Engineer looking to make a career change into trading

If you're engineering background is strong, there's a good chance you can get in at a "real" prop firm in Chicago or NYC. They prefer to hire mostly engineers and *maybe* a few economists. You'll start as a junior trader making $40k/yr while working the overnight, but within 3-5 years it's very realistic that you'll be pulling in $$200-$400k/yr with much lower personal risk because you're trading the the firms money rather than your own. Also, you'll be working with brilliant people who will be the best learning resource of any.

I'm in Chicago, I know these firms have excellent reputations:
DRW
Belvedere
Infinium
Jump

There's probably more, but if you are extremely serious about being a trader than this is the best way to go. You will learn so much faster, and have professional experience to put on your resume for future career advancement.
 
Quote from cfrericks:

If you're engineering background is strong, there's a good chance you can get in at a "real" prop firm in Chicago or NYC. They prefer to hire mostly engineers and *maybe* a few economists. You'll start as a junior trader making $40k/yr while working the overnight, but within 3-5 years it's very realistic that you'll be pulling in $$200-$400k/yr with much lower personal risk because you're trading the the firms money rather than your own. Also, you'll be working with brilliant people who will be the best learning resource of any.

I'm in Chicago, I know these firms have excellent reputations:
DRW
Belvedere
Infinium
Jump

There's probably more, but if you are extremely serious about being a trader than this is the best way to go. You will learn so much faster, and have professional experience to put on your resume for future career advancement.
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Doctors make that much too... Only, they have to work from 7am to 7pm. Plus commute time is 6am to 8pm. 6 days a week. What a miserable job and place in life it is to have a God complex.
 
Quote from bigsnack:

... If you can personalize the movements, you can usually bet on people making the same decision you would if you were in their situation...
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Not what made George Soros rich. If you follow the heard... I don't see how you can possibility make any more than break even...
 
Quote from Magic8:

Not what made George Soros rich. If you follow the heard... I don't see how you can possibility make any more than break even...
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You are misunderstanding my point. If you watch volume, and where large size is being traded, you can count on those large positions either being defended or liquidated based on price movement.
 
Quote from hajimow:

Here is my definite response to you as a trader with PhD in EE who is 50 with 16 years of trading experience.

1-I don't know what is your age and what field of engineering you are. Don't be proud of your degree. Many high school grad will eat you alive in trading. Most of the compliments to you come from engineers. Actually they are complimenting themselves.

2- Don't be so sure that you can always go back to your work after quitting. When you are out of your field for a year or two, you are almost unhirable.

3- I guess most probably this desire comes from your "few" recent profitable trades. Take my challenge. Start from today and try to make 10% in the next 6 months. So if you have 50K, just make 5K in the next 6 months. Remember you can get 200K margin with your 50K in your regular trading account instead of 500K in prop firm. So you just need to make 5K in 200K capital. If you reach that goal, come to this thread and lets talk.

4- During that 6 months period, don't spend a dime from your salary. Put all in the bank and don't touch it. Rent, food, bills should come from your trading account or your saving and not your salary.
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Thank you for your response. I really respect your education background and work experience.

1. I'm 26 years old in Mechanical Engineering. I know successful traders come from all types of backgrounds and an engineering background may not help them. But I think the one thing Engineering has taught me was how to work hard and stay focused.

2. I agree here as well, I've decided to keep my day job for now and to practice swing trading. I can do analysis and research after work (even some during work) and trade the daily-weekly charts.

3. My desire stems from reading alot of Technical Analysis books and a frustration with my current career path. Trading seems to fit my personality more and I'm willing to put more time into it than anything else.

4. I think I'm going to practice my first 6 months - 1 year by NOT losing any money. I read that a first year trader who loses less than 10% capital can consider himself successful.

Thanks again for your advice!
 
Quote from stockstalkerv3:

I can identify with that. You'll be a successful trader 5 years from now. If you quit your job, can you live with $10k-$20k/yr for the next 5 years? Apparently, this is the barrier to entry in this "profession". 95% of traders don't make it not b/c they don't have any talent or edge. It's b/c they can't last 5 years living below the poverty line.

It's like training to be a doctor, you don't see the big money until 7 years later.

In trading, once you hit 5 years of learning experience, all of a sudden, you magically make over six figures a year. Most people quit just as their trading ambition is about to be realized. If they had stuck to it, 1-2 years later, they would have seen their annual PnL jump by a multiple of 5-10X.

Edge is simply gained experience. Anyone who lasts 5 years or more will gain an edge.

It's like taking martial arts. There's no way you cannot do a nice/perfect roundhouse kick after 5 years of training.
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I think that's wishful thinking from what I heard (I'm probably wrong and you have more experience than me).

I'd be happy with small consistent returns after five years. If I can make enough consistently to survive and work for myself trading and quit my day job, I'll be quite happy.
 
Quote from Shagi:

On the other side of the coin of keeping a day job and not ever having to experience trading at a professional level , is its easy to be complacent because of security from of income from day job.

By professional level trading I mean deriving most or all your income from the markets to such an extent that income from day job comparatively becomes minuscule.
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I'm not going to settle for complacency... especially in my current career path. I see the older guys in my office and I do not want to end up like them when I'm their age (I'm 26 right now).

Trading would provide me with an exit strategy and the ability to work on my own, for myself. It would be like starting my own business.
 
Quote from cfrericks:

If you're engineering background is strong, there's a good chance you can get in at a "real" prop firm in Chicago or NYC. They prefer to hire mostly engineers and *maybe* a few economists. You'll start as a junior trader making $40k/yr while working the overnight, but within 3-5 years it's very realistic that you'll be pulling in $$200-$400k/yr with much lower personal risk because you're trading the the firms money rather than your own. Also, you'll be working with brilliant people who will be the best learning resource of any.

I'm in Chicago, I know these firms have excellent reputations:
DRW
Belvedere
Infinium
Jump

There's probably more, but if you are extremely serious about being a trader than this is the best way to go. You will learn so much faster, and have professional experience to put on your resume for future career advancement.
More...

I'm located in New York City and I was planning on sending my resume to First Securities and Chimera Capital. I think those are the only two that actually pay salary and hire traders.
 
Quote from sneakoner:

I think that's wishful thinking from what I heard (I'm probably wrong and you have more experience than me).

I'd be happy with small consistent returns after five years. If I can make enough consistently to survive and work for myself trading and quit my day job, I'll be quite happy.
More...

Can't never could. If you are not in this business to make as much money as you can, you shouldn't be here.

It's not about the money. It's about your psychology -- about "Trading in The Zone". Money is just an indication of how much you're "trading in The Zone."

I can assure you, someone who (aims to) make 20% a year won't be one of those "trading in The Zone". This rate of return is for someone whose internal psychology is still a mess.

You don't train 7 years in martial arts and expect to perfect a few single kicks only. You're letting yourself down if you can't pull of a few spectacular COMBOS by 7th year, etc.
 
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