Hereâs my story and please help me if you can. I came out to NYC 3 years ago to trade at a prop firm. I took my Series 7, 63 and 55 and began my trading career. I didnât have any lofty expectations for the first 2 years but did expect to start making enough to pay my bills in my 3rd year. However, things didnât go according to plan. Many of my peers who started in the same training class as I did became much bigger traders than I and are making a living. I cannot say the same for me. So the time has come for me to accept the fact that trading may not be for me. I love trading but maybe Iâm not meant to be a trader, maybe a clerk or an order taker but not a trader. The big problem now is that I have incurred a mountain of debt (basically taking credit card advances to pay the monthly expenses) and am considering filing for personal bankruptcy.
My concern is that, as a registered rep, what are the consequences of me filing for bankruptcy. Will I be able to get another job in this industry or will I be barred (Iâd like to stay in the industry)? Will a prop firm ever consider hiring me again or avoid me like the plague? Will I be able to keep my personal accounts where I do more investing? Will it show up on my U4? Who do I have to disclose this information to?
Also, how hard is it to build up your credit after youâve got a bankruptcy on your record or are you screwed for 10 years? Does getting a Visa debit card help any or getting a secured credit card? Iâve learned my lesson and plan to stay away from unsecured credit cards but I would like to buy a car or a house sometime in the next several years.
Any information would be greatly appreciated. On a side note for those who are just a little curious, I did not use my real name. I do not expect any sympathy as Iâve brought this upon myself. On the same token, this is a tough time for me and ask you not to flame me or subject me to any ridicule. Iâm just trying to explore my options here. Thanks.
Eventhough I haven't gone thru it I can tell you of what i have heard (and is by no means advise, just info):
1.) Bankruptcy used to be something a lot of people used to frown upon, but no so much these days with the economy ---layoffs right and left. So don't feel bad.
2.) as for your record with the NASD, it will stay with you for at least 10 years. No harm in it unless your looking to get some high paying job that involves broker sales or financial analyst position or Investment portfolio.
3.) If you love trading, don't worry too much about your failure. It takes a long time for most to become good at it. Eeryone walks at their own pace. I dont know your situation, but maybe the reason why you are not doing good in trading is because you were trained the wrong way or didnt get enough of it. Maybe you learned too many bad habits that have caused you to loose or not go anywhere. Maybe (trying not to sound like a jerk here)what you should do is get a real job, so that you can support your self and re learn trading from the very beginning. Take as long as you can to learn again. The MARKETS WILL ALWAYS BE THERE. You can always go back to it.
4.) Getting a trader position at a prop firm after declaring bankruptcy should be no problem (since the bankruptcy is due to not being able to pay bills, not your trading). I've heard of situations were successful traders have file bankruptcy in the past just for a fresh start. Maybe your trading has been affected too much on growing credit card debt.
hope that info helps