My Experience at a Prop Firm

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pineman

My Experience At A Prop Firm !


For about 2 years now I checked the Forums to see what is going on in the Prop Firm world....it seems that only new folks are asking questions regarding legit Prop firms if there is such a thing as Legit, I have yet to see one.


I only wish folks would come in and tell the truth after the interviews or 3 months into the job....isn't this what the forum is about ?

That is telling the truth ?


Also, any Prop traders making any real money, if so , please let us know.


I tried my hands at Prop trading about 12 months ago, it was the worse job I ever had, I was better off selling Kool Aide at the corner of Wall St & Broad, The truth of the matter was that I was conned by the smooth talking Head trader there, yes he sold me a planet in our Milky Way and I bought it, at least i am man enough to state that i tried it and I failed at it....I still love trading but the Prop Industry is nothing more than a legal Racket !


Trading was a joke, " This is your computer, play around with the software ..." Traders or so call Traders...seem to me that they have a lot of emotional issues, I don't think the could function in a real world...folks dress like they just woke up out of bed...we where one block away from the NYSE, the Heart Beat Of America...show some class !

With all the Big Talk about how much money they are making, I found it strange that they couldn't buy breakfast or lunch, I am not looking for a free meal...but, if you are investing in a trader for the next six months, no income ...a firm of 20 traders, what is the big deal to buy lunch for your so call " crew .'



I would suggest position trading if you must...anything about scalping , forget it, total waste, you are trading against the Best Traders in The World, The Specialist on the NYSE, if you really think you can compete with the " House " then you are dreaming and I would suggest that you wake up !


I am not here to bash prop frims, but I find them of no use.


If you are just leaving college and this is your dream job, please, please try for a real job with real benefits such as a real Trading program at a real firm such as Merrill , Goldman, Morgan, etc....


If someone has a different take on the topic, please share it...and Mods, this is not about bashing Props Firms...it is about speaking about my take on the subject.

I am glad I had a shot at it...I failed, all that glitters is not Gold !
 
If it was easy the whole world would be doing it, yes there is a high wash out rate.

As long as you don't go into it blind thinking you'll be pulling in big money in your first year or so, it's still worth taking it on, especially as decent prop firms don't ask you to put up money and you owe nothing if you fail. It's all upside for you with the chance that you're one of the few who will succeed.

Why would a prop trader need to wear a suit to work, I know traders who delight in walking into plush office blocks in surrounded by suited bankers in their trading scraps, it's a sign you don't have a corporate noose around your neck, you don't need to impress anyone as you have no clients.

As for scalpers not making big money, I think you need to do some more research, start with the sunday times young persons' richlist there's 3 in there for starters, braveheart ring any bells?
 
pineman, unless you have some better reasons than them not buying lunch, all i read from your post it that because you failed -> prop firms suck - doesnt make any sense to me.
 
Quote from pineman:

My Experience At A Prop Firm !



I would suggest position trading if you must...anything about scalping , forget it, total waste, you are trading against the Best Traders in The World, The Specialist on the NYSE, if you really think you can compete with the " House " then you are dreaming and I would suggest that you wake up !
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Hyrbid has ruined tape reading, BUT- if you were trading against the specialist, that was problem number one and the biggest. Even a few months ago, the specialist was a scalper's best friend. He was a cash machine.

As for prop. The definition of prop is always muddied here. If you are simply referring to getting professional leverage for the deposit in your account- there are MANY successful traders out there making well into the 6 figures +. There are quite a few on this website.

And until Hybrid came along- I used to be one of them. But trading is all about the adjustments you make and how amiable you are to new styles. From your post- don't see how you can blame your "prop" shop for your failure.

You either didn't have a solid mentor or just don't have the feel for scalping.
 
i agree,most look like they just rolled out of bed and look to be in horrible shape.i prefer trading from home and do a mixture of scalps and swings.
 
Quote from pineman:

My Experience At A Prop Firm !


Traders or so call Traders...seem to me that they have a lot of emotional issues, I don't think the could function in a real world...folks dress like they just woke up out of bed...we where one block away from the NYSE, the Heart Beat Of America...show some class !
More...

Clothes make a person as a Bentley makes a driver. If you believe my seiko is classless to a rolex then you have no clue. My bank account which is substantial, is used for freedom ...not to impress anyone.

Get bent loser.
 
All prop firms are not the same so try not to generalize. Sorry you had a bad experience but it would be no different than someone with a bad experience at Thinkorswim claiming the brokerage and training sucked and was a scam.

Many props are just churn shops to make commissions. Many others are just places traders can go to trade with better leverage or lower costs. Somewhere in the middle are those with good pricing and leverage and training of sorts.

However prop shops on the whole are not set up to train and mentor, they are mostly there for experienced traders to have a place better than retail to trade at. The ones grabbing college students to "learn" to trade are just looking for turnover in my opinion. You are better off starting at a retail account and studying on your own or making contacts with experienced traders.
 
I guess I look like a bum... :(

I don't wear suits unless it's an important business meeting... and I keep a set of suits at the office... I wouldn't want to sleep in my office in my suits would I? I admit... I'm a bit ghetto...

Anyways, where's Don or Maverick when you need them?

:p :p :p
 
Mav to the rescue! I couldn't let this post slide so let me address a few of the points here.

You say this was the worst job you ever had and you obviously did not make any money but let me ask you this. Had you been doing the same trading at home in your boxer shorts with an account at IB, would you have made money? The answer is no. You are not a good trader so it doesn't matter where you trade, at home, or with a prop firm. This kind of voids your attack on your prop firm.

Now you may have a legitimate argument against intra-day trading. The problem is there are too many guys making money intra-day, you are just not one of them. This argument that it would be easier to swing trade is completely off the mark. I suggest you try it sometime and get back to me. I think it's far easier for a trader to swing trade after he is successful at intra-day trading. Let me tell you why. If you have never felt the agony of being in a bad position and holding it for weeks or months, it's the worst feeling on earth. As a swing trader, you have to take pain, a lot of pain. Most newbies cannot handle that. When the market closes, you cannot go out and enjoy your life. You are always glued to the TV, watching for earnings reports after hours, watching CNN all hours of the day for breaking news in the middle east, watching oil prices, interest rates, etc. Now for a seasoned trader, you eventually build an immunity to all that. But for a newbie, it's hell on earth. As an intra-day trader you can cut the noose loose at the close and relax, regroup, enjoy your evening and come back the next day re-freshed and ready to go. It's very important for new traders to be able to do this because this job is already so emotional as it is, you need to be able to recharge.

Now as to the bad trading environment you were in, didn't you see the place before you joined? I agree, no one wants to work in a sweat shop. But YOU chose that firm. There are a million prop firms out there and you chose THAT one. That is your bad call.

Now let me address the getting a job at Goldman, etc. Have you actually tried that? LOL. Not to sound rude, but 99.8% of the members on ET could not get Goldman to even look at their resume much less get an interview. So it's a terrible comparison. For most on here, there is no choice on there part between Goldman and say, Bright Trading.

The bottom line is, if you can make it work, the prop job is the best job in the world. No suits, no time clock, no 80 hour work weeks, take vacations whenever you want, no boss, and unlimited upside on income plus being able to do what you enjoy for the rest of your life. How can you beat that?

A side note, there are prop firms out there that don't focus on scalping and trade longer term and other products besides stocks. You should have done better research.
 
Quote from Maverick74:

You say this was the worst job you ever had and you obviously did not make any money but let me ask you this. Had you been doing the same trading at home in your boxer shorts with an account at IB, would you have made money? The answer is no. You are not a good trader so it doesn't matter where you trade, at home, or with a prop firm. This kind of voids your attack on your prop firm.
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Exactly.

If you know what you are doing, you can make money trading at home, in the office, etc.

People who fail always blame everything but themselves for their failure.
 
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