DISadvantages trading with a pro firm

[andrasnm]

If you become a "pro" you will have many advantages in the
office, provided that it's a good place and your peers are
ok. One disadvantage is the inherent presure to trade every
day. You are coming in every day and paying a desk fee. Everyone around you trades so you must do something. I find
that for me there are opportunities not every day buy one
a week maybe more but I wish do to other things in my life
that stare at a screen. You could scalp every day as well we
know "things move". But may not be a sustainable strategy if
you pay commission. All in all for a swing trader or even
a system or position trader an office will be no advantage
but a hinderance. If you are a 1/4-1/2 point scalper you
can trade a lot and maybe go for a bit larger moves in size
well you can make more money that in any paying job if
successful.

 

[limitdown]

Originally posted by Cdntrader
I think the THE problem with prop firms is that they brainwash you into following a strategy which involves making excessive trades thereby filling their own pockets with YOUR dollars.

Just ask some of these "prop" traders how many hundreds of trades they make on average every day.

Ask a prop firm if they mind you doing 0-5 trades a day and watch their response

Onsite (now AB Watley) followed this unstated policy, through all sorts of stupid stategies, that caused those whom I saw, blow out their funded accounts, and other blow out their own accounts. Seems that through time, the atmosphere was caustic, abrassive, and they shrewdly rewarded (through attention, praise and other non-verbal communications) those whom generated large tickets through frequency totally irrespective of whether you were net positive on the day, week, month, quarter, year of lifetime.


well said