Hello, I'm a newbie here. Love the board! My questions: I'm a Series 7 Broker, and Series 63, 65 Registered Investment Advisor, Life and Health Licensed, and Level II CFA "Candidate." (I "was" going to get level II done this year, but that's too much with my work load right now. Got started in the business 4 years ago at a wirehouse. Stayed there two years, saw the light, and went independent. Started trading about six years ago. My delima: I am so tired of the retail world due to the regulators, ignorant compliance pinheads who know ZERO about the real world, the horrible back office "support," and the list goes on. I LOVE making money for clients though! I like doing it without a ton of risk, or leverage. I want to trade for a living! I didn't know it, but I guess the Engineer's in my family (Dad, Sister, Cousins, etc.,) may be in my blood to be more analytical than a salesperson. I'm 38 years old, and with a wife and three teen-age sons, I'm not rich enough to just sit home and daytrade, as that imo takes a good amount of capital to do over, and over, without harming the family's income source. (BTW, I'm not a typical, dry Engineer type many people run into these days. LOL!) I understand there are equities/commodities firms out there who will train, then put you to work. Who are they? Anyone here in a similar mindset? The advice the vets here give would be appreciated! Don't know if a Trading "Academy" (Don Bright?), or Prop, or another type of firm would be the best way to go. Thanks!
My delima: I am so tired of the retail world due to the regulators, ignorant compliance pinheads ++++++++++++++++ who know ZERO about the real world, the horrible back office "support," and the list goes on. I LOVE making money for clients though! I like doing it without a ton of risk, or leverage. ? author was not payed from Etrade GRand prix in worldcup 2006 for first place in stock trading contest -36000 euro . After that etrade loosed only in 2007 -84% or some 8-9 bln $ By all trader contest*s ,where author won -in Germany ,USA, Swiss to receive money (for 1 prize ) must disscuss multiple 10 time with senior regulator as Chief of Derivative of BAFIN all Germany or Court of IOWA in USA And good ,if was received after 2 month . 90 % of author price money was not payed 99.5-99.9 % of all brokers are not pure agent of principals ,have proprietry trading desk and trade against client interess. 2 .... I'm 38 years old, and with a wife and three teen-age sons, I'm not rich enough to just sit home and daytrade, as that imo takes a good amount of capital to do over, and over, without harming the family's income source. Forget that ... 95-98% of retail would loose through years
i am curious. commissions are so low. do retail brokers really exist anymore? who do they cater to? how can they make any money? whats the average size of a retail brokers client account?
Usually come around this place to check out what it is people are talking about. Don't usually post but could not help notice your request for advice.... I was in your exact same shoes about 4 years ago... International Financial Advisor, all the bells and whistles (licenses) with a top wire house travelling all over the world looking for HNWI. Reached an interesting amount in AUM to keep me comfortable, did the asset allocation thing, relationship management, yadayadayada.... really had no financial need to look elsewhere. Also married, mid 30s with two young girls in private school. Little by little, started noticing how the sell side is really in diapers on market timing, TA, Risk/reward, etc.... other than the "Diversify, atomize, buy mutual funds, invest in non-correlated assets, and hold on tight for the long haul... " Brokers are really hired to bring in assets, few really make a difference rather than just plugging clients in products suitable for their production lines.... very few... those who do usually end up going independent or doing something different. Came to the abrupt (and now obvious)conclusion that the Sell Side is really just that, a supermarket focused first on SELLING, second on MANAGING, hence, the production runs, the comissions, employee of the month Mcprizes & Mctrips to those who run up comisisons on clients... surely your familiar with all this, probobly the reason why you went independent. My quest to get out began and 4 years later here I am. I now trade for myself and a select few of the individuals who were with me before. I am paid based on performance. During my transition, I did all the WEBINARs, the Online Trading Communities, The books on Amazon, Borders, Barnes and Noble, you name it. I accepted all the free stuff I could find on the net. I set my self up with a good charting system from the start and whenever I got a chance, screen time, screen time, screen time..... there is no substitute. Looking back I would have been more patient in trying to create some sort of strategy where I could perform what I do now for a small portion of the of the clients I had under management then. My problem was I did not like having to constantly explain my trades to compliance, especially the onces where I would have to take my losses and make a comission on the trades... .did not come across well. There was alot of persuasion by the Sales Manager ( Now there's job that adds value ,,,.Sales Manager of a Brokerage Firm!) to leave the managing to the mutual funds and to dedicate my time to being chummy chummy with the prospects.....in other words, worry focus on kissing axx to get more assets in..... So I left....passed the book on to a close colleague I knew would take good care of the bunch and I went out on my own to do my own thing. Before leaving I sold my house, used part of the money as my stake, prove to myself that I was ready by forcing myself to make 10x amount of cash with the x stake before I left.... once I did, would you believe I never looked back..... and typical to say, "I don't know why I did'nt do it sooner" bet you've heard that one before... I more than likely would have made quicker money would I have stayed in the same field, especially in todays market where other wire houses are paying 1.5 years production up front, just so you pass your book over. Nevertheless, I am doing what I love to do and I have all the time in the world for my kids. Money is not bad either but you have to grind it out.... I would'nt change it. God I hate being chummy with people I do not like.... I really did not like having to be budddy buddy with everybody to get their business.... nor did I agree with the rest of the brokers office.... what a slime pit. These (along with lawyers) are the larger leaches of our society. A necessary evil but leaches nonetheless. If you have not already done so, pick up "PITBULL" by Marty Schwartz... it is a similar story to the one you describe, Wall street to Main Street, Buy sell side to Buy Side. It gave me the extra "umph...." to do what I did & convinced me I was not so crazy in doing so... Good luck to you.
3 words for you: Institutional. Sales. Trader. PM me (original poster only, all others will be deleted unless you really tickle my fancy) -cbk
Wow, this is like an ex-broker gathering! I was also in the same spot - built up a book for 4.5 years but in the last year or so that I was there, things had changed with compliance and such that I just had enough of it. I was making good money, but it wasn't worth all the stress. So I started to study while still at the firm and learned more and more about Technical Analysis. Something I never knew existed... Time came to make a decision and I left. Wasn't easy to leave a book that I built up rather fast, but it wasn't a life I wanted to be in anymore. Tired of selling buy and hold funds that charge too much for providing too little. Tired of compliance asking why I tried to make some money... Trading is similar to being a broker in terms that TIME is what is key here. You HAVE to have time to give to the profession. Unlike being a broker though, time alone is not enough. As the other post said, screen time is simple irreplaceable. You NEED to watch the intraday movements that you just don't see while you are out there selling. And unlike being a broker, there's really no easy road map out there. I found being a broker easy - just make your calls and do the work and the biz will come. And it did. As a trader, you can spend hours and hours on this stuff and still feel like you are back at square 1. There's no road map to success in trading. And anyone trying to sell you one doesn't have it either. But the freedom and independence simply cannot be replaced once you reach the level of making consistent money. Many won't/can't put forth the time and effort to reach this level, so many (esp. on this board) will tell you that it can't be done. Since misery loves company, be careful about any advice you read here. Mine included. Feel free to drop me a PM as well if you want to chat off the board. Good luck in your decision.