Career as a trader?

damnyanks

Howdy,

Does anyone know what exactly people involved in trading do after they "burn out" or for that matter what do people usually do once their career in a certain field is finally over?

I've been offered a grad job on a commodity trading desk, the company is huge and all that and it sounds like an enjoyable experience with potential future options. But I'm trying to suss out what happen's in the long term.

homeOwner

damnyanks wrote:

Howdy,

Does anyone know what exactly people involved in trading do after they "burn out" or for that matter what do people usually do once their career in a certain field is finally over?

I've been offered a grad job on a commodity trading desk, the company is huge and all that and it sounds like an enjoyable experience with potential future options. But I'm trying to suss out what happen's in the long term.

One guy I know (in the US) reached the "burnout" after 3 years, left to start up his own management company. Its not really doing very well, he'll be out looking for a new job soon.

Another guy I know (in Ireland) left a trading job after 18 months and is now working as a recruiter in a large recruitment agency.

Both said they didnt like the people or the work and that it was too pressured. I guess you have to be a certain type to get on as a trader.

Its a bad sign if you are thinking about getting out before you start!

damnyanks

I gained exp. doing a co-op at a bank so I'm aware of the enviroment to an extent , poltics and so on.

I'm also aware that not many people who were on the trading floor were over 40 and if they were they just looked it but were actually 26 .

But what you said is pretty much the vibe I'm getting, it can be a sought after job with potentially high earning rate(If you're good) but there is more to life then that and can it offer other options.

oilsheik

The problem with becoming a prop trader is that there's very little career progression in my opinion - Besides Head of the Desk and Head of the Trading Group there's not alot a career progression everybody can't get the top job. I see alot of people in their late 30's passed over for promotion on desks with guys in their mid-20's. The smart one's learn to do other things while trading like doing an MBA it (i) makes them more valuable in the organisation and hence they are likely to secure mgmt positions and (ii) Gives them options to do other things outside trading and even outside banking. Remember it takes a certain mentality to be a trader you got to have a view that a certain asset class is overvalued/undervalued at stick with it, also knowing when to get out help!. Good luck with your career.

eth0_

I think it depends what you're trading in, to a certain extent. The last bank I worked in they traded in currencies/futures/hedge funds iirc. The traders there were constantly wound up and most treated the I.T. staff like sh*t.

The bank i'm in now trades on the stock market mostly, and most of the traders are really sound and pretty chilled out.

I've never met a trader who was older than mid-30's. Not sure if this is down to burn-out or if they've simply made enough to retire! *jealous*

Running Bing

If its a job with a big bank with an annual salary and bonus etc. you would be absolutely mental to turn it down. Most traders in banks retire at a very young age becuase they have made plenty of money to retire on. Haveing said that its far from an easy career and it is very stressful but the rewards are there. If you go and dont like it you can always get a job somewhere else as people with experience in big banks will be very employable. Plus if it is for a bank and you got hired for a trading position without being fully sure its what you wanted you will have no problem getting hired for other jobs. If its a prop trading firm on the other hand Id be very weary about it and know exactly what your getting into before joining. Some offer very dodgy contracts and youd be hard pressed to make anywhere near a decent living unless your brillinat.

This is an area I am immensely interested in and hope to go into after college. Is the offer in Ireland or abroad damnyanks?

damnyanks

Offer is abroad I'm not really aware of any serious form of "front office" activity in Ireland other then funds based here for tax reasons. But then again I'm not hugely knowledable on the business here Just going from my time in the ifsc!

It's in one of the larger banks, no way would I go near one of those prop firms, seems to be scavenger work!

The salary is potentially huge (if you are good). Quite easy to get fired but no job is for life these days I guess. Also there is a stigma for traders to live a "good life" type lifestyle. I know what some of the junior £15 nightclubs doesn't make you loaded

Running Bing

damnyanks wrote:

Offer is abroad I'm not really aware of any serious form of "front office" activity in Ireland other then funds based here for tax reasons. But then again I'm not hugely knowledable on the business here Just going from my time in the ifsc!

It's in one of the larger banks, no way would I go near one of those prop firms, seems to be scavenger work!

Id jump on it then damnyanks. If you hate it you hate it, as I said I cant imagine youd have a problem doing what you want to do if it doesnt work out. If you dont take it, it might be something you regret for the rest of your life. No question for me. But then it is something I want to do.

P.S. If im not mistaken there are quite a few prop trading firms here. Also I know for a fact the ulster bank has a dealing room and Im sure other banks have similiar. Im not sure what sort of business they do exactly or wheter it's anything like the work carried out in London(if it is obviously it would be on a much smaller scale) but they do exist.

jrey1981

Trading is a mentality - a way of life. I knew two traders who made enough to get out of their jobs and then trade with their own money.

Then again, at the time I met them, they were looking to trade other goods - electronics, etc, so I guess if it is what you do, it can be hard to get out of and move into other careers.

If you have good research skills and knowledge of the business, there is no reason why you couldnt move into recruitment or something - perhaps even go out on your own using those skills.