My friend work as a prop trader and get the chance to move to be an equity fund manager at the local fund. He passed level 2 last year. Both the basic salary might be not much different, prop desk will have a profit sharing while fund will have the better longer term career path. Any comment or suggestion? Thanks
unless you make 6 figures consistently (year after year), prop trading is not worth it long-term. The benefits of prop is that your income is limitless and that you are your own boss but the drawback is that you lose many skills (excel, teamwork, communication, work ethic) and when it’s time to enter the workforce to find a real job, it’s going to show. Plus, institutional managers have no respect for prop traders.
Former trader, what do you think about becoming a trader to getting a better understanding of the market(s)? Also, why isn’t trading considered a “real job”? Thanks
I didn’t say trading isn’t considered a real job, but trading for a prop firm isn’t highly regarded, especially if the prop firm you trade forces you to close out your positions by the end of the day (which 99% do to reduce overnight risk). You’re viewed as a scalper by the people on the outside.
Former trader, His trading firm is the big and famous one in his region. He can hold a big over-night position and can cover the wide range of trading strategies and instruments to trade. It’s kind of small in-house hedgefund. Anyway it’s not that big famous. Also his performace is quite good for years. But what he worry is about the longer term, becoz his trading career may end up in next ten years when he’s mid 40s. Any more comment is welcome.
I’m going through that dilemma now. Trading institutional flow proprietarily for a mid-size brokerage. The money is good, but automation is making orderflow thinner. An MBA would probably benefit me, as I haven’t had any “real” office experience to speak of. I have sales experience, I can handle back office ops, clearing, risk management, business analysis, etc. I just don’t think it’s a long term career. I’m not sure what move to make next career wise. Going for the charter is step 1. If that doesn’t lead to anything I’ll go get my MBA and hope for the best. Hard to find a gig in orlando where I’ll make the same coin, though. Hard decisions to make when you have a wife, family, mortgage, bills. Guess I could always take some cash out and open up a Chik fil A over at disney, but thats not exactly living the dream, is it.
robo, I understand what you’re going through, especially your comment about automation.
I quit trading to because I got bored as a glorified computer programmer…
What’s wrong with prop trading if you are doing it for a large hedge fund or ibank with their capital? The GS guys did a good job…
RealWarriorsOnlyPlease Wrote: ------------------------------------------------------- > What’s wrong with prop trading if you are doing it > for a large hedge fund or ibank with their > capital? The GS guys did a good job… It’s great if you can get the job… It’s just that being a prop trader at a place that isn’t a bank or large hedge fund doesn’t put you on a track to become a prop trader at a bank/HF.
So I guess the answer to Prop_Trader’s question is Equity fund Manager. GS is a different story than most other desks out there. RWOP- GS is a hedge fund. Most desks out there won’t let you put on a position that big and unwind it over months, and it’s a team decision. You’ve got to know someone to get a job on a desk like that. It is a traders wet dream to get a job like that if you can get it, and you don’t have to do it very long before you can retire if you save your money. The problem is…most traders aren’t very good at that.
>The problem is…most traders aren’t very good at that. That might be because…they got the job just because they knew someone, rather than knew some stuff?
many great traders started out as scalpers… the bank where u put your profits dont ask you if the dough is off a scalp or a swing trade or whatever… whatever strategy fits u best is what one should press until the edge is gone. u only need to get rich once. by some estimates 30% to 40% of todays trading is algo driven now and that number is likely to grow near-term. but so what? as long as you understand that this is the case and what it potentially entails, it might not be such a bad thing. look at all the quant funds this year… with all that fire power even some big names choked a bit when sh!t hit the fan. if you find your niche, most of the externalities don;t matter that much…
Agreed…the algo is only as good as the person developing the strategy. And if you can watch how things trade…like the 3 o’clock swings lower almost every day, you can benefit from the way people have designed their programs. Especially now that there are no trading curbs. zigy- another problem is that traders can make decent money, and we actually have time to spend it, since we seldom work more than 40 hours a week. We also can get greedy, lose money, have a losing streak. It’s sort of a trap you get sucked into. I know guys that were once worth millions back in the heyday, and now are borrowing money to get through the week. Those are the guys I learn what not to do from.
>We also can get greedy, lose money, have a losing streak. It’s sort of a trap you get sucked into. I know guys that were once worth millions back in the heyday, and now are borrowing money to get through the week. Those are the guys I learn what not to do from. Sounds familiar. I have been a trader (but not with those big/sofisticated guys like GS) for nearly 6 yrs. I know several “big boys” who lost all and more.
Zigy- you going to STA national this year?
Sorry, I should have said “I had been a trader.” I am not trading any more. Though we traded technically, I have never been a member of STA.