i'm thinking about joining a prop firm...i have been in the trading industry for close to 4 years in analyst roles. my question is, realistically,how long is it going to take me to get on my feet with a prop firm that doesn't require any capital, nor pay any salary. i realize this is a bit of an arbitrary question(market conditions, whose training me, systems)etc. i just wanted to get a ballpark number and months that people on this board went without getting a paycheck. any insight would be great, so i can financially prepare for this career move.
and I had unemployment, 50k in the bank and no bills (debt) at all. No dependents and no BAD habits like alcohol, coke, etc. I moved in with my GF in NYC (near the Cloisters) her rent was 650 (well that's Washington Heights - I would never live there again now but I have a baby daughter and a prissy wife) The firm (ETG) needed 25k down, and a whopping $1500 a months desk fee. Remember back then there WAS no competition. In a hindsight I should have just followed my original plan and traded on the floor of the NYFE. This was b4 decimalization and there was a clear opportunity to make money with Kanter for sure. And I did for quite a while. Scalping does work if you make 1/8's and have a bankroll intraday to swing $250,000 or so. However scalping was intentionally killed by the MM firms under the pretext that it is great for liquidity and the economy (BIG FUCKING LIE) Times are very different today.... but I hope this helps and let us know hoe things are in you new career. Cheers
Husky02, I too am looking for guidance. I was just offered a position with a prop firm. It was a tough and drawn out process. I went through 3 separate interviews before being offered a position. Iâm very excited about the opportunity, but also a bit nervous. Iâm leaving a good job to pursue trading. I realize thereâs a learning curve and Iâm prepared for that. I have enough saving to get through about 6 months with no other income.
i'm actually in the SAME boat as you! i have 6 months of reserves, before i'm in trouble...i'm pretty nervous, but at the same time it feels pretty liberating to get away from the bueracy of the corporate world....are you in nyc?
I'm in Austin, TX. I look forward to leaving corporate America, but saying goodbye to a steady paycheck is a bit scary. I guess you have to take some chances in life if you want financial success.
i feel the same way...if it doesn't work out, there will always be a job in corporate america waiting for us
well this is what I did but guess what - trading will always be there for you but the corporate world may not. I mean this is not a good job market and people are losing their positions anyway. Why not wait 'till they either fire you or downsize? I mean this is just silly. A bird in a hand... you know the rap? At least when I did it I was contracting and making very nice money. In a hind sight I should have milked the system while I could. I was stupid to make them cancel my contract and hence collect the dole. This is not the way to get into trading. Do you realize why these 'juice' firms let you trade for free? They are making money on you generating commissions! If you make it or not it does not matter that much to them Of course they see you and verify if you are mentally balanced, BUT you are just a commission generator for them and when you lost a few trades (and you will) they can and will terminate you. I was under the impression that you are in between or downsized. OK it is a different story, try it. Why quit a decent paying job? It is silly.
I totally agree. The only reasons you should go into a non-salaried prop firm in this day and age are the following: 1) You got fired or laid off and job prospects are slim to non-existent, or 2) You're currently earning minimum wage, stuck in a dead end job and have no career prospects Otherwise, keep the job and open up a Schwab account. Put your earnings into good, solid companies with reasonable P/E ratios and hold them for the long term. Today's market is no place for a beginner IMHO. Even a 3-year trading veteran like myself is exploring corporate opportunities.
well when you are absolutely miserable coming to work everyday...dealing with 3 different egomaniac managers, four different groups across the country and have to pull teath with co workers to get anything done, i think prop trading doesn't sound that bad, especially when you can get registered for your trouble..the grass is always greener on the other side i guess
I realize this is a tough market, and I'm not looking at trading as a get-rich-quick career. The firm I'm going to work for has a training program and the managers have a stake in getting the traders profitable ASAP. The bottom line is my job is nothing but a paycheck. I am looking for a career that gives me more control of my destiny. Do you guys believe that it's impossible to make a modest living trading in this environment?