Prop-Shops -> Trade for a Living or Join a Trading Team?
Hello WSO community.
I am here because I am wondering if it’s better aiming for a Professional Prop-Shop or do some kind of freelancing while I trade the Futures Markets in the morning with my own capital.
My experience is in Private Equity (4 years), I already have capital to trade +25k liquid.
What I want is the freedom/lifestyle of trading for a living and building wealth over time.
I am also planning to do an MBA at a Top 20 program in order to get a better certificate in order to become a great freelancer. (I am 23 at the moment)
Should I look for a place to trade other people’s money or should I freelance in the afternoon with my knowledge and trade the markets in the morning?
I hear your thoughts and appreciate your feedback. Best,
Based on the most helpful WSO content, here are some insights to consider:
Trading for a Living:
Joining a Prop Shop:
Combining Both:
Additional Considerations:
Hope this helps!
Sources: Teaming Up w Expert Prop Traders, Prop Trading (MM) v.s. BB Sales and Trading, Q&A: ex-bank trader now running crypto hedge fund. questions?, Sales and Trading - A Comprehensive Guide, Ask Eddie: Should I Bail On My Trading Job?
How do you get 4 years of PE exp at 23?
I’ve been working full-time since Sophmore Year at Uni, I have 2-years after-grad experience + 2-years undergrad experience in PE (Real Estate & Private Equity Fund)
The first thing I noticed from your post was that you had $25k. There isn't a PTD rule in Futures so you don't need $25k but maybe you knew that, and you just like the number $25k for some reason. The impression I get from you is that you don't have any experience trading. The freedom/lifestyle of trading for a living is a myth. Successful traders who really trade (not youtubers who cosplay as traders) are pinned to their desk. They're constantly researching the markets and trade ideas, they're backtesting strategies, they're journaling, they're watching recordings of their trades, reading books, etc. And that's when these traders aren't actually trading. They work mornings, nights, weekends, and holidays. Not to mention the mental and emotional strain that traders go through as they learn. It's not a joyful lifestyle (at least not at first). So I'm not sure what type of freedom and lifestyle you're expecting. Traders also have multiple sources of income because relying on trading as your sole income is dangerous and foolish.
I wouldn't throw $25k in the markets off the jump, you're going to lose it unless you're experienced, a prodigy, or lucky. And no trader can maintain that level of luck throughout a trading career. I'm typically an advocate of learning and using other people's money, but prop firms in this space are pretty sketchy, and I've heard they're set up to make traders fail and that's their real business model.
If you can find a legit shop that will pay you a livable salary while allowing you to trade/lose their money while you learn then I would do that before I threw my own $25k in the market. It can take years to learn how to be profitable, sometimes even up to 5 or more if they even make it. Most traders can't survive the learning curve financially or emotionally. So I'd just tread carefully. You really have to love it so much that you don't care how much you lose and how much pain it causes you until you're successful. It's not a freedom/lifestyle type of career.
Thanks for your response. I appreciate the honest point of view.
For sure I will be grinding to achieve the lifestyle that the career brings.
My goal would be to join a real shop and then go from there, I am okay watching recordings, journaling and so on.
Do you know any reputable shops that give you a livable salary and are not quant-oriented?
As my style is more discretionary. Thank you for your honest feedback.
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