Don't worry about it - if you're an institutional trader (assuming you are not on a prop desk), then you are just a bookie. The core competency that you'll need to develop is the competitive filling of orders. If you are working at a prop desk at an IB, which I seriously doubt (not hating - just recognizing how stupifyingly difficult these jobs are to come by), then they'll teach you everything you need to know and any self-prep might actually be harmful to you.
Thanks. It will be at a small boutique, not an IB firm and not a prop shop. What do you think IB firms tell their new traders or how do you think they are trained? Any guesses? I'm just trying to absorb some information and get prepared. I've looked around and can't seem to find a whole lot of information on this anywhere. I'm almost surprised that it's actually even a job given nobody talks that much about it. So any suggestions, thoughts, comments are greatly appreciated.
H'es dead on. I worked at an IB and this is a succinct summation of institutional execution trader vs institutional prop trader
Would you mind sharing how the training structure at the IB you worked at was like? Did they encourage you to read any outside materials/books? How long was your training and how has this job overall improved or affected your personal trading? Thank you.
I wasn't a trader - I was on a structuring/sales desk. However, we worked very closely with the structured vol and listed vol traders. From my observations it's more about understanding the complexities of your specific job. For example, the structured guys all had an academic understanding of VOLATILITY and the greeks. Everything else was learned on the job and is desk-specific. My advice would be to focus on your specific job and make sure you learn everything about it. Your goal is to master your responsibilities completely and UNDERSTAND what your coworkers do and HOW they do it, but not necessarily be able to replace them in their absence (unless that's part of your job as well) Basically, you need to focus intensely on your job and all outside reading should be geared towards improving your job performance. They'll tell you what to read, or you can ask what they've read. The best advice you can get here will only tell you about books that may vaguely help you since none of us know exactly what you'll be doing. May want to read some books on focus, efficiency, and concentration under pressure? Valuable pre-job reading should be widely applicable.
I like the above adivce for any job...but I would add the following when you start moving to the big leagues more and more... dont get cocky...nobody likes that crap. be a nice guy...keep you head down, work hard, admit your mistakes, keep your mouth shut, be honest, and ask for help....you will be fine. they are all human just like you. I am an instituional broker on an IDB desk...so I know a few other isntitutional guys. the ones that make it and have a long rewarding career have the above characteristics.
They will probably start you out as per trade order execution function where you will spend a lot of time perfecting your multitasking skills. If they have a dedicated NASDAQ Market Makeing desk it should be your ultimate goal. This sounds like a small firm so actually Fixed Income will probably pay the best, especially if they underwrite and trade Muni's.
I would also agree, but much more important than admitting your mistakes is fixing your mistakes. Another thing remember in a small firm the sales guy with big production trumps all others. Try to steer clear if possible or his mistakes will somehow become yours.
I traded on both the buy and sell side as a trader..Depends on what vehicle you are trading..Buyside, you get an order to buy a 3% position in a given name.. You have brokers you need to trade with to keep up w/ research..If you are given discretion, you go where the size is...Sell side, I was a mm for a purely institutional firm during the go-go period..All I tried to do was to be as close to flat at the end o day. I went home net short a few times, and I think they named a disease after me. Now in a flat to down mkt it gets alot easier. Do you're homework, and roll with what responsibilities they give you, do not try and hit a homerun, singles and dbls make you a success