This topsteptrader allows to trade futures only.
That's a good idea to trade at prop desk. Any advises how to communicate during an interview with them?
How did you get capital?
- Thread starter FundingSeeker
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That's a good idea to trade at prop desk. Any advises how to communicate during an interview with them?
The entire economy is built on borrowed capital. Working and saving is the poor man's trap if he has large goals.
your teacher got a point: it is unethical to let suckers to have their money, and most big money, in finance especially, were made using OPM
the problem with opm is that how you trade becomes very soon basically irrelevant, whats relevant is how much opm can u bring (Sales rules), and how much bullishit you can make your lenders eat , while steel keeping them happy at the same time (that is a special talent on its own)
so you either a salesman or you are a trader
nothing is in between
When it comes to borrowing, trading and investing are different.
Yes, it is risky to borrow money to trade. But an investment is something one holds for a long period of time.
As an investor, suppose I buy shares of KO, a company with a 50+ year record of paying a dividend that currently yields 3.3%. I can borrow money from IB for 1.2%. So in this case, if I am in KO for the long haul, I would be an idiot if I did not leverage. I am sure one can make the arguments that there are better stocks than KO, that this is not the ideal time to buy that stock, and that buy and hold is an inferior investment method. All true, but I offer this as simply one example.
One should not leverage to the max because the market may fall. The leverage ratio should be small enough to permit the investor to stay the course during a major, unexpected market drop.
Yes, it is risky to borrow money to trade. But an investment is something one holds for a long period of time.
As an investor, suppose I buy shares of KO, a company with a 50+ year record of paying a dividend that currently yields 3.3%. I can borrow money from IB for 1.2%. So in this case, if I am in KO for the long haul, I would be an idiot if I did not leverage. I am sure one can make the arguments that there are better stocks than KO, that this is not the ideal time to buy that stock, and that buy and hold is an inferior investment method. All true, but I offer this as simply one example.
One should not leverage to the max because the market may fall. The leverage ratio should be small enough to permit the investor to stay the course during a major, unexpected market drop.
Whereby "borrowed" actually means "stolen."
No. My teacher was wrong. There is a vast difference between earning fat performance fees for running a hedge fund containing OPM... and borrowing money yourself. World of difference. Cannot be compared.
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Stole it...from the market...i hear they want it back, with interest...
Your comment is idiotic.