Proprietary Trading

Nowadays, proprietary trading is one of the more popular trading strategies. Prop trading is the practice of trading with a company’s funds and then taking a percentage of the profits they make.

Some of the reasons why you should trade with a proprietary trading firm such as Fidelcrest – read an in-depth fidelcrest review here – are listed below in detail.

Here Is Some Useful Reasons Trade With A Proprietary Trading Firm:

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1. Technology

Many proprietary trading firms make use of specialist technology. This is a proprietary technology that can only be used if you are trading through a firm. With this technology, you can be much more accurate with your trading and trading setups.

The filtering technology that is used lets you establish alerts for your favorite setups. They also have great execution routes into dark pools and into markets that retail traders are unable to access.

2. Access to products

Proprietary trading firms have access to more financial / trading products than you would as an individual retail trader. For instance, you will have the option to trade international names, automated trading, futures, stocks, options, plus so much more. With all of these different products at your fingertips, you can really take your trading to the next level.

3. Coaching and mentoring

Trading with a proprietary trading firm provides you with access to coaches and mentors. Working with these outside individuals gives you great insight and advice on the world of trading and how to succeed within it.

These individuals can also give you expert feedback and advice on your trading. This can help you to progress to new levels and to do so much quicker than if you were doing it yourself.

4. Environment

Working with and alongside other expert traders can be highly beneficial to your trading, as you can share ideas with them and/or take advice from them regarding certain trades.

Your arrival will push them to improve their trading and the same will be true for you when new blood arrives in the proprietary trading firm after you. This working together and sharing of ideas can be beneficial to everyone at the firm.

5. Automated training

With a proprietary trading firm, you get access to specialist software that lets you build models from a desktop or laptop computer. This allows you to do things like developing trading ideas, backtest, forward test, and then run the strategy on your computer.

The infrastructure that goes into this provides for better alerting, and connectivity, and even allows for traders to be automated. This provides for better execution for the purpose of discretionary trading.

6. Trade as part of a team

Being part of a proprietary trading firm as a junior trader means that you are able to join forces with more senior and experienced traders – although this is something that is done in time and not immediately after joining. They will be able to teach you and provide advice on the trades that you are making.

For instance, they may encourage you to go bigger on certain trades, question your trades, and even encourage you when you have performed a good trade. Their insight is invaluable for improving you as a trader, plus working in a team is always more fun.

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