Who needs a prop firm?

Discussion in 'Prop Firms' started by topguntrader, Oct 30, 2001.

  1. Magna

    Magna Administrator

    A quote has been said by many professionals, "Once they trade as a Professional way they would never go back to retail."

    I've heard that many times and, as much as I like the various freedoms of trading from home, I'd certainly like to try the benefits of trading out of an office, surrounded by other traders, exchanging ideas realtime, T1 line, instantaneous bullets, etc. Unfortunately I live in a small city so that's not possible. Guess it's back to naked in the bedroom. :)
    #21     Nov 1, 2001
  2. sallyboy

    sallyboy Guest

    It really does come down to personal preference. Some people need a more structured office environment and others can tele-commute and work independently. This is regardless of the profession.

    I work from home & while most men shave during the week for work, I shave for weekends! :D
    #22     Nov 1, 2001
  3. It depends ... on the trader, their trading style, their timeframe, their system. I would agree that for quite a few traders a professional setup isn't necessary.

    I've been trading a system that produces extremely high returns since I moved to the Phoenix office

    It wouldn't be possible to do at a retail firm- as I tend to be very active, need bullets, professional margin, the fastest executions (There are a few others always in competition with me), and very cheap commissions for the system I've been doing /learning.

    I've done plenty of other trading systems that would work quite well at a retail firm though. I'm not the Bright brothers and have quite a few friends who are profitable retail traders. The edges are huge though when you learn how to use them.

    If anyone wants to pay a visit to see me trade in the Phoenix office for Echotrade they are more than welcome to. I think the seeing what I do during the day will convince anyone who wants to trade full time that a professional setup is the way to be. Email me or call the office for more details.
    #23     Nov 1, 2001
  4. "I'm confused by this argument. Obviously different personalities in different situations prefer different accomodations."

    the prop or not to prop question ...
    I only trade between contracts (full time) or maybe if I can't resist some situation. It's no brainer. I make 120k/annum and there is no way, no how I would give it up for a "prop" firm !!!!
    I had my time with ETG, I almost went to Bright but I am happy
    and I can sleep at night knowing that I won't need to go in
    every day (I would go in if I paid $600) of course I don't think
    every day is tradeable according to my system.
    #24     Nov 1, 2001
  5. Since I started this mess...Maybe a solution is in order...Have both a retail account and a professional account.. And check into the office on those days when cabin fever is out of control...That way you still feel like the boss and no one is telling you when your shift starts
    #25     Nov 1, 2001
  6. you are all over the place on this issue... normally when someone takes both sides of an issue they are Hedgers, Arb's or confused. Someone else also quite accurately suggested that as a newbie, you've got a lot of growing up to do.

    I suggest that you cut your teeth on private/retail trading and forget about doing work at a prop/pfsnl firm, until you've got basic strategies, profits/monies and styles under way. If you just jump into the grown-up arena, then whence you'll need actual "where with all" it just simply won't be there for you to call upon.

    #26     Nov 2, 2001
  7. def

    def Sponsor

    "It wouldn't be possible to do at a retail firm- as I tend to be very active, need bullets, professional margin, the fastest executions (There are a few others always in competition with me), and very cheap commissions for the system I've been doing /learning. - rtharp"

    just to add some tinder to the fire:

    the fastest executions: why would a prop shop offer faster
    executions than a properly structured retail shop. I would be surprised if each and every office of each prop firm routes their orders directly to the exchanges. I would suspect that you have T1 lines that route to the server at the main hub which in turn routes to the various exchanges. Thus I do not see how this would offer faster executions than the direct access "retail" firms which offer the same routing. (T1 lines are not the exclusive domain of prop shops).

    professional margin: with 4:1 margin offered now this is less of an issue. I would even argue that higher margin is dangerous to the more inexperienced traders.

    bullets: I will not argue this one as it is an advantage - other than the cost. But one thing no one ever mentions: this assumes that you are RIGHT on the next tick. i.e. one 1 penny uptick you would be able to short elsewhere without the cost of a bullet.

    cheap commissions: look around i don't see the advantage

    If you your system is so great, it wouldn't matter if you are in bed or at an office.

    In the end, some people need or thrive on the stimulus provided by people around them - others don't. some thrive being around successful traders and learning from them (assuming the successful traders are willing to teach others how they make money) - others don't. some people don't want to be surrounded by others questioning why they did this or why did you do that - some don't care. some people desire the consistency and the motivation a desk an office environment provide - others don't need or want this. I could go on and on.

    There is no one way to make money trading. At home, creating your own office, go to a prop shop there are pros & cons of each. your own individual situation will determine what you need. The argument that one is so much better over the other - i don't buy it.

    to each his own.
    #27     Nov 2, 2001
  8. Rigel


    "Who needs a prop firm?"
    I think it's a personal choice.
    Maybe even a fundamental one.
    #28     Nov 2, 2001
  9. dozu888


    if u wonna be surrounded by other people, get some education and get a real job.

    on a real job you are actually working on a project, with lot more content than the buy/hold/sell craze, which is only suitable for a machine.
    #29     Nov 3, 2001
  10. Could someone explain why bullets are the exclusive province of Prop firms?

    Why couldn't IB for example provide this service?
    #30     Nov 3, 2001