hey fellas, I am a 22 year senior at a small ivey in New England. I was banking on a getting into a sales/ trading training program with a bulge bracket, but that fell through. I am about to graduate and trying to figure out my options. I am wondering what some of your thoughts are about going into a prop shop right out of college? Is it a good move short term if you make money, but if you get fizzled out, are you screwed from finding a job later. I have no problem putting up the starting capital at a shop, but I want to find a place that will teach me, and not just throw me out there, get some commisions, and watch me lose my 5k or whatever. Any of you guys been in a similar position. Any thoughts would be great.
If you have a chance to go work for a legitimate company go for it. Don't waste your time and education at a prop shop. I have friend who went to Middlebury and got a banking job after college. He made a couple million in 5 years even though he hated working there. He just quit and now works for some non profit helping aids patients around the world. The point is, you can always go prop in the future as long as you dont have kids and shit. You won't always be able to get a banking or consulting job. You can swing trade on the side with legit job also, so you wont be completely out of trading.
all these firms look for trading assistants. http://www.iseoptions.com/marketplace/structure/members.asp I would go to grad school (one year program) in something math intensive, with finance courses, and programming. your first job will be crap anyway ...postpone it.
I'd actually argue the exact opposite, but to each is own. I'm of the opinion that the risk/reward of learning to trade full-time is only favorable up to about age 28, unless you are perpetually single (with no child support and no alimony) or independently wealthy.
rosy, You wouldn't happen to know if they post positions somewhere or just cold call the list to see who's hiring? Thanks!
Going prop is career suicide on the resume. Straight up. I know this from speaking to people in hiring positions at bulge bracket firms, one of which I worked at out of Colgate. By small ivey, I am assuming you mean that you went to Amherst, Williams or Wesleyan. You should easily get an entry level job that, after a year, will lead to a much better job or entry into a good b- school. That is, if you cannot get that sales and trading job at Goldman. If trading is your thing, you might want to go down the list b level market makers. If you can stomach sales, then consider some of the lesser known paths like mutual fund wholesaling. A mutual fund wholesaler can make $500k/ year. Also, maybe you could start a business while going prop and explain away the prop experience as a hobby if it does not pan out. Good luck. PM me if you would like to speak to someone, at a bulge bracket, that can set you straight, or just visit your career center.
you will learn FAR FAR more about the market if you go into a legit banking or trading job. never, never go prop unless you dont have any other alternatives....it WILL ruin a resume. It is better to say you quit your job to travel the world than to say your worked at a prop firm. There are people who make money in prop firms and people who know what they are doing...but most of them had jobs on the street beforehand. get a real job...and open an account to swing trade on the side. I put my money where my mouth is...i am a full time institutional bond broker...and just program orders in my account. double income!!! how great! suerte
I graduated college in May 04, bounced around consulting/temp assignments for the first 4 months. Then got a long term consulting assignment at Goldman that was good experience. Interviewed alot while working there since it wasn't permanent and ended up at a hedge fund. I always considered the prop route while I was bouncing around and even at Goldman, but its really not that easy to survive in a place like NYC with no consistent income for years at a time. If I lived somewhere cheap (Like FL) or even lived with family, I would have given prop a shot. If prop trading doesn't work out though, I can definitely see how that can kill your resume. I have been on atleast 20+ interviews at major hedge funds & investment banks and just by judging no one I interviewed with looks like they would buy prop trading as real experience. If you had to get out in the work force again after a failed prop trading attempt, I'd say the best fix is graduate school. I met one guy who was at Baruch doing his MBA who was trading prop for like 6 years.