Don, Thanks for the straight forward response. I think the issue for me has always been the concern that someone from a prop firm was going to tell me to fit into their strategy. I do day trade some, but mainly swing trading options. My strategy is specifically aimed at reducing commissions. Thus reducing the amount of money a prop firm would make from me. It would suck to put almost a decade into developing a good strategy only to have a prop firm tell you to do something else.
Fair enough Don. And although I do not agree with you, regarding the bottoming of commission pricing (at least on the retail side), I respect your view point as you have been in the game longer than most. Best of luck to you and your traders!
All you need to do to avoid the series 7 requirement is to form an LLC and have one member of that LLC hold a series 7 and make them your series 7 nominee. Just joining a sub LLC will not work.
I can't name one trader I know that is profitable trading from home. That's why. There are far more advantages to trading in an office then just leverage and lower rates. Nothing beats being around other traders.
Prop firms make money on commissions, carry, capital charges, and is some cases payment for order flow.
There are many that do. Use the search function and type in "prop firms" and "overnight leverage". You should get plenty of results.
Maverick, I have been wondering about just the same because I have give some thought to prop recently. After reading many threads about prop on this forum it seems it can work both ways no? Some prop traders have mentioned they have emotional lunatics trading next to them, that would be drastacting, no? If you traded at a firm with ppl who you could benefit along with in some form then it would make good sense.
My experience has been to only trade with other traders that I completely trust and that I get along with very well. If you can find a group of guys that you all get along well, and you all have similar ways of thinking, then you can do some really powerful work together. The problem is, anytime $$$ are involved, it takes some strong charactered personnel to get a group together that does not start to work against one another (greed and egos suck!!!).
I am not looking to debate you on this issue, however, I know of several traders that are extremely profitable that trade out of their homes. I traded in an office for several years, and have been trading out of my home now for 4 years.....and I am not sure I would ever consider going back to an office. There are aspect of an office that I miss very much, but on the whole, I prefer trading at home and chatting with other traders over IM or the phone. Lots of ways to skin the same cat I suppose.....its all about the money! Good trading to you Mav!
Yeah I could see the greed being a problem for most. I must be different when I see people doing well I study them not get angry at them. Succesful ppl motivate me.