I think this goes along with what I've been saying about how the whole business consolidating. I for one, am glad that GS is gutsy enough to take action when it is needed. The Wall Street "jobs" are going away quickly, as we have seen. (No, it doesn't mean that they should all become prop traders, BRight or otherwise)....simply, that the technology and tighter option markets has made many jobs redundant. Independence is the key to the future.... My brother says "if you can describe your job, it probably won't exist in a few years".....I'm not that much of a "gloom and doomer" ....but he is the "smarter brother".... Don
Don, Well, I have to agree with you on this point but only to a certain point. Wall Street jobs aren't exactly going away per se. Just certain TYPES of Wall Street jobs. Wall St has always been on the forefront of change and cutting edge technology. It's just a matter of time before things become more and more automated and thus needing less and less people. On the other hand, the demands for quants to automate things like automated option or other securities market making is getting to be real popular. So, on the one hand, less clerical jobs and people running around the trading floor. And more quants and programmers and technology people to automate as much as possible. But there will always be sales people, ibankers, M&A whenever that market picks up again. Those things are harder to automate away. hehe. In essence you have to evolve and add value. The old market maker on a trading desk just quoting bid/ask might not be as useful if that can be done by a machine 24/7. And it will be... Not that prop trading is all that glamourous. From what I see, it seems like the ave prop trader is having a hard time making any $. So, yeah, the freedom is there. independence. blah blah. But you STILL have to know what you are doing. Having market access is not the same as having good trading skills. No matter WHERE you are. GS. MER. Wall St. Prop trading. hedge funds. quant funds. Mutual funds. etc. I've done most of them above. I've enjoyed both buy/sell side and prop trading. well, good luck. Pursue what you like. Not what pays the bill. trader99
hey '99, nearly a year after this: Anyone making any real $$$? would you mind updating us with what's been happening?
Most pro traders that I know at the CBOE tell me that GS has a horrible record of letting their traders go right before the turn. Maybe, as Lundy would say - "Bulls green light!" nitro
daniel_m, wow. You remember huh? haha. I still remember your many comments. hehe. Yes, things have improved. And I'm glad I STUCK with prop trading as opposed to getting back to the institutional world. Though, I still have the choice open to me and still get calls every so often. And I might still reconsider going back to the institutional world. But I'll stick it out for one more year to see what happens.. And yes, I do like the freedom of prop trading and the independence. I've definitely improved though there's always more room for improvement. I'm still not making as much as my old institutional jobs YET. But hopefully this year I'll. And next year, I'll exceed that. All with a lot more independence... I must say it's NOT easy doing prop trading especially with no salary and benefits. But it's possible if you are really smart about it and disciplined. Sometimes people I know think I'm STUPID to do the prop trading route when I have the choice of a MUCH EASIER route of steady salary and bonuses. Do you think I"m stupid? Hmm.. We'll see by the end of the year or next year. Maybe I'll do multiples of what I did in my institutional job before... thanks for the keeping up. how have you been doing? please let me know. trader99
A couple of Years ago DE Shaw blew up and caused a ripple throughout the Fixed Income arena. It was very close to same numbers as the Long Term Capital debacle. Billions!
BofA just Shut down their Exchange Arbitrage business, which is the Old CRT Group. The group was still the dominant player in several areas, including Korea, London and Tokyo. This Group has been extremely profitable on all fronts since NationBank purchased them in 1994. The groupd had an unbelievable ROI and the Risk profile was excellent as well. In spite of a very good return the Bank has decided to let all of the Exchange Options traders go and unwind the CRT methodology. Unbelievable move! If you knew the profit numbers and you are a shareholder of BofA it should piss you off to no end. Historically, the Banks are dead wrong when they make moves like this. I believe that the Markets are going to give us a very big surprise soon and that the place to be is Making Markets in Fixed Income Options. A 44 year low in Yields with some of the Biggest players out of the Market will allow Independant traders an opportunity of a lifetime when the Fed starts to Hike. In Fixed Income Options, there is nothing like a Crashing Market. 1993 and 94 was the last significant setup like this. Interested in comments!