the firm allows me to trade my account. I keep 25k in it, but I trade it much more conservatively, that way I can focus on my job at the firm. I still made 50k last year.
I don't get why anyone with such ludicrous returns would be asking these questions. Unless you lock yourself away like a hermit while you pulled this off, the answers would have been knocking at your door for a while. On second note, I don't know why Jrmarketwizard would be expecting proper answers from this forum.
Interesting. I'm just the reverse. I find it much more stressful managing OPM than my own. I don't mind taking losses in my account, it comes with the territory, but I seriously HATE having to report losses to my partners. When you trade OPM your reputation is on the line in a way an individual trader doesn't have to deal with. Keep up the good trading, Jrmarketwizard! Aaron Schindler Schindler Trading
I am just curious, how did you get hired? I assume you must have had a trackrecord... Also how did they find you? Or did you find them?
I agree. I have traded money for friends, I started out slightly negative and I did feel the pressure. Of course I guaranteed their initial capital investment anyway (since it is so small, only a couple Gs) but still. A couple of nice trades later, and I am well in positive territory and all is well. OPM is a tremendous responsibility, learn to deal with it but also enjoy it. It's an awesome feeling to deliver sexy returns to your friends haha. You feel like a money making machine
Now that is the real question. So to the original poster, since there have been a number of helpful replies, how about a return favor? How did you find such a sweet deal?
My story is strikingly similar to Michael Marcus, my father wanted me to be philosopher prof or a shrink, I was so consumed by the excitement of trading that I dove blindly into the pool of trading without a life jacket nor water in the pool. It was just little over 10yrs ago that I received a lesson that would forever alter my life. I lost my mother's entire retirement savings trading penny stocks. Furthermore, I left university early to pursue trading. I didn't have two dimes to rub together to even grab a beer with the boys. For over 2 yrs I never looked at the markets the pain of seeing my penny stock purchase loose 95% of its value was unbearable. somewhere somehow I muster the courage to carry on. 5yrs later in my mid twenties I was given a second chance. I traded family money once again but this time I had also friends involved. I was so close to making my million dollars when WHAM i got caught short. I had over a 50% dd. I thought this can;t be happening again. When I finally understood myself and risk and that what i wanted in my life was I want to be happy and not miserable. From that moment on, I decided to trade small and fast and control risk and above all never trade family and friends money nor my own (at least not that much). And now I just trade to trade, I try not let it control my life. I just wanted to see what was out there in terms of pay structure. I figure either way I'll leave the industry in 5 yrs or less. For all those out there making 50-100% a year is certainly doable without killing yourself but you have to know your limits and know your flaws. I just wanted to find out whether I can leave the industry faster.
First off I don't know what constitutes a sweet deal or not. Awhile back ago Close friend of mine worked at one of the large clearing firms, they decided to back me with 25k. I ran that up over a couple hundred percent. Word got around and in time I was introduced to a small hedge fund outfit who wanted to give me a shot. I hear SAC is pretty good place to work for and their fee structure is favorable to their in house traders. I need to the ability to trade overnight and I cannot be confined to analyst meetings and 8am conference calls. No way. I must be able to trade free, in other words if I can't wear my sandals or take siesta during market hrs then the firm is not for me. The illusion on wall street is you have to comply to a certain way of being. It couldn't be further from the truth. Perhaps my current firm is the ideal for me, maybe not the best pay but good for me. Any suggestions?
You sound like a smart guy. You realize that just because you did it one year doesn't mean you'll do it consistently. And if you can, you won't have to worry about payout. You'll be worried about investing all the money people will want to give you. If I were you I would stay at the fund (sounds like a good deal!). Just make your performance known.. Keep in mind I am a kid and have no idea what the hell I'm talking about