Why Go Pro?

Probably not,

The make money on commission, having that little tickets is not going to justify the overhead for supporting you. With that style - invest at home would be best.

Plus size matters - if you want to trade size, firms may not let you do so little trades without good experience in risk management, etc.
 
Originally posted by lescor
Depends on the firm, but if you have enough capital in your account, it usually isn't a problem. There is much more risk on overnights, so if you want to hold 2000 shares of IBM with $5k in your account, forget it. I can carry 15-20x my account equity overnight in diversified, hedged positions. Straight up, not hedged, about 5x. But most shops are flexible on these things as they learn your style and you establish a track record.
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Ya, there is more risk overnight, and I understand that as an inherent risk in my strategy, which is why I would only use conservative margin if any. I'm only looking into prop firms because I don't have enough capital to trade my strategy, so I would need to use theirs. My technique is very conservative and has serveral risk controls in place (e.g. 50% of capital always in cash, risking only .05% per trade). I'm guessing if I discussed the technique in detail they would be comfortable taking a risk with me. I could care less about increased margin, bullets, or whatever else they offer, I just want to use their capital. Provided I don't take a bath on ticket charges, desk fees, etc., going prop seems like a good alternative to retail given my lack of capital.
 
Originally posted by WCOMtrader
having that little tickets is not going to justify the overhead for supporting you.
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How much could I be costing them? I'm talking about remoting trading.
 
They pay your exchange fees, which are significantly higher for professionals. There may also be software license fees per terminal. That's why some firms charge a desk fee, to cover the overhead for guys who don't trade much. If you do much volume at all, you don't pay it. It's $200 a month at Echotrade, rebated if you trade over 200k shrs a month.
 
Originally posted by Corso482


How much could I be costing them? I'm talking about remoting trading.
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Well first there is a certain amount of human resources required for a certain # of traders. Traders who don't justify the volume.

Than there is the cost of bandwith, servers and so forth as a certain # must be around for the firm to be at "top notch and not maxing out"

The registration, exchange fee's and so forth can run rather high too per trader.-------but don't worry about that. The firms that will take you are the firms that will take anybody and don't absorb any of those fee's.

There are firms that will absord the data feeds, software charges, exchange fees and so forth....but not for that type of volume.

Robert Tharp
 
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