Compensation for traders at top firms?

Discussion in 'Trading' started by sammybea, Mar 25, 2002.

  1. UK2004

    UK2004

    Original topic, anyone got any contribution to that, sorry if I'm interfering in the mini-wars!
     
    #141     Apr 3, 2002
  2. nitro

    nitro

    _NOT_IN_MY_BOOK_

    However, I do know some _OPTIONS_ traders that go by the 80:20 rule, that is, they make 80% of their profits from 20% of their trades, and the rest are small positives/negatives. I don't understand swing trading, but I would not be surprise if something similar was true there (be easy on me swingtraders - I don't know what I am talking about - any input ?) But _YOU_AND_I_ARE_INTERESTED_IN_THE_MODE_BECAUSE_MOST_OF_OUR_TRADES_ARE_VERY_SHORT_TERM_. We are more likely to ka-ching the register than "let our profits run."

    BTW, in our case,the mean and the mode are very close.

    Hitman, you and Bob are both terrific traders - Don just has more capital than you so his cojones are bigger.

    Cut this shit out you guys have going between you.

    Jus my .02c

    nitro
     
    #142     Apr 3, 2002
  3. Hitman

    Hitman

    From a manager's perspective, it is called running a business.

    From a trader's perspective, it is called leeching, just ask STOCKKBROKER lol.

    Don:

    I have a trader on my team who takes 3-4 trades a day, makes 15-20 cents per share on good days, it is called intraday swing trading, it is called an efficient strategy, no I will not be able to "leech" off him much (well I taught him the OO strategy :), but I still welcome this kind of style of my team for a mix of different strategies.

    Look, it is not like I dislike high churn strategies, I even modified your OO strategy and taught it to my entire team (and I did tell them that without someone named Don Bright from Bright Trading, one of our competitors, I wouldn't have had the concept to come up with something like this), my entire arsenal is made of high churn strategies, but at least I don't say it with a straight face that a strategy that primarily looks for dimes and quarters with occassional homers is a low churn strategy.
     
    #143     Apr 3, 2002
  4. who cares how much those people make at goldman and jpm.........
     
    #144     Apr 3, 2002
  5. nitro

    nitro

    I like that.

    nitro
     
    #145     Apr 3, 2002
  6. nitro

    nitro

    I care - I care what everybody makes in the sense that I enjoy understanding how Capitalism allocates its resources. Sort of like my interest in Politics, or Philosophy.

    As far as my trading, I agree - I couldn't imagine how it matters.

    nitro
     
    #146     Apr 3, 2002
  7. OK, this is good, thank you for your definition.
     
    #147     Apr 3, 2002
  8. trader99

    trader99

    StatTrader:

    I was part of the Establishment. Top school credentials. Worked at Merrill. Then went on the buyside managing institutional money(which the entire fund complex had abotu $40Billion. much more than what I'm trading now as prop trader).

    And I do agree that these "daytraders" most of them will probably fail and be disillusioned. But if you have a valid strategy(i.e. after working a few years on the institutional side), then prop trading might be a better deal. The most highly paid people in finace are hedge fund managers and they only get 20%. But then we are talkign abotu 20% of a $100M. But most hedge funds are rather small anyways from $5M-$70M. $100M+ club is rather thin. But at prop you can get at least 50% deal with no risk capital of your own on the line.

    But I doagree for the average person coming in hoping to make millions withou any finance training, no backtested strategy, no respect for risk mgmt guidelines, then daytrading/proptrading is just a shot int eh dark. Kinda like gambling..

    Ang honestly, if this doesn't work out, then I can always go back to the institutional world. I still get calls from recruiters every now and then. But I'm going ot give my hand at this prop thign for atl east 1yr. Then decide if I should stay prop or go back to the institutional world.

    trader99
     
    #148     Apr 3, 2002
  9. trader99

    trader99

    SHIT!! You are making me reconsider my chosen path here.. Maybe I should squirrel back to the institutional world with guarantteed salary and bonuses..

    Well, I'll give this prop trading thing at least another 6months before I can make a verdict...

    trader99
     
    #149     Apr 3, 2002
  10. BlueHorseShoe..........nice choice for a username. I was wondering when somebody was going to use this one.

    Robert
     
    #150     Apr 3, 2002