yet decided if i`m going to trade prop or not.
The "true prop" model firms offer training for beginners, whereby they hire recent college grads from top schools and do not take capital contributions. There aren't many equity props around that do this, so it's an exception rather than the norm.