prop trading

jacknapier

Active member
157 2
I was considering joining a prop trading firm and wanted to know the pros and cons. I'm mainly interested in the training they provide, but I'm wondering about the fine print. Like, if in 6 months I want to go back on my own, is there some some sort of 'gotchya'? This firm seems to allow you to do it from home, so it wouldn't be much different except I would be using a different platform. Depending on the pros, I might not even want to go back to trading on my own.

I'm reading the application info of one of them and there's a 2000$ fee that seems to be seed capital. But I'm not sure if there's usually fees on top of that.
 

pboyles

Legendary member
8,072 1,302
There's a lot of these companies out there. To be honest they are all a waste of money. Yes they will give you training of sorts but it won't make you profitable. You can find the same stuff for free on the Internet. Don't waste your money on this.
 

marameo

Junior member
19 0
There's a lot of these companies out there. To be honest they are all a waste of money. Yes they will give you training of sorts but it won't make you profitable. You can find the same stuff for free on the Internet. Don't waste your money on this.

Are there any prop trading firms in London where I can trade my capital + their leverage?
 

jacknapier

Active member
157 2
There's a lot of these companies out there. To be honest they are all a waste of money. Yes they will give you training of sorts but it won't make you profitable. You can find the same stuff for free on the Internet. Don't waste your money on this.

So, basically, you're saying if I go to stockcharts.com or read some of Dr Elders work and maybe Dahlquist and Pring, there's absolutely no reason to sign up with a firm? They won't hand me a strategy and say do this all day long, or something along those lines?
 

pboyles

Legendary member
8,072 1,302
So, basically, you're saying if I go to stockcharts.com or read some of Dr Elders work and maybe Dahlquist and Pring, there's absolutely no reason to sign up with a firm? They won't hand me a strategy and say do this all day long, or something along those lines?

No they won't hand you a strategy, because they don't have one. Well they do but the strategy is to relieve people of their money for training fees so that's no good to you. Seriously, don't waste your money on this sort of crap.
 

jacknapier

Active member
157 2
I gotchya, I was confused, if they did have a working strategy, why would they just give it away? When I could just quit anytime I wanted.
 

pboyles

Legendary member
8,072 1,302
I gotchya, I was confused, if they did have a working strategy, why would they just give it away? When I could just quit anytime I wanted.

Exactly, these guy are mostly failures who have nothing else to do but flog crap on the Internet.
 

rawrschach

Experienced member
1,223 277
What's a 'working strategy'? You really think there's a formula you can hand to someone that you can just follow to make money? Are you high?

If you get into a good prop firm what they will teach you is to read the order book and order flow to scalp the market intraday. The only internet resource I've ever come across that teaches this nicely is nobsdaytrading.
 
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DionysusToast

Legendary member
5,963 1,499
I was considering joining a prop trading firm and wanted to know the pros and cons. I'm mainly interested in the training they provide, but I'm wondering about the fine print. Like, if in 6 months I want to go back on my own, is there some some sort of 'gotchya'? This firm seems to allow you to do it from home, so it wouldn't be much different except I would be using a different platform. Depending on the pros, I might not even want to go back to trading on my own.

I'm reading the application info of one of them and there's a 2000$ fee that seems to be seed capital. But I'm not sure if there's usually fees on top of that.

Generally speaking - even if you sign a form saying you wont go to a competitor or you won't leave to trade your own account - those sorts of contracts are not enforceable

Also - any place that expects you to put up money is not a real prop shop.
 

VielGeld

Experienced member
1,421 179
I should mention that prop trading can be beneficial if you're already profitable. They offer dirt cheap commissions/fees on transactions, so you can save a bunch by going prop.

Do make your due diligence beforehand, though...
 

jacknapier

Active member
157 2
What's a 'working strategy'? You really think there's a formula you can hand to someone that you can just follow to make money? Are you high?

Well, I know a guy who works for a hedge fund and he has scripts that detect patterns and trades automatically this way. Now, I don't like the idea of just sitting back and watching the computer doing all the 'work', but he has a mechanical system and it seems to work for him. I'm pretty sure this isn't news to anyone familiar with trading.
 

rawrschach

Experienced member
1,223 277
A hedge fund is not a prop shop and they're not gonna hire you to sit and watch a computer trade.

A computer program is someone's knowledge written out and automatically executed. That knowledge is still not transferable to another person just by handing them the code and having them follow it.

Also, longer term the vast majority of mechanical systems have negative expectancy.
 
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