Trader pretty much nailed it on the head. I'm working as a personal banker at Chase Bank. Hmmm, I suppose trading prop remote will be the smartest move I can make then. From a logical point of view, why risk $50k in capital if I have the opportunity to only risk $10-$15k. I should be more open to trading prop. I always close out an idea before thinking it through logically. I'm not very inclined to moving, and I'm assuming trading remote prop will be a tough gig to get, especailly w/o the 7 and 55. My only problem is finding sponsorship for the series 7 and 55. Chase will not sponser me as it will not have anything to do w/ my job. Many have tried before me. JP Morgan is cheap.
If you choose to trade prop, then the various licensed prop firms will sponsor you for the series 7 (and 55 if they are a FINRA firm). I got my series 55 when I joined Worldco, but all the licensed firms will be more than happy to sponsor you for the licenses that you need. They will give you study materials and help you schedule your exams. That series 55 exam was very tough... at least for me, I studied a lot and only got like a 76 on it. Chase has nothing to do with getting those licenses, but if you ever go back to Chase, if prop does not workout, Chase will then hold your series 7 and 55 licenses...I know this from experience. When I traded remotely at Assent I put up only $5k as a capital deposit and had $300k in intraday buying power (which I never used). I am not sure how much leverage they give these days, but you can negotiate what you need. Remember that Assent has a 1 year lock up on your capital, so I would not put up too much initially...you can always add more later. One suggestion is to put up between $5k and $10k and trade 100 and 200 share lots until your strategy has been proven effective, meaning net profits over several months, before increasing your share size.
No lots dont require any license at all -CY group for one- Bear ,Motive, Jerry Olsons group, all kinds of them . Im on the verge of chosing one myself but im Canadian which complicates things more .
Dude most the firms will sponsor you, but you really don't need a series 7 to trade prop. Trade through Avatar or Schonfeld and you can get a great rate without getting licensed.
It appears the if a trader deposits $5k or $10k down at some of these smaller Prop firms like Assent or Echo but sometimes get good buying power for intraday, then the only strategy available to trader is too daytrade this amount. Overnight leverage not so good and is at anyways. So Mr. wiseman unless you have a good daytrading strategy then yes go the 5 to 10k deposit route. Maybe open retail account and trade thru it for awhile until you have developed a good understanding of the system/plan/strategy you are going to execute.
I would suggest backtesting before risking any real money trading. You'd be suprised to know how many seemingly well thought out theories are doomed to fail. Just my opinion.
I have been backtesting as well as studying certain gap ups and scan for big movers at 10am, during the day and after the trading day. I've been studying every day at the end of the day for about 60-90 mins. I've just beginning to write down certain entry points depending on chart patterns and price action. In about a year, I'll have a business plan in place clearly indicating the only entry points I'm allowed to make. The only indicator I use is bollinger bands. I will check the tick as well. I've been backtesting, as well. I have a decent bullish swing trading strategy at the moment. LONG only. Tight risk management. That will be traded in my retail account. So no need for overnight leverage with a prop
young man. do not sit there just study the chart or whatever your stratgegy, or your plan, dream about how wonderful a trader will be, try some hand-on trading and get the real feelings. trading is an art, not a science, you need hand-on experience. based on my experience, trading is not about trading strategy, it is all about money management, it is a business. the key of a business success all depends on sound money management, i.e., keep positive cash flow! so what I suggest you is: 1) take out $5000 from 50k and open a account, start to do trading NOW, learn from the real market, not books, not seminars. from the real money trading, know who you are, what is your strength/weakness. 2) if you lost the first 5k, then added another 5k. if you lost 5k three times, then stop, you did not graduate from the market. go back to regular work and forget about the being trader's dream! 3) if you made 5k, then withdraw it from the account, if you can do it three times in a regular basis. then congrulate yourself, you have the trait of a successful trader. put all the profit back to the account (keep 45k as business resere), start there. then withdraw youir profit regularly (bi-weekly or monthly or quarterly), do one year, if you can not, then stop! if you can do that, then put all your profits back and your anoher 45k. go from there, you should be ok!
Check out HotScans at http://www.marketgauge.com/ It does what you're trying to do. Play the Opening Range at 10am.
Well guys, 2.5 months later, and I'm throwing that strategy away completely. Gonna give you all a brief synopsis of my thought patterns and you may respond if you like. Gonna continue to scan for gap ups and downs pre-market and trade those. Then I'll scan every hour....10:00, 11:00, 12:00 etc for large price % movers. I've found that gappers tend to trade flat after 12:00, and I need volatility after 12:00 if I will trade that session. Basically, I've thrown away bollinger bands, as they've proved to be useless. Now I understand why so few traders use them. I'm trading solely based on the 10MA and 20MA and I'm trading basically solely on price action. Before I was setting a system up based on support and resistance points if you read my previous posts. I've learned that they often lie, and there's no point in restricting myself and forcing myself to buy into entry signals when I have a feeling price action is telling me to sell. I do have some preset entries based on price points on the 10MA and 20MA, but I've seen the light. The only way to trade is to trade based off of price action. The 10MA and 20MA help me to read the price action, but I do not base my trades solely on them. They serve as a confirmation for entry, rather than a determination of entry. I've decided to scrap the use of the 1 minute candle, and trade solely off the 5 minute candle. I might change my mind in the future, but for now, 5 minute candle is perfect for my style of trading....staying in a trade for 5 -30 minutes. I've also figured out that my initial "$200" profit goal per trade and automatic $200 stop loss is completely ridiculous. I would wait for price to hit either / or. It worked somewhat in my previous system. Yet, if you think about it, if I can read price action, why should I set a predetermined loss / goal. Granted, I'm probably not going to take a loss of more than $200, b/c I dont plan on entering a trade where I'm going to ride price down further than $200, as I'm still working with $20,000 position sizes unless price is under $20, then my size is 1000 shares. As to position size.....still haven't figured that one out yet. Should I do a predetermined $20k position per trade with 1000 share max lots or stagger it somehow ? I've also decided I won't be trading w/ $50k. Probably closer to $30k if I dont go prop, which I probably will do remotely. Need to buy a car soon, and will more than likely spend $20k for one. Lastly, I'm finally thinking that I'm understanding the 'edge' that a trader must have. I'm also beginning to finally realize that profitability is VERY possible. I feel that I am ready to begin my quest full time. But I've always been one to rush into things. I shall wait until I'm without a question ready for the journey. Thanks for reading guys.