macd & rsi wrote: ↑
Wed May 23, 2018 4:53 pm
Is anybody here as proprietary trader ? or prop trader ?
I know something about the meaning of it , but I want your experience , not just some words with google search .
Proprietary trading (also "prop trading") occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money, aka the nostro account, contrary to depositors' money, in order to make a profit for itself.
Yes I'm a former prop trader and I traded Bonds and Futures for a well-known investment bank and also a prop trading firm after.
As an experienced prop trader I enjoyed what I learnt by being in the industry but just letting you know it's absolutely reverse to what all the "retail" trading educators will tell you. Trading professionally is almost night and day compared to retail trading and the amount of new knowledge the bank and the prop firms pack into your head is unthinkable.
Put it this way, we focused on fundamentals, STIRS (Short Term Interest Rates), spread trading, "Legging" (getting into spreads one at a time), Market making and much more. We traded against the trend and many of us didn't even use charts let alone indicators (we traded off the DOM ladder)!
Many prop traders including myself made the most from a strategy called "market making" using the DOM. This was my bread and butter.
Do you make money from being a prop trader it? Yes! It definitely can be more rewarding than retail trading that's for sure. But having to pay desk fees and only getting a cut from what you earn for the firm at the end of the month is what makes most prop traders pack up and leave and trade for themselves.
Is there anything in particular that makes you interested in prop trading?