Which traders make the most, and how to become one

Discussion in 'Professional Trading' started by mrclean, Oct 21, 2005.

  1. Actually, there are very very few careers which pay better than a trader. Now that I think about it, there really are none. I read that the top 10 hedge fund managers make about 260 million a year. No other profession is coming close to that figure.

    So, all in all, the upside is tremendous (better than any other career), although you must have a passion for it.

     
    #11     Oct 21, 2005
  2. gordo

    gordo

    Yeh, I had some guy call me a couple weeks ago, about all the unclaimed governement grant money available. All it would cost me was a one time $250 processing fee. He asked how much I needed, $10k, $20k, $50k? I asked how much I could get, he said you name it. So I told him put me down for $8mm, he never missed a beat. I couldn't get rid of this scammer, even by telling him that I was calling the FBI.:eek:

    Gordo
     
    #12     Oct 21, 2005
  3. what a contridiction in terms....

    actual answer are:

    near Ivy and Ivy league MBA's working on a desk (somewheres) getting the lion share of their compensation in their multi-million dollar year end bonuses....

    certainly not prop equity traders, who don't earn salaries...
     
    #13     Oct 21, 2005
  4. Short term traders (daytraders/ swings)
    100%+ returns on capital because of leverage/Times of opportunity.
    Good for people with no capital or little capital
    Skill level: High

    Longer term traders (swings and investments)
    Less return but good for people with a lot of capital.
    Less opportunity, But Larger gains.
    Good for people with capital
    Skill level required: High

    Longer term investments
    Dart throw some IBD hot pick and invest.
    Good for people who don't know how to trade.
    Skill level required: None

    Working for Goldman Sachs / Lehman Bros/ Investment bankers
    Have little/nothing to do with trading. Mostly Selling investments by phone etc unless you are a market maker which you won't be :D
    Skill level : MBA , Degree etc.. , know someone who can get your ass in.
     
    #14     Oct 22, 2005
  5. cable

    cable

    That's true. I'll admit that the "superstar" traders make huge money (the top hedge fund guys, Soros, Buffett, etc.). Just like superstars in any field. Oprah makes more than everyone here, I'm pretty sure -- but being a tv celebrity is also a very long shot. Lower down on the risk:reward scale, a guy who runs a good manufacturing company or even owns a MacDonald's makes more money than 90% of traders, with a much higher chance of success and a more stable income. I haven't seen a MacDonalds go under in quite a while, but I see traders wipe out every day. If I was only interested in the money, I'd start a legitimate business instead of being what is basically a professional gambler.

    We all look to that top 1% of trading success and hope to be the next Soros or whatever, but statistically, it's not going to happen for pretty much all of us. So do it because you love it, because the money's not guaranteed. If you're the top of your field, in any field, you will make lots of money. But if you're not successful (supposedly a 90% chance of failure in trading), you'll end up with very little or nothing. So I advise people to trade because they love it, and the money will come after -- getting rich is a secondary goal. This advice also helps you to focus on the market, not your account balance, which helps you make better trades psychologically.

    But yeah, a solid experienced trader can make a good living, but it's not likely that you'll be a billionaire from trading. If all you want is money, open a business and provide a service or a product that people are willing to pay for (Bill Gates is doing okay for himself).

    I think that anyone who gets into trading for the money and the coolness of it is going to be in that 90%.
     
    #15     Oct 22, 2005
  6. that he is a Jew-hater hardly makes him a "SCUMBAG."

    *rolling eyes*
     
    #16     Oct 22, 2005
  7. yeah, ST's right.

    the top 25 HF managers' average pay is $251m/yr.

    shhhheeeesh, that's more than hairdressers make!

    Mcclean, maybe you should go to work for a hedge fund, learn the biz, then open your own.

    and do hairdressing in the back office, to hedge.
     
    #17     Oct 22, 2005
  8. $50k???

    say, would you mind giving me his number...?
     
    #18     Oct 22, 2005
  9. Money to buy salt with.
     
    #19     Oct 22, 2005
  10. good advice.

    but, dealing with the public in a business-type setting is a nightmare all of its own.

    did that for many years. loved what I did (because I was good at it), dreaded dealing with the public.

    more losses came from the screwed up public than was lost doing what I did directly.

    so... to embellish Cable's sound advice, I'll add that you better LOVE working with the maniac public if you open a business such as he suggests even if the money is great.

    If you don't love dealing with the masses daily they'll smoke ya out.
     
    #20     Oct 22, 2005