{"id":44930,"date":"2017-02-02T16:06:01","date_gmt":"2017-02-02T21:06:01","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=44930"},"modified":"2017-02-02T20:29:25","modified_gmt":"2017-02-03T01:29:25","slug":"why-join-a-prop-desk","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/why-join-a-prop-desk","title":{"rendered":"Why join a prop desk?"},"content":{"rendered":"

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On my blog for Yahoo Finance Contributor, The Trading Coach<\/a>, there is an Ask Anything option.\u00a0 One reader asked:<\/p>\n

What are the advantages of trading prop?<\/p>\n

We are a proprietary trading desk in NYC, trading stocks, options, futures, and automated trading.\u00a0 The firm, powered by Kershner Trading Group, provides capital, training, coaching and mentoring, technology and assumes all risk.\u00a0 The reader was a retail trader, trading his own account.<\/p>\n

Here are some reasons to trade prop:<\/p>\n

1. Capital<\/p>\n

It is common for our better 20-something traders to trade a 10-20m account. \u00a0Traders can make more when the best opportunities visit. \u00a0A recent example was August 24, 2015. \u00a0Stocks were severely mispriced on the open. \u00a0One firm trader who made north of 15m on that day elucidated, “How much of (X) would you buy if it was selling 30 percent below what it was worth?”\u00a0 Answer: you would want to buy as much as you could. \u00a0More buying power, a bigger trading account, allows you to capture those best opportunities and make more.<\/p>\n

2. Technology<\/p>\n

Our firm uses proprietary technology. \u00a0You cannot use our trading platform unless you are a firm trader. \u00a0The platform allows traders to play more offense with their favorite setups.\u00a0 Our connectivity to markets is world class.\u00a0 Custom filtering technology allows traders to build alerts to their favorite setups.\u00a0 Also, we have world class execution routes to dark pools and the market that retail traders do not.<\/p>\n

3. Training<\/p>\n

On our desk, there are three parts to our training program: SMB Foundation, Trader Development and Team Trading. \u00a0The training is intensive.\u00a0 Three daily mentoring sessions help new traders learn.\u00a0 Technical analysis, Reading the Tape, stock selection, trade review, morning prep, risk management, trades with edge, trader psychology, sizing, trade execution, building a PlayBook, the principles of One Good Trade are just some of what is taught during SMB Foundation.<\/p>\n

In Trader Development, a daily routine for improvement, PlayBook best for trader, automated trading, best practices turned into habits, niche with edge emphasizing a trader’s talents are the focus.<\/p>\n

Team trading is earned by the trainee through an interview with the top traders on the desk.\u00a0 Traders are matched with like-minded senior traders, who then become their daily coaches.<\/p>\n

4. Automated trading<\/p>\n

On our desk, traders have access to software that allows them to build models from their desktop. \u00a0Traders can develop a trading idea, backtest, forward test and then run the strategy live from their desktop. \u00a0A trader’s career path is not just solely as a discretionary trader, but also as a quant trader or a hybrid discretionary\/quant. \u00a0And all the infrastructure that goes into automated trading makes connectivity, alerting software, and trade execution better for discretionary trading.<\/p>\n

5. Deeper Pockets<\/p>\n

Additional capital is only part of how traders can make more.\u00a0 A firm can withstand your draw-downs much better than you can as individual. \u00a0One top senior trader lost 400k in one trade, on one day at the end of 2015. \u00a0The firm absorbed that temporary loss and allowed the trader to use that hit as a learning opportunity. \u00a0That trader has gone on to become a much better trader as a result of that trading loss\/experience.\u00a0 To advance as a trader you must trade big. \u00a0And when you trade big, large losses are inevitable.\u00a0 You can risk more and trade bigger with a firm behind you.<\/p>\n

6. Coaching and Mentoring<\/p>\n

All of our traders work with Steve, our Floor Manager and me. \u00a0I have written two books on trading so I hope I am a pretty good resource. \u00a0But at our firm there is more. \u00a0Our top traders get to work with an outside coach, the best trading coach in the world. \u00a0This helps them receive feedback on how to improve at the highest level. \u00a0One of our traders just had his best month-to-date, while already achieving seven-figure status. \u00a0That is impressive progress for someone at that skill level, but also partly the result of high level coaching.<\/p>\n

7. Team Trading<\/p>\n

Junior traders join the teams of senior traders in-time.\u00a0 They get to learn the setups from Senior traders.\u00a0 They are coached by these top traders in real-time.<\/p>\n

Things heard on the desk from Senior traders:<\/p>\n