I am no expert on the trading industy, and I've talked to a few traders, the ones that seem to trade for themselves (for the most part) usually don't make as much, on average, as the ones that work for a trading firm. So really what is the advantage? Is it so that if you hit the big score you get to keep all the winnings instead of watching you damn boss buy his 3rd Ferrari?
I think you need to clarify what you mean by "work for a trading firm". If you mean Goldman Sachs or Merrill Lynch, then the answer is simple; you need to come out of a great university with 3.9 GPA to even be considered for one of those companies.
i don't see why anyone would want to trade at a firm and give up a good % of their profits unless they are undercapitalized
well ive looked into that, they dont even let you trade straight out of college, they recruit their traders, I dont even know if you can work your way into trading with them
Being undercapitalized is very common, and seems like a great reason to trade at a firm to me.[ QUOTE]Quote from otcstockfund: i don't see why anyone would want to trade at a firm and give up a good % of their profits unless they are undercapitalized [/QUOTE]
Only having to answer to yourself, No commute, Freedom to take time off whenever, Trading your own style, Not having to wear a suit everyday, Getting more family time at home...etc. It would take a big $ increase to get me into one of those places.
Having that average six-figure salary is the advantage. On the other hand, successful traders working for themselves usually have much bigger savings accounts.