Proprietary Trading Firms

Limitdown,
Were these new traders that you witnessed do this? What kind of size were they trading in order to blow their accounts out that fast? From what I have read on this forum most of the successful traders that post here were trading 50 and 100 lots with a max loss of 50$ per day for a long time before they started to size up and start making profitable trades. So with a 25k account if you started slow like everyone recommends and dont let anyone force you into trading larger size until your ready you could lose literally two straight years in a row before you blow out your account right? What kind of bright person could make those mistakes that early in the game?

Forrest



Quote from limitdown:

ever want to drive a cheap car, even a rental, let alone an expensive car on anything other than gasoline, such

as false hopes?

that's the equivalent of your question.

Just to cut to the chase, this prop shop idea is a rich mans' game, nothing less.

What is it you fancy yourself doing or being? Some hot shot trader yelling orders at some clerk on a crowded trading desk? That never happens anyway, you'd be thrown off the floor and your building pass cancelled, in that same hour, while you were sitting in the bosses office and they were calming you down.

This is a money game, nothing less. Plan on having 3x what is asked for, just to be able to stay once you lose your first round of monies. Plan on losing the second round of monies as you endure past all the stupid games and worthless trading techniques that you might be taught. Most of these are no longer useful nor work anymore, at least to the outsized profitability that they used to.

Plan on using your third set of monies just to survive on and keep your family expenses going, while you hope to earn on your trading. Then you can call yourself successful.

I can't tell you how many traders I saw blow through $25,000 in under 1 month, and at most under 4 months, and they were some bright guys too.

Most women, don't allow themselves these odds and hence don't trade at these levels, and hence you just don't see on these desks.

just a reality point or two....
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they're only long calendar spreads, not short calendar spreads. if stock goes against me, no big deal. hey, stocks move up and down all day long. its rather easy.
 
these commodity, industry, metals stocks are so freakin volatile right now, it would be rather easy if i had enuff money for more than one to trade. but oh well, gotta start with what u got.

again, jmowery, i caught ur post before u edited. thanks for info. i've been in contact with tradevision. they seemed cool and they are a sub of genesis, a big plus.
 
Quote from optionzztrader:

they're only long calendar spreads, not short calendar spreads. if stock goes against me, no big deal. hey, stocks move up and down all day long. its rather easy.
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I wasn't questioning the calendar being long/short. The efficiency of daytrading options is questionable, to put it mildly, and daytrading spreads makes it twice that. Finally, daytrading calendar spreads where the sole objective is to benefit from time decay in the front-month option seems even more inefficient, but, hey, if it works for you then who am I to argue otherwise.:cool:
 
Quote from MTE:

I wasn't questioning the calendar being long/short. The efficiency of daytrading options is questionable, to put it mildly, and daytrading spreads makes it twice that. Finally, daytrading calendar spreads where the sole objective is to benefit from time decay in the front-month option seems even more inefficient, but, hey, if it works for you then who am I to argue otherwise.:cool:
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THAT'S COOL!!! what do u think options specialists do all day long? for instance, they hedge with short stock or a spread leg constantly on a daily basis since they are contrarian trading bastards who have to cover a buy order when the stock is rising by shorting stock, shorting call, or buying put (and, yes, they are not charged commissions). I know, I know, as i mentioned in previous posts, option bid/ask spreads do suck, especially in volatile stocks, but if the stocks move, the slippage shrinks pretty quickly.

i love it.
 
Quote from optionzztrader:

THAT'S COOL!!! what do u think options specialists do all day long? for instance, they hedge with short stock or a spread leg constantly on a daily basis since they are contrarian trading bastards who have to cover a buy order when the stock is rising by shorting stock, shorting call, or buying put (and, yes, they are not charged commissions). I know, I know, as i mentioned in previous posts, option bid/ask spreads do suck, especially in volatile stocks, but if the stocks move, the slippage shrinks pretty quickly.

i love it.
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I know what market makers do, but that's not the point. Market makers have the edge of buying on the bid and selling on the ask. They trade for different reasons.

Anyway, I don't know what your strategy is so I'm gonna just stop here.
 
Quote from MTE:

I know what market makers do, but that's not the point. Market makers have the edge of buying on the bid and selling on the ask. They trade for different reasons.

Anyway, I don't know what your strategy is so I'm gonna just stop here.
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um, all u have to do is have a long leg while u repeat trade the short leg over and over, sell to open then buy to close, wait for stock to move in direction of long leg, then short another leg. or when stock goes in direction of long leg, get out of short leg quickly and let profit ride in long leg. pretty simple stuff. provides great protection, too, in case of stock gapping overnite in direction of long leg. u just have to watch ur trades pretty closely which is what u do with options anyway since they are short term.
 
Quote from JMowery1987:

Edit: Blah, a bunch of crap I typed, I'm only deleting it so I don't have to get 100's of pm's asking me about prop firms.
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Says the expert on Prop Firms.

Ever traded prop????
 
Quote from cashmoney69:

Dont you have to take some kind of test....the series 7 exam or something like that to be able to trade with a prop?

- nathan
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not necessarily. i do have series 7 tho.

mr bright from bright trading has helped me now. he is awesome and told me how the business works. i will need more capital as i knew. just trying to gain that buying power somehow.

thanks for your help, mr bright.

YOU THE MAN!!!!
 
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