risky opportunity

CC1GC · #1 05-02-2003, 08:04 PM

hey folks, i'm looking for some gc advice about a major life decision i'll be making in the next few months.

At the end of last summer, fresh out of university, I was hired by a day-trading company. This company trains newly graduates to use their system to trade the firm's money on the market. The catch is the first four months is full-time unpaid labor ...the money is high (the average salary is 9600 a month), the turnover is high...hence the dilemma. Well, after conversing with some ppl in the industry and a lot of family and freinds, I turned the job down. Also, i didn't have the coin to live on nothing for 4 months.

I don't know at what point I gave this consideration. Maybe after driving X amount of nice cars I start to wonder, "why can't I have this lifestyle?" I've been bustling my balls averaging 56 hours a week so that I could go back to grad school in january without having to take any more student loans. Now, i'm trying to have enough money saved up so that I could give this a shot and if it bombed, I would be able to go back to school.

I would still work weekends for some cashflow (and security).

I've gotten a lot of conflicting opinions, maybe i can get some fresh info from more objective perspectives

KSigkid · #2 05-03-2003, 07:21 PM

I feel ya dude.

I got offered a job with a marketing company - same deal sort of, you work on commission for 4-6 months, and then if you can stick it out get put on salary. The salary is high, but the tough part is sticking out the 4-6 month period.

I don't have the backup cash to do it, so I had to turn down the opportunity.

You've just gotta do what's right for you - some people can afford to go through a period of low cashflow for the promise of big money. Some can't though...and I feel you on that one.

Collin

shopgirl · #3 05-07-2003, 01:10 PM

Which companies offer this sort of thing?
I am looking for a job right now and wouldn't mind giving something like this a shot. I think I can hang for four or more months.

Thanks

Rudey · #4 05-07-2003, 01:45 PM

They lied to you. Trading is taking a hard hit right now because the markets are so shitty. On top of that, this work is not trading options on a major exchange or even getting floor experience. It's Day Trading. Day traders are shutting down very fast and losing money rapidly. On top of that, I don't know of any "good" day trading firms in Canada. By being good you can offer your traders faster systems, lower fees (higher commiss), and much stronger training.

To go into it and think you'll be making money is wrong. They would have scammed you hard by telling you that's how much the average salary is. Trust me. In day trading you go in and are usually net negative for quite a long time (think minimum of 6 months). To think otherwise is a joke. You have no developed trading strategy. Yes they may provide you with some training, but that isn't the same.

On top of that, this isn't the most stimulating career. Why don't you decide what you like to do and head towards that direction? Trading (not day) is not some BS career. If you want to be a trader (like risk, aren't afraid of getting yelled at, are very strong quantitatively), you will most likely have to go to NYC or Chicago and bust your balls on the floor for 1-2 years making in the high 20's. Then once you do that, you have doors open to you where you'd probably make a minimum of 75 if you're decent - not bad since you don't need an MBA or grad degree.

-Rudey
--If you have any finance/trading/consulting/banking questions, PM me.

Quote:

Originally posted by CC1GC
hey folks, i'm looking for some gc advice about a major life decision i'll be making in the next few months.

At the end of last summer, fresh out of university, I was hired by a day-trading company. This company trains newly graduates to use their system to trade the firm's money on the market. The catch is the first four months is full-time unpaid labor ...the money is high (the average salary is 9600 a month), the turnover is high...hence the dilemma. Well, after conversing with some ppl in the industry and a lot of family and freinds, I turned the job down. Also, i didn't have the coin to live on nothing for 4 months.

I don't know at what point I gave this consideration. Maybe after driving X amount of nice cars I start to wonder, "why can't I have this lifestyle?" I've been bustling my balls averaging 56 hours a week so that I could go back to grad school in january without having to take any more student loans. Now, i'm trying to have enough money saved up so that I could give this a shot and if it bombed, I would be able to go back to school.

I would still work weekends for some cashflow (and security).

I've gotten a lot of conflicting opinions, maybe i can get some fresh info from more objective perspectives

CC1GC · #5 05-07-2003, 02:25 PM

Thanks for the reply rudey.

You've echoed many of the same sentiments given to me while i spoke to local brokers in the industry; last year during my series of interviews. To say the turnover is high is a considerable understatement. And, i didn't consider this as a career until the opportunity was handed to me. Here's some information about the company -

http://archive.ottawabusinessjournal...nt%0A%09%09%09

What the article doesn't tell you is that their traders only trade the same stock. Wow boring, but would it be unreasonable to suggest that if any traders became efficacious on a stock that it would be this type of trader? Also, the 4 month training period is your opportunity to hack it under their system. There was a certain amount that needed to be achieved by the 3rd month (i think it might have been around 5) in order to continue. Theoretically, depending on my process I would know by the 3rd or 4th month to stay or leave. Lastly, I would also be certified by this period, so that if this particular career (within the industry) wasn't for me I would have other opportunities available (because of my CSC). Anyways, the way my living situations are working out i'll probably have to prolong graduate school a year, easily giving me time to give this a shot and return to full-time hours as a bellman.

Lady Pi Phi · #6 05-07-2003, 09:39 PM

If this is legit, and it's something you want to do, I say go for it. But this whole things reminds me of an episode of The Sopranos...

Rudey · #7 05-19-2003, 12:01 AM

Quote:

Originally posted by CC1GC
Thanks for the reply rudey.

You've echoed many of the same sentiments given to me while i spoke to local brokers in the industry; last year during my series of interviews. To say the turnover is high is a considerable understatement. And, i didn't consider this as a career until the opportunity was handed to me. Here's some information about the company -

http://archive.ottawabusinessjournal...nt%0A%09%09%09

What the article doesn't tell you is that their traders only trade the same stock. Wow boring, but would it be unreasonable to suggest that if any traders became efficacious on a stock that it would be this type of trader? Also, the 4 month training period is your opportunity to hack it under their system. There was a certain amount that needed to be achieved by the 3rd month (i think it might have been around 5) in order to continue. Theoretically, depending on my process I would know by the 3rd or 4th month to stay or leave. Lastly, I would also be certified by this period, so that if this particular career (within the industry) wasn't for me I would have other opportunities available (because of my CSC). Anyways, the way my living situations are working out i'll probably have to prolong graduate school a year, easily giving me time to give this a shot and return to full-time hours as a bellman.

"efficacious on a stock" question:
-Usually when you trade, you specialize towards a certain product. They concentrate on those products because they learn the markets really well in those areas, etc. Those that deal with pure stocks make beans compared to options traders. When you deal with a stock, if you are lucky, you profit a few percentage points. When you deal with an option, you are looking for something in the range of 300% because of the level of risk. That is essentially the type of trader that does well. Day traders, on average, don't do well. There are lots of exceptions though but usually those that do well have a lot of experience. I don't care how great they say their training is.

-The thing about seeing how it goes a few months into is, basically means trading isn't for you. If they say you have to profit by a certain amount, I would read more into that. I don't even think you will be profiting 4 months into it.

Check out elitetrader.com

-Rudey