I curently have a job where I make about 60K a year. I currently have an offer from a proprietary firm that gives you a salary to begin with for the first few months as you learn to trade, would you give up a steady job to take this oppurtunity. Is the risk worth the reward? How much could good prop traders expect to make. Thanks for any advice.
"How much could good prop traders expect to make. Thanks for any advice." or lose. keep your job and trade in free time.
I gave up a 45K a year job to trade. When I did so, I had enough capital to trade with plus 18 months worth of living expense money. I am 6 months into this venture and am not yet consistently profitable (very close though). If you have at least a years worth of living expense money, then there is a chance you can make it work.
Depends....can you get back into a similar position as you hold now if you fail in trading? If so, and you have minimal monthly expenses, I would recommend going for it. The opportunity is really good if you can make it. I would expect a decent prop trader to make $200K+. So, it's a 1:3 R/R for you. Give up $60K steady, for a potential $200K+/year. In the end, only you know your financial situation. -FastTrader
the odds of making 200k are a long shot. in reality most traders make less than wages in early years. FastTrader are you making 200k a year? if not you aren't doing this guy any favors with your analysis.
Like I said, if he can get back into the same position, then all he's really putting in is time since the prop firm is paying him a salary. Am I making 200K/yr from trading? No, not yet, but my goal is certainly not 100-150K/yr if I go full-time. I would have to be doing $200K+ to go full-time. $200K is $800/day, or 1.75 ES pts on a 10-lot. Is it really that hard to do? I don't think so. -FastTrader
Nope: It really is hard to do ... but it can be done.... and its a heck of a better job than being in the software business at the programmer or manager level .... although its not better than having successful software product(s) in the marketplace. If you think its not that hard to do then get out of the software business - which, unless you control a successful venture is probably not a good place to be for the next few years .....
here is another way to look at it. you are making 60k a year. your benefits package is probably another 20k a year for total of 80k a year. lets say it conservatively takes you 2 years to to make any real money.you are up to 160k as your oppertunity cost. there is another thing to consider. you could trade longer term or just buy the qqq and not do the prop thing. your prop trading will then have to be better than a market return which is 35% for the qqq this year. so to make this worthwhile you will have to recover 160k and do better than a 35% return in a business where 90% fail to make this thing worthwhile. i don't know if you have a family. that is another consideration. if you do you have responsibilities that will take an emotional toll on your trading learning curve.there are many ways to trade other than giving up your job. as far as the salary from the prop job goes. im sure they will cut you loose if you dont make them any money so that is not dependable.