I am a very successful 23 year old trader at a large investment babk in London. This year I made a base of £120k plus a bonus confirmed as £200k. My mate mentioned this site to me, since I wish to trade for myself. I will be putting up around £300k (around $500k) of my own money to fund a small trading account. I am only looking to generate around 20% in my first year as a self employed trader, looking to compound up over later years. Is this feasible?
Come trade oil, make sure you bring your bonus with Look at the flipside, could you handle a 20% DD and be ok with that? I just hit a 17% DD last month for the year peak to trough. It can happen when going for larger returns. I'm happy if I make 20%+ in a year on total net worth. Some years 100%+ is possible but others you will fight to make a dime. ( it varies person to person but giving you an idea of what my expectations are) Manage risk above all else. Opportunities are endless, capital is not. Advantages you may have had at the bank may not be available to you as a solo trader. Costs, technology, orderflow, information, capital ect. Trading solo and at a bank are like saying you were a b52 bomber pilot and now you want to be a sniper. Your strats will probably differ.
aka hit the lotto or granny left a little something for him. Either way we welcome him with open arms
BTW I like "500k to fund a SMALL trading account" ....ehh just 500k . Wash my feet and get me some wine you peasants.
You'd have to be crazy to leave a job on a desk earning 300k GBP a year to only make 20% on 500k USD. Or am I misreading your post and you're going to trade your account in addition to the bank job?
If trading on your own doesnt pan out as expected what are your prospects to return to your current job?
I am assuming you will be successful PL wise and make money. Still you will face following 2 issues: IT issues that keep cropping up almost everyday are the biggest pain when working on your own compared to when you are with an institution. Things like database management, internet, server, smart phone connectivity to your desktop, storing dom data, writing strategies on dom data, some api not working, some software not working as expected etc etc. You have quants and IT support in a bank to help you with all these little little issues. If you are on your own - well you are truly on your own! Secondly, you get a lot of respect when you work for a bank - even when all the world agrees that bankers are evil post 2008 . When you are on your own as a solo trader (not a fund), no damn respect. People think you can't get a job and thats why are on your own. Other than above, welcome aboard!