What would you do with $300k
Prop trading isn’t what is used to be they say. The industry is full of bs artists making money on undercapitalized traders. How would you trade with 300k in cash? Or would you?
Depends on how much risk you willing to take or day trade. 1% is $3,000 but you have to factor in taxes too.
Yes of course though taxes should be the least of anyone’s worries. You need to factor in a strategy that will keep you in business. Making money without the risk of ruin. Many small losses can be just as dangerous as a large loss
"full of bs artists making money on undercapitalized traders"
What does this mean? There were plenty of traders back in the pit who started off trading one lot and eventually made a killing. Electronic trading is no different.
I'm not saying it's all bullsh*t. Although the majority of educators aren't backing up their theories. And even many articles written by highly educated people are just nothing more than "theories".
Of course there's money to be made. The entire country was built based on the markets and heavily relies on the markets.
I'd like to dive in deeper and find what makes trading less of a science and more of a numbers game that can be backed up. Like you mention, plenty of traders were trading one lot and eventually made a killing. How much risk is too much risk? What's a normal distribution of losses? How could you expect that distribution, especially if you only base it on past performance not accounting for any unknown changes in the future.
I'm not looking for a holy grail. Initially I believed the biggest problem most face is being undercapitalized and risking too much, losing more than they make. But I do question myself, is there a part in there that actually has much to do with the strategy itself, which would require much more than a simple set of rules based on risk/reward and charting patterns.
Put it all into short-term call options
Start a hedge fund structure with 25k and invest the rest for building a investment track record and eventually raising money.
Yes
Exactly.
Couldn't you build a track record from a basement so to speak with audited brokerage results and nearly no fees? (and wouldn't it take more than a few years of successful track record?)
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