Scottie, go for it. Try a prop firm where you only have to put up $10k, that way - worst case scenerio, you only lose 1/4 of your stake. Keep the trades small in size, and don't pay attention to return rates, they are misleading and don't accurately reflect your success. Keep score using dollar profit. Best wishes!
Could not agree more. So often I read about ROI on this site. We are traders! Most prop guys put up an initial contribution of around 10K. Well the guy across from me is up over 100K for the year....so does that mean he is up XXXX% this year???? It is all about the paycheck you give yourself...not the return on your account.
how long have you tested your system??? i ask because i can say first hand that the ONLY obstacle to achieving your target goals is an unexpected large equity drawdown that can result because of a hundred different factors...sure make certain you got a good strategy but also make sure you got an excellent risk and money management strategy. GUARD YOUR TRADING STAKE WITH YOUR LIFE.
I agree with these guys. You have 40k, go to a shop and put down 5-10k MAX...most houses these days will leverage you nicely with only 5k. This way you have a buffer....no worries and no pressure to trade. Good luck in your endeavors!
If you are so new that you've never experienced a losing streak, you might consider waiting to experience your first one on a simulator.
For every twenty that try, maybe one succeeds in what you are attempting. The people that have access to these statistics, people like Don Bright or Vito Sisto would never come out and tell you this directly - but it is the truth. Even if you had a year where you took $40K into $150K, it is not unreasonable that the next year you will take the $150k to $40k. If you are in this as a career, it is best to think how you can stay in the game for a long long time, while at the same time giving yourself the chance to hit a home run a year or two in that career - extremely difficult to do, but hardly impossible. nitro
If your plan is to trade stocks, I'd definitely go with a prop outfit, not retail. The leverage you get makes the amount of your capital pretty much insignificant, and it's possible to earn a living without much up front. Just have enough to live off of for 6-12 months and enough to withstand the drawdowns your system yields. I switched to a new firm early this year, put up only $15k and am up over $100k ytd. No way I could have done it retail, the leverage you have as a pro makes things so much easier. And with the incredibly low interest rates, and if you can strike a no haircut deal, holding longer term positions costs almost nothing. Go for it.
I would appreciate it if you didn't refer to people like me as "negative idiots"... the term "realists" would be more befitting
I totally agree with nitro on this... all newbies must be honest with themselves and recognize that the probabilities are high that they will fail... trading is no cake-walk, but if you have a real love for the game and are adequately capitalized, then there is no harm at taking your shot at being one of the minority who can actually make this game work for them... so if you have the desire, dedication and the capitalization, go for it! I would add that what some people such as sdtrader have been saying about prop shops makes good sense... when starting out, it makes eminent sense to trade Other People's Money... let them pay for your learning curve... your odds are much better at a prop shop for the simple reason that if they throw you out, you still have your own capital to give it another shot... longevity in the attempt to strike success is key... any strategies you can use to stay in the trading game for as long as possible while trying to find your consistent profitability should be used...