Bank Traders = Rubbish

mma

i of course dont know if you know how to trade or not - but one thing for sure is that you dont have a clue about how financial companies work and/or what they do

i am not saying your sentiments are wrong, you might be right just by instinct, but the reasons you give to support your opinions are so baseless in fact that they totaly devalue your points as you just dont have a clue about that world

and you dont really need to know about that world in order to trade, wether those companies are cr*p or not aint gonna change your trading, so if your are an expert trader, why not stick with that, give the rest of us some pointers to make us money trading markets, and forget about commenting on stuff you dont know **** about
 
Pardon my ignorance, but what does being a transexual have to do with being a good trader or not. Im sure there are plenty of non-transexuals that are bad traders.
 
* Pardon my ignorance, but what does being a transexual have to do with being a good trader or not. *

How does one decide what stock to buy , when one does cannot even decide what gender one is ?
 
Aparrently when Banks accounts are open to scrutiny , as in the hedges that they run - they are pretty dogdung . hehehehe.

And it is pure BULL to say banks are top traders w/o account proof. fact that they are not obliged to do so is relevant to the fact that they CANNOT prove anything.

My problem is your problem that you object to free speach.

stevet ,

because trading pointers are not the subject here. here I am exposing dongdung so called bank traders .
 
LOL

<i>How does one decide what stock to buy , when one does cannot even decide what gender one is ?</i>

Probably by using/applying a process of applied logic which also allows him/her to decide which suit/dress to wear, which food to eat, which car to buy etc.

A preference for a certain colour of tie, indecision about whether to travel using the bus or the tube or difficulty in deciding whether to dress as a male or female does not in my opinion have anything to do with an ability to trade.

Got to admire him for having the balls (?) to come out like that. Could also be interpreted as the sign of a good trader if his style is that of a contrarian swing trader? Would that be consistent with his lifestyle? Maybe he wears Superman underpants under the dress to allow him to trade?
 
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From my very limited experience of three traders who each take more than a million out of the markets each year they have one thing in common - they are all eccentrics.
 
lol - MMA im new to this board but have been laughing my ass off at your great attacks on various factions :

* Pardon my ignorance, but what does being a transexual have to do with being a good trader or not. *

How does one decide what stock to buy , when one does cannot even decide what gender one is ?
Click to expand...

Classic
 
Anyone got a needle and thread - so I can stitch my sides back up!
 
...that person in the middle is really mma's girlfriend who dumped him. Thats why he's so sore
 
Very few bank traders actually trade the markets, ie come in the morning and place trades on where the market is going because there are very few people who can make money consistently over time.

They make their money pure and simple by buying bids and selling offers alongside almost zero comms. Why do you think 75% of the ex LIFFE locals could never make the sort of money they used to make on the floor when they left? You got it, because their edge was to basically buy bids and sell offers, coupled with say 50p a lot comm.

And as for fund managers, it's the easist job in the world because all you have to do is buy. You have to remember how a fund management company makes their money - assets under management. Therefore the first goal must be to KEEP said assets with the second goal of actually making money for their clients. Therefore why try and be a hero and second guess the market, why not always be invested (like your competitors) and then be guaranteed to partake in every upmove in stocks because that's the real crime, not making money in an up market, not losing it in a downward one.
 
anley said:


Why do you think 75% of the ex LIFFE locals could never make the sort of money they used to make on the floor when they left?
Click to expand...

Just in case that wasn't a rhetorical question, Answer? becuase they could read people not markets. Pure and simple.


Very few bank traders actually trade the markets, ie come in the morning and place trades on where the market is going because there are very few people who can make money consistently over time.
Click to expand...

Any punter with direct access can buy at the bid or sell at the offer if the markets trading there - and if you're a big/smart/clued up punter you could get your CFD's for as low as 3 or 4 BP per side. No prop trader is EVER going to make a living doing that.
 
Anley,

As a former LIFFE local I must disagree slightly. All traders (broker or mm) must purchase or lease a 'seat' on the exchange. That buys you the right to participate on the floor and (get this!) make markets! That basically means the ability to make (and honour) quotes to interested parties directly (i.e. display a bid or offer).

Now things have gone upstairs (electronic), locals have still kept their rights (via their seat) to publish quotes on the Connect platform with minimal fees.

CT is bang on. The skill was essentially interpersonal - reading the crowd and also keeping a beady eye on the broker booths for orders that were put down to the pit - and jumping infront of them before the broker has even started to fill. Collaboration with you mates (price fixing)in quieter option pits was also a big earner! Of course, you can't do this on an electronic platform as well, as the participants are distributed to God knows where. That is why it's harder.

Either way, as CT suggests, whats to stop an 'outsider' nipping on the inside of a spread with a limit order? Isn't that what the SOES Bandits did???
 
It's not the people reading skills although that can be important, it's the bid/offer with almost zero comms that was the reason for 80%+ of the locals success. If you don't believe me then imagine that the LIFFE floor was still there but like the machines it was first come first served on the bid/offer, how many of the locals would earn a living?

City Trader, of course you can work your own bid/offers at home but where are you going to get the FLOW from and what's your capital base?

Most of the money from the big banks is made from structured trades and OTC stuff and also when you're dealing in big tickets then even making 0.005 on average a trade can mean £10's millions at the end of the year.

Also put yourself in the Banks positions, would you let 200 traders loose on your dealing floor with the Banks's capital to trade as they see fit? I sure as hell wouldn't because probability states that not even 50/200 could make money. But on that floor there WOULD be a handful of very capable money makers, and therefore in any bank there are only a few people employed to trade. The others, just make their money off the flow on the bid/offer. Even all those prop desks that you hear about are nothing more than fancy names for desks trading off flow.

What would you do if you were the head of the Bank? Believe that your organisation has a divine right to make money because you are a bank and therefore should know about these things, or be truthfull and say that trading and making money CONSISTENTLY over time is going to be just as hard for the majority of your personal as it is for the majority of people on this website? So take the sensible and still very profitable route of letting your personal make their money from the flow.
 
As it happens ( certainly in equities) most traders do come in the morning and take a view on a handful of stocks- and they advertise via the IOI system of what they would like to do. i.e. if they think (say) Vodafone is going down, not only will they sell some on the book to get short, but probably offer stock via the IOI's - with the intention of finding an investor ( Hedgey or PM) with an opposing view, or at the very least to discourage other sellers...

I still believe that locals anywhere ( LIFFE, CBOT) make their money by reading people - the trembling order clerk as he gets a decent order, the "bluff" of another local.
 
City

Reading is very important but not as important as the financial facts. Take the Bund

For a long time it was around £10 a tick

Comms were say 50p a lot (plus the scratch facility, if you both buy and sell the same price then no comms on that trade)

So there's £9.50 profit to be made by buying the bid and selling the offer. Now obviously you can't always do this and the market is fluctuating but that's still one hell of an edge. Seat rent is somewhat irrelevant because if you weren't making £60k minimum a year as a local (after 1+ years experience) then why waste your time, go and fill paper or be on the phones for at least a no risk £60k.

Anyway a good tread this
 
Anley:
1/The role of a MM is to provide LIQUIDITY. Yes, a lot of money was made between the spread - but thats the idea! The role hasn't changed, just because the platform has.

2/What you say about being there 1st with the bid/offer is wrong. LIFFE Connect gives priority to order SIZE not TIME. Just like the pit rules dictated (only the broker is obliged to fill orders in time priority, but as soon as it hits the pit, size is king)

3/ Any clearing outfit or bank will set firm restrictions on your size based on your margin that you can afford to put up. If you go over, then it's time for a chat upstairs, and sometimes a game of cards with your boss (he deals - P45, P60 etc). Therefore, if the bank employed 200 traders, the able traders can trade size, the less able newbie sticks with 50 lots.
 
anley said:
City

Reading is very important but not as important as the financial facts. Take the Bund

For a long time it was around £10 a tick

Comms were say 50p a lot (plus the scratch facility, if you both buy and sell the same price then no comms on that trade)

So there's £9.50 profit to be made by buying the bid and selling the offer. Now obviously you can't always do this and the market is fluctuating but that's still one hell of an edge. Seat rent is somewhat irrelevant because if you weren't making £60k minimum a year as a local (after 1+ years experience) then why waste your time, go and fill paper or be on the phones for at least a no risk £60k.

Anyway a good tread this
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Would they not cancle eachother out when they go up or down due to profit or loss?

(Or do you mean they just pay a 50p MAXIMUM total fee? e.g can't lose more than 50p trade) and therefore everything from there regardless is profit if they covered both ways as each direction is worth £10 a tick aka £9.50 profit?
 
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