Pro Firms

Discussion in 'Prop Firms' started by YYNOTT, Mar 16, 2004.



    Ok somebody make the case for me. I put my money up to trade and get more leverage. Sounds terrific, however the more leverage, the more the loss. Obviously if you are starting with limited funds to begin with and most traders do when they go to a prop firm then leverage is ultimately the source of their demise as they are overleveraged and often pushed to trade VOLUME for the prop. firm.

    I would be particularly interested in turnover rates at many prop. firms. To me if the turnover rate is high then basically it's a slow bleed to the death for a newbie.

    If their are any prop traders out there with more than 5 years of experience let us know the positive aspects please.
  2. silk


    If you want to be a day trader and have under 500k dollars you need to go to prop trading. How else will you be able to get a million plus in buying power which you need in order to make a living.

    You will find very few prop traders with 5+ years of experience because this has only been around for 7-8 years. The turnover is high because it is tough to make good. Especially 2003 and 2004.
  3. You don't need a million dollars buying power to make a living as a daytrader.
    This is the biggest joke I hear from other traders on these types of messgae boards.
    I have 5 years experience (prop) and have never needed more than 150k. I am flat everyday at 4pm.

    As far as trading prop, interview with as many places as you can. THe #1 thing you want to know is,( if you are a newbie or break even trader) do they have a proven methodology that has an edge you believe works, and can be explained quite easily. This will help cut down your learning curve. Also find out if you can speak to some of the traders who have been there a while, see if mentoring is available.
    Leverage isn't the only advantage trading prop, room interaction is very big. Sitting in your home office is great for your morning commute, but alot can be said for exchange of trading ideas and opportunities throughout the day. We talk all day in the office I am in, it makes you feel like you are part of a team.

  4. silk


    How much can you make day trading with 150k??

    If you make 100% after commissions (which is near impossible in this mkt) that is only 150k income.

    I stand by my comment that you are wasting your time if you are trading 150k in capital.
  5. i think your being a fool with that statement my buying power is double but i no people making 100k on that. everybody has a different style. i could buy 4000 shares of a $30 stock get .40 and thats a good day.
  6. your right you should not be at a prop firm because you sound like a fool. the only thing a prop firm gives you is more buying power. so your telling the room well if you give me more money well thats only more i can lose haha.

    we need a bouncer to stop the fools from posting
  7. There is a big difference between "using capital" and having "leverage"...the first implies that you can use capital for opening orders, pair trading, and other of the better strategies. Leverage simply means that you can screw around with a little more still have to sell that 4,000 shares before you can buy something else...this is just not a good be so limited in what you can do makes it even tougher than it is.

    Trading is much more than simple "day trading"...and to stay ahead of the market, it usually means having more tools at your disposal...and capital is a fundamental tool.



    Excellent answer. I agree.


    I would like to see you call me a fool to my face. I think you should step off with your little boy attitude. Several of the other members posted their opinions and they had value. Your response is a reflection of your shortcomings most likely in most every area.
  10. prove me wrong on my comment. if you have 5,000 or 500,000 in buying power how does that make you lose more money. it don't because its your choice to trade 100 or 10,000 shares its called self control. i am not trying to be mean but hey it was a foolish comment. its common sense to start trading small and working your way into size but how does it hurt. if you want to call me out and prove me wrong on what i said i am very open to listen.
    #10     Mar 17, 2004