Prop Trading Firm

[mschey]

referring to it as an arcade, implies it is place where kids hang out after school and on weekends. I believe your post was intended to attack both firms that use this model and traders who trade through this model.

The fact is, this model is the same model floor traders have used for years and is as legitimate as any other trading business model IMO. One model accepts more trader risk, for a greater portion of the profits, the other accepts less trader risk, offering a good trader the opportunity to make greater profits.

 

[okwon]

Arcade is an actual term used to refer to professional shops in the futures industry. I think the term started in the UK, where these types of companies originated. It's really not an insult at all.

Pro firm (equities) = Arcade (futures)

Refer to the following article for an example:

http://www.futuresindustry.org/fimagazi-1929.asp?a=1015

 

[ElvisOnMargin]

Quote from mschey:

referring to it as an arcade, implies it is place where kids hang out after school and on weekends. I believe your post was intended to attack both firms that use this model and traders who trade through this model.

The fact is, this model is the same model floor traders have used for years and is as legitimate as any other trading business model IMO. One model accepts more trader risk, for a greater portion of the profits, the other accepts less trader risk, offering a good trader the opportunity to make greater profits.

The term "arcade" is fairly recent on ET, but it comes up quite frequently. It is usually associated with the term "piker". Both term can be simply read as "I am a Big Swinging Dick (TM) and you're not" (although you're more likely to see that last part spelled "your not").

In short, if you:
1) Don't hope for some Good Samaritan to scoop up your inexperienced, arrogant, ignorant and incompetent ass off the street, give you $millions to trade; then assume your losses and your commissions cost, and let you keep part of the profits.
2) Actually make steady money buying and selling stuff, whatever it may be.
3) Have made enough of that money for a deposit at an "arcade"
4) Keep 100% or your profit .

If 1 to 4 apply to you, you are a "looser"(TM), a "piker"(TM) and (my favorite): I WILL BE TAKING THE OTHER SIDE OF YOUR TRADES!!!! (this must be yelled while looking directly at the camera and wawing the World Wrestling Federation Championship Belt over your head).

Just having (excuse me "haveing") a little bit of fun here Frankly, I don't know why you bother replying and justifying what you do (and politely to boot) to these kind of posts. The expression "Casting pearls before swine" comes to mind...

Oh, and by the way, my Big Swinging Dick (TM) is E-Normous! And I WILL BE TAKING THE OTHER SIDE OF YOUR TRADES!!!!

Elvis

 

[FuturesTrader71]

Quote from mschey:

referring to it as an arcade, implies it is place where kids hang out after school and on weekends. I believe your post was intended to attack both firms that use this model and traders who trade through this model.

The fact is, this model is the same model floor traders have used for years and is as legitimate as any other trading business model IMO. One model accepts more trader risk, for a greater portion of the profits, the other accepts less trader risk, offering a good trader the opportunity to make greater profits.

Well. Read my post again. There is no attack there. I seek to clarify the difference between what is prop and what is not. I have no reason to attack arcades or customer trading rooms. To me, arcade is not a negative term. May be it was intended to be, but that is not my intent.

The point is that the word prop is often used when arcade is what is intended. That was the basic motive behind the post. I have traded at an arcade when I was trading equities. I didn't feel that there was anything bad about the environment. One simply got what one negotiated and even the owners referred to it as an arcade.

 

[SwingOutOn5]

Phil, I'm in the same boat. I want to start trading "professionally." My main reason is I NEED CONNECTION WITH SOMEONE! I live in TN, where there are virtually no daytraders, so I trade on my own analysis with no info except for Yahoo Finance, Money.com and CNBC (I just like looking at the women ).

I would love to put together a team of people, arcade style I guess, so we could attack the market together, but I think the best thing to do is try to get hired by some place.

I've looked at a couple of places and sent out my resumes:
HLV Capital
Togo Capital.

Anyone know anything about these two? Remote trading came to mind, but I would still lack the team atmosphere.

50:1 leverage is attractive, though.....

 

[limitdown]

Quote from SwingOutOn5:

Phil, I'm in the same boat. I want to start trading "professionally." My main reason is I NEED CONNECTION WITH SOMEONE! I live in TN, where there are virtually no daytraders, so I trade on my own analysis with no info except for Yahoo Finance, Money.com and CNBC (I just like looking at the women ).

I would love to put together a team of people, arcade style I guess, so we could attack the market together, but I think the best thing to do is try to get hired by some place.

I've looked at a couple of places and sent out my resumes:
HLV Capital
Togo Capital.

Anyone know anything about these two? Remote trading came to mind, but I would still lack the team atmosphere.

50:1 leverage is attractive, though.....

search on these threads for HLV Trading. Doesn't seem too favorable.

I interviewed with those gentlemen and saw their environment for trading. They had wonderful offices at Grand Central Station, which used to be the Pan Am building. They were poised to expand, and I guess they also offer the remote trading capacities to customers.

check the threads from others what they posted on them. their paltalk room always seems empty though

 

[newguy1]

so if you get a "prop" deal with a firm like HLV, (where you don't put any money down), they can still make money off you in a churn and burn way?

And this "churn and burn" thing doesn't happen in futures "prop"?

 

[FuturesTrader71]

Quote from newguy1:

[...]

And this "churn and burn" thing doesn't happen in futures "prop"?

Futures do not generate the commissions that equities do. Assuming that it is a true prop situation, the firm can only mark up exchange fees by about 50 cents or so per roundturn before it makes sense to trade as a customer. There just isn't any money in it for churning. Other ways they might be able to get you is thru desk fees, phone charges, analyst fees, services, marking up bloomberg, etc. These aren't worth the risk of having someone trading your funds in a highly leveraged environment.

With futures prop, I strongly believe that any business plan that is based on backing people without being fully invested in making them pull money out of the market thru training/mentoring is doomed to failure. Those kinds of plans attract gamblers who promise to do tons of size and give you a piece of the pie. Most implode...... unfortunately.

 

[cresta]

For those of a more delicate disposition perhaps we could all agree to rename " trading arcades" with the term " trading bureaux"???

PS Has Elvis left the building yet ??

+ btw goldman sachs is a prop shop.......

 

[dividend]

Quote from SwingOutOn5:

Phil, I'm in the same boat. I want to start trading "professionally." My main reason is I NEED CONNECTION WITH SOMEONE! I live in TN, where there are virtually no daytraders, so I trade on my own analysis with no info except for Yahoo Finance, Money.com and CNBC (I just like looking at the women ).

doing your own analysis is probably the smartest thing u can do
it used to give me a headache listening to everyone's opinions in the prop shop