Proprietary trading is not a new concept. In fact, it’s been around for decades, though the structures of today’s proprietary trading firms are as varied as the selection of cereal at your local grocery store. Generally, proprietary trading firms, or prop shops, are focused on finding professional traders who can manage the firm’s assets. While the structure provided by a proprietary trading group is great for the professional trader who knows how the industry works, there are some hidden pitfalls for the semi-pro or greenie trader choosing a firm to work with. In this post from the Apiary Fund, I’d like to go over a few elements common to most prop shops, and show you how the Apiary Fund’s unique model compares.
Trading stock and making money in the process can be a real task. To make a nice profit in stock exchange trading, you’ll want to familiarize yourself with key terms and stock market jargon and as much general information as possible from other traders. With these useful tidbits in your pocket, the work of building a strong trading strategy should be more manageable. The better prepared you are for situations that will occur, the better you’ll get at protecting your trading investments over time.
If you’ve ever watched baseball, then you’ve probably seen some spectacular double plays. But you’ll also notice there are times when the fielders don’t try to get both outs. This is a real-world example of risk management.
Lots of investors prefer different markets for lots of reasons. There’s not really a single answer for why any market is better than another, but today I thought I’d share three advantages of the Forex market:
Traders new to the world of foreign exchange often don’t understand the very tool that makes their trading possible: Leverage. The concept of leverage is what makes the markets accessible to new traders with little funds!
Because trading psychology is one of the most important aspects of our industry, we emphasize the need for emotional discipline. Now don’t get us wrong—you don’t have to be a robot to see success in your trading, but you certainly need to be in control of your emotions.