I'm just curious because I'm a beginner and have yet to profit. Has anyone actually made a living off of that? I mean isn't it kind of tough to make a living off of that in my opinion. And has anyone been with their prop for more than 2 years with just profits after profits? Just curious and would like to hear from honest people who won or loss from a 5k prop.
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Has anybody actually profitted from a 5k deposit prop??
- Thread starter kungfutrader
- Start date
With 5k, you can have access to anywhere from 250k to 1 million intraday, which is more than enough to make a living. Of course, that implies that one trades profitably in the first place.
as a re beginner, i went thru 11k,5k,8k,5k,....til i eventually figured it out,i would have been better off sim trading for 2 yrs , what i learned was which info to use , when to sit on my hands and never to ride losers(still learning that one), it takes a while to learn that. Most new traders start out with zero tools in the box and havent a chance. I hope you are ready.
if you can get a 20:1 leverage (which they cannot advertise), then 5K is about $100K intraday buying power. this is equivalent to regular brokerage with 4:1 PDT rules requiring min $25K capital.
as your account grows, assuming you are consistently profitable, the initial 5K risk deposit will grow and as it grow, the 10:1 or 20:1 buying power will increase as well. you get more leverage.
$5K is the min deposit. to really make money you need to deposit alot more to take advantage of the high leverage (10:1, 20:1) and very low commissions the prop gives you.
as your account grows, assuming you are consistently profitable, the initial 5K risk deposit will grow and as it grow, the 10:1 or 20:1 buying power will increase as well. you get more leverage.
$5K is the min deposit. to really make money you need to deposit alot more to take advantage of the high leverage (10:1, 20:1) and very low commissions the prop gives you.
It can be done.
I was coming across this post a while back. http://elitetrader.com/vb/showthread.php?s=&threadid=159717&perpage=6&highlight=5k&pagenumber=1
They are so negative about these firms so it kind of worries me that I will be the one to eventually blowing out my account.
They are so negative about these firms so it kind of worries me that I will be the one to eventually blowing out my account.
Quote from kungfutrader:
I was coming across this post a while back. http://elitetrader.com/vb/showthread.php?s=&threadid=159717&perpage=6&highlight=5k&pagenumber=1
They are so negative about these firms so it kind of worries me that I will be the one to eventually blowing out my account.
if you are worried about blowing out your account, then you shouldn't look for prop. why should they hire you? joining a prop has mutual benefits in terms of (from you) your consistent profitability and (from them) their letting you take advantage of high leverage and low institutional commissions. otherwise with the commissions and profit-sharing payouts you are better off trading on your own at least you get to keep 100% of your profits.
as someone suggested above, you are better off trading on a Simulator and aim to achieve at least $24K over 6mths period. i saw this entry criteria on a prop website as requirement to waive the joining/education fees.
Quote from ammo:
as a re beginner, i went thru 11k,5k,8k,5k,....til i eventually figured it out,i would have been better off sim trading for 2 yrs , what i learned was which info to use , when to sit on my hands and never to ride losers(still learning that one), it takes a while to learn that. Most new traders start out with zero tools in the box and havent a chance. I hope you are ready.
So so so true..very painful in the begining. It like learning anything new, like ice skating your going to fall on your ass a lot. You should try a place like WTS where you put down $1500 min capital deposit but you can negegotiate the deposit down to $500 and learn how to daytrade there. Find a firm that will take even $2k deposit like keystone trading. Better to learn without losing too much of your own money. Oh and by the way the simulator trading does'nt work. Total waste of time. I sim traded a year before I put down actual money and I took $3k to almost 1 million dollars paper trading. Its bs, it does'nt mimick the real life pressure of putting down your own money on trades.
Quote from kungfutrader:
I was coming across this post a while back. http://elitetrader.com/vb/showthread.php?s=&threadid=159717&perpage=6&highlight=5k&pagenumber=1
They are so negative about these firms so it kind of worries me that I will be the one to eventually blowing out my account.
If you are a beginner trader i'm 99% sure you will blow out your account. This prop firm is just interested in making money from commission from you. Save that 5K and pay for real time data and trade on a SIM because I almost guarantee you you will blow out your account.
Quote from maflip:
If you are a beginner trader i'm 99% sure you will blow out your account. This prop firm is just interested in making money from commission from you. Save that 5K and pay for real time data and trade on a SIM because I almost guarantee you you will blow out your account.
Why would he blow out his account?
I keep hearing this stuff all time about new traders and prop. firms. I understand that people lose money in the beginning as they learn, I know I did.
But why do they lose money? I have a feeling the prop. firms are FORCING these new recruits to trade every day and in times where it may not be the most advantageous.
Eventually you learn when not to trade or when something "feels" wrong. But if someone is forcing you to generate X Amount of trades per day/week/month...yeah your going to go into a losing situation to begin with.
-troll