Prop trading looks great, then why most retail traders don't simply join in?

Discussion in 'Prop Firms' started by OddTrader, Jul 27, 2006.

  1. I've wondered that for a while. I figured it has to do with the degree of risk that can't be managed in clear-cut terms, and SEC restrictions. I'm sure the regulators do not want to deal with the broader market consequences if everyone suddenly switched to a higher risk, leveraged prop model.
  2. dac8555


    I would never do it for a lack of overnight holds and more sophistocated strategies like options. Most of my money I make holding longer term. liquidating end of day would cut my profit at least in half if not more.
  3. Boy these investment banks sure do have a competitive advantage, they have their little analyst who issue upgrades downgrades and all the other grades they seem to apply.

    They have access to the media, they have alot os capital, and to think we actually compete with these guys, sometimes size is a disadvantage though.
  4. I'm stupid. I thought you said retail firms, not traders.
  5. Can you use the leverage offered by prop firms to compensate that? Comments?
  6. Isn't that because perhaps particularly remote prop trading is available now?
  7. Are you saying we should have joined prop trading by now?
  8. cashonly

    cashonly Bright Trading, LLC

    I'm not familiar with what you describe. I don't know of any firms that don't allow you to hold overnight.
  9. taowave


    I have not read the entire article,but I am the ex head trader of equity derivatives at a major investment bank and have "insight" into what it is that generates the $$$$

    Let me clarify the edge that investment banks have..

    Captive CUSTOMERS



    I can assure you that the traders making the big numbers at these shops are no better than alot of the traders on ET.In fact,I am being very kind....
    #10     Jul 27, 2006