Quote from tradingmanual:
The problem with many prop firms or prop office. They cannot recruit profitable traders as profitable trader would not need to work for a prop firm.
Are you serious? Quite the opposite. Profitable traders have far more to gain going prop then trading in a retail account. It's the unprofitable traders that should stay retail to minimize fees until they are able to turn a profit.
With prop firms that don't require any deposit you have restrictions on type of trading and stops and leverage.
Also not true. There are many shops here in Chicago where you can trade any product you like and are encouraged to develop your own strategies.
Anyone with $75,000 can open a prop office. but good luck finding profitable traders that will 'daytrade' and pay the firm 30% of their profit. why pay the firm a percentage of your profit for the privillege of intra-day leverage.
Huh? Man you are really shooting blanks here. Try 1.5 million to become a broker a dealer. Hell it takes more then 75k to open a portfolio margin account at IB. LOL. And there are more then enough guys willing to give up 30% of their p&l. Hell, some guys here in Chicago will give up 50% to 60%.
The only people that would work for a prop is they cannot afford the $5,000 or $10,000 to open a futures account or don't have the minimum $30,000 to open a daytrading account on retail brokerage.
Again, total crap. There are a thousands reasons to trade prop. Getting around PDT is not really that important as you said, they can trade futures. If they can't muster 5k to open a futures account, they can open an Oanda account for $5. LOL.
So you have catch twenty 22, hence if a trader was profitable and have their own trading system they wouldn't need two work for a small shop prop that has $100 stops or maximum loss of $100/day.
Not trying to be a dick here, but you haven't said one thing accurate yet.
All you are getting is leverage from a prop firm and the buying power is very small for these 'small prop firms' like less than $10,000 intraday buying power for beginners and you are required to pay tight stops plus have to go through they're training and act like an 'employee'. when your are in fact a partner. traders are partners not employees as profit and pay check is not dependent on the traders own work.
Once again, you are confused. I'm not sure what firms you are referring to. But most prop firms are way too liberal on leverage and if anything, give you too much, not too little.
The prop desk you want to work for is in the bank or some investment bank where you are managing 2 million in capital or 10 million in capital. that is a real 'prop' desk. not these small shops. And there are market maker shops who strictly do automated high frequency trading and most market making.
And you close out your last statement with more falsehoods. Bank traders don't make shit. A good prop trader will make far more then a good bank trader. Think of a bank trader as working for the federal government. Good steady salary, good benefits, but very little upside. Hence why most decent bank traders leave to start hedge funds the second they can.
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