Benefits of trading Prop

Two good benefits of trading with a firm vs. trading on your own are training and exposure to experienced traders and/or mentors...of course, this will vary by organization, but can be a big-plus if you are just starting out (imo).
 
Another benefit is risk-management...with a firm, they'll generally have an impartial party monitoring (and controlling) your exposure when you get over-extended or "at risk" in your trading account.
 
Quote from Rowan128:

Truff...

How do they factor in your losses if you don't front any money?
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100% of losses 50-70% of profits.

Impartial risk manager isnt exactly true. if you are losing money the firms principals will either be staring at you or ignore you completely.
 
Quote from Rowan128:

Sorry I just became a new member today, just asking a question, geeezzzz................
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I hate people that been here for a while and have an ego.....always scoffing at newer traders... :mad:
 
Quote from Rowan128:

Thanks for the help....


Do any of you trade with a Prop Firm?
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I used to for seven years, no money down, no responsibilites for losses
 
Where you with a firm that payed you salary and a portion of your profits, and no ties to losses

or a

firm that you use your own capital and your losses are your own money?
 
Quote from Rowan128:

What are some benefites with trading with a Prop type firm vs. trying to trade on your own $50,000 account?
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Considering you are your own business and being in business is about the bottom line. I personally believe trade on your own.

You will know your costs. Risk management is the most important. 200,00bp can net you approx 8-10k monthly if you pick your trades....people forget not taking a position is a position

I tell my traders to trade stocks max. 35 dollar range with a beta of around 2... million plus volume

most average 500/800 dollars daily..

in the end you are the one having to be responsible and accountable....doing it on your own...even if you are in an office seems in my opinion to be the best..

traders will and do influence each other ..perception...many times one of the traders is long and one short at the same time in the same stock and not always but often both make money...
 
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