Just hired

JMowery1987 · Aug 14, 2006

I still say it is worth it if you get good training or a mentor to help you. Then quit. Make sure the contract says you don't have to remain there.

If he at least has a mentor, he has a better shot than all the other newbies coming in here.

Just as a lot of swifties pm me and tell me it was a great place to learn, but afterwards when they got it together, they left for something better.

toucanmill · Aug 14, 2006

Quick question. You can tell by the number of posts I am still learning. So here goes...

What is a "prop firm"? I am assuming a commodities trading company based on what I read, but we all know what assuming gets us.

Thanks

JMowery1987 · Aug 14, 2006

Quote from toucanmill:

Quick question. You can tell by the number of posts I am still learning. So here goes...

What is a "prop firm"? I am assuming a commodities trading company based on what I read, but we all know what assuming gets us.

Thanks

There are equities, commodites, forex, options firms as well.

Equities is the most common.

Hydroblunt · Aug 14, 2006

Quote from JMowery1987:

Equities is the most common.

Completely the opposite. Assent is not a prop firm, neither is Bright nor Generic, etc. FNYS is a true prop firm. Schonfeld, for most of it, is a true prop firm.

let it run · Aug 15, 2006

To the original poster- good luck with it all but the deal you are getting is not actually that great compared to what you would get at most prop shops.

For a start, like someone else mentioned, you shouldn't be requied to bring any money to the table and your cut should be 60/40 in your favour which improves with the profit you make.

You would be expected to spend a considerable time in the red (anyone who tells you they started trading and were CONSISTENTLY profitable within half a year is either a liar or had a lucky start) but there are some firms that will give you a minimal salary for your first 6 or 12 months to make sure you can eat at lunch time.

However, nobody is going to bankroll you while you potentially blow a hole in the house's account, which you probably will for some considerable time while you are learning and on tight downside stops.

I would be more positive about the whole thing if you were trading futures than if you are trading equities or some bullshit forex churn shop. Even though it all sounds as though the deal is heavily in your favour (which it is from where you stand) you have to remember that they will make money out of your brokerage if you play the game long enough and they only need 1 in about 15 new guys to turn out to be a half decent trader ($1m+ profit/year) to make back the chump change that the other guys who didn't make it dropped.

You may get some negative assessments on here but it really is a good opportunity for you to learn on someone else's money so stay committed and believe that it could be the best thing that ever happened to you- which it could be.

All the best with it all

litetrader · Aug 15, 2006

"Completely the opposite. Assent is not a prop firm, neither is Bright nor Generic, etc. FNYS is a true prop firm. Schonfeld, for most of it, is a true prop firm."

Hydroblunt

So what exactly are these firms called. I understand why they may not be considered "true" props, but if not prop, then what?

coolweb · Aug 15, 2006

Quote from litetrader:

"Completely the opposite. Assent is not a prop firm, neither is Bright nor Generic, etc. FNYS is a true prop firm. Schonfeld, for most of it, is a true prop firm."

Hydroblunt

So what exactly are these firms called. I understand why they may not be considered "true" props, but if not prop, then what?

Professional (Pro) firms

Step up from retail firms.

trader1966 · Aug 15, 2006

Oh please LETRITRUN, most guys who can trade are profitable within the first six months, especially if they have good training or previous trading experience. The secret is to not over trade ( guess). Pick a basket of twenty or so stocks to watch on a daily basis and limit your trade decisions to those stocks only. Don't trade a stock based purely on a set-up if it is not one you are watching all day. This way you will reduce your mistakes and have more capital for the trades you feel the best about. Just don't press it, if you don't see a good entry all day so be it.

Hydroblunt · Aug 15, 2006

Quote from trader1966:

Oh please LETRITRUN, most guys who can trade are profitable within the first six months, especially if they have good training or previous trading experience.

First of all, if they had previous trading experience then it's not really their first 6 months. Second of all, he said CONSISTENTLY profitable and you simply cannot determine that in 6 months, not even a year probably. When I started, I went through at least 2 periods of profitability within my 6 months, one for 2 weeks, the other for a month before hitting my lowest point and really getting it. Part of the ride & experience, some people never make it out from the down.

Quote from coolweb:

Professional (Pro) firms

Step up from retail firms.

Basically. They used to be real prop, back in the bubble years where the wouldnt need any money down, charge absurd fees and do 50/50 splits. But it was all good, when any monkey could make 50k in a day.
That all stopped because the numbers are not there anymore. If you're putting money down, you should be getting 99%+ payout.
Sometimes you don't need to put money down, only as a new guy, because the group leader essentially backs you at the hopes of making very high overrides on you and possibly some net profit. That rarely works out as planned.