Finding Your Edge: Choosing the Best Trading Environment for Success

I hope everyone had a wonderful holiday season and is gearing up for what I believe will be an outstanding year in trading. There’s something special about the fresh start at the beginning of the year. Every trader begins with a clean slate, with the anticipation that this could be the year that shatters records—where even novice traders can rake in millions. No offense to part-time traders balancing a side gig, but good luck matching the same excitement while grinding it out at a soul-crushing corporation, praying for a tiny bonus, or worse, just trying to hold onto your job. (Though let’s be honest, if it’s a rough year, we will all start dreaming about a steady paycheck.)

I want to start the year by talking about the 4 key questions a trader must ask themselves:

1. Am I qualified?

2. Where will you trade?

3. What will you trade?

4. Where will you get the education you need to have a chance at success?

In this post, I tackled the first question: Am I qualified? So, I will assume you meet the qualifications for what might generously be called a slim shot at becoming a successful trader—or maybe you’re just going to roll the dice, say “Fuck it!” and go for it anyway. Either way, it’s time to move on to the next big question: Where will you trade?

These four questions are all interconnected, but this one tends to get the least attention, yet it’s arguably the most important—because your environment can make or break your trading success. This topic also gives me the perfect opportunity to delve into prop firms, a topic close to my heart. Let’s explore the often murky world of prop trading and why your trading environment plays such a crucial role.

If I had to bet on who’s more likely to succeed long-term, here’s the matchup:

Option A:
The dream résumé. Started paper trading as a kid. Flush with capital. Dropped thousands on trading courses. Ivy League math brain. Ex-poker pro. Trading solo from home.

Option B:
Just a regular dude. No fancy résumé. No trading background. But working out of a legit prop firm—or surrounded by a tight crew of sharp, successful traders.

I’m picking Option B all day. Every time.

Why? Because while talent, money, and education help, the single most important factor in trading success isn’t any of those.

It’s environment.

I know for a fact I wouldn’t have made it without starting at a prop firm, surrounded by skilled traders. Ask around—most consistently profitable traders will say the same. If you’re serious about trading, the smartest move you can make is to put yourself in a setting that sharpens you—one that pushes you, holds you accountable, and surrounds you with people who are already where you want to be.

So, let’s break it down: Where should you trade—and what makes a great trading environment?

The Prop Firm Advantage

Starting at a reputable proprietary (prop) trading firm is, in my opinion, the best route for any aspiring trader. This hits three of the four essential questions at once:

• Where: You’ll be in an office environment surrounded by skilled and successful traders.

• What: The firm determines which markets you’ll trade.

• Education: Structured training programs combined with mentorship from experienced traders.

By “reputable,” I mean a firm that genuinely supports its traders and provides a real opportunity for success. Sadly, the prop trading space is being flooded with sketchy companies that prey on traders desperate for capital.

Be wary of firms promoting “funding challenges” or similar gimmicks. These often trap you rather than offering real trading opportunities.

In my experience, reputable prop firms come in two main categories:

1. Capital-Providing Firms

These firms provide traders with capital, offer a trading floor full of experienced and profitable traders, and deliver structured training. In return, traders share a portion of their profits with the firm.

2. Capital-Contribution Firms

These firms require you to contribute your own capital, but in return, you get significant leverage, top-tier software, and often a collaborative environment.

Whether profit-sharing or capital-contribution, the key is to choose a reputable firm that offers the security, resources, and support you need to succeed. Always do thorough research to ensure the firm you pick aligns with your goals. Let’s break down these types of firms into four sub-categories:

Top-Tier Capital-Providing Prop Firms

At the top of the food chain in the prop world, you’ve got industry heavyweights like Citadel, Jane Street, Virtu, SIG and Optiver. These firms specialize in high-frequency trading, market making, and making piles of cash. With access to top-tier talent, cutting-edge technology, and deep resources, their traders secure massive payouts and significantly higher success rates.

But don’t even think about getting your foot in the door unless you’ve got a world-class degree in math or quantitative fields—or a rock-solid, proven track record.

Traditional Capital-Providing Prop Firms

I started my career at a capital-providing prop firm offering training and a seat on the trading floor—no capital required. When I joined, the floor wasn’t packed with seven-figure traders, and the training at the time left a lot to be desired—my $40k initial loss says it all. But despite the initial struggles, I owe my start at this prop firm to being the main reason I made it as a trader.

Being on the same floor as seasoned, successful traders eventually gave me the edge I needed to survive. Not because anyone was handing out golden strategies—most of them were assholes who guarded their edge like it was nuclear launch codes. My so-called “mentor” even shut off his screens every time he took a bathroom break, paranoid I might catch on to his secret method.

But with enough hustle, you’d start to pick things up. If you earned trust—by showing effort, insight, or just being relentlessly persistent—doors opened.

It wasn’t just about picking up strategies—watching real traders consistently make money gave you belief. Success finds a way to seep from trader to trader, like some type of benevolent virus. Surrounded by winners, a confident trader starts thinking, If they can do it, I can too. Or at least, you might think, If that fool can make money, hell, I definitely can. Trading remotely and alone, combined with the sheer enormity of the challenge, can easily plant seeds of doubt, making you question if becoming a successful trader is even possible.

The competitive atmosphere a trading floor fosters doesn’t just benefit rookies—it pushes the veterans, too. Trading alongside others who are just as hungry for success and just as determined to be the best forces you to elevate your game. That spark of competition drives you to sharpen your skills in ways you could never achieve on your own. Let’s face it—competitiveness is baked into the DNA of successful traders, and being part of that dynamic environment is priceless.

Unfortunately, reputable firms like Kershner are becoming rare, and landing a spot at one is nearly as challenging as breaking into a top-tier firm. Still, it’s worth a shot if you’re serious about trading.

Capital-Contribution Prop Firms

For the last 20 years, I’ve worked within the capital-contribution prop firm model. In this setup, you put up your own capital, and in exchange, you get access to high leverage, low commissions, professional-grade trading software, and—depending on the firm—sometimes even a physical trading floor.

The biggest upside? You typically keep a much larger share—or even 100%—of your profits.. But with that freedom comes risk. Since your deposits aren't insured, due diligence becomes non-negotiable. Over the years, I’ve seen more than one firm collapse overnight, taking every trader’s deposit with it.

I’ve seen firsthand both the extraordinary upside and serious risks of trading with these firms. In 2008, at my old office, one trader discovered a highly profitable, secretive strategy. He generously shared it with the rest of the office, instantly turning many traders—including complete novices and struggling traders—into millionaires. These were traders who, under normal circumstances, would have likely failed, but they were fortunate enough to be in the right place at the right time.

On the flip side, another trader at Great Point suffered catastrophic losses during the Volmageddon event of 2018, causing the entire firm to take a significant capital hit. This incident highlights the double-edged nature of capital-contribution prop firms—offering massive rewards but also exposing traders to considerable risks. If you decide to join one, thorough due diligence is essential to protect yourself.

Predatory “Capital-Providing” Prop Firms

At the bottom tier—or more accurately, the gutter—of proprietary trading lies a surge of firms exploiting traders through “funding challenges” and other flashy marketing gimmicks. These schemes target the many eager, capital-starved traders, charging fees for participation with promises of trading capital upon achieving specific goals. In practice, however, these challenges often function more like lotteries than credible opportunities, offering little more than false hope.

Sure, there are some “winners,” but that’s exactly what they are—lucky lottery winners. Without a real, repeatable edge, you’re just gambling. And more capital without that edge just means bigger, faster losses. Capital isn't the hurdle—strategy is. Nail the edge first, then go looking for capital.

Sadly, the vast majority of participants lack this edge, leaving them with no path to success. Even the fortunate few who "win" often find themselves deceived. Many are led to believe they’re managing live capital, when in fact they’re trading a simulated account. These firms rarely provide substantive training or support, leaving traders woefully unprepared. Predictably, most of these “winners” blow their accounts within days or weeks.

Then the churn begins again. Another fee, another challenge, clinging to the hope that this time will be different. For the firms, this creates a highly profitable loop. For traders, it’s a demoralizing and often expensive grind with little to show for their efforts.

My advice? Avoid these sketchy firms altogether. Instead, dedicate your energy to developing a solid, winning strategy. Once you’ve built that foundation, explore alternative ways to grow your capital. If your strategy is truly effective, breaking into a reputable prop firm will be much more achievable. Alternatively, with consistent, profitable trades, even a small trading account can grow steadily over time.

Concentrate on sharpening your skills and proving your edge—success will come when your strategy is sound.

Trading with a traditional Broker

Traditional brokers—think Interactive Brokers, Robinhood, and similar platforms—with federally insured accounts can be very appealing. While you won’t get the high leverage or the immersive environment of a trading floor, many offer direct market access, extended trading hours, commission-free trading on select markets and high-quality software. And being able to log into your trading account without holding your breath is a huge plus.

But do your homework. Don’t settle for a crypto broker that doesn’t offer direct market access and instead forces you to pay huge spreads. If you’re trading equities, the difference between a broker with state-of-the-art software and full access to premarket action can be the difference between success and failure.

CFDs (Contracts for Difference)

Trading CFDs can be an option for those seeking leverage, especially if you live in countries with favorable tax treatment on these instruments. However, I’ve always been wary because many CFD brokers are less regulated, often charge high fees, and the fact that you don’t actually own the underlying asset—just a contract based on its price movement—feels uncomfortable to me (apologies to futures traders).

Office vs. Home: Why Your Space Matters

Even if it’s not a high-powered prop firm, trading from a professional office beats working alone at home every time. Trading from home sounds like a dream. Pajamas. Fridge. Netflix. Porn. But that “freedom” is often just a distraction dressed up as a perk.

The truth is, most who haven’t traded in a professional space don’t realize how powerful it is. Trading from home invites distractions and complacency, but going to an office builds discipline and sharpens your focus.

We’re social creatures, and trading shouldn’t be a lonely grind. Sharing a workspace brings camaraderie and real human connection—something chatrooms just can’t match. I valued this so much that I paid $1,500 a month just to sit in a futures office, even though I traded equities. The energy in that room—the benevolent trading virus—was real. It’s contagious, even across asset classes, and it pushes you to raise your game.

Sure, chatrooms can offer a level of social interaction and even benefit your trading, but it’s just not the same. If you don’t have access to an office right now, I try connecting with other traders in your area to see if you can work out an office share. If that’s not an option and you’re serious about your trading, consider relocating to an area with a trading office. Trading is all about making sacrifices, and while it’s an added expense, the margins for success are so slim that it could very well be the best investment you make.

Trading From Home: How to Make It Work

That said, most people will trade from home. If that’s you, fine—but you’ve got to take it seriously:

1. Create a Dedicated, Distraction-Free Workspace

No trading from the kitchen table. No TV in the background. No kids screaming. Build a distraction-free zone with proper equipment. You don’t need 10 monitors like some Twitter bro—but at least a solid desktop or powerful laptop with fast internet and a decent screen.

2. Get Proper Education and Support

You can’t become a successful trader by trying to go it alone. Joining a chatroom run by some dude flexing six-figure days on X isn’t education. You need real mentorship, structure, and feedback. More on that later, but for now: seek substance, not hype.

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Bottom Line

We’ve all been fed the “trading porn” on social media—those sun-drenched shots of millionaire traders lounging on a beach, cocktail in one hand, laptop in the other, casually pulling in thousands before plunging into turquoise water (funny, they don’t mention the flip side,when a bad trade blowing up in your face and wrecking your vacation). But that lifestyle is earned.

Yes, once you’ve proven yourself, you can trade from anywhere—the beach, a mountain lodge, a penthouse suite. But that’s trading for show. Trading for dough? That happens in the trenches.

Seasoned traders know the real edge comes from environment—not aesthetics. It’s built in a solid home base: an office, or a dedicated, distraction-free setup where you can hone your craft, stay locked in, and grow consistently. Sure, trading next to a bikini-clad, flip-flop-wearing blonde might get you Instagram likes—but if you’re serious about success, trading in an office full of unshaven, flip-flop-wearing math geeks and high-level traders is what will truly give you the edge.