Tuition Cost at Prop Shops

Discussion in 'Prop Firms' started by drsusanclark, May 20, 2007.

  1. tradethetrade

    tradethetrade Vendor

    You're still a rookie but make the switch immediately. You've got to get training within your prop shop. You might want to ask your prop shop (not the sub-llcs you are probably under) if they have a good group with mentorship else PM me with your contact.
     
    #11     Aug 23, 2007
  2. vectors101

    vectors101 Guest

    If lose money in these prop firms you won't last.

    They want you to stay if you make money for them like 10% cut of profits and they have no risk.

    If you want the leverage you can just borrow the money and trade on your account.

    I don't see the point of scalping for pennies.
     
    #12     Aug 23, 2007
  3. vectors101

    vectors101 Guest

    the only benefit is the 50:1 leverage and licensing that prop firms require you to do. and fees fees fees to the exchange. it's about couple hundred bucks a month so you really need to trade a lot to cover your expenses to make it a business.

    the SEC or brokerages don't want retail investors to have 50:1 leverage because when you deposit money into your retail accounts. The brokers use your money to daytrade. you get 4:1 intra-day while the brokers trade their accounts 50:1 with your money intra-day

    Most retail traders trade part-time anyways and have jobs. They don't want retail people daytrading with 50:1 leverage for retail accounts.
     
    #13     Aug 23, 2007
  4. There is a big difference between "leverage" and "use of capital" in my opinion.

    A perfect example is the opening only strategy that our traders make so much money with. They "use" a few $million to enter the orders, knowing full well that they will only be filled on 5-20 stocks for the most part. This allows for some traders to make a good 6 figure income just trading the firs half hour.

    Leverage implies buying or selling more shares, which is helpful after you're doing well, but not always the best use of capital.

    Market making, mergers, pairs, automation, etc., in general, is capital intensive even though they are often lower risk and higher reward.

    Don
     
    #14     Aug 24, 2007