Foot In the Door

Discussion in 'Professional Trading' started by IndexSwing, Nov 13, 2007.

  1. I trade index options on the $NDX and $SPX, 1-2 trader per day with an average holding time of 3 hours. My method is purely technical. I do not try to predict reversals but wait for interday reversals and attempt to catch large interday swings. My performance is better than most managed futures and advisory services that I've seen and I believe that I could be an asset to a trading firm, but I'm not sure how to get my foot in the door. I'm 24, finishing my degree and with no connections and little capital. My idea is to offer free services to a trading firm so that they can test my skills. For example I call Joe at ABC trading each time I enter a trade and each time I exit, after a week Joe says this guy's good and I'm hired. I'm not sure how I would go about this. All ideas are appreciated.
     
  2. GodsGift

    GodsGift

    Your method won't be attractive to daytrading firms because they make thier money, not off of trader's P/L, but on the commish generated from the trades themselves (so long as Joe Schmoe Trader is net positive). If your holding time is average 3 hours, you would destroy thier business (the average equity daytrader often holds for second or minutes).

    Besides, most daytrading firms don't even trade futures.

    And your record, despite being impressive to you, would be viewed as random luck by any professional investment firm of repute.

    The best you could hope to do is write a business plan of a hypothetical trading firm that is currently only engaged in equities trading. In that plan, breakdown the current commish structure that you estimate is the case. Then, do a similar analysis for commish that could be charged by the firm to the trader were they to offer futures.

    The pitch here is: Hey trading firm, you're in an environment of declining commission rates and your business is being commoditized. Time to differentiate yourself by expanding your product offering to traders and make futures trading available. Oh, and by the way, I'll train your current traders on how to read the instrument and understand how to trade it for a small fee (or a share of future profits).

    Call Don Bright.
     
  3. I'm interested in working for a firm whose goal is not commisions but manages people's money and is looking for max return. Perhaps a managed futures firm.
     
  4. GodsGift

    GodsGift

    Good luck. The day of labor-intensive trading is over. Today, a PM functions are infinitely scalable. This isn't the 80s.
     
  5. Sounds like a hedge fund to me....good luck getting into one of those!