Power/Energy Markets Trader?

Discussion in 'Commodity Futures' started by elcowen, Aug 19, 2010.

  1. elcowen

    elcowen

    I see there was another thread but it was old on how to become a trader.

    I was a carbon market analyst for a utility company, but desk closed, now I'm a strategy consultant in the energy industry, however, my passion is with markets and trading.

    So how to I get my foot into the door as a trader or junior trader?

    Thanks.
     
  2. bone

    bone

    Maybe some Inc/Dec and Next Day physical guys want to chime in, but the ICE/ClearPort financial markets are toast - way thin in terms of liquidity. 2008 squeezed out the liquidity providers.

    If you're physical, then there's hope - with the utilities. SMUD and the California utilities are looking for real-time traders and schedulers (as usual).
     
  3. sledged

    sledged

    There is decent ice liquidity trading bal day and next day PJM West hub but it is definetely not the way it used to be when there were more players in the game. Cin Hub liquidity sucks and at times can gap up or down due to this. Doesn't look like things will ever return to their glory days and with gas sliding again its going to slow down further.

    The whole business is moving to Houston, if you want to get your foot in the door thats your best bet and getting on the floor will most likely funnel through a job as a scheduler. Its hard to trade this product without prior power trading experience.
     
  4. Are you interested in physical or paper trading?
     
  5. Money to be made in inc/dec, but east/west congestion definitely less than previous years. WH bal day has had decent liquidity relative to previous years IMHO, but then again not all of us are swinging a gig at a clip, so liquidity isn't as much of an issue.

    I have noticed Cin liquidity dry up though. The somewhat random $1k+ prints have contributed to this.

    Its tough, but I stay on the sidelines when we're trading $40 WH bal day, not worth it.

    On a side note, bal day options volume have exploded this year. It is a roach motel though, people check in, but if you want out you'll pay up to do so.
     
  6. Are you interested in Physical or Paper Trading?
     
  7. bone

    bone

    I'd look at the Power Marketers Association employment listings. Don't be shocked (no pun intended) if the public utilities are hiring more than anybody else at the moment.

    My big regret in terms of my trading career is all that hay I made in the '90s while trading hourly and term for a large MidWest power utility wasn't done at an Investment Bank.
     
  8. If you were at an IB you'd regret that you weren't at a hedge fund :D
     
  9. bone

    bone

    Amen Brother.
     
  10. bone

    bone