I'm a trader who started in the 90`s. Today I am making allot of money for my firm. While I have faults, I survived our 08/9 and dodd frank job cuts. I love my job, but in short-I have enough saved where I could easily work for myself. I am curious about other people who have done this, and if they think it was a good choice for them. What did your firm and family think? Even though I am paid well, I am making way more money for the firm-even though they do give me allot of capital to work with. Fortunately for me I have made no code for the firm, just descretionary trades. I suppose that means I'm a dinosoar. I bet I make much more than any one Python programmer.
Bank traders are just not entrepreneurs. 99% of the bank traders that I have known and went to trade on their own have either blown up, or killed themselves. But, the ones that do make it tend to be super successful as well.
Interesting stat you quote of 99%. I would like to know if you are serious with this stat? How many bank traders do you know who went on their own? After counting them, are you sure you will still say it is 99%? If you do know a lot of bank traders, in your experience, what are the factors that separate the successful from failures?
I know quite a few of them from my time working on Wall Street. What I mean is that a significant majority of them have gone bust trading their own accounts and are back at a job. Trading for yourself is not something most people can transition themselves into and majority sadly underestimate what it takes before they take the plunge. That hunger, the vigor has to be there to chase after it and make it happen.
Hey Thanks! I was having a chat on the same topic with a buddy couple days ago. As you state, I agree that PL of a bank trader is not a great determinant of the future success as an independent trader - easily verifiable by looking at the high failure rate of ex-bank traders, who decided to go on their own (without a team). There must be other more important factors at work here. I am curious to hear your opinion on those other factors. Apart from hunger, vigor - what else? This is a serious intellectual question to me.
Maybe they could not implement the same strategies that they are able to trade while at the bank; and having all the resources of the bank such as the research facilities, and also having a risk manager looking over your shoulders etc. But, there are some real successful ex-bank traders out there as well, and you only tend to hear about the ones that do lose a lot of money.
Thanks for the replies Ripley and GMST. Ripley, when I read your first post I thought you were not a real trader since it looked like you pulled 99% out of the air (arbratrary things are something traders do) but I'm glad you clarified. I mentioned I'm totally discretionary, which I feel is a good thing for me. I don't mean to boast but I've done quite well with performance, and survived both big firing rounds. Any input from people who have done this before, or knew of others, would be hugely appreciated. I guess it comes down to money and my wishes for being promoted. With Dodd Frank, the competition is smaller though here!:eek:
I am sure you would know a lot of people who have been on the same path before. Why not talk to them in depth to gain from their wisdom. Agreed - ultimately, its your call, but it doesn't hurt to spend some time on a drink with these folks (both successful and unsuccessful) who have been your path before you. Even if you don't walk away with any nuggets, at least you just might make some friends in a similar position and will have few people to talk to once you leave your workplace. Because I don't think your current colleagues are going to show much interest in you 2 yrs down the line, god forbid if you don't turn out to be as successful as you planned. Just my opinion.
You also may be giving up certain advantages you may have had (seeing all orders in the book) ect. One that can trade pretty well with under a million bucks, couldn't have the same performance if you gave them a billion. Your strat is probably different than a smaller trader since liquidity is such a big factor.