Hello: Grad prop trader in need of some help!

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a.rakkar

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Hi,

I am a new poster on this forum, but have been reading it for a few months. The overwhelming majority of you come across as a nice knowledgeable bunch, which is the section of you I'm hoping to connect with.

Anyway, niceties out the way. I'm a young buck in need of some insight.

I'm a mathematics masters grad (1st) from a top London uni. I've just secured a role with a prop trading house, it's salaried at 12k/yr1 going up to 18k/yr2. It's not a requirement to have trading experience; I'm joining a graduate training program.

I've read a whole load of negative press regarding proprietary trading, how this is a CV buster and how failure rates are so high, which is somewhat disconcerting to say the least. This particular firm boast a success rate of 80%+. Is it simply the failed traders who moan and groan on the web?

Trading appeals to me greatly but I have to be realistic about what this does for my future career prospects if it goes tits up.

What's really put a spanner in the works is that a consultancy I interviewed for 6 months ago, rang me up 2 days ago and offered me a position with them completely out of the blue. Salary is 30k start; I hope you can appreciate why I'm somewhat anxious about making an informed decision.

Your input/criticism/suggestions are welcome.

M
 
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My advice would be to take the consultancy job as given what you have written above you only have a 20% chance of succeeding with the prop trading, plus the starting salary for the consultancy is almost 3 times higher.

You also have to consider if you think you can live on £12k in year 1 considering that prices in the UK for goods and services are really high, and if you take into account the projected inflation rate for this year 2011 then I would say that the £12k salary will not go far....
 
It's for a defence firm that specialises in identifying fraud, counter-terrorism and other MoD-backed ad-hoc projects. I'd def be putting problem solving skills to use, career progression seems pretty attractive and the company is well-regarded in industry

I do appreciate it's somewhat different to trading...
 
Fair question.

The consultancy role was applied for in the summer of 2010, and a freeze on recruitment placed halfway through, much to my frustration. 7months ago, I would have bitten one's hand off for this opportunity.

It was in the months after that my interest in the Markets really took off and I became aware of opportunities such as this graduate trader role. I believe I have the skill set to succeed, but I am aiming to be realistic.
 
Id definitely go for the 30k one, as an added bonus you can be all mysterious when people ask you what you do. Also if you have to go through dv or sc as part of the process its a really good investment and if you ever go freelance will be really valuable.
 
What you find so interesting about the consulting job that you'd have been biting hands and what's now making you interested in trading?
 
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1. Opportunity to join a reputed firm, in highly sensitive and interesting work, good starting pay for a grad career, central london.

2. As mentioned, interest in financial markets is growing. I like the fast-paced ever changing nature of it, adjustments to newstreams, tie in to political affairs. Traders are immersed in this. Earning potential is possibly significantly higher.
 
Sounds like you have a RISK based choice..

(High Risk) if you went for the Prop job you are statistically likel;y to fail (but you might not)

(Low Risk) if you go consulting you could build a lucrative contracting career which could pay a very good salary and possibly fund a good trading account longer term.

If you REALLY think you are a trader go for the first... if your not 100% about it... go for the second and build up to the first..

Good luck with whatever you choose...
 
When you say prop trading what do you mean? Do you have any idea what you want to trade or what methods you want to use? Will this prop position pigeon hole you in one instrument and if so is that what you want to trade?

Lot of things to consider mate.

TBF with your quals I doubt that you would be at the back of the dole queue (for long anyway lol) if you don't make it as a trader so if trading is something you really want why not take the chance? You can always do something else if it doesn't work out.
 
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Take the consultancy role. Use a fraction of the 30k salary to fund a trading account and either swing trade dailies or hit the US markets after work. Do this for many months to work out if you enjoy it and/or have what it takes. Decide again after a year if you still want to get in to trading, or if you really enjoy where your consultancy job is taking you.
 
Take the consultancy job. It will give you a more well-balanced life and more importantly will actually constitute a career if you put the effort in. If the consultancy is top of its game then your earnings potential from there on could be massive. You could always try and go back to the prop shops many years down the line, someone will always have you.
 
Agree with sk1105 & RPEX.
Take the consultancy job and trade for a hobby in your spare time while you figure out if it is for you or not.
 
tumblr_l7kqtkOUd61qb06h6o1_400.jpg
 
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