Looking for a Prop Firm

[Don Bright]

Quote from WS_MJH:

To the guys thinking about prop, a few things:

(1) you're most likely not going to get better technology going with the prop firms you're talking about. Laser, Sterling, Lightspeed et al are not all that great. In many cases, you're going to get inferior technology than what you could get yourself. The only time you're going to get better tech is through a traditional prop firm.

(2) Your capital is going to be locked up; you want some flexibility.

(3) The main thing you're going to get out of prop is somewhat lower commissions and more leverage. How much does this mean to you? Training may help, but there'll still be a learning curve thereafter and no guarantees of success

In short, don't think prop is a panacea or can give you an edge in and of itself.

One comment. We do not "lockup" our traders deposits. We only ask for a 30 day notice. Other firms do 12 month lockups.

Since I'm on ET on a Saturday morning. My Golden Retriever, we just found out, has a tumor on his leg. Making emergency plans for Monday morning. I pray it's benign.

Anyway, one of our "edges" we pride ourselves on, is our "interaction." Every trader is or can be, online every second of the day with their manager, mentor, team, group, or even me (I have 250 on Yahoo messenger, answer a lot of questions daily).

Just FYI,

Thanks

Don

Don

 

[rmorse]

Quote from kcgoogler:

Nice link Robert. I know you have posted this before but very good to actually see the financial statements of firms you are about to or have accounts with (even if i cant completely understand the bottom lines).

-gariki

Unfortunately, there is a big delay in these documents, and income is not always included. Knowing the capital structure of the firm you're becoming a limited b partner of with a capital contribution, is very important.

Bob

 

[Maverick74]

Quote from Don Bright:

One comment. We do not "lockup" our traders deposits. We only ask for a 30 day notice. Other firms do 12 month lockups.

Since I'm on ET on a Saturday morning. My Golden Retriever, we just found out, has a tumor on his leg. Making emergency plans for Monday morning. I pray it's benign.

Anyway, one of our "edges" we pride ourselves on, is our "interaction." Every trader is or can be, online every second of the day with their manager, mentor, team, group, or even me (I have 250 on Yahoo messenger, answer a lot of questions daily).

Just FYI,

Thanks

Don

Don

Don, sorry to hear about your golden retriever. I hope he pulls through.

As far as lock ups go, something needs to be clarified. Your capital is not locked up at any firm. Only the initial deposit. Any profits a trader has can be taken out anytime the first 12 months. In my humble opinion, no trader should be taking out his original deposit. If you don't have enough money to live on, do not go prop!!!!!!! I cannot emphasize this enough. If you have to keep taking money out every month from your deposit, you're done. This means you are losing money in your account and taking money out of your account because you don't have enough money to live on. A recipe for disaster in my opinion.

 

[Don Bright]

Quote from Maverick74:

Don, sorry to hear about your golden retriever. I hope he pulls through.

As far as lock ups go, something needs to be clarified. Your capital is not locked up at any firm. Only the initial deposit. Any profits a trader has can be taken out anytime the first 12 months. In my humble opinion, no trader should be taking out his original deposit. If you don't have enough money to live on, do not go prop!!!!!!! I cannot emphasize this enough. If you have to keep taking money out every month from your deposit, you're done. This means you are losing money in your account and taking money out of your account because you don't have enough money to live on. A recipe for disaster in my opinion.

Good point, but we understand that "stuff happens" - and some may start and want to go back to their job or other needs, and we only ask for a 30 day notice, not a 12 month lock up.

Don

 

[DayTrader10]

Quote from WS_MJH:

To the guys thinking about prop, a few things:

(1) you're most likely not going to get better technology going with the prop firms you're talking about. Laser, Sterling, Lightspeed et al are not all that great. In many cases, you're going to get inferior technology than what you could get yourself. The only time you're going to get better tech is through a traditional prop firm.

(2) Your capital is going to be locked up; you want some flexibility.

(3) The main thing you're going to get out of prop is somewhat lower commissions and more leverage. How much does this mean to you? Training may help, but there'll still be a learning curve thereafter and no guarantees of success

In short, don't think prop is a panacea or can give you an edge in and of itself.

It has its benefits, and right now I need to take advantage of them. But I understand what you are getting at. I am trying not to be hasty and I am seeking all options.

Laser and Sterling are fine with me, plus some of the groups offer money off on Esignal. My capital is not locked up with the firms I mentioned. They only have fees in the short term (1-3 months).

Thanks for your feedback

 

[DayTrader10]

Quote from Maverick74:

You can take your profits out anytime. When you join these firms and you are putting down 5k or 10k, you are telling them you have enough money to live on outside your deposit. There should be no reason you need to take withdrawals out from your deposit unless you are closing the account.

Exactly. As long as you are with the firm, then you DO NOT touch your initial deposit. They need collateral which is completely understandable. When people are joining firms, they should be willing to lose the 5k IF IT HAPPENS. If you need that money, then do not trade.

 

[DuyLe]

Is Cy Group a registered broker/dealer?