Exactly!! And if an independent trader can't make more in a day percentage wise than an institutional investor can make in a year, he just needs to study more.
In that case I don't understand why they felt they could make more money being an independent trader. If there is one clear drawback to being a PA trader it's capital constraint. Last I check, we spend dollars and not percentage points - so if you are taking home 10% of your P&L and your capital is 200mm, it's very hard to make the same amount trading your PA.
I agree with all the points you have made. There are advantages to being nimble and being able to move in and out quickly. Sometimes, however, that can be a disadvantage, overtrading ring any bells? Despite all the advantages you list, you omit all the advantages pros have. Maybe if we combine both our posts we will end up with a balanced picture?
Market makers existed for centuries, mate. They did exist in Japan for centuries, too. Pertaining to financial trading market makers in Japan existed forever in the OTC markets. They are called inter bank dealer, broker dealers, or simply market makers...inter bank dealers/broker dealers are intermediaries between market makers and market makers are intermediaries between client interest.
they only got rid of cash equity execution traders. Those are monkeys that simply push buttons when the sales force instructs them to do so. It was an easy feat for algos. Market makers in the OTC markets are alive and kicking, though there is momentum building to have them replaced at some point as well. Google Tradeweb, for example. Bloomberg has a competing platform as well. A major trading platform for treasury securities.
That guy (@learner2007) does not quite understand the business. He claims he worked as professional before yet I highly doubt that. Of course anyone with ok trading skills is ALWAYS better off at a prop desk and equipped with a fixed percent take-home agreement than someone sitting at home. To start with, it is a free option. Fuxx up and you are let go but get to keep most if not all of your past salary and bonuses.
I heard the Goldman Sachs hiring process is the toughest in the world. They did all that just for hiring people to push buttons??!! That's a huge waste of money if you ask me. I thought they wanted the best of the best of the best, the cream of the cream of the crop?? I dunno. Goldman Sachs is something that I never understood.