Life after Proprietary Trading?
- Thread starter ethanbrooke
- Start date
Skynet,
Since you asked, I did extremely well in 1999 and early 2000. Then I spent the summer and fall of 2000 wishing that the drop had never happened (bought every dip) and finally, after Christmas, my wife kicked me back into reality. I spent 2001 both, selling short at least as much as I was buying long (and even more) and also learning to trade the s&p e-minis, which can really allow you to earn a living. Overall, I'm doing fine - thank God - 2002 is shaping up pretty well.
discussed on another thread (http://www.elitetrader.com/vb/showthread.php?threadid=5943:
<i>"Remember, when people hear about all the money commodity traders make, for every one guy that's made a fortune, I guarantee you that there are five guys that are driving cabs." </i>
<i>"Remember, when people hear about all the money commodity traders make, for every one guy that's made a fortune, I guarantee you that there are five guys that are driving cabs." </i>
Here's how it's been for one trader I know: in 19 months, Grossed $650,000. Allowed to keep $32,000 (before tax). I say 'allowed' because 23 of those 32 grand were viewed as a concession by the house to the trader, even though he was making them nice coin. He had to pull teeth to get that much, and it came out in drips.
Well ... You need to ask yourself why you are going to Business School. If you are going to get a job then perhaps, daytrading may be perceived as not very useful. An MBA without significant experience in a particular field - banking, technology etc - does not help you land a good job. Typically MBA's from top schools are hired as entry level trainees to work long hours for what appears to be good pay - until you divide the salary by the hours worked. At the MBA job interviews it is very difficult to get a job outside the field in which you have experience.
On the other hand, if you are a true entreprenuer then business school might just be perceived as an opportunity cost - preventing you from making money and building a business. IMHO there is very little in business school that cant be learned through experience and study and these things can be learned "on the job."
If you enjoy trading - I enjoy the intellectual challenge as well as the athletic aspect of the game - and are making money then you might consider staying. What is there to prevent you from making more money each year ? Another thread replied that you "would never make multiples of 100K " over time. I know plenty of people who have and currently do make high 6 and 7 figues. They approached their trading enterpise as a business and built it over time ......
On the other hand, if you are a true entreprenuer then business school might just be perceived as an opportunity cost - preventing you from making money and building a business. IMHO there is very little in business school that cant be learned through experience and study and these things can be learned "on the job."
If you enjoy trading - I enjoy the intellectual challenge as well as the athletic aspect of the game - and are making money then you might consider staying. What is there to prevent you from making more money each year ? Another thread replied that you "would never make multiples of 100K " over time. I know plenty of people who have and currently do make high 6 and 7 figues. They approached their trading enterpise as a business and built it over time ......
CalTrader,
Although I agree with most of what you are saying, let me add something from my experience (got an MBA from UVA several years ago.)
Yes, there are some companies that will hire you for what you know. Most of them, however, will try to see what you can do, because, especially in large corporations, one never stops learning, and therefore knowledge you had coming in is quickly dwarfed by knowledge you acquire there.
These, more enlightened if you will, employers try to see not what you know but what you can do, the business decisions you are able to contribute. Trading is having to deal, and live, with many difficult decisions every day. As such, it is extremely useful and relevant experience in any business career. Knowing what I know now, I would be proud of my trading experience - not to mention that the financial services sector will love you
Although I agree with most of what you are saying, let me add something from my experience (got an MBA from UVA several years ago.)
Yes, there are some companies that will hire you for what you know. Most of them, however, will try to see what you can do, because, especially in large corporations, one never stops learning, and therefore knowledge you had coming in is quickly dwarfed by knowledge you acquire there.
These, more enlightened if you will, employers try to see not what you know but what you can do, the business decisions you are able to contribute. Trading is having to deal, and live, with many difficult decisions every day. As such, it is extremely useful and relevant experience in any business career. Knowing what I know now, I would be proud of my trading experience - not to mention that the financial services sector will love you
