In our last episode, TopstepTrader’s own, Matt Murnighan, discussed how he got started as a prop trader in the 2000s. This week, Matt is back to discuss what the daily grind of prop trading is really like. Matt, Jack, and Dan discuss the differences between trading for a firm versus as an individual, how trading and poker are similar, and how to know the right time to take a step back from trading.

One of the key takeaways from this conversation is to remember that trading is ephemeral. The industry is volatile with explosive highs and stressful lows. But trading and markets will always be there, so if a break is needed, it’s possible to return later or carve out a whole new niche – just look at Jack and Dan. Stay tuned for this week’s MARKet Reaction.

• [01:04] - This week: Matt Murnighan
• [01:49] - Visit TopStep on YouTube
• [04:34] - Interview with Matt Murnighan
• [06:02] - Professional poker and sports betting
• [08:50] - Python is king
• [11:16] - The cost of running a firm
• [16:12] - Mental risk barriers
• [20:05] - Moral hazard
• [22:26] - Proprietary strategies
• [26:26] - Calendar spreads
• [29:07] - Time to get out

Matt Murnighan is a web developer for TopstepTrader and an assistant teacher at Northwestern’s Coding Bootcamp. Matt spent the first eight years of his career as a trader of props and derivatives.

Limit Up! is a podcast for traders of all levels brought to you by TopstepTrader. Whether you’re considering a career in trading and don’t know where to start, or you’re a seasoned veteran looking for advice from big names in the financial industry, Limit Up! is your guide. Join us weekly as we discuss the market in all of its volatile glory. Risk Disclosure: https://www.topstep.com/risk-disclosure/

Jack Pelzer is a co-host of Limit Up! He traded as part of a U.S. Treasury group for 7 years at Chopper Trading and DRW. After leaving the industry, he became a Writing Fellow and Senior Contributing Writer for The Onion. He is now the Head of Content at Topstep.

Dan Hodgman is a co-host of Limit Up! Prior to coming to Topstep Dan traded 30 Yr Treasury Options and Yield Spreads. Before that, he served in the United States Marine Corps where he simultaneously managed his own Futures Account applying the skills he grew up learning from clerking on the trading floor. Now Dan works with the Traders here at Topstep as a Performance Coach as well as being a regular on the Daily Market Recap.

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Podcast episode production by Dante32.