What is needed to set up a pro firm?

Discussion in 'Prop Firms' started by qll, Oct 2, 2006.

  1. qll


    I mainly want to focus on half automated trading.

    My known monthly cost is
    Rent $500
    2 Trader employyes $500 ($250 each)
    1 programmer for automated alert system $500

    For now, I can think of the following questions.
    1 Software that manage the risks, such as force a stop loss, prevent traders to open more than 20% of the total leverage.
    2 Which RETAIL provider can provide the main_acct->trader_acct feature. I prefer a flat fee provider, because I mainly trade penny stocks.
    3 How much capital I need to cover the $1500 monthly cost. I am thinking to test run a $100K portfolio, so I need 18% gain on capital to break even.
    4 How much time needed to train a video gamer to be a profitable trader.
    5 What % of new traders can turn profitable in 3 months, and stay that way. (statics from swift does not look good)
  2. This is a great business plan on Fantasy Island. Will you have midget throwing too. I don’t think many gamers are the people sitting on 100k or more to put up in a prop firm. You would have to be a fool to put up more then 5k for 250k in buying power. Any basic day trader putting up 10 to 1 for prop is retarded because your money is commingled and can be lost or taken away from you for not even making a trade. They would be better off in IB putting up 25k and having unlimited day trading power and still having your money protected under the retail costumer laws. Now if you’re a real player and you trade with millions in buying power having a few 100k up is not that crazy.
  3. It’s going to be very hard to start a business and looking for guys that want to flip penny stocks.
  4. Who in their right mind would work for you for $250 a month as an employee? Should be more like $250/day.

  5. I really hope this post was a joke........
  6. What a fucking waste of a thread.
  7. In some areas of the world, $250 month is a good salary...think outside the box guys!
  8. I actually think the guy is for real but suffers from what most who have a good business idea, but bad taste and judgement, suffer from: They have a good idea, but because they lack money, they try to figure out a way to execute it cheaply.

    Don Bright comes on here all the time saying that most businesses fail because they aren't well enough capitalized - and he's 100% correct. What he should also add (since it's part an parcel) is that most businesses fail because they are undercapitalized and cannot execute like the must if they are to truly take off.

    So, why not just save up the requisite dough and do it right?
  9. artis74


    This is 30 seconds of my life I will never get back.....
  10. qll


    i have decided. here is my plan:

    i am setting up a pro firm, not a prop firm.
    $250 to $500 is enough for they guys i will hire.
    instead of hiring a trader, i will hire a programmer, basic C, Perl programmer to analyze RAW, 10Q, S4 data.
    instead of day trading, i will use the programmer for position trades. less trades via Retail Firms, so less commissions paid.

    $100k investment.
    $250 for 1 programmer. $3k per year.
    borrow space from my existing business, so rent/internet is free of charge.

    My cost of capital is 6%, so this plan will break even at 9% ROI.
    #10     Oct 3, 2006