Starting in the Game

Discussion in 'Prop Firms' started by AlphaforHire, Mar 3, 2008.

  1. Hey guys,

    I'm looking to get into a Prop firm, done my research regarding the kind of lifestyle and such. I just have a couple of questions-

    1. How did you get started?

    Did you save up a bankroll, then just go at it? Did you start low and work a part-time job in those low times? When did you finally feel comfortable doing nothing but trading for a living (i.e., when did you feel you were trading and profitting enough to pay the bills, save some cash on the side, etc...)?

    2. When you first started trading, did you stick to the QQQ's and other ETF's to limit your risk? How long did it take you to implement other strategies with options? commodities?

    3. What kind of leverage does the average newbie use? (If you only deposited 5-10k, you would at least need 4 or 10-1 to make any decent money. What do prop firms allow? I've seen some forex places offering 100-1! I'm sure equities aren't half as much.

    4. How do I know if I'm getting ripped off on fees? How much is too much?

    Any help is much appreciated.
  2. Damn. No Love on these forums.
  3. Well, here's my thoughts.

    #1. I don't have a sizable bankroll, as I'm still in college. But I'm most likely going to be a proprietary trader next year when I graduate. If money becomes a problem then I'll get a night/weekend job, but if the prop firm salaries you then it shouldn't be too difficult at all. I've been pretty poor my whole life, and hell I can take a few more years of living frugal.

    #2. Mastery of stocks should come before anything else... if you can't make money trading the leaders in the stock market, there's no reason to think that dabbling in options will make you do any better.

    #3. The average newbie really doesn't use much leverage at all, probably trading 100 shares at a time.

    #4. I personally believe that it's more important to go to a place with quality education and fundamental training as a newbie than worrying too much about payout or commissions. What I'm trying to say is, commissions are important. You don't want to get churned... but you can always leave for better deals if you get better. Luckily, the good prop firms usually have commissions taken care of.