Getting A Job At A Prop Firm
I have been for over 1 year now and have recently become profitable.
I have been looking into a prop firm in my area and they say they are not hiring grads or trainees but they are always hiring "experienced traders".
They don't specify any college qualifications on the site they just ask are you competitive & determined.
I have trade equities, commodities, indices but mostly currencies.
I have taken a 1000$ account to 3000$ in the space of 2.5 months with little downside risk.
I have read all the Market Wizard books, reminiscence of a stock operator, and a few books on currency trading.
I have no formal education in finance but Im pretty sure I can trade better than a kid who just got some MBA from a random college.
Do I fall under the category experienced trader ?
How will I compare against a recent graduate with no trading experience ?
The reason I want to trade for a prop firm is to get an income whilst trading so I can build up my capital base.
Thanks in advance
No, but show your "track record" (if you can even call it that) for whatever it's worth
Dude 3k is pennies. When you get to 30k lets have a discussion.
If they gave me a 10000$ account I would have made them 20000$ I don't see the relevance.
If/when I had 30K in my account I would put all my time into growing that not at a prop firm
Wow, you read Market Wizards? Surely you'll get the job.
the fact that you can't differentiate 3k and 30k says a lot about you...just extrapolate...i personally have some crazy trading strategies that turned pennies into dollars. that's really amazing right?
That "random kid with an MBA" has dedicated themselves to a career while you traded mere pennies. At more than a few prop shops I'm familiar with undergrads worked hard to get their numbers. Most didn't make money for months, they have more experience than some random guy who made $3000 once. Best case scenario you will be allowed to trade on index as a trainee for a few months until you take your exams, otherwise a firm isn't going to invest in you. Detail your trading strategy and come up with solid pitches, in the meantime look for trading assistant internships or something.
For some real advice: Build up your track record, but what some of the posters above say is very true. Turning $1,000 into $3,000 is "easy" from a liquidity stand-point. You could put out an order for CSCO and be filled immediately. As you deal with larger sums of money, you can't get in / out as easily.
Also, maybe you are / maybe you aren't... but if you generated those kinds of returns in 2.5 months, I'm guessing you are trading penny stocks. Again, a prop shop 1) wouldn't allow you to do that, and 2) even if you tried, you'd run into severe liquidity issues. There's no way you generated those kids of returns in 2.5 months while note taking on substantial downside risk.
So putting together a good track record also means showing you are trading in a fashion that you could replicate with larger sums of money. This is a problem for individuals all the way up to hedge funds - a fund could generate really good money investing in sub-$100m market cap names. If that fund grows to $1B AUM, you'd often find that their strategy isn't scalable.
"Experienced Trader" - Does it matter? Are you asking whether you should apply or not, or whether they will take you on? Yes you should try and apply, and no one will have any idea if they will take you.
Versus a recent grad - they clearly say they don't want recent grads, only people with experience. Since you don't have professional experience, you are probably on par with a recent grad in their eyes.
Lastly, as I know people who have worked at prop shops that are similar to what you are looking at: the prop shops make money by charging you commissions and on your trading. They want to see you trading in and out of positions frequently, making money each time. That's the style they are looking for. It's not about home runs, which indicates risk.
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