what kind of training do you get at a prop?

dv4632 · Jun 5, 2012

Is it any better than the usual retail trader education out there?

For example I think of someone being schooled in any profession. At first you do book learning mostly on your own, maybe study and trade ideas with classmates, ask the prof some questions at times. This is usually done in a classroom but can also be done remotely. That is akin to my retail trader education to this point.

But after that you go on to the next stage where there is individualized teaching and training. Let's say you are going to be a surgeon. You'll be in the OR with an experienced doctor, watching him perform surgery and being able to ask questions throughout. Then eventually you start to do some things on your own under his/her supervision. There is a similar process in most other professions.

Is there a next stage of education for traders?

Maverick74 · Jun 5, 2012

Quote from dv4632:

Is it any better than the usual retail trader education out there?

For example I think of someone being schooled in any profession. At first you do book learning mostly on your own, maybe study and trade ideas with classmates, ask the prof some questions at times. This is usually done in a classroom but can also be done remotely. That is akin to my retail trader education to this point.

But after that you go on to the next stage where there is individualized teaching and training. Let's say you are going to be a surgeon. You'll be in the OR with an experienced doctor, watching him perform surgery and being able to ask questions throughout. Then eventually you start to do some things on your own under his/her supervision. There is a similar process in most other professions.

Is there a next stage of education for traders?

Back in the old days the training was 2nd to none. You had a mentor who usually was making 7 figures per year and you got one on one attention. But the mentors got paid a fortune for this service. The problem is, you get what you pay for. And today there is no way to compensate someone what they are really worth. Do you honestly think someone will train you for "free"? Unfortunately the good old days are gone.

ChkitOut · Jun 5, 2012

well there are 2 kinds of prop firms.

there are firms that actually hire you and pay you a salary and perhaps bonus, there you obviously get training but obviously hard to get those jobs.

the other type of prop is just a glorified brokerage account. put your deposit up and trade. of course they want you to do well as to continue doing business with them but they cant offer anything other than low rates and high leverage. the rest is up to you. which is fine.

oldtime · Jun 5, 2012

Prop is for two type of people, first, if you have a kid like mine and you don't have the patience to train them, you just give them 25k and tell them go talk to Don Bright, and when you blow up come back and talk to me and if you still want to trade, at least now you know the terms and language and I don't have to explain to you what "going short" means.

And the second type is the guy who has worked hard trying to learn everything he can on his own and he has googled everything and read every post on ET and he is unsatiable and finally figures he could make a living full time if someone would just back him, because he has tested and retested and even traded live in his small account.

c0l$il · Jun 5, 2012

Quote from oldtime:

Prop is for two type of people, first, if you have a kid like mine and you don't have the patience to train them, you just give them 25k and tell them go talk to Don Bright, and when you blow up come back and talk to me and if you still want to trade, at least now you know the terms and language and I don't have to explain to you what "going short" means.

And the second type is the guy who has worked hard trying to learn everything he can on his own and he has googled everything and read every post on ET and he is unsatiable and finally figures he could make a living full time if someone would just back him, because he has tested and retested and even traded live in his small account.

Why wouldn't they want to come back if it is not their money? Nothing like free cash

oldtime · Jun 5, 2012

Quote from c0l$il:

Why wouldn't they want to come back if it is not their money? Nothing like free cash

It would seem that way if you were a trader, but you'd be surprised, most people just don't like trading, that's why all they talk about on tv is jobs, because that's what most people think they want.

Who knows how much education it would take to teach all people that they are traders.

How long did it take farmers and hunters to become employees?

Don Bright · Jun 5, 2012

I may have to agree with some of "both sides" of the training issue. This is why I have always kept our training separate from our actual trading with the Firm. In that, anyone can come for our training, and we give them all we can, 100% from our best people, regardless of where they trade. Even our friendly competitors, like Echo as recently as yesterday, referred potential traders to us.

We are still doing our best to give full value, for as little as $750 for ET people, a lifetime of training - regardless of where you trade. Of course we'll show some advantages of trading with Bright, but the deal stands for all traders, even retail.

I never want anyone to think that we don't give our all in our training, stuff you may not want to hear, but reality based nonetheless.

All the best everyone,

Don

SteveNYC · Jun 5, 2012

Quote from Maverick74:

Do you honestly think someone will train you for "free"? Unfortunately the good old days are gone.

I am sad. Boo hoo. waaaa waaaa waaaa.....

dv4632 · Jun 6, 2012

Thanks for the advice.

I realize a lot of props are basically souped up brokerage accounts, but I like the idea of being in an office with other successful traders. That must be a huge edge.

Disappointing to read Maverick's comments about the lack of mentors though. I guess you have to luck into meeting someone who likes you enough to be willing to teach you. While I don't expect in-person mentoring to be "free" I was wondering what the options were for finding any. Not good from the sounds of it.

I thought of this when talking to a friend who is getting a nursing degree. She's into the clinical portion of the program now and was telling me about some of her experiences at the hospital. It made me think what the hell am I doing trying to learn to trade at home alone? LOL. Made me realize if I'm really serious about this I need to find some professional grade training. I'll have to do some research and formulate some questions...

VielGeld · Jun 6, 2012

^ For reference, this is me:

Quote from oldtime:And the second type is the guy who has worked hard trying to learn everything he can on his own and he has googled everything and read every post on ET and he is unsatiable and finally figures he could make a living full time if someone would just back him, because he has tested and retested and even traded live in his small account. [/B]

And I can honestly tell you that getting a mentor is invaluable. They are out there. I found mine, and he has been a Godsend. If you don't want to potentially wander around aimlessly for 5+ years, then get started now if you haven't already. With a mentor, I'd say you can cut down learning time to just 6m - 1y, which is a good deal, imo.

However, the one prime directive in learning trading is to just do it, and this is not something a mentor can help you with. Just stay there in front of your screen at all times and patterns will emerge. You'll just come to see how stuff moves. Know not to blow up in the learning process since if you don't have money, you can't bet. In the end, how you trade will become personal and absolutely no one can teach that. The best a mentor can hope to do is to teach you how to learn to trade (which is, by the way, the good stuff if you can get it).

It's all about experience, dude. It's a competitive medium, so if you have experience with anything competitive, then you know the kind of grind needed to get good. You'll eventually just "see" stuff and get good at it if you stick to it.

Btw, I really don't think trading is as hard as it is portrayed to be. It simply needs a good dose of exp. and the discipline to know when to act, and when to sit tight. Also be sure to get in plenty of practice. Here is a good link for possible exercises: Link

That's all there is to it. Good luck.