List Of Remote Prop Firms

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Thanks that answers my questions.

I saw on their website that they give 100% payout but if you are registered you cannot offer 100% payout. They have to be taking something.

Prop model is flawed against the trader. Just like casinos machines are programmed for players to net out in loss.

Learn from the markets.............anything that works catches on to the general population. Prop trading (speed high and constraints tight) can work only for 1-2% top guys. Rest are just a honey trap to walk out the door with nothing in the pockets.

Btw, just heard that big bank and investment houses like JPM, GS, the failure rate of a selected trader is about 55%. Mainly because a) these guys are very smart b) before get to trade real millions, they are very thoroughly prepared by money houses and also have immense technical support to make trading more efficient.

On the retail side, i.e. at home traders the failure rate after 2 years is 90%+ and for fast pace prop firms, it may be 98% in the first 6 months (correct me here if need be).

 

[JMorphew]

Prop model is flawed against the trader. Just like casinos machines are programmed for players to net out in loss.

Learn from the markets.............anything that works catches on to the general population. Prop trading (speed high and constraints tight) can work only for 1-2% top guys. Rest are just a honey trap to walk out the door with nothing in the pockets.

Btw, just heard that big bank and investment houses like JPM, GS, the failure rate of a selected trader is about 55%. Mainly because a) these guys are very smart b) before get to trade real millions, they are very thoroughly prepared by money houses and also have immense technical support to make trading more efficient.

On the retail side, i.e. at home traders the failure rate after 2 years is 90%+ and for fast pace prop firms, it may be 98% in the first 6 months (correct me here if need be).

Props are nothing more than leverage. If you are a competent trader you will do well, if you are not you wont. That remains true no matter how you trade, prop or retail. Preparing your self to be a good trader BEFORE going to a prop and using the leverage they offer as a tool is what seperates the successful and unsucessful prop traders. Actually, traders in general. Your home retail trader/prop trader generally do not put in the time and work required to be consistently profitable, if you treat the market like a casino, it will treat you the same way.

 

[textrader4]

Excellent post!!!!

Props are nothing more than leverage. If you are a competent trader you will do well, if you are not you wont. That remains true no matter how you trade, prop or retail. Preparing your self to be a good trader BEFORE going to a prop and using the leverage they offer as a tool is what seperates the successful and unsucessful prop traders. Actually, traders in general. Your home retail trader/prop trader generally do not put in the time and work required to be consistently profitable, if you treat the market like a casino, it will treat you the same way.

 

[toc]

Props are nothing more than leverage. If you are a competent trader you will do well, if you are not you wont. That remains true no matter how you trade, prop or retail. Preparing your self to be a good trader BEFORE going to a prop and using the leverage they offer as a tool is what seperates the successful and unsucessful prop traders. Actually, traders in general. Your home retail trader/prop trader generally do not put in the time and work required to be consistently profitable, if you treat the market like a casino, it will treat you the same way.

Leverage, high speed, tight rule constraints...................all are a model for failures. Prop firms make money from education and commissions from fast trading.

$5K for training the guy and hoping to squeeze another $3K from (fast high leverage trading). System is programmed to shut down on auto so that firm does not lose money on losing trades. $8K per guy here. Hope 12 such fools walk in and firm makes near $100K for the month.

 

[JMorphew]

Leverage, high speed, tight rule constraints...................all are a model for failures. Prop firms make money from education and commissions from fast trading.

prop firms make money from consistent trading. They dont want you to blow up your account because that means they stop getting your commissions. They dont want a "model for failure"

Firstly, there is a difference between the education firms and true prop firms. Most of the education stuff is bs, you pay for education that is generally lacking and basic, then you wash out and move on. I am not talking about the education model.

Secondly, "fast trading" is subjective. If your a Buy and Hold trader then you probably dont need a prop firm in the first place, in general people who go to prop firms are day traders. Day trading is the same retail or prop.

 

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They dont want a "model for failure"

Secondly, "fast trading" is subjective. If your a Buy and Hold trader then you probably dont need a prop firm in the first place, in general people who go to prop firms are day traders. Day trading is the same retail or prop.

Is that why majority of prop firms also go belly up............no pursuing the model for failure?

Leverage is a big honey trap also, won't you agree?

Also consistent and extremely fast paced trading requirements, make it nearly impossible to ride several vehicles at the same time and achieve diversification and safety to remain alive in the game for the long term. Something a small trader at home doing swing or intermediate trades can do well and devote more to research and fine tuning.

 

[JMorphew]

Is that why majority of prop firms also go belly up............no pursuing the model for failure?

Leverage is a big honey trap also, won't you agree?

Also consistent and extremely fast paced trading requirements, make it nearly impossible to ride several vehicles at the same time and achieve diversification and safety to remain alive in the game for the long term. Something a small trader at home doing swing or intermediate trades can do well and devote more to research and fine tuning.

I think leverage is only a honey trap for those who dont know how to use it. If you think "if i spend more i can make more" you are using leverage wrong. Ill agree, most traders fall into this category.

I think most of your views are about inadequate traders failing. Yes, you need to know how to use leverage, Yes you need to know how to day trade and make fast trading decisions, yes you need to keep strick loss limits. If you cant do these things you will not succede at a prop firm. And while i agree most traders are not good at those things, i would also argue that that is not the fault of the prop firm, but of the traders.

As far as diversification, im sorry but that just suggest that you dont understand day trading.

 

[dealmaker]

Prop model is flawed against the trader. Just like casinos machines are programmed for players to net out in loss.

Learn from the markets.............anything that works catches on to the general population. Prop trading (speed high and constraints tight) can work only for 1-2% top guys. Rest are just a honey trap to walk out the door with nothing in the pockets.

Btw, just heard that big bank and investment houses like JPM, GS, the failure rate of a selected trader is about 55%. Mainly because a) these guys are very smart b) before get to trade real millions, they are very thoroughly prepared by money houses and also have immense technical support to make trading more efficient.

On the retail side, i.e. at home traders the failure rate after 2 years is 90%+ and for fast pace prop firms, it may be 98% in the first 6 months (correct me here if need be).

Your analysis is wrong, you are comparing apples and oranges. Banks you mentioned have barriers to entry and top notch training to boot. GS's recruitment and training is legendary. They look for super sharp guys/gals from top notch schools with burning desire to succeed. In the props you are referring there are no barriers to entry.

 

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I think leverage is only a honey trap for those who dont know how to use it. If you think "if i spend more i can make more" you are using leverage wrong. Ill agree, most traders fall into this category.

I think most of your views are about inadequate traders failing. Yes, you need to know how to use leverage, Yes you need to know how to day trade and make fast trading decisions, yes you need to keep strick loss limits. If you cant do these things you will not succede at a prop firm. And while i agree most traders are not good at those things, i would also argue that that is not the fault of the prop firm, but of the traders.

As far as diversification, im sorry but that just suggest that you dont understand day trading.

Thanks for this post as it clarifies that day trading is a very different creature, which is not for a new guy. Even the guys at big firms do not do day trading as much, so why push it to the new lambs.

Fortunately I never went and will never go to the prop firm. Lost money in futures which taught me not to mess with excessive leverage. Seen lots more lose it in futures and currencies. 1 for 1 leverage is fine with strong parameters given priority but anything above like 1x5 will finish you quickly.

Diversification, money management, risk control, cut your losses, taking only very high probability positions etc. these are fine terms to stick to and inch ahead in the tough game.

 

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Your analysis is wrong, you are comparing apples and oranges. Banks you mentioned have barriers to entry and top notch training to boot. GS's recruitment and training is legendary. They look for super sharp guys/gals from top notch schools with burning desire to succeed. In the props you are referring there are no barriers to entry.

So that means you trap the losers wanting to impress their 'current crush' and in the end dry their accounts out?

There are barriers to entry.................top one is............do your solid due diligence first.