The prop trading business model is dead

Discussion in 'Prop Firms' started by TucoPropTrader, Jun 3, 2009.

  1. That's a silly thing to say...

    I think what you're seeing is people realizing that prop trading at iBanks is a bad thing that will be frowned upon by the authorities. Nothing more, nothing less...
  2. are saying exactly what I mean

    Banks will shut down their prop trading divisions

    Very smart, big pocketed money is quiting trading and soon small traders will too

    So how is that a silly thing to say?
  3. Banks shouldnt be trading at all.
  4. And small traders with less trading knowledge, smaller trading accounts and fewer political connections should be trading?
  5. Yes, the majority of banks have already shut down their prop desks.

    However, iBanks are not the only places with 'very smart, big pocketed money', are they? Last I heard hedge funds are not quitting trading...

    That's why I say it's a silly things to say. Just because banks are prohibited from taking too much risk doesn't mean everyone is. Someone will provide a home for the risky money out there, have no doubt of that...
  6. OK, let me throw a couple of things out there. Yes, we have made a home for some Tuco traders. And, yes, the employee type Prop model has been declining for a decade or more. A lot of this has to do with algo type trading where one trader can do the work of many. And, yes, I agree that banks might be shifting back out of the trading business, some voluntarily, some not.

    In my mind, this also creates more opportunities for those interested in making their living trading. I posted an article from the WSJournal on my website that actually goes into this whole phenomenon. The Journal actually interviewed several of my traders, only quoted a couple, but you'll get the idea.

    Just my 2 cents.... again, this is not for everyone.

    Don :)
  7. Yeah, banks should stick to RE loans. That's what they're good at.

  8. (sorry, but..) LOL, yep, that's the ticket,!

    Don :D
  9. tredar


    how will less institutional money in the market help me trade as an independent trader.
    #10     Jun 4, 2009