market makers image
ben
How Can I get a job as a market maker?
Do I need an MBA?
I want to get a bachelors degree in an engineering discipline.
Answer
The easiest way to become a market maker is to buy (or rent) an exchange membership (cost around $300,000), find a brokerage firm or clearing firm that will clear your trades (need deposit of $100,000);
register with the SEC as a dealer (legal work cost about $1000), deposit sufficient trading capital ($250,000) and hire an independent accounting firm to audit and attest to your numbers.
Unless you have years of brokerage experience no firm will hire some one as a floor trader since there are many with some type of industry experience are waiting to move down on the floor..
No one cares what degree you have or don't have as long as you have industry experience.
There is nothing in the academic world that prepares one to be a floor trader, let alone a market maker.
Try finding a job with a major brokerage firm or a firm that has a floor operations. Take any job the firm has, and it will not be as a trader. You need securities industry experience, if not in the trading areas you can also try to get into stock loan,. P&S, cashiering. You can also start as gopher in an in-house trading room,. Take any job in the industry to work your way to the floor.
With summer coming, you may be find temp jobs in the industry.
To be a trader you need to be a good investor, so start reading Investing for Dummies by Eric Tyson
In the meantime, learn all you can about the markets and how securities are traded. Here's some books you should consider
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas
All successful traders have addressed four major policies and have very strong discipline to follow them
1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 - You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.
Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.
The easiest way to become a market maker is to buy (or rent) an exchange membership (cost around $300,000), find a brokerage firm or clearing firm that will clear your trades (need deposit of $100,000);
register with the SEC as a dealer (legal work cost about $1000), deposit sufficient trading capital ($250,000) and hire an independent accounting firm to audit and attest to your numbers.
Unless you have years of brokerage experience no firm will hire some one as a floor trader since there are many with some type of industry experience are waiting to move down on the floor..
No one cares what degree you have or don't have as long as you have industry experience.
There is nothing in the academic world that prepares one to be a floor trader, let alone a market maker.
Try finding a job with a major brokerage firm or a firm that has a floor operations. Take any job the firm has, and it will not be as a trader. You need securities industry experience, if not in the trading areas you can also try to get into stock loan,. P&S, cashiering. You can also start as gopher in an in-house trading room,. Take any job in the industry to work your way to the floor.
With summer coming, you may be find temp jobs in the industry.
To be a trader you need to be a good investor, so start reading Investing for Dummies by Eric Tyson
In the meantime, learn all you can about the markets and how securities are traded. Here's some books you should consider
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas
All successful traders have addressed four major policies and have very strong discipline to follow them
1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 - You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.
Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.
No comments:
Post a Comment