Would you take it?

Sounds similar to a deal that I was offered at Brokerage America a while back for the Nasdaq Institutional Order desk.

Sounds like it could be the right move. Don't know your circumstances. Definitely would offer some income security if
the customers keep knocking on the door. However, be aware
that when the order flow drys up...so do You.

Would love to hear what your final decision is on this.



all the best-


momo

 

So if you double the volume quickly that's $8000 a month on top of salary. If the salary is decent and the volume keeps building....
Why Not?

 

Good call, thank you.

 

Momo, volume drying up is definitely a minus. The one positive to offset that negative is that in this mkt they have grown Inst biz 2000% since inception(granted that % gain is from 0). I am curious as to why you chose not to take the NASDAQ order desk job?

 

The salary is basically rent, food and gas money. Nothing special to be sure. But I am really trying to look at the big picture with this one. Risk vs reward I suppose.

 

You can always come back to independent trading if you want. Nice thing about leaving trading for something else is that it is easy to come back to.

 

A good friend owns a decent size BD -- he has talked w/ me numerous times about coming to work for his firm. The job basically entails calling on the big hedgies and getting them to trade through the BD. I DID NOT take the job, however another good friend of mine did -- and is making about $30K/month in commission.

A very important thing to keep in mind is that this type of business is basically a "commodity." In other words, "what's your lowest price!" Of course, building relationships w/ the various funds helps keep their business, but in the end the hedgies will always go with the best price! Soft dollars also play into the equation, but it still comes down to $$$ in the end.

... I prefer to trade -- and control my own destiny 100%.l

dog

 

Greendog, Thank you for the input. I do understand this being a pro trader myself. In this biz people are as loyal as cats...wherever the easy food is they go. There are details about this particular BD I really cannot divulge, let me just say that as long as we are in good standing with our clearing house business will prosper. I agree that trading is 100% control of your own destiny. But the mkt will always be there for me when its time to go back. This is keeping me up tonight...


Thank you all for your time and considerate responses....alot to think about.

Inda.

 

Indahook, I think it depends where you are in life, financially and personally. If you are looking to support a family, taking this job will offer stability. It sounds like it is a well paying position so I look at it as an excellent way of building up your trading capital. Suppose you take this job for 3 years and you live within your means and save a large portion of your pay for future use. In time, you will have a much bigger stake to trade yourself or offer as leverage in a prop shop. Being well funded goes a long way in preventing blow ups.

The market will always be there and currently, I don't feel the market conditions are ideal for day/swing trading. So in terms of timing, this position you are offered right now is near perfect. We've had a secular bull market from 1982 to 2000. We are in a secular bear market right now, and have been for 3 years. I do not believe that the bear market is over. History tilts the probability in favor of a 8-15 year secular bear market to balance the 18 year bull we've had. No doubt there is money to be made in any market, but traders usually do better for themselves in periods of bullishness.

If you take this position and can build up $500k of liquid net worth, you can always ladder it in bonds and even with low corporate rates today, get 5% on your money. That's $25k/yr of doing nothing. Supplement that income with some trading profits or a job you enjoy doing and you're set for life.

Best of luck to you.

DNAJ65000

 

Do both and just introduce the business to the desk. I do something very similar but have margins of about .003.

Tap the network that you have. Many funds out there still paying up and would put screens on the desk if they were approached. This business is changing and opportunities exist. Just look around.