Hi @yrurbano1,
You are indeed unfortunate that one of your first posts has been hijacked and diverted so badly. I have read 22,000 posts on this forum over the past two years, and I can honestly say that this is the only one I can recall that has been so badly distorted. I will try to relate my own experience in this area and stay away from the unfortunate debate that is costing members much time and with little reward.
First, I know @alg626 to be a member who would have no reason to send you false or misleading information about his experience with Prop trading firm.
Second, I have spent over 200 hours following an ex-member of this forum who advises one trading plan that he refers to as NNFX (no nonsense forex), which I have found has dramatically improved my trading performance. He says he has been a Prop trader for about four years, and that he has earned a sufficient income to do trading full time. I have no reason not to believe him.
Thirdly, before Covid-19 I joined a group of traders based around Manchester, England and met up with them three times before Covid-19 interrupted the face to face meetings. At least three of the 900 odd members were prop traders, and one of them gave a 75 minute presentation and question / answer session about his first six months of prop trading with the firm.
It is therefore my experience that prop trading is of itself not a scam. Though I have seen that entry criteria may be “very specific”, and that proof of profitability is continuous, but as someone who has often invested my own capital into other people’s ideas, I know that to be an essential part of a successful venture.
This subject is very important to many new members because after a while, new members realize that it is highly improbable that they can make profits in the thousands of percent in Forex, and to make a living wage (let’s say - only $20K per year as a minimum), a reasonable expectation of return would be 15% to 30% per year, and so the capital available to trade full time would be of the region of $66K to $133K. For the vast majority of new Forex traders, that is outside of their capability.
So the prospect of becoming a PROP trader is very attractive to a new member, and gives hope that they could in fact earn a living wage only if they are able to demonstrate to themselves (and later to others) that they can continuously generate a return of about 10% to 15% per year. That in itself changes the psychology of the budding trader and makes it a whole lot more probable that they will not blow an account by choosing a far riskier strategy with unrealistic expectations.
Getting new traders to realize that 1% to 2% portfolio risk is sensible, that wider stop losses that relate to the reality of back testing (i.e., quantifiably relatable to ATR (14) for example) and analysis of a trading journal will result in a continuous record of success versus failure that is actually required to progress to becoming a PROP trader.
I hope this information will encourage you to proceed with the learning and experience exercises you intend to undertake and I encourage you to view this as a long term (multi-year) journey instead of something you can master in a few weeks.