Trading Capital

Discussion in 'Trading' started by gordo, Oct 4, 2001.

  1. gordo


    This is my first post, and I would like to say that you all have provided a great deal of valuable advise. The question that I would like to pose relates to trading capital. For a number of years I have been working towards one day becoming a professional trader. My intentions within the last 1 1/2yrs. were to be a prop trader specifically.

    With the bear market as it has been and the national state of affairs, I am currently reassessing this as a reality. I am a little guy, less than 25k, and work for a major wirehouse. Have been in cash for the last year, made one profitable option trade and have sat on the sidelines since, due to inexperience with bear mkts, as well as time constraints research etc.

    Getting to the point, I am beginning to look at whether or not I should simply search out a more talented/experienced professional and put my capital with them to trade. I have maintained a study of the markets for the better part of the last 6 + years as I have worked with commodities brokers and traded options in my own account.

    Had some good interaction with bright as potential proprietary trading opportunity, and am still keeping that first on my plate without evidence to the contrary. But with the changes in the markets, legislation, and after reading many of the prop shop posts, considering the possibility that it may be more practical for me to place my funds with a well establised professional instead of trying to do it myself. Believe that I am capable of a career in this profession, however it sounds like it's becoming more difficult with the competition of getting into a good firm (don't have the benefit of knowing anyone at good prop shop), etc.

    Just interested in some good input in terms of the feasabilty of beginning a prop trading career within the next year or so. I am in my early 30's, if that's consideration, single with no other financial responsabilities. Does one in my positions simply need to remain patient and discaplined until the markets firm up? If that proves an unlikely success, how would one search out/place capital with an established pro as our firm frowns on outside accounts?

    Thanks again.
  2. Sorry to tell you this, but just buy some bonds and wait this market out. It's not a trader's market. I know lots of really good traders who are struggling. A newbie will get cut to shreds. I know you don't want to hear this, but it's the truth. Practice more, and wait for a good market to trade in.
  3. gordo



    Actually that's exactly the type of response that I was looking for. I have been mainly paper trading this year, and due to the isolation in our office environment, have been unable to bounce ideas off any peers, I was beginning to question myself. But your response reassures me that indeed my course of action (staying on the sidelines) is prudent for me. Kept looking at missed opportunities and beating myself up. Thanks again.