Should I join this prop firm or keep trading for myself?

Discussion in 'Prop Firms' started by Ajm1734, Feb 20, 2019.

  1. Ajm1734

    Ajm1734

    How about giving it a year? If I don't like it after a year I can just go back. I have enough money saved up for that. Part of me is on the fence but another part of me wants to see if it can be something more. Maybe it's just FOMO, I don't know.
     
    #31     Feb 20, 2019
  2. Figure out the multi-dimensional criteria that would dictate success. Working for a year, or even six months on a trial basis is a good strategy.

    If it's in New York, you will find a lot of women, so that's a plus side. The minus side is they are generally very sad and miserable and alcoholics. Etc etc.
     
    #32     Feb 20, 2019
  3. LS1Z28

    LS1Z28

    With a 40% payout, you would have to make 5X as much as you currently make to double your income. Are you sure that you'll be able scale up that much scalping stocks?

    If I were you, I would probably just keep growing my account, and scale up as the growth allowed.
     
    #33     Feb 20, 2019
  4. Cheap commissions. 100-1 leverage. The evil that I knew versus the unknown evil. One day I turned around and the 300 trader firm I was at was down to me and my trading partner. Couldn't tell you who was in charge, who was our manager. Decision to move one was basically made for me.
     
    #34     Feb 20, 2019
  5. Ajm1734

    Ajm1734

    I'm sorry, I should have added earlier that the payout increases depending on how much you make. $1 million (before the split) and it's 50% and $2 million and it's 60%. 60% is the max.
     
    #35     Feb 20, 2019
  6. destriero

    destriero

    I'd take the gig if it's Quad.
     
    #36     Feb 20, 2019
  7. JSOP

    JSOP

    New York is an exciting place aside from everything else so it's understandable that you are curious. Make sure you get everything in writing, the payout %, the no capital contribution, and etc.. It scares me when @ShortBoca said that nothing that those prop trading firms say is ever in writing. I mean it's good that you are not putting in your money which could be commingled with the firm's capital but still.
     
    #37     Feb 20, 2019
    tommcginnis likes this.
  8. OP, 40% payout on a firm-backed deal is very low. Everything should be in writing, max loss, commission, BP, and ways for you to increase your payout.

    If the firm that offered you this deal isn't a registered BD, avoid it like the plague. PM me if you have any questions.
     
    #38     Feb 21, 2019
    tommcginnis likes this.
  9. tommcginnis

    tommcginnis

    Very much disagree. If active trading is 'value arbitrage' and acts as the grease between buyers and sellers to join value assessments 'sooner' (with your capital in play than without), the process of injecting *more* arbitrage capital into that market will quickly dilute the usefulness AND the rewards to being there.

    Depending on your actual trading pattern, if you give me a slice of your trades, I don't *have to* deduce your exact rules, I just have to get close. And then, if you've got a $10m/day market, and I waltz in with my pretty-close $1m basket, I've just tapped 10% of your income, just from looking over your shoulder. (And this is assuming a linear effect, which in practice, it's not...)
     
    Last edited: Feb 21, 2019
    #39     Feb 21, 2019
  10. wrbtrader

    wrbtrader

    That right there should be your answer to stay where you're at.

    I've once lived in the summer in NY (lived with a college buddy) and WI (Madeline Island with a relative) although never spent any time in Milwaukee WI...

    Cost of living and quality of life is a big issue for me. I'm not a big fan of Milwaukee but NYC I could never reside in reference to the city itself.

    The issue is that you're asking the opinions of anonymous people that know nothing about your lifestyle/costs in Milwaukee in comparison to your lifestyle/costs in New York City (assuming you're not talking about some suburb in the state of New York). Also, you mention nothing about your family/relationships.

    Without the info about family/relationships, Milwaukee has the edge and I think a trial run in NYC for a summer would be enough for you to make a better decision. Thus, a full year not needed. Yet, make sure you make arrangements in Milwaukee just in case you decide to return. For example, if you own your house/condo...sublease it for 1 year or rent it for one year.

    If you're renting, you can make arrangements with your landlord to only sublet it on a one year term.

    What's your cost of living in Milwaukee per year ?

    What will be your cost of living in New York City per year ?

    wrbtrader
     
    Last edited: Feb 21, 2019
    #40     Feb 21, 2019
    nooby_mcnoob likes this.