Discussion in 'Prop Firms' started by exchange1, Jan 17, 2007.

  1. exchange1


    I am looking for a remote prop shop that will give me 4 to 1 on my money- dont really want to be part of LLC( dont need that risk)- would like to pay .01 per share comm., trading under 50k shares a month.

    I directionally trade ETF's- I am watching futures of the underlying and for own reason dont want to trade futures- well aware of leverage w/ futures etc.

    pro's con's appreciated....

    Thanks for any info
  2. Since you asked by PM, I'm glad to address this post.

    A. You "must" be part of our LLC to use our capital, whether it's 4 to 1 or 100 to 1. Most of the working strategies require a $million or more anyway (pairs, M&A, market making, automation, etc.).

    B. You need a S7 to trade with most reputable broker dealers no matter what, no big deal.

    Now a comment you probably wont' like. Although I've touted ETF's for years on my radio show and in the magazine (for investors of course in lieu of mutual funds), they have never proven to be a money maker for any of our traders.

    Another point is that being a "directional player" in this game has generally meant financial suicide.

    So, for your initial plan, trading with a prop firm would likely not make any sense, since you can get 4:1 at a retail (PDT rule), I suggest you find a good cheap (free) broker like Bank of America.

    Hope this helps,


    (not being judgemental, just giving my honest opinion)
  3. exchange1


    Thanks Don- I only know how to make money directionally- I think putting up the 25 k makes sense then

    As far as the M&A pairs etc- I am not a big believer- and market making is one of the worst- a machine can do that, dont need a person, except on the opening and the margins are not like used to be I hear- one time you are on wrong side- eats months worth of profit from 'market making"
  4. Not trying to debate with you, but I have the records of hundreds of traders to look at every day, and I agree that it takes a combination of various styles to make mid to high six figures, but the M&A and Pairs are leading the way (opening only has and is still the top money earner).

    Anyway, let me know ahead of time for our next 50 point S&P move will you, LOL.

    Don :)
  5. exchange1


    SP doesnt have the ranges- look at Russell 2k

    Look at Apple volatility- can trade that directionally-

    ETF interest to me because of the physical and technical background trading commercially underlying commodity....

  6. Maverick74


    I have everyone in my office trading the ETF's as a pre-cursor to the futures. I think trader's would be greatly benefited by trading the ETF first, then move to the futures.
  7. exchange1


    Interesting Maverick-

    is your office a prop firm.... commoditry background ?
  8. Maverick74


    Yes, prop firm. We trade everything.
  9. exchange1


    I would guess a good prop firm should trade 'everything"- keep traders on a short leash, weed out the bad ones and in the end or over time you will have a diversity and decent return on capital and commission and fee's ?

    Was Don saying that trading Pairs and M&A is statistically better than outright directional trading..... pairs and M&A is speculative, I dont see the edge...... there is no edge, the trader is the edge
  10. Maverick74


    There is no such thing as better. There is only personal opinions.
    #10     Jan 22, 2007