Prop Trading - Longer time frames

Discussion in 'Prop Firms' started by Burtakus, Oct 21, 2005.

  1. Are prop training firms basically limited to only day trading with many trades per day or can you trade a little slower, perhaps several trades per week?
  2. no money in that. they are their to make COMMISSION, even though they act like your partner.
  3. esmjb


    its rediculous to say they are only there for commissions. the amount they make off new traders in commish is miniscule and often negated by the fact that most traders lose money. think about it...the real money is in producing a quality trader who makes bank.
    • you would think this and they often defend themselves saying that BUT
    • to many traders never get trained sufficiently to beat a McDonald's salary
    • the drive to earn commissions as primary income sacrifices the time it takes to make competent future traders successful
    • too many people like Gary Mednick in the industry, seeking to make fast bucks and contract contingencies in order to steal the new traders funds

    no, they do exist almost solely for short term trading and commission earnings....

    you CAN do far better
  4. esmjb


    you can do far better? how? by getting a job at goldman? by setting up your own account at an arcade? hedge fund?

    to villify all prop shops as merely commish seeking brokerages is wrong. there are many good ones out there...
  5. Could not agree more. Real money for prop firms is building a business with traders who are going to be around for a long time.

    Anyone who thinks churning traders and looking for a new trader to fill the same seat every 30 days is the goal of a prop firm, has never run a trading floor.

    I can tell you first hand it is much easier to manage when you have a room full of traders who have been around and know what they are doing. And more fun.
  6. you as a trader might be limited to day trading. depends of how much cap u put up.

    traders with track records and a substantial deposit have much more flexibility than newbies
  7. lol. this simply isnt true. you do not understand the prop business model.

    Sure, they want you to succeed so you trade more and dont incur any p/l loss for them, but that is the extent of it.

    Im not saying that they are there to churn and burn you, but if you lose, hey, its your bag.
  8. OldStyle


    Most, (if not all) prop firms are churn and burn.

    i've been the equity route, and the futures route.

    equity-- traded for year and half-- essentially net even (avg 15k aday at avg of .006) yeah i know its piker size, but i was undercapitalized and just coulnt be net pos 20 /20 days

    futures..... a joke,--- thought the leverage would help, but vig was huge, not to mention desk fees, IT fees, and platform fees. my futures gig was joke-- started with 25 guys after 6 months, i was one of only three left. was gross pos, but net neg... couldnt afford to work for nothin any more... asked firm for nominal salary to help pay the expenses and allow me to further develop... they'd rather churn and burn em.

    when youre a newbie tradin piker size, the vig is almost insurmountable(sp?)... thats to cover all the others that get smoked and blow out..if after 6 months, someone shows promise (nearly net pos after avg 70 contracts a day rounturn(again piker size)) in the 10yr, one would think that a prop shop interested in developing a strong trader base would take the chance to help some one who has proved that they don't LOSE money... they just dont care, its all a commision game to them.

    am i bitter.. hell yes.. i invested alot of time and effort

    Warning to all newbies: if you dont have 1 yr of expenses in the bank( even better if you have 2) to live on... dont even try.

    if your a cowboy, and get lucky, you might make a small living in the begining.

    P.s. I'm sure alot of the "ET " posters will slam me on my trade record, but they have to so that all you newbies "easy money" think youve got a chance.

    BEWARE: I have 15 yrs experience in the "investment" arena.

    I know 1 succesful trader that scalps stock, and fewer futures success stories (been on the floors in chicago, everyone that made their dough did so years ago in the pits when there was EDGE) I know several VETERAN VERY successful futures traders that have thrown in the towel.. there just is no EDGE anymore, and unless you have a unique scalping ability (not to mention HUGE BP), you have next to no chance

    Its damn near impossible.
  9. Maverick74


    Sorry guys, my posts were deleted by Magna. Please address any questions you have about my prop over PM.
    #10     Oct 24, 2005