Transitioning from Retail Trading to Prop Firm?

Discussion in 'Prop Firms' started by spectastic, Dec 3, 2020.

  1. I've been in the markets for a little over 2 years, and would consider myself profitable. I've studied good traders and been a part of a legit mentorship group. I started actively trading stocks in my IRA in July/August of this year, and currently up about 40% YTD. I'm still making mistakes, and don't think that will ever end. Also, definitely need to journal more. But at this point, I think I have a pretty good idea what I need to do to be good. My question is what would it be like to join a prop trading firm?

    I'm currently a scientist, and I don't love it. Most of my time is dedicated to learning about the market. It's the first thing I do and the last thing I do every day. While I don't feel super comfortable trading independently yet, I wonder why not make trading my job, and surround myself with pro graders to learn from them? That said, I understand the burnout rate is high, and it's a stressful job. But trading is hard, and I'm still here. So I want to know what it's like at the next level. Any insights would be appreciated.

    btw. I realize there's a wide variety of prop shops, but I'm mostly looking at ones with a decent base salary. I don't care so much about getting rich from prop trading so much as the learning experience.
  2. Why should you expect a salary?

  3. MarkBrown


    buy and hold does not a brilliant trader make, jump in there and make money by only shorting and i will give you a job.

    going to be some rude awakening one day for the long geniuses.

    with prop trading you pay your own way there are no free rides. if you want a salary your going to pay for it, you pay for everything so want all you want as long as you have the money to pay for it.
    zdreg likes this.
  4. zdreg


    Old wall Street saying:Don't confuse a bull market with being a market genius.
    Lonnie34 and Lou Friedman like this.
  5. speedo


    Anybody can get reasonable returns in a bull market and 40% is nothing to an active trader unless managing well into the millions. Consider the path to becoming a skilled trader not unlike the time and effort required to become any kind of high level professional plus psychological considerations not as vital in others. If you are looking for a salary, your science credentials may get you into the door of an investment bank or managed fund but don't expect them to let you trade until you have learned the skills and behaviors necessary.
  6. zdreg


    Scientific credentials are not a foot in the door.
  7. it's not buy and hold. most of my positions are 1-2 days old.
  8. speedo


    Yeah that's why Jim Simons, founder of the most successful fund of all time hired only scientists to form his company. ET lol
  9. zdreg


    prop shops are likely to require a deposit with no overnights. THe exceptions are those who hire people with quant degrees. What are you offering? Your original post reflects how much you have researched the industry.
  10. zdreg


    Are you familiar with the criteria Simons used to hire those scientists? You are offering false hope.
    #10     Dec 3, 2020