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how prop firm works?

  1. Hi guys i'm new, I form Italy and I live in Milan.
    I have a question.
    If I am a quite good trader and if I have a few money, why I should join an prop trader?
    I can make money by my self.
    For sure I miss something....who can help me?
    thanks
    Francesco
     
  2. Can someone help me?
     
  3. prop firms offer you leverage. if you are really good with a small account now, surely you could make a lot more with more leverage right? :)
     
  4. ok...fine...thanks...
    let's make that i already trade with leverage cuz i trade futures or Forex with leverage....
    How prop firm give me more leverage.....

    I don't think that ,for example, if i put 10000$....prop firm give me 100000$ to trade future or forex and i can have gain with 100000$ and lose max 10000$.

    is it true?

    It could be true if i lose 10000$ and the firm stop me trade and bring back from me 90000$ that the firm gave me befoure...

    It would be fair....but much more risky for me....

    thanks
     
  5. If you become a backed prop trader then you don't need to put any money down so there is no risk, you just give a cut of your profits to the firm instead. These places are highly sought after though.

    It's not just the leverage, it's the fact that a room full of traders can get cheaper rates on everything from trade costs to equipment. They can also advise you how to progress to the top of your field, have faster connections to the exchanges and can probably do more for you if something goes wrong at the exchange when you're in a large position.

    These guys are in Milan, get in touch and ask them what they can do for you

    http://www.enigmatradingservices.com/

    The video on their opening page.... :D
     
  6. Yes...maybe it could work well if you are a beginner....but if you are already a trader...that trade well with own fund....
    should the trader join a prop firm...?

    I know enigmatrading......to join them you don't have put money..they just hire you as an emplyer..and give you a salary and a bonus (i think....)

    you must be young ,smart and willing to have a carrer as trader....but you don't have have money to join it....

    I think that it works like that over there....

    As any firm...they don't hire any guys that noc on them door....

    don't you think?
     
  7. I think you have a very good chance of them hiring you especially if you have a profitable track record, age doesn't matter. Why not send them an email?

    I'm fairly certain they don't pay any salary, you just get a split of profits usually 50%-90% depending on your progress. Otherwise you can put money into an account to cover your risk and back yourself for 100%, you'd just pay a desk fee.

    They are a services company they tend to provide traders with what they need in return for a desk fee and a commission of a few cents on each trade you do. It's by far the cheapest way to trade if you do so actively.
     
  8. Cuz.....
    1) It's not possible to show them my truck record....well..I shoud attach to my CV my bank order history....I've never heard something about that.....

    2)I think that it would much more smart to explain my trading philosophy and no to show them my truck record....It could be only luck ....

    3) I have already sent my CV to them 2 years ago.....they did not care about my profile....

    thanks anyway
     
  9. Well if I had the choice of hiring a seasoned trader with a track record - which you say you are and have - or some joker wanting to talk trading philosophy and hide their "lucky" record........

    A p&l record of a few years does all the talking necessary
     
  10. too right. would a seasoned trader really want to discuss his edge?
     
  11. In general, the stategies that work well (lower risk, higher reward) such as Pairs, mergers, opening only, market making, etc. tend to be capital intensive, and require the "use" of (not "abuse" of) a $million or more. Not simply "leverage" but a whole different world of trading techniques become available.

    (of course, some people can make money with less, but for the most part, it takes capital)

    Don
     
  12. "A p&l record of a few years does all the talking necessary"

    General you are right, but think on sell option...it is an high risk strategy ..but..if you have sold index option in the last 4 years you would had made a lot a lot of money (as some y friends done and me too if i have tell you the true...) cuz volatility..
    But it doesn't mean that you are a good trader but just "fooled by randomness"...don't you think......

    "In general, the strategies that work well (lower risk, higher reward) such as Pairs, mergers, opening only, market making, etc. tend to be capital intensive, and require the "use" of (not "abuse" of) a $million or more. Not simply "leverage" but a whole different world of trading techniques become available.

    (of course, some people can make money with less, but for the most part, it takes capital)"

    Right..if you have a lot of money ....you have more probability don't broke....(blow up....) but.....the return it would less in percent.....

    Anyway I was looking for an answered of my question..and i got it....thank a lot...

    But now...to make a step ahead...as i told you i live in milan....and i am quite sure that there is not many prop firm here now....(for investment regulations in italy i think...)
    Do i have to move abroad to join a prop firm or there are other alternative?

    Thank a lot again..
    Francesco
     
  13. UP

     
  14. up
     
  15. why not try phoning some prop shops up and see if they will back you and let you trade remotely... it'd be a long shot, especially if you arent inclined to show them your "random" track record, as I doubt any firms would take anyone seriously who couldnt prove consistent results over a reasonable period of time.

    If they wont back you remotely, then you got your answer: you'll have to move abroad to trade at a firm if thats what you want to do, or else trade your own cash, or get another job. Problem solved.

    I'm surprised you arent contacting Enigma again however, since they are an established prob who are based right in your own city. Why consider a move abroad when you could trade with them right there in Milan? your lack of persistence speaks volumes.
     
  16. Hi
    First...I am not a very good trader.....I worked as option and futere trader for a private firm started up by some guys some years ago ....then i was hired by an Investment Bank as Equity Derivatives Trader...now I change my job and I work in an Financial Market as Market Supervisor...NO TRADING...
    I had worked as trader for more then three years...I lose money and I made money...I do not realy like be a structued trader...I prefer be a prop trader....I prefer Forex and Future then Equity.... Cash then Option....

    I trade with my own money in FX market....I do well...but I do not make a lot of trade....no more then 10 per week and I do not have a lot of money (let say 20.000 dollar..)....i do not make volume.....I was wondering what an prop trader can do better for me them my broker...

    second.....I think that less you trade more you can gain...but it is my opinion.....

    third....yes...if i can work with a prop trader in milan it could be better....
    US is full of this company.....But as long as I do not have the right permit to live in US....(i am italian....) i cannot move there...

    Thanks....
     
  17. US prop is all about stocks, London is king of the futures and FX prop shop. You're in the EU, you dont even need a visa.
     

  18. Right...thanks for the Tip...
     
  19. Fitting how their video is modelled after Guy Richie's format in Snatch and Lock Stock. Theyre based in Milan though. I found this amusing.
     
  20. do you need a series 7 to become a prop trader or do they make exceptions if you are good?
     
  21. No prop firm Series 7 license exceptions for being a good trader, or even for being a good guy
    - especially if you're a really good trader who also happens to be a really good guy...
     
  22. I don't need a Series 7 to start at my prop, but they require the ability to get it.