My Story in Prop Trading

[peterkto]

I moved to NYC to become a prop trader back in 2011. It's a well known firm that's been discussed here as early as 2009 with a mixed consensus -- some people said it was legit and some people called it an arcade unlike "real firms" First New York, Jane Street, etc. I read all of that and decided to take the plunge at that firm anyway. In 2011-2012, I was just a newb trader barely performing better than minimum wage and thinking maybe the firm really was just social media hype that I fell for.. then 2013+, things changed big. It's a great inside look at the traditional prop desk industry and people tell me it's a funny read. It's updated semi-daily and I'm not selling anything.

I was featured on ChatWithTraders Episode 98 once, if that means anything for sake of credibility. There's at least 3 other CWT guests in my posts, though all names have been changed. It's not just my story but the story of our fledging trading desk.

If you enjoy it, please pass it around! I genuinely think I have the most unique trading blog out (started from 2014) there except if you google "best trading blogs" I won't be anywhere in there. I'm trying to promote myself a bit even though it feels strange.

https://churningandburning.com/category/prop-trader-series

 

[expiated]

I was featured on ChatWithTraders Episode 98 once, if that means anything for sake of credibility.

Interesting recording... even though the world of traditional proprietary trading firms is no longer a total mystery to me, it's still interesting to hear what goes on behind the curtain of those "cloaked realms" coming from the different points of view of individuals who've actually been there.

 

[trismes]

Great read fella, keep this going

 

[hilmy83]

I moved to NYC to become a prop trader back in 2011. It's a well known firm that's been discussed here as early as 2009 with a mixed consensus -- some people said it was legit and some people called it an arcade unlike "real firms" First New York, Jane Street, etc. I read all of that and decided to take the plunge at that firm anyway. In 2011-2012, I was just a newb trader barely performing better than minimum wage and thinking maybe the firm really was just social media hype that I fell for.. then 2013+, things changed big. It's a great inside look at the traditional prop desk industry and people tell me it's a funny read. It's updated semi-daily and I'm not selling anything.

I was featured on ChatWithTraders Episode 98 once, if that means anything for sake of credibility. There's at least 3 other CWT guests in my posts, though all names have been changed. It's not just my story but the story of our fledging trading desk.

If you enjoy it, please pass it around! I genuinely think I have the most unique trading blog out (started from 2014) there except if you google "best trading blogs" I won't be anywhere in there. I'm trying to promote myself a bit even though it feels strange.

https://churningandburning.com/category/prop-trader-series

Since you're a prop guy, what trading strategy do you follow? Is it all mechanical or mix with discretionary? Do the guys follow the same type of strategies/tools that all the retailers use?

 

[ktm08200]

I first found this blog from the CWT episode and I love it. I was in some of the same trades as you and it's great to read about your experiences in them. I'm glad you're back to writing consistently. This is the best trading blog out there. Can't wait for more.

 

[peterkto]

Since you're a prop guy, what trading strategy do you follow? Is it all mechanical or mix with discretionary? Do the guys follow the same type of strategies/tools that all the retailers use?

I did an AMA on reddit to answer questions like these --

https://www.reddit.com/r/path%3D%252Fr%252FDaytrading%252Fcomments%252F14n9ad8%252F

My answer to that question:

"Shorting small caps is my oldest strategy. I have more in the bag too, I've had past success swing trading trends in tech and crypto, trading special situations (reverse splits, warrants, stock spin-offs, IPO, SPAC, news spikes), and trading tape momentum but lately I'm just burnt out and reducing myself to my oldest strat... which I'm not even doing that great on."

 

[MrMuppet]

I moved to NYC to become a prop trader back in 2011. It's a well known firm that's been discussed here as early as 2009 with a mixed consensus -- some people said it was legit and some people called it an arcade unlike "real firms" First New York, Jane Street, etc. I read all of that and decided to take the plunge at that firm anyway. In 2011-2012, I was just a newb trader barely performing better than minimum wage and thinking maybe the firm really was just social media hype that I fell for.. then 2013+, things changed big. It's a great inside look at the traditional prop desk industry and people tell me it's a funny read. It's updated semi-daily and I'm not selling anything.

I was featured on ChatWithTraders Episode 98 once, if that means anything for sake of credibility. There's at least 3 other CWT guests in my posts, though all names have been changed. It's not just my story but the story of our fledging trading desk.

If you enjoy it, please pass it around! I genuinely think I have the most unique trading blog out (started from 2014) there except if you google "best trading blogs" I won't be anywhere in there. I'm trying to promote myself a bit even though it feels strange.

https://churningandburning.com/category/prop-trader-series

you mean the firm that is run by two guys in NYC...one of the guys wrote two books and looks like brainy smurf?

 

[peterkto]

you mean the firm that is run by two guys in NYC...one of the guys wrote two books and looks like brainy smurf?

You can read my first chapter "Financial Capital of the World" and see how badly that first book hooked me in. Then the slow disillusionment of the next 3 chapters to find out the reality of the situation. Funny to look back at it.

 

[peterkto]

I first found this blog from the CWT episode and I love it. I was in some of the same trades as you and it's great to read about your experiences in them. I'm glad you're back to writing consistently. This is the best trading blog out there. Can't wait for more.

Thanks for the good word KTM! I found a flow in writing that I never thought would come back. Please pass it around, many traders with shared experiences from this time period have reached out to me and loved it.

 

[Sekiyo]

Currently reading about Jimmy (Avery’s illegitimate son)
Great blog post. Nice to hear from an insider.

Why did you move away from blogpost to your own domain ?

Crazy how even in a bear market you have OTC stocks that pump, just to be dumped.

Especially biotechnology stonks back in 2022
Healthcare was doing fine with UNH leading the pack.

Unfortunately I was trying to play them on the long side … Stupid me. We’re not born perfect …

Had some winners during july / august 22’
But overall it was a sucker game.

Wish you’re doing fine
Thanks for sharing !

Did I tell you about my algo ?! xD

LMAO. Been there.

That’s crazy to go through this for a firm with tuitions and scholarship. Had to be done though.

I still believe in tape reading though,
But it’s icing on the cake.

I’d rather focus on price action (Point and Figures) type of reading. Secondary indicators would be the depth and the prints.