Quote from BOSS_HOG:
Hedge funds have way more advantages and information than your average prop trader. It is becoming increasingly tough to return consistent profits, with the black boxes and quants arbing out every opportunity these days. The times of catching huge moves are fading with the reduced volatility of late. The prop trading environment is changing. The days of slinging it out scalping and chopping it out day after day are nerve racking, your typical move is less. You compete with hedge funds that work with buy side research firms and have WAY more info than the average prop trader.
To paint a picture that making a few hundred grand within a year or so to the average guy that gets into prop trading is easy or even normal is just wrong.
Prop trading is a way to make some good coin, but you better know what the hell you are doing, because the sharks out there will eat you alive if they smell weakness!!
Now, come on in guys, the water's fine!!
you compete with:
1) automated trading excel spreadsheets that scalp for anywherers from .06 to .25 moves
2) you also compete with other automated programs that do similar shaving moves
3) you compete with the supervisory element of these prop shops who see and have access to net positions of all supervised traders and then use those net positions knowledge to their advantage, whether to hedge against or fade their moves
4) you compete with hedge funds that can lose with the intention of bustin other traders, whether they are known to them or not
5) you compete against knowledge shared on these boards by those who read but don't add to the mind share
6) you compete with other pseudo trading groups that pretty much pump and then dump into the move, only to see the stock take on real buying interest and skyrocket higher well beyond the churn and chop, but by that time those in it early are busted out....
you simply compete, so you have to decide whether scalping in its various forms or holding longer term (over 1 or 2 or 4 days) will/would be better
