I knew that there would be tricksters and con artists out there running prop and "prop" firms, but I deliberately DIDN'T read any of these postings in order to keep my attitude positive. It's kind of like warning somebody "Don't look down!" when they're on a tightrope. The only way they're gonna make it across is if they completely and congruently believe that they're going to cross just fine. Of course, a positive attitude doesn't necessarily guarantee that you won't get ripped off or lose your own wad, but it's a must in order to win, and if you aren't in it to win, why start at all?
Hey Shrad, I have been day trading for over a year and half now. I was just like you and started at a firm that scalps the nyse via "tape reading" the specialist. I was doing pretty well up until about 2 months, just when the hybrid really started rolling in. The hybrid market is extremely different and the old tape reading lessons and reading the specialist no longer applies. If your firm is teaching you this, about following size, then get out now. Go find another firm that will teach you better, up-to-date techniques. One more thing to add...you shouldn't be worried about other traders leaving because they can't adapt to hybrid. You are starting out in hybrid so there is no drastic change for you to re-learn.
Just some advice: in 2 or three months when you burn out your deposit in commissions and losses, don't get discouraged. That's what these places are designed for. If you can't hold overnight positions it's set up so you generate large commissions. Even with rebates, it's really hard to trade a breakout by adding liquidity. You're better off trading retail where you don't have to pay the ecn fees. If you calculate the desk fee and all the extra little fees, you're paying more to trade prop. You're better off withdrawing your deposit and spending that money on some good education. Otherwise you will blow it in a few months and all you will learn is that trading that much is not how to make money.
Thanks Spxdes, Are there any firms you would recommend? What are you doing now if you don't mind me asking? PM me if you'd like.
SCALPING STOPPED WORKING YEARS AGO. SORRY! yes the hybrid system is pushing out a lot of people who can't adapt, but then again most of them were about to drop out anyway. look up zero sum game on google and then take a close look at how much you spend on commissions and i think a light bulb might click on for you. there is no way to succeed as a scalper unless you are paying a very low commission rate, but to get that rate you have to do a lot of volume, so how do you do the volume before you get a good rate? answer: deep pockets.
We have very few "pure scalper" types any longer...the scalpers have added automated programs to increase their profits in that arena, and we're glad that the hybrid has so many sweeps every day...but most have added other strategies to make much more money (pairs, M&A, etc.) to their quiver of techniques. Kind of neat that an automated scalping program can continue to make money, while at the same time you can be trading the openings and pairs. Don
We have been thankfully surprised with how the "sweeps" are working...even better than "price improvement via trade throughs" - as I mentioned before, I kinda doubted that the Specialists would "go quietly into the dark night". Trade on the same side as the guys making the money. Don
Don, wont the sweeps be over once NMS comes into effect? Since it will make any print outside NBBO basically illegal...