cool stories from a proprietary trading firm
- Thread starter 1a2b3cppp
- Start date
Sle, it's VERY rare that someone would pay to work for someone. If they did, it would be cash under the table. There are very strict labor laws as I'm sure you know and the securities industry is highly regulated. I worked at a firm like this many many years ago where guys made 100k to 500k a day. Nobody ever paid to get into the top sub groups. They did give a cut of their p&l or commissions to the head trader. So if that is what they mean by paying someone then sure, that happens. But I've never heard of anyone paying cash up front to work for someone. Every trader at our firm was licensed and doing that would be a ticket to getting banned from the industry.
Obviously you've never owned an upscale strip club.
I was reading this thread along just fine, and then your comment pops out. What the hey? LOL, left-field man!
Great post. When you said
'worked at a day trading shop for 3 years 2006-2009 straight out of college. I learned that the ups and downs of the job are not right for my mental state and ultimately left to work as investment strategy analyst at a fund of funds hedge fund'
I totally hear you. I saw some epic meltdowns at the couple of firms I traded at. I saw a lot of traders whose m.o. was to scale in and out of cointegrated spread combinations. There would be guys who made £2k to £3k day in day out, once they hit that amount they literally powered down and left for the day - unless it was before lunchtime. Every 50 days or so they would lose £30k to £50k. It goes against everything retail is taught (keep your losses small and run your winners). IF you make 3k a day for 50 days you are up £150k so you can take the £50k hit. The problems start when the trader does not keep the big loss to an acceptable size or starts treating the £3k a day as income.
GL
'worked at a day trading shop for 3 years 2006-2009 straight out of college. I learned that the ups and downs of the job are not right for my mental state and ultimately left to work as investment strategy analyst at a fund of funds hedge fund'
I totally hear you. I saw some epic meltdowns at the couple of firms I traded at. I saw a lot of traders whose m.o. was to scale in and out of cointegrated spread combinations. There would be guys who made £2k to £3k day in day out, once they hit that amount they literally powered down and left for the day - unless it was before lunchtime. Every 50 days or so they would lose £30k to £50k. It goes against everything retail is taught (keep your losses small and run your winners). IF you make 3k a day for 50 days you are up £150k so you can take the £50k hit. The problems start when the trader does not keep the big loss to an acceptable size or starts treating the £3k a day as income.
GL
ELITE TRADER
"...If you can master the broad market, the big game, you got something powerful, that's not fleeting like a temporary strategy..."
Lawrence-Lugar.
Just curious. What, exactly, is a "high risk hedge strategy?"
There are many, for example a bullish trade - buy call option far otm and sell call option close to the money. use appropriate ratio, could be 3 to 1, or more. Paper trade FAS hyper financial 3x etf. Many trade competition use this type of trade. It's all or go home.
Every successful trader I've talked to uses that strategy.
Hold on, possibly I should say, every trader I've talked to on the forum that I believe is profitable uses a strategy similar to what you posted.