Discussion in 'Professional Trading' started by Killmenow, Aug 3, 2006.
What's your profit for 2006 year soo far?
Guys please be honest
Since i work at a prop firm, I dont think of things in terms of %, just net $$$ for the year. Its not really possible for me (and some others) to answer your poll accurately.
need more votes
Up 200% so far this year (have voted). I'm starting my fall season next week after a six week summer break. Trading equities with 1x leverage.
May I ask why? Is it because
1) you don't know how much you started with
2) you don't know how much you made
3) you are pulling so much money out of your account that it doesn't make sense to discuss about it
It doesnt make sense b/c prop leverage is different than retail leverage. Its much easier for me to turn 5K into 100K or whatever than it is for some guy trading with 5K in his e'trade account (not that leverage means you'll automatically make money of course, its usually the opposite).
Either way, no one at the firm I work for speaks in % terms, only net $$$ (after commisions, SEC fees etc).
Now, that's why I only see $$$ in the p/l thread.
Isn't it a bit unfair? I mean, what you start with is quite important to judge your performance, isn't it?
The difference is, with prop leverage, there is no "real" accurate way to determine ones rate of return. For example, a prop trader may initially deposit a mere $5K to receive anywhere from 100-500K buying power. If a trader with 5K of his own money in his account with BP of 500K earns 100K in a year, is his return 20% based on his BP, or 2000% based on his initial deposit?
I believe this is the conundrum that Steve T. is referring to when he says that he's only concerned with the net amount gained, not the %s.
Yes, this is what I was getting at.
Separate names with a comma.