I'm considering going into trading. But I've also read about traders being fired from goldman and ubs due to electronic trading. I thought it's a job that takes alot of vision and judgement. How can electronic trading replace that? would someone elaborate? Is it still worth going into?
If there is a market to trade, there will always be speculators. And with speculation comes vast opportunities. Trading isnt going anywhere..... You dont need to work for Goldman or UBS or any of those firms to take advantage of whats out there.
no i'm not worried, just wanna get some info on the industry that i'm interested in. this is not the first time that technology's caused massive jobs to be eliminated. but certain jobs are not replaceable by technology and i just wanted to know how trading is affected.
Whether the economy is booming, crapping or stagnant, while others are worried about being downsized, traders will always be there to take advantage of what the market provides. As oil creeps up to $100 a barrel over the next couple years, I will be there everyday buying it up and on the days where it retraces I will be selling it down. Technology isnt hurting traders, as long as you arent in the pit somewhere denying its presence. As a matter of fact, w/o the current technology, many of us wouldnt be able to afford to trade as we do now. Buying a seat on an exchange isnt cheap!
There's a difference between a speculator/trader and a trader/execution specialist. Trader/execution specialists are a dime a dozen and easily replaced by technology. A Speculator/trader is much harder to replace. Guess which ones work for Goldman and UBS?
I would think that all of these investment banks are hiring speculative traders instead of executionists. If all they are doing is executing trades wouldn't they pretty much be on the level as admin assistants? Then why would they even be worthy of mentioning in these news articles about the downsizing of 30 of them? This is not the first time that technology's forced people to give up jobs. I'm not insisting that trader jobs will be replaced but from the little bit that I do know about trading, it's part technical and part instinctive and visionary. Which is why I'm drawn to the field, but if lets say the older generations of traders are going to be replaced in the next 10 years by software and strategists who structure trades, then it paints a completely different picture. I just wanted more info and please correct me if I'm thinking about it completely wrong.