“If you guys are really good traders, then why are you not in Wall Street?”
This was from one of my foreign trader friends who got amused how “trading” is sold to PH as if it’s easy.
I was 24 when I was offered a derivatives trader role in one of the largest banks in PH. Pay was not lucrative, but I’ll be developing models as it’s what my degree was all about – math. My course was full of math. And forever thankful to school benefactors who helped me althroughout my college life with 100% scholarship with allowance.
One of my professors actually worked at Wall Street.
I grabbed a higher income post that’s outside treasury role, and probably one of my regrets too. But actually, I didn’t regret it. I found out too that brokers had preference towards male traders during that time due to their unpleasant experiences with female traders – matigas ang ulo and emotional. During that time, female traders I know were fired. And credentials were limited to male traders. Pinas ito, overseas kasi walang ganyan.
I was managing my own fund when a broker emailed me to consider managing private client’s funds. So yes, brokers do study high performing accounts and offer you to manage more.
I think so far I got two offers from brokers.
Recently an offer overseas to manage a futures desk fund.
Iba ang psychology managing $100M vs $10M vs $1M vs $500k vs $50k vs $5k. I think I have discussed this before. More money does not make you a great trader.
Iba rin ang psych managing your own money vs other people’s money.
In our country, fulltime trading is sold as a ticket towards financial freedom as if it’s easy and glamorous. What people don’t understand is:
– Traders vs Stockbrokers. They’re two different professions.
– Professional traders follow “ticket instructions” from head desk. Hindi ka basta-basta makakagawa ng call dyan.
– It’s one of the stressful jobs. It sounds glamorous, until your senior trader tells you about a black swan event that cuts off your job.
– Traders are highly educated with CFA, CMT, MBA and other certifications and trainings. Hyped talaga ‘yung wow 13 year old and master trader. Not saying it’s impossible; I just don’t want to give an idea to people that trading is so easy that all kids can do it.
– Trading in private firms employ algorithms and models.
– As a retail trader, you are trying to beat a systematic quant model that has millions and billions of money as its arsenal. Kaya dyan papasok ang idea ng makikisakay sa insti flows.
– Traders do other things such as market research, writing market analysis, preparing client spiels, and a lot of funda work.
Before you get disheartened, let me tell you that there are many opportunities today such as doing proprietary trading that will give you a bloated amount to trade. So it’s like your capital has grown into 10x, 20x and you are chosen because of your discipline and risk management.
And before your profits send you to ego space, only few traders could make the cut to Market Wizards books, or even put up their own private management fund.
There are many ways to earn money around trading:
– Actual trading and managing own fund
– Partnering with brokers
– Setting up your own brokerage firms (Ito ‘yung nakikita ko among foreign trader friends na oldies na sa trading)
– Managing other people’s fund
– Teaching via seminars, books and social media
– Subscriptions
Siguro in my case, I’m happy with #1 only.
Wala naman masama with the rest.
It’s just that probably my heart has found happiness in doing actual trading.
So to all traders out there, break the 7 digit cap. Break the 8 digit cap. Break the 9 digit cap.
The only proof you are winning is how much your portfolio has grown and how much you have consistently withdrawn to enjoy life.
Because why trade?
Do you trade professionally, as a hobby, or as a high income skill?
There are many paths to take and choice is yours.
Original article posted 14 August 2022
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