Question about Prop Firms

[safvan]

If risk and money management is the game then why do traders go for prop firms? Example I have $2k deposited to start with a prop firm and then get the ability to trade say $50k. Its not going to work if my loss limit per day is say $100. I would have to take a position accordingly. So whether I have $50k leverage or $5 Million doesn't matter. It might work if prop firms take on losses. Am I missing something?

 

[safvan]

No feed back?

 

[amnonco]

risk and money management is NOT the game for prop traders.
more often than not LUCK is their game. they don't adhere to risk management rules, and go for large positions with minimal R:R ratio just to make something. either you're good at it (lucky) and then you get the daily loss limit higher and higher, or you don't get lucky and lose your 2K.

for the prop firm there is absolutely no risk, they get revenue share if you win, and they don't lose cause it's your money.

 

[safvan]

So the question is if there are any good firms out there that allow position trading. Day trading is not my cup of tea.

 

[amnonco]

oh no, they will allow position trading, but what's the use?
to trade overnight you'd need to use small to none leverage, and if that's the case you don't need the prop firms capital.

 

[meanreversion]

Safvan, what is your typical holding period? Which markets do you trade? How frequently do you trade? What have your returns been like in the last couple of years?

(These are all questions they'll ask you at a prop shop)