Institutional Traders

Discussion in 'Professional Trading' started by quin8670, Mar 3, 2007.

  1. Hey,

    It seems like a lot of guys on ET are independent traders. With traders working for banks and stuff pulling 100k plus large bonuses why aren't some of the good traders on ET going that route? Is it just the being your own boss and having full autonomy that is attractive to most people.

    Also, how do traders that work for banks and hedge funds get hired? Is it their credentials mainly...

    where do most of them get started?
  2. you have to fit the mold and look the part at institutions. Going to a top notch school wont hurt either.
  3. If your father is a trader at a big firm, then you can be too. It's all about who you know.


    You must have graduated from a top tier university with a super quantitative mind.
  4. so your saying that a lot of guys on here wouldn't stand a chance at getting one of those jobs?
  5. yeah, your pedigree is important at these institutions. They might consult out to you, but they wont bring you into the fold.
  6. but when they do bring you into the fold, do they expect you to know what you are doing already or do they teach you a little bit and then cut you loose to see what you can do.

    And with education - do most of these guys have MBAs or just undergrad degrees, or phd's in math or physics
  7. mba's from top notch schools, and if its a mba from one of those school the quant stuff is thrown in.

    they will teach you the ropes. Lot of the money they make is from access to information sooner then the market.

    its not from true talent, once in a awhile a truely talented individual plus top pedigree enters through their doors.
  8. last question...thanks for the insight man,

    so in your opinion are there a lot of people on here or just independent that are more talented and better traders than a lot of these institutional guys...

    take care
  9. I think ET has more individuals who know how to trade then other places I have seen.

    Trading is truely a solitary thing when your doing it independently. Lack of social contact will lead to psychosis. Thats why its important to interact with other people and go out and join a gym or do something sociable like talking to your spouse once in a awhile, lol.

    But you have to understand, lot of the behavior patterns are very hard to break. These behavior patterns seem to be engrained in us. The patterns that lead to failure. Its a derivative of human psychology.
  10. Institutional traders just follow orderflow sooner. Thats the only difference. Herd mentality of institutions drives the market. So no talent needed at institutions, but it helps.

    Retail and independent traders need to decipher orderflow on their own.
    #10     Mar 3, 2007