I am still not sure man, I mean I remember the guy doing the interview telling us that there is no cap in what we can make and that a Ferrari can be in your carage in a matter of months and........
While at the Schneiders interview they told us that If we dream Ferraris we should wake up and apologise.
Well, let may me express my opinion as well...We have some similarities and I believe that you will find my comments useful... Let me state that I am a Greek and I am now looking to join a prop trading firm.
Let me comment on what the interviewer claimed. Did he claim that you can have a Ferrari in a matter of MONTHS??? Well, whoever claims that is a SUCKER (or he may be looking for suckers)!!!And by that I mean that it is simply impossible to get a Ferrari in a matter of months... You have to take into account that if you join FUTEX in the first months you won't be trading anything more than a couple of lots (3 lots maximum after 3 or 4 months). If you are successful, you can start trading with more lots. I know somebody there that after a YEAR trades about 20 lots (maximum). Not bad but with 20 lots if you account for losses (you will have plenty of them) and for desk fees I can't see how you will be able to buy that Ferrari...
However, I know a person at FUTEX that can buy a Ferrari (if he hasn't done so...). I am referring to Brad Young ,their most successful trader. But , he joined FUTEX in 2002 and one of his colleagues told me that after some years he was trading about 2,000(!!!) lots (one of the FSA guys went there to find out what was happening as he didn't believe that a human could trade with that many lots....He could not believe that a guy would trade with such a large position). I also know two other Greek persons that were traders there. They were reasonably successful and stayed there for 2 and 2.5 years. They earned pretty decent money but they were not even close to buy a Ferrari...
With regards to Schneider. Well, they told you the truth...That is it is not that easy to buy that Ferrari and it is certainly for the very few persons that after YEARS can achieve that...You have to take into account that at Schneider you don't trade outrights but spreads.So this means less volatility which obviously means limited profits as well. And if you refer to some relevant threads you need to understand that for the first 6 months you should be very happy to just break even. The thing is that after one year you should be expecting some decent cashflows (IF successful). However, I know a guy that was trading at Schneider for 7 YEARS and he has recently moved to another arcade (he got a better deal with regards to commissions paid) and he earns a very reasonable amount of money. He actually bought a Porsche Carrera 4s and he has a very decent lifestyle. However that happened after years of trading. I also know that about 90+% of the persons attempting to become traders fail...And this is the message.. You should have reasonable expectations and the truth is that it will take some time to master this art and become rich. It will take PAIN, TEARS, SWEAT and BLOOD..There is not any other way...Whoever claims the opposite is trying to BS you...Just my opinion..
I am also looking to join a Prop trading firm. I have been investing (not day trading)in Greek stocks for 7years (I suffered heavy losses but eventually managed a break even...). In short I blew up my account twice and the third time I recovered all my losses which was not that bad after all. I have been trading in FX for nearly a year and still trying to master this market which is completely different..So, 3 months ago I cold called various prop houses. The thing was that most of them wanted me to pay for training. One of them was Hamilton Court which is more than shameful as they are part of Kyte Group which is a very reputable company. In particular, they asked for a £3,000 training fee for one months course. I politely told them to F..K OFF!!! I am thinking of joining Schneider in Sept. They are not trading outrights (that I am used to) but the thing is that they don't charge any training fee. Many of my friends have been there and I have not heard anything bad about them (with regards to making payments etc. ) They also have a very good risk management model and they are FSA registered which are quite important factors for me. I have also a very bad experience with a prop house that I joined that was not FSA reg and did not have a very sound risk management model...
You should also consider the price of this course (£7,000). I am a Greek and I know how much money this is if you consider the income of a Greek person (for most of them it is nearly 70% of their annual income). You stated that you would have to move from Greece to attend this course. You should take into account that the MOST probable scenario is that you won't be backed up. If this wasn't the most probable scenario they would have backed you up. So you are in risk of paying their course fee paying for accommodation and other expenses here (relocation, etc) and then being refused by them... I can see a lot of downside rather than upside potential. I am thinking about joining them as well to be honest. If they back me up then it is fine. If they don't I won't bother to take their course...I have spent quite some time to acquire some knowledge and I think that they have nothing to offer me in terms of teaching me how to trade...
So what is your alternative??If you can't join any prop house ATM you can do this. If you don't have trading experience the best route is this. Buy some trading books and then open a DEMO account. Spent there some time to researching different markets and different strategies. Once you spent at least 6 months and you feel comfortable with the market and your strategy fund an account (with a small amount). Most likely you will lose this money(that is the truth unfortunately)... Then spent some time reading more and look for some tips on forums like that. After that fund another account. As the time goes by your performance will improve. Now, if you DO have trading experience and feel COMFORTABLE you should be better off paying this money (£7,000) for margin in an account and start trading... In both cases try to get 6 months of profitable trading. Also try to have a annualized return of greater than 20% and a maximum DD of lower than 10%. Once you get those statements, contact as many as possible prop trading firms. I think you have by far better opportunities to get accepted and backed up. Some of them will also be happy to back you up as a remote trader. After all it is in their interest to attract profitable traders..You will earn them money...
Now , if you are eager to get immediately in a prop house I know a place where if you pay for MARGIN ( a respectable amount) they will accept you. However you will have to pay the desk fees from your account and if that goes negative then from your pocket. If money is not an issue for you this can be a solution for you.However, I don't recommend you this path... If you need any other info you can PM. I will be very happy to help you...
Evangelos
