He doesn't want to go to a real prop firm. The suggestion has been made to him by more than a few people but he would rather bitch about things that he cannot change. This is like what, the third, fourth, thread he has started about this issue? He just wants something for free.
Not that I'm defending shady business practices, however, companies are in business to make money. For what it's worth, someone with no knowledge, money, track record or experience can at least get in and try to make a go at it with these guys. A newbie has NO OTHER OPTIONS, except learn on his own from mostly free resources (and there are plenty out there), sim trade for a long time and save up capital. Most newbs dont want to hear that though.
It's a good business model to suck up some money from people that are newly out of work with doubts that they will ever be employed again. Maybe the naive ones... Many of them have some cash in hand... There are firms that charge for training, want some money up front and are perfectly legit too... they will tell you that even with the training some are not suited for trading and they give them every opportunity to decide that for themselves before the training is over... You are going to pay some dues one way or the other, like the previous poster said, trade the sim while saving up some bank, that is a form of dues paying, or find the shops that have legit training and pay them for it [hint hint: this is the fastest and easiest route] or pay dues by not doing your own due diligence and getting screwed over a few times.. hippie trader it's your choice, please go for it... soon...
WHY SHOULD ANY FIRM GIVE SUCH (INEXPERIENCED, NO TRACK RECORD) TRADERS THOUSANDS OF COMPANY FUNDS IN WHICH THIS TRADER DOES NOT SPLIT THE LOSSES IF HE FAILS, ONLY THE PROFITS IF HE SUCCEEDS??
most of these $5000 accounts daytrade with 10:1 and close their trades at end of day so no 'real' capital is ever given to the daytrader since no shares are actualy purchased and delivered if it's intra-day trade. they are more likely making money on commission and teaching fees. with most brokers or hedge funds automating their daytrading or trading, there is less jobs in 'trading' compared to before automation. it seems like hedge funds would rather hire computer science grads and engineers since so much of their business needs computer automation and software for trading signals. so there are very few true prop trading jobs that don't require a deposit to cover your losses.
They don't risk anything ever!! They pocket many thousand upfront. Since the new trader is limited to a very small loss a day, and be put back on paper trade if there are consecutive days of tiny loss, a small monthly training fee from new traders would cover any risk for firm and still gives a new trader a real shot! When the trader has a positive balance, this training fee can be dropped. When a firm charges many thousands upfront, it is a scam as far as I am concern. In any case, the firm gets the split form the money the trader puts in - it is not the firm's capital to begin with! It looks like l2rtradr is shilling for such a firm !!