Questions on Equity Day Trading for a Prop. Firm

[benzine]

Thank you so much southall...

Your replies really helped me make out a decision.
I will be dodging their offer. Guess I'll keep trading.. just not day trading.

Thanks again.

 

[SteveNYC]

Quote from benzine:

I understand that.. But it would be illogical for them to not charge that 1000$.. Why would they spend time training someone and giving them capital when the person can just decide to lose all the money he wants and leave...

A person can lose more then 1000$ during a year.

However, I am still confused by some of the answers.. Would you care to explain how it is a scam? They are an international organization.

Look at it this way.

The max you will lose is $1k and some time.

I didn't like anything about it.

Did their training program. I wouldn't do it again unless I was paid.

 

[SteveNYC]

Quote from oldtime:

and that is why you have a stable job in a field you don't like

If you can't figure this deal out, you sure as hell will never figure out how the market works

they prey on you because they know you are just an employee

you were born an employee and you will die an employee

but I'll give you credit, at least you are an unhappy employee, that's a start

Yep. Brutal but true.

 

[Busta21]

Quote from benzine:

Hello,

I have recently been offered a position as an equity day trader for a proprietary firm called World Trade Securities located in Canada. I had a few questions, I hope someone can give me some insight on this.

I would consider myself a newbie to day trading especially for a prop. firm. I am working a stable job at the moment, however, I am not in a field I would like to be. This offered position interests me so much, but still there are a few negatives and a few conditions that makes me confused.

I am offered to trade the firms capital with a max. loss of 40$ a day (which they actually cover). The only fee I am being asked is the training fee which is approx. 1k + tax. There is NO SALARY in this position... You can only make money on the money you actually earn (from which they take their part). Furthermore, you have to recuperate all your losses before they start paying out.

This is obviously a starter position. I was informed that the available capital assigned and the stop limit to you moves up the more successful you get.

I am curious as to how much you can actually make working for these kind of firms... I have NO CLUE as to what a DECENT trader could make in a year. I do understand there is a learning curve to this job.. but If I end up doing this only to make 40k for the next few years It's really a turn down.

Has anyone had any experience on these kind of positions? Any clues as to what to expect as a salary within the next few years?

Any help would be appreciated.

Yes. When I was starting out I looked at props. Make no mistake, props are in the business of making comm. and fees. You are better off trading futures with AMP or Mirus with a $10,000 account starting with $500 margin products and then seeing how it goes from there. Salary wise, I know traders at props making $20,000 a month, WTS in NYC mainly, but, they've been at it for years so that's a different story. If I could have gone back I would have started trading futures and taken a P/T job outside of finance to supplement your income until you get the flow. It may not look cool or fit into your plan but give it 12 months and then look back - I bet you won't regret it.