Is prop trading rubbish ?

[Frenchy]

you must have avery high financial degree for hoping that a firms give you money for trading ??? In France it s not possible, you must be the best of the best school but we are not a trading country so...

 

[Frenchy]

you have series 7 ??
It seems very hard for me, it s better if english is your maternal language ....

 

[tito]

Quote from Rearden Metal:


Prop trading for Schonfeld is how I got rich, so it isn't rubbish.

What kind of trading did you do at Schonfeld where you made most of your dough in? (scalping, arb, momentum, etc.)
Thanks.

 

[rwk]

I trade from home, and I do not have any licenses. I had a series 3 years ago, and I have heard that series 7 is a very difficult test.

The big-name investment banking houses in the US, such as Salomon and Goldman, pay well but are *very* selective. It is hard to get hired there. But that is not the same a proprietary trading. At a prop shop, you usually do not get a salary, and you usually have to reimburse them for any losses.

 

[Frenchy]

if you have a family.....what a pressure !!!

 

[EPrado]

Quote from Rearden Metal:

When you put up 5K of your own money for 30-1 pro leverage, that's called pro, not prop.

Prop trading is when a trading firm provides 100% of your trading capital to trade their systems. Prop trading for Schonfeld is how I got rich, so it isn't rubbish.

You might be rich.....but you lost one helluva bet to me....lol....but I was nice about it...only hit ya for 20...unlike others on the desk...

 

[OptionScreen]

Quote from Rearden Metal:

When you put up 5K of your own money for 30-1 pro leverage, that's called pro, not prop.

Prop trading is when a trading firm provides 100% of your trading capital to trade their systems. Prop trading for Schonfeld is how I got rich, so it isn't rubbish.

So firms like Bright, Echo, HLV, swift are not prop firms,
if so, what are they good for?

 

[OptionScreen]

Quote from rwk:

It's my understanding that there are primarily three reasons people trade through a prop shop in the US: a) mentoring (learn how to trade), b) excess margin (more than 4x allowed individuals), and c) short on a downtick as a market maker.

Can anybody think of other reasons?

LOL, Part a), was very funny

 

[Rearden Metal]

Quote from tito:

What kind of trading did you do at Schonfeld where you made most of your dough in? (scalping, arb, momentum, etc.)
Thanks.

That third option best describes it.

Quote from OptionScreen:

So firms like Bright, Echo, HLV, swift are not prop firms,
if so, what are they good for?

30-1 leverage and (comparatively) low commission rates.

 

[Rearden Metal]

Quote from EPrado:

You might be rich.....but you lost one helluva bet to me....lol....but I was nice about it...only hit ya for 20...unlike others on the desk...

Yes, I made a pretty lousy bookie/oddsmaker in the exciting field of 'Which of the three possible suitors the studio audience will pick on the TV show 'The Dating Game', while we were all watching/betting on that crap because the market was so slow.'