Equity Analyst Trading Own Account

Discussion in 'Professional Trading' started by simpleisbetter, Jun 23, 2007.

  1. I have a question for all who have been equity analysts before. As an equity analyst, are you allowed to trade your own account? Or just invest in mutual funds? I am thinking of getting an MBA to get into investment management but am concerned that as an equity analyst, you won't be allowed to trade your own account due to possible conflict of interest. Thanks and appreciate any feedback!
  2. Persdawg


    You will have a 5 day hold on all transactions to be cleared by your chief compliance officer. I think you must hold the security for at least ten days as well...unless you have a stop loss hit of course.

    Basically, you can't do it the way you want to do it..
  3. stussy


    You can't do anything if the stock is on your firm's restricted list, and you must trade throught a pre-approved broker. You also have to clear the trade with your compliance guy 3 days in advance and hold at least for a month I believe. Hope this helps.
  4. Thanks stussy. One more question, does this rule apply to ETFs? You said "have to clear the trade with your compliance guy 3 days in advance...". Do you mean I have to let the compliance guy know the intention of my trade 3 days before the actual date I plan to trade?
  5. stussy


    It means you have to let the compliance guy know X days in advance of before you actually make the trade. X could be 3 - 5 business days of more depending on your firm.
  6. No offense intended but wanting to be an equity analyst rather than a trader kind of leads me to the "those who CAN, DO, and thoe who cant TEACH" quote, you should make up your mind wether or not you want to be a trader or an analyst, as an analyst you will have a solid income but upside is very limited. As a trader you are guaranteed nothing, and in fact odds say you will probably fail, (not you personally but the average person trying it) but upside potential is huge for those who are good, id imagine with all the restrictions youd face as a "trading analyst" it would be tough to make a go out of being a trader, in fact in that situation you ae probably almost better off investing in funds, because if you work for any of the majors the stocks you will not be allowed to trade will be high percentage of the good ones.
  7. mokwit


    A bit off topic but is there any way that an account with a broker other than the one employing you can be kept open within the spirit and the letter of US law/regs. I am interested in US law as this would be the "most strict" and thus the one I would technically be bound by. e.g can you keep accounts open if they are 100% in cash not traded?. I have previusly opened accounts with employing broker as required but wonder about the necessity to close others

    Appreciate any direct experience on this.
  8. I don't day trade. I only trade once or twice per week at most, sometimes holding positions for weeks at a time. Therefore, I need to have a day time job until my account reaches a certain size that would require my full attention.