Prop Newbie Help

D

diabloFF

Hi. I need some help. I recently graduated from college and am currently interning at a prop trading company (an LLC/hedge fund). The company has paid me to study and pass the 7, 63, and 55 over the past 3 months. I contribute to the morning meeting and do trading observations. There is no bitch work. The internship is required at least through Jan, but I can expect a full time offer at that time.

My understanding is 1st year traders at this firm start at 35k plus individual, team, and firm wide bonuses on top, coming out around 55k. Second year traders have buckets of 10mil, but the buckets plateau after that. The traders split their time between programming models and trading. Their hours are typically 8:30-5:30. The firm is extremely profitable and there are fifteen traders all under thirty.

Despite my research on the internet, I still do not have a good understanding of the trading landscape.

I need help understanding the different types of prop firms, where prop firms stand in the trading/finance/banking food chain, and any other information that will help me understand this opportunity (is it great/average/poor).

I also do not understand the career paths of traders. What transferrable skills do traders possess other than trading, computer programming, and an understanding of the market (furthermore, why is an understanding of the market valuable except to trading)? It seems that a prop trader's skills at one firm may not be compatible with the systems at another prop firm.

I'm also curious about getting out of trading in a couple years. How are traders perceived by MBA programs? What kinds of things/important things do traders put on their resumes? Are traders as competitive as investment bankers in applying to MBA programs?

I know this is a tall order, but any help would be greatly appreciated. Thanks all.
 
Do you really want to be a successful trader? How badly do you want to make it?

Thinking about leaving trading in a few years is very silly seeing as you probably wont make any money as a trader for at least a year, maybe more. You want to leave the biz right as you start becoming successful (assuming you succeed of course)?

My advice, either look to be successful in trading (whatever market you choose) or go the corporate route. If your goal is to be truly wealthy, you have to take risks and be an entrepenuer and everyone knows corporate gigs will never make you rich. If your goal is to have the security of a steady paycheck then do not choose the trading path.
 
Steve,

Good point.

You seem to be an experience trader. I hope you don't mind this question.

I realize that corporate gigs and trading don't mesh. But what about running an independent business and trading ? One would normally assume that trading will require one's full time & attention (especially day trading) - but I see many traders running stock picking & training services as well as otehr businesses.

Is trading alone not successful enough for them ?

What do you think ?

Thanks
 
Steve,

Good point.

You seem to be an experienced trader. I hope you don't mind this question.

I realize that corporate gigs and trading don't mesh. But what about running an independent business and trading ? One would normally assume that trading will require one's full time & attention (especially day trading) - but I see many traders running stock picking & training services as well as otehr businesses.

Is trading alone not successful enough for them ?

What do you think ?

Thanks
 
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