Non Day Trading Prop Firms

Quote from C.R.E.A.M.:

I'm currently in school full time so I can't work at a firm yet. I was just asking a question I'd been wondering about for a while because I figured on a forum for traders someone would have an answer. I was looking for a quick answer and wasn't aware that people go through the posts trying to make others look unintelligent.
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No, no one is trying to make anyone look un-intelligent. Let me give you some advice. You can take it or leave it. This is a very tough business. Very competitive. One of the biggest ways to get people to look down on you is to be lazy.

At least make an effort to show others that you tried to get the info then come on here and ask for help. But when you start a thread that has been started 100 times before this and is archived for all to see if they use a simple search feature, it makes you look incredibly lazy. Now maybe you are not lazy. But I'm saying it makes you look that way.

Many people on this site will offer help if they feel you have put some effort of your own into the problem or question. All you need to do is use the search feature and type in prop trading and position trading or longer term trading and I'm sure 1000 hits will come up.

I'm not trying to be a dick here. It's just something that might help you out when you get out of school and you are actually sitting down for a real interview. Never show anyone that you are lazy.
 
The swing traders I know have prop accounts for the BP like 10:1 or so but don't use them for overnight holds. They keep most of their funds in retail accounts for AH and follow thru movs. Use prop to keep a little extra dry powder and not much else because the rates/fees and lockups.

Leverage only works when you know what you're doing, until then you might want to stick to retail for 2:1 overnight. 10:1 overnight on an unextradinary situation is just boneheaded foolishness for a little guy. :eek:

For a student (without capital) looking at 'joining' prop they typically start you out in the office scalping for nickels and dimes in 100 lots. Absolutely no overnight of course.
 
Quote from C.R.E.A.M.:

I'm currently in school full time so I can't work at a firm yet. I was just asking a question I'd been wondering about for a while because I figured on a forum for traders someone would have an answer. I was looking for a quick answer and wasn't aware that people go through the posts trying to make others look unintelligent.
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He was not making you look unintelligent. You said in your first post you’re a trader who never likes to have a down day. You gave the impression you trade and now you say you’re a student without anytime to trade. Be more honest and grow thicker skin. I would like to give you some advice though. Don’t join a prop firm and trade. It’s a very hard business. That’s the best advice I can give a younger guy. Get a job and save 10k. Then make 1 trade at a time with 100 shares for like a year or 2. You got to learn when to hold them, learn when to fold them, know when to walk away and know when to run.
 
Use options for swing leverage (if greater than 2:1 is needed for a particular trade). Very little reason to go prop if you're primarily a swing trader. You'll likely have to pay the same desk fees as everyone else, which will pretty much go to waste.

Additionally, the prop shops who will even extend to you overnight leverage are not going to charge the FedFunds + 25bp that IB charges. There would have to be a sizable risk premium to the margin rate to account for the added risk you are placing them under by holding overnight. Stick to 2:1 retail equity, options if necessary.
 
Quote from Trader KGB:

Use options for swing leverage (if greater than 2:1 is needed for a particular trade). Very little reason to go prop if you're primarily a swing trader. You'll likely have to pay the same desk fees as everyone else, which will pretty much go to waste.

Additionally, the prop shops who will even extend to you overnight leverage are not going to charge the FedFunds + 25bp that IB charges. There would have to be a sizable risk premium to the margin rate to account for the added risk you are placing them under by holding overnight. Stick to 2:1 retail equity, options if necessary.
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Actually, that is not really true. There are tremendous advatanges for guys that swing trade futures in a prop account.

Feel free to join tomorrow's chat as this is something we will talk about.

http://www.elitetrader.com/vb/showthread.php?threadid=80880
 
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