what's the benefit of prop vs retail?

It would seem that trading in large volume is what prop firms want.

I am not a big trader so please enlighten me if I am wrong but that strikes me as a big disadvantage because high turnover strategies are what is encouraged. The ability to enter low liquidity stocks is therefore impaired and might need to be overcome by keeping an eye on a greater number of stocks meaning more work and less focus.

It seems that prop firms should only be considered by experienced professional traders. It doesn't seem possible to start small which I think is the best way for a novice to go about it.
 
Quote from Capablanca:

It would seem that trading in large volume is what prop firms want.

I am not a big trader so please enlighten me if I am wrong but that strikes me as a big disadvantage because high turnover strategies are what is encouraged. The ability to enter low liquidity stocks is therefore impaired and might need to be overcome by keeping an eye on a greater number of stocks meaning more work and less focus.

It seems that prop firms should only be considered by experienced professional traders. It doesn't seem possible to start small which I think is the best way for a novice to go about it.
More...

Our traders are taught to start small, focus on a couple of "children" stocks to trade (much like a surrogate specialist), so that they can "learn" how the stocks behave. This is much like bringing the same people to YOUR poker game vs. trying to hit a new poker house every day.

FWIW,

Don
 
You must log in or register to reply here.
Back
Top