How much does a first-year prop trader make on average?

Discussion in 'Professional Trading' started by RobinHood, Jun 5, 2008.

  1. I'm potentially joining a prop firm which I've been in contact with. They are located interstate. I'm 19(trading 3 years, studying markets 4), and currently working out the expenses that would come with moving to another city.
    By sacrificing everything I've made from my trading I would probably be able to cover most of my costs for one year MAX.

    The prop firm has a 6-month training regime, and then they hand you money to manage.
    I've heard of it taking people 18 months to make any money at all.

    So for those of you working at prop firms roughly how long has it taken you to start making money? what does the average trader make in his first year?

    If they offer me the place these are my two options and the potential consequences/results:

    I can accept –
    Basically for a gamble that I would make *some* income in the first year thereby holding me up for another year and potentially beginning to fund my college degree (I would do part-time Science - Physics and Maths). Ideal situation is me trading professionally and studying part-time at college. I do realize trading is a long-term commitment, but I'm not worried about that. I'm worried about initially covering my basic overhead and surviving.

    I can put the offer off -
    I would then go to college in 2009. Probably study Commerce or Science at prestigious (its bs, but I want to get to a good prop desk) college combined with post-graduate. Then 4-5 years out get a job @ investment bank prop desk or hedge fund. I could trade by myself through this time, but its definitely not the same as trading at a prop firm.


    P.S. for those of you who want to tell me how college won't help me please don't bother replying. If you can get into a Goldman Sachs prop desk without a degree all the power to you.
  2. DonKee


    considering that most "prop traders" lose money or quit in their first year, the "average" is going to be very low.

    Your best bet is to go to college, trade on the side, learn and see if you can build up an account. If you run up your $10,000 to over $50,000 by the time you graduate, then you're on your way to being a profitable trader and probably won't need to trade "prop".
  3. 0
  4. Mschlau


    What prop firm are you considering?
  5. Forget prop if you plan on going into IB/HB industry as a college grad recruit.

    Chance of you failing is pretty high and even if you make some chump change as a prop trader, it doesn't make you a better candidate for the IB jobs in the future.
  6. so you have been trading for 3 years already? are you making money with that?
  7. asap


    actually is even worse. i think that going prop now in the typical bucket shop will ruin your aspirations of working for a top tier ib when you have your degree and mba. sort of criminal record so to speak.
  8. trom


    I've seen this opinion before, and am curious about the reasoning behind it. Assuming you are a moderately profitably prop trader (~100k/year), how can having demonstrated that you can fend for yourself in the market be viewed as a negative?
  9. Because it would be considered luck. And you show too much entrepreneurship & individuality.