most prop firms encourage churning,nothing wrong with that because its how they make money. however,a very good trader will ignore that bs and just do his thing and be profitable. unfortunately most day traders (in the end) resort to gambling "just to break even or just to get their 10k back". i've seen it a million times. don't get me wrong i have seen a few do well but in all honesty most lose alot of moeny and then try and come back with a new outlook and new discipline. the ending is always the same though.
most traders don't have a pot to piss in. on a 100to 1 leverage a 1% moves wipes out the capital. what piles of money are u talking about? tons of money? one clueless one suggested opening a bd for $50,000 what clearing firm in its right mind would do business with this firm?
I love you guys who want everything free, or at a cost of next to nothing. I question if some of you comprehend what running a business entails. Any, and all businesses, have expenses that need to be covered. If you're so opposed to how prop firms operate then save up your $$$ and trade retail. Seems the reality is that most here come to the table with very little $$$ to trade with. I started with $90K back in 1996. If you don't have the necessary capital (whether prop or retail) to trade you have little chance of ever succeeding.
Like I said, about 10% actually make it in most prop shops. So it just takes a lot of hard work to get to the opportunity beyond the high commissions etc... From my experience probably only the ones who succeed in those situations are the ones who are actually cut out for it anyways.
I'm talking about the piles of money they make anyways because they have nothing to lose. When you can't lose anything but have unlimited potential for gain, you will make absurd amounts of money. When you offer someone 500:1 leverage but say "if you lose anything it comes out of your pocket" but "if you make something we get 30% of it". Traders don't trade with $10 to make money. 40% - 10% profits off any number of traders is sufficient enough to make money. Like I said, the traders are not making pocket change when they profit in a prop firm so the prop firm is making piles of cash. Charging 10k for education and $1500 a month to sit at a desk is just greed fees.
I don't want anything for free. I don't want to be ripped off either. 10k for looking over a professionals shoulder and them giving you less than a book worth of information is not worth 10k because it doesn't mean you will trade successfully after learning from them. Yes business's have expenses to cover which is what the 10% - 40% far beyond covers in any half decent prop firm. It doesn't matter if half the traders in the firm blow their accounts, they are still making winning trades some of the time and the winning trades in any prop firm aren't pocket change.
Training costs can be negotiable. I told the firm I started with in 1996 I wasn't interested in their training at $5K. I said I was set with what I knew already. They understood that either they accepted that or I'd walk and find another firm. I started trading with them the following week. On the other hand if a newbie really doesn't understand the market then he can be a big burden to a trader if he/she is peering over their shoulder throughout the day. I don't think someone with minimal basketball exposure would expect Lebron James to "mentor" them for free and expect that they'll be playing at the Pro level within a year. Bringing something to the table -- whether it be a guy who played ball in college -- or a trader who's bounced around a bit with marginal success lends itself to a higher probability of succeeding down the road.