University graduate becoming a trader

O

oliverhenriquez

Hi I'm new to this portal! I live in Sydney and am straight out of university, so I have never traded; all I know is the theory my professors taught me about derivatives. It seems very interesting and exciting, but my friend tried to talk me out of it, he sounded really negative about it - which I disliked. I sincerely want to give a go I somehow have a good feeling about it...

I have landed an interview with a proprietary futures trading firm. They are offering the following:

"You will initially be trained via a mixture of classroom and simulator based trading. You will then be placed on a live market whilst being monitored and guided by an experienced mentor. During this 6 month training period you will be given $1,000 per month to help you cover your personal expenses.

Upon successful completion of the training course you will be offered your own account to trade. This account will be funded by [the company] and your income will be generated by the profits you make trading."

1. I haven't seen any others. Is this a standard offer?

2. On average, what do earnings range from for traders following the training period?

3. Do you have any other advice, about trading, options or issues in general, understanding my situation.

I appreciate your help...
 
1. Nonstandard offer

2. Don't expect to make any money during the training period. Live off that 1000 a month and stretch it as far as you can.

3. Theory is NOTHING like practice. In trading, theory usually does not work otherwise all academics would be pulling in the dough.




Good luck, and try to keep an open mind.
 
Quote from showyouwang:

1. Nonstandard offer

2. Don't expect to make any money during the training period. Live off that 1000 a month and stretch it as far as you can.

3. Theory is NOTHING like practice. In trading, theory usually does not work otherwise all academics would be pulling in the dough.




Good luck, and try to keep an open mind.
More...



What do you mean it is a nonstandard offer, are there better options out there?

I have been a student for the past three years so I guess another 6 months on $1000 each ain't so bad, cut back on spending.

How would you know beforehand whether you are actually good at trading or not?
 
Quote from showyouwang:


3. Theory is NOTHING like practice. In trading, theory usually does not work otherwise all academics would be pulling in the dough.
More...

Psssssst, hey buddy! Don't look now but, I think the academics have been pulling in the dough!
 
This is interesting and I wonder which company is offering this deal to you.
There are reputable prop firms in australia, however, they are all derivative market makers on the ASX&SFE and I have never seen a contract like this offered by any of them. Most are offering $100K base salary plus bonus. However, these reputable firms are difficult to get a job with.

Perhaps propex is the firm you interviewed with?
 
I know nothing about futures prop firms in Australia, but that does not seem like a bad deal at all to get started. Most traders come into the biz on their own with trial and error. This sounds like a good place to start. It sounds like the real risk you have is time. And at your age, that would work for me!

Good luck!
 
Quote from curtains:

This is interesting and I wonder which company is offering this deal to you.
There are reputable prop firms in australia, however, they are all derivative market makers on the ASX&SFE and I have never seen a contract like this offered by any of them. Most are offering $100K base salary plus bonus. However, these reputable firms are difficult to get a job with.

Perhaps propex is the firm you interviewed with?
More...

Yes! Indeed that is correct, I went to an assessment yesterday for it. I was told that it is about 18 months before any money begins rolling in. So it is just a matter of dedicating myself entirely to that, and discuss with my parents if they can support me a short while before I start making some money...I was told that following the 6 month period that the profits made are divided 50-50, and as you become more experienced they will gradually move it towards 70-30 in your favour.
 
Quote from brownsfan019:

I know nothing about futures prop firms in Australia, but that does not seem like a bad deal at all to get started. Most traders come into the biz on their own with trial and error. This sounds like a good place to start. It sounds like the real risk you have is time. And at your age, that would work for me!

Good luck!
More...

That's correct, I would not want to waist my time although the opportunity is unqiue, if I am good at trading 18 months down the track it could prove to be quite beneficial...Being 21 is definitely an advantage, given I could continue to live like a student and have limited comittments. I guess it's also better to use someone elses money rather than yours when getting started...
 
Quote from oliverhenriquez:

Yes! Indeed that is correct, I went to an assessment yesterday for it. I was told that it is about 18 months before any money begins rolling in. So it is just a matter of dedicating myself entirely to that, and discuss with my parents if they can support me a short while before I start making some money...I was told that following the 6 month period that the profits made are divided 50-50, and as you become more experienced they will gradually move it towards 70-30 in your favour.
More...

Oliver, this is a standard offer which you would get from any London prop-shop (which is where Propex originated from- it's a sister company of MacFutures... sorry Refco.... sorry Marex now!) and yes it is possible to make some very good money.... but you need to be very good. Will probably be harder in Aus as you are trading a less active timezone & instruments and you will be focusing on technical trading as well as trading off economic stats releases. You should end up with 80-20 or 90-10 when you are really proven but that's at least 2.5years away for you.

No telling whether you will be or not before you give it a go, but if you have issues with your confidence (over or under), have a bad temper, are unable to make decisions quickly and unemotionally or lack patience- these things will stand well in the way of your success. Trading the way you will be taught at Propex is more about your personality and persistence than anything else.

It can be done, but it isn't easy. If you decide to give it a go, commit 100% to it as it can be great and an a great experience. That said, a lot of people just can't make it as consistently profitable and if it isn't working, you need to recognise this before you waste 2+ years trying to be something you may never be. It's obviously very hard for you to distinguish between wishful thinking and progress so I wish you luck if you decided to do it. If you can make it, I'd argue that (behind being a professional sportsman) it's the best job in the world.

I'll give you a bit of a heads up though- in London they pick about 15 people out of a pool of 1000 applicants and out of those they are normally lucky to get 3 guys that genuinely make enough money that it is worth their while doing it rather than a less stressful, better paid job. Don't go thinking that within 18months it is all Ferraris either- plenty of guys are down after 1 year, get to a reasonable spot in year 2 and then reverse their account again. That's a bitter pill to swallow. If you are getting genuine mentoring, this could be a massive advantage.

All the best with whatever decision you make- be open minded but remember that attitude, not qualifications, is key.
 
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