I just spoke with a prop firm recently and went through an interview process with them. I got to meet alot of people in the firm who are real happy trading with them. This firm always has alot of people hating on them in ET, they require a deposit, and dont offer a salary. My question is, where does all this hate come from? Do people actually go on interviews and expect to be paid on the spot with the highest of regards? Do people really think they can go on an interview and say "I am the man for this job, I know what I am doing, pay me 100K a year and we're good" Who in their right mind actually thinks they can go to a firm, expect a salary, and a 80/20 split in their favor, and get 500K buying power, all the while not having any results of prior trades (paper doesnt count either). All the hate on firms just boggles my mind. is there anyone out there who's actually had experience with prop firms and have some real insight?
If this prop firm is any good and makes good cash. How can they not afford to pay you $100k? The props that don't pay have no strategies. They churn young guys that want to make it in the business. I you're smart continue your studies, do an Msc or MBA at get a job with a reputable prop firm/hedge fund/bank that will pay >$100k. You will also learn much more about the markets and have more chances to further your career. Even if you make it as a prop trader and end up making $100k; that's not much. The day you want to be a real player and open a hedge fund you wont find any institutional investors ready to invest with you. Also, the day you stop making cash in these little prop firms, you wont have much in terms of career choices.
Confused. Are U saying all the hate Comes from those 95% losers?? Or u saying I should just give up now.
It cracks me up when people think they are being "interviewed" by these deposit prop firms. The fact is that you will be "hired" as long as you give them a deposit, the "interview" proccess is just to make you feel special.
Not sure many people would say positive things they lost money on. Having said that, as with any endeavor there are success stories.
I know that. Anyone with a pulse and 3k will get a seat. U either lose money and they keep your 3K or you make money and they profit of you. Either way they win. But it cracks me Up more when people think just cuz they watch CNBC and think they can profit off the market and then expect these prop shops to give them 100K buying power without the trader putting up any collateral or risk. That's like someone being expected to back you for the WSOP just cuz you play Zyanga poker online. Most ET trolls don't even trade cash accounts.
A prop shop is the same as a retail firm. Your not gonna email ETrade and say "hey give Me 100K leverage without a deposit please. "
When u depo to a prop shop, it's exactly that. Ur buying a seat to trade with their leverage. Yea they may train u some bullshit basics but it's YOUR job to do work, research and profit. Not the prop shop. If u want a true life, get an MBA, get Paid 50k a year, and a 50/50 cut. That's the point of This thread. People hate on shops cuz they expect the answer to all Their trade questions. No. It's just a seat for you to trade with leverage. Most fail cuz they're just shitty traders.
There are no prop jobs at banks anymore thanks to Dodd Frank. And hedge funds? Yeah, even a billion dollar hedge fund might have a trading desk of 5 guys. Most hedge funds maybe one or two. The fact of the matter is, if you want to trade, the prop firm is your only opportunity. Most of them now are pay to play. The "real" prop firms in Chicago are hiring programmers, not traders.