Which Road to Take??

T

TheDub

Hi All,


I have just starting using ET and was hoping I could get some sound career advise from other members! - I am 24 and have wanted to trade for some time now. I went down the safe route of getting a Bachelor of Science majoring in Maths and Stats and then worked for nearly two years as a trade assistant at Susquehanna (prop firm). I then worked a 6month contract at Goldman managing client relationships which terminated just before Christmas.

I really missed working on a trading floor and would like to trade myself some day but I’m faced with the dilemma of which road to take.

1. Work as trade assistant at an Investment Bank
2. Work as trade assistant at a Hedge Fund
3. Work in operations at a Hedge Fund
4. Work as a Junior Trader at Hedge fund/trading house - if possible!!

I’m also really good with people so I have toyed with the idea of going in to Sales trading but not sure how to get into it.

I obviously have all my mates giving me their input which is actually frustrating and would love some advise from people who don’t know me and have experience in the industry!! - Which is the most realistic and best route to take??

Thank you all for reading and really appreciate any advise or comments
 
Quote from TheDub:
I really missed working on a trading floor and would like to trade myself some day but I’m faced with the dilemma of which road to take.

1. Work as trade assistant at an Investment Bank
2. Work as trade assistant at a Hedge Fund
3. Work in operations at a Hedge Fund
4. Work as a Junior Trader at Hedge fund/trading house - if possible!!

I’m also really good with people so I have toyed with the idea of going in to Sales trading but not sure how to get into it.
More...
You are a 'safety first' type of guy like most people.Give some thought to staying completely away from any participation in active trading.

If you can't get trading out of your head, perhaps go the admin or research route in relation to hedge funds or institutional trading, assuming of course that you have the CV or the connections or the personality to get you there in one of those 2 capacities.
 
Cheers for your reply, when I said I went down the safe route I was referring to the whole getting the good degree and working for big institutions thing!! I definitely have the head for trading and have been exposed to several strategies and find the whole industry an exciting place to be.

With regards the admin route, I would be far to bored and frustrated but know my CV is good enough to get a trade assistant role, my question is which would be the best bet, to work for another big institution or work for a hedge fund!? The hedge fund industry is still growing despite recent market conditions and I’m wondering if I’d be better to take that route or would I be better getting further experience in one of the big banks? - Personality not a problem, pretty much get on with anyone and love people!

Thanks again for your response :)
 
Quote from TheDub:

Cheers for your reply, when I said I went down the safe route I was referring to the whole getting the good degree and working for big institutions thing!! I definitely have the head for trading and have been exposed to several strategies and find the whole industry an exciting place to be.

With regards the admin route, I would be far to bored and frustrated but know my CV is good enough to get a trade assistant role, my question is which would be the best bet, to work for another big institution or work for a hedge fund!? The hedge fund industry is still growing despite recent market conditions and I’m wondering if I’d be better to take that route or would I be better getting further experience in one of the big banks? - Personality not a problem, pretty much get on with anyone and love people!

Thanks again for your response :)
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Maybe it is me.. but, I believe everyone should SHOOT for the STARS..

If I were you, I would access all the CREDIT lines available to you, and try to spot the next great stock that is going to go up +100% tomorrow & make as much money as fast as possible..

But, the road indeed gets bumpy. Without challenges, without being pushed.. nobody can achieve the GREATNESS that is within us all.
 
Quote from TudorJones:

If I were you, I would access all the CREDIT lines available to you, and try to spot the next great stock that is going to go up +100% tomorrow & make as much money as fast as possible..
More...

I assume this is a joke.

To the OP, sounds like you have exposure to the different types of trading that you personally could do. The best advice is the hardest to take, but here it is.

Capitalize on your experience and hedge yourself by committing to working a job in the industry for 5 years. If you are a people person, certainly you could take a position in sales. At the same time, take a chunk of capital and deploy it in the markets, using the techniques you have been exposed to (whichever ones you have the best handle on). If you don't have 10K saved up, then save it. The ideal scenario is one in which you can start to show a profit while your daily nut is covered by another income stream. In my view, that would take pressure off of your personal trading.

I get the sense that you want to trade for a living. Choose a part of the industry that allows you the most opportunity to look at traders and different approaches to trading. You have something that the vast majority of wannabe traders don't have - a look at the inside of the business. Capitalize on it.
 
Quote from TheDub:
I really missed working on a trading floor and would like to trade myself some day but I’m faced with the dilemma of which road to take.

1. Work as trade assistant at an Investment Bank
2. Work as trade assistant at a Hedge Fund
3. Work in operations at a Hedge Fund
4. Work as a Junior Trader at Hedge fund/trading house - if possible!!
More...
One possibility you didn't list is to get a [relatively, in this economy anyway] secure job outside Wall Street, and trade your own account. You can make a lot of money trading for a bank or hedge fund, but getting there involves factors that may be out of your control. If you really want to trade, cut your own path and just DO it!
 
If you are not a good trader, DO NOT TRADE WITH BORROWED money. plus if you are going to rely on it as your only source of income, you will lose. In my opinion, you should save up while working a job and swing trade. But you really have to save every single penny you can.

Then perheps after you have enough for a trading account and enough to live off of for atleast 2-3months, you should quit and trade.

If you are not profitable after 2-3 months, then well, you should go back to the job and start over.

IF you do quit, you must save atleast 28K to be a pattern day trader. its 25, but 28 for some cushion. plus another 5 to live off of for 3 months. obviously this means no dicking around.

But if you can get money from folks who you do not have to repay, congratulations.
 
Quote from TheDub:

Hi All,

worked for nearly two years as a trade assistant at Susquehanna (prop firm).

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you were a trading assistant for 2 yrs at SIG and they never backed you to trade, why?? maybe thats the answer.
 
"Capitalize on your experience and hedge yourself by committing to working a job in the industry for 5 years. If you are a people person, certainly you could take a position in sales. At the same time, take a chunk of capital and deploy it in the markets, using the techniques you have been exposed to (whichever ones you have the best handle on). If you don't have 10K saved up, then save it. The ideal scenario is one in which you can start to show a profit while your daily nut is covered by another income stream. In my view, that would take pressure off of your personal trading."

Thanks - that’s really good advise, I’m just trying to work out where I’d get the most exposure! Working in a big institution with lots of bright people and industry connections means that trading strategies for the firm are easier and come from a team of people but you can also be exposed to clients trading strategies. Where as if you work for a hedge fund you see the whole operation of the firm as well as their trading strategies and it may be easier to rise to the top and be involved in more new trading strategies.

I’m also considering Stock Lending at on of the big banks as it would be on an equities trading floor where I would have to be in tune with the equities market while also seeing Hedge funds positions and hence strategies - This career thing is all so mind boggling!!! I know I’m in a good position career wise and when I do save money I will have good knowledge where to invest it, but right now it is deciding where I want the next 5-10 yrs to be spent as those years will be crucial to my success. Also I get bored quite easily so need a challenging job to keep me motivated, that’s why trading as a career seems so appealing. I feel the need to be in a role that’s profit generating so that I know the impact I have on the company.

I agree that having a stable job and trading on your book on the side is the best scenario but when you work on a trading desk or in a position where you are exposed to client positions there is a lot of compliance rules that you need to adhere to which makes it a little more difficult. Another reason I would like to trade as a career for now rather than on my own is that I believe the good auld saying “two heads are better then one” it is a great thing to be able to learn off other people while also having people learn off you. I’ve had a lot of bad teachers in my time but if you’re working with intelligent people who are more experienced than you are why not grab their knowledge!!

Large investment bank or successful hedge fund?? - All comments welcomed and much appreciated!
 
"you were a trading assistant for 2 yrs at SIG and they never backed you to trade, why?? maybe thats the answer."

When I was at Susquehanna I was very Junior (fresh from college!!) and when I say nearly 2yrs it was 18months, they are mainly market makers and the desk I was on was pretty straight forward, the desk strategy was already employed so it was just a case of knowing what I was doing and I did have input but not to the same extent of having my own book and trading different products. I learnt a lot there about how the market works and different strategies on each of the desks, I also played a lot of limit poker there which taught me probability and discipline. The people I worked with there are life long friends so I have a lot to be thankful for from there. The reason I left was purely that I wanted to move to London and when I made the decision nothing was changing my mind. - I just took the risk and moved over…London is a great city so no regrets. I do really miss Susquehanna though - that’s why I’m looking for a similar position!
 
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