Should I be a proprietary trader?
For any successful trader, proprietary trading can be an opportunity to expand potential earnings, reduce personal risk, enhance trading skills, and be associated with other experienced top-notch traders.
As an example, if you trade in a personal account with a balance of $100,000, your max positions are limited to $400,000 intraday, half that for overnights. If you are currently making $40,000/year, joining a proprietary trading firm can magnify those results. That same $100,000, contributed as capital to a proprietary trading firm, can get you up to $4 million in buying power. Assuming your strategies can be scaled, the same trading style can produce $400,000 in Net P&L. Even after the firm takes a 10% cut, you are left with $360,000/year, 9x what you could do on your own. Another option would be to only contribute $50,000 in capital, freeing up the other $50,000 to use for personal liquidity. You would have less at risk and still be able to produce gains 450% better than you could on your own.