I have a question regarding the applicability of the skills learned in day trading to other jobs. for example: when day traders decide to quit there job, what other types of jobs does day trading prepare them for or qualify them for. I am a recent college grad who is going to start working at a professional trading firm in nyc. I had a few IB and consulting offers. I chose daytrading because it fits my personality despite graduating from a prestigous school where most grads go IB or consulting. I would love to get your opinions to this critical point in my life. thanx. just so you get an idea of my personality.... Smart, lazy, always hustling, ambitious, and doesnt want to work for anyone else but myself JC
That's the biggest problem with trading; if you can't do it, you haven't learned anything else but how (not) to trade. It just ends up being wasted time; when I started doing this, a friend recommended a set a limit to how much time I was going to spend at this, and if I couldn't make money, cut my losses and move on.
When I took a break for a while decided I was best prepared to become a pickpocket, noticed a couple of ex market makers out in the field too.
you can always become an analyst. If you can remember a few stock symbols, I'm sure you can remember to say "BUY" whenever your investment banker hands you a new stock to "analyze".
The obvious next step after a trading career is to hit the lecture or software circuit. Think Ken Roberts, Larry Williams, Wade Cook, Don Lapree, et. al. The other thing, is if you can keep yourself alive, experience is experience. If you pay attention, you will learn loads about how markets interact, how to manage capital, risk, emotions, etc. When I tell people what I do (now understand, I had a homeless lady ask me if I was homeless too) they almost always ask me questions about investments or trading. Just like when I worked in accounting they asked me tax questions. If you can help people solve problems, you should do ok in any business.
I once met a guy from Deutsche Bank on Wall Street that is senior trader for currencies and has about 20 traders under him. He told me that the traders that survive five to ten years in this trading room - they will after be successful in anything they do in life. If you have been successful in the markets you know what it takes to be successful. -know yourself- -work disciplined- -work with passion- -knowing that nothing comes over night- -etc... alain
If you have been successful in the markets you know what it takes to be successful. -know yourself- -work disciplined- -work with passion- -knowing that nothing comes over night- -etc... Very true, think about what you learned about not wasting time trying to control that which cannot be controlled , sensing the moment to make a move or gauging interest or disinterest, all will serve you well.
Thanx for the responses. I totally agree with all of the statements conscerning work discipline, passion...etc. All these personality traits will make anyone successful in most things. I am just curious to see what kind of jobs day traders take after stopping. Also, i was wondering if the big bulge banks hire equity traders and if a lot of daytraders try options or other types of trading after they quit? I am guessing if a daytrader is making a great living, the hours arent bad and the freedom is good....so they would probably stick with it and not try other trading. just some thoughts.. jc
i'll take an alternative viewpoint. I would do it the other way around. You may do well and you may earn a decent living. However, I would think your upside, not just in $ terms, is higher at an ibank or getting your feet wet in the corporate world. It may not be for you but the opportunities to learn, network, and be surrounded by a more diverse group of people could give you a higher payoff down the road. Don't get me wrong, there is nothing wrong with chosing trading for your own account for a living. However, if it doesn't go well, you'll be entering the job market at a disadvantage (i.e. many ibanks will only hire traders right out of school). In addition, if you want to further your education, the top business schools will probably desire someone with different work experience. In short, I'd take the ibank offer for 2 years, see where it takes you and go from there. At worst, you'll earn some seed money and learn a ton about the markets, about yourself and your future competition.