Current trading performance in various firms

Well I know one of these firms is not doing as well as they have in the past. I think that is the theme. You run your model until it doesn't work....when it doesn't work you stop using that model. If things go bad(trading performance is bad) they may close shop. So they will exist for as long as they can retain good traders because that is where they make their money....

Nobody knows their future just like nobody knows 100% what market will do. Probability in my mind is that they will have same rate of doing business with hedge funds structured as a business. If they do bad they may close. Not too informative but I guess really nothing to say except that machines won't conquer all. However, it is important to realize that the firm stands on its traders and ability to retain successful ones.

i know FNYS isn't doing quite well. Some of its best traders have left. It really sucks to be in S&T and Prop trading right now :(.

In my opinion, with respect to the macroeconomic landscape at least, I see a lot of potential for an impending huge trading opportunity for these firms. **Warren Buffet commented in an interview last week that the Euro is doomed - http://business.financialpost.com/2012/07/13/Buffett-says-euro-doomed-unless-fatal-flaw-fixed/

After all, ugly (low volume) * ugly (low volatility) is when the ugly get going no?

The question I am really posing is; whether or not these firms will be capable of taking advantage of the volatility the way they did in 2008 given the evolved structure of the modern trading arena. Maybe someone who managed a sizeable book in '08 and still does could answer that..

Thanks for that response. I agree that the most important thing is to establish a relationship with a mentor who has successfully navigated markets for a long time - these traders are obviously at a HUGE premium for incoming guys.

Regarding computational intelligence - I agree this is important as well (I scored 750/800 SAT math and got A's in any calculus/statistics/finite math course I have ever taken). Beyond intelligence, I think creativity and comfortability with risk will also be important. I have taken leveraged positions in excess of $100,000 in my personal account; I doubt many other trainees will have some of the battle wounds I have; maybe this could provide a small edge for me over the rest of the training class when looking at initial trajectory.

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no you just sound like a giant douchebag

edit: traders may be assholes, but they are not douchebags

I'll be joining you at one of those firms. Interviewed w/ 2 out of 3 listed actually. Best of luck to you brother. Kudos on taking a risk with your career and going w. prop trading over your typical ops and corporate finance gigs that most non-target (and even many target) finance grads take. Yes the odds are against us- there is an extremely high probability that either one of us will fail within the first year and move on. The beauty of trading though, is that even if we are at the same firm, my actions, and in return my achieved success (and/or failure) will have almost no impact on your success (and/or failure). Individual success is completely tied to individual performance which for the right person is an extremely appealing situation. I used to be a runner in high school, and after seeing countless "coaches sons" play ahead of me in travel basketball and baseball it was a breathe of fresh air. Prop trading is essentially the career equivalent to running, golf, chess, tennis, etc.. No bureaucratic bullshit which I like. Someone commented on your implied ego, but I feel like most traders have to...especially new hires. You can't go into a job like this with a mindset other than "i am smart, passionate, and I want to be the best fucking first year trader my firm has ever seen" With that said, enjoy the opportunity and use everything as a learning experience... at least I will be.

In regards to your original question, I think that in many ways, we could see a series of major opportunities in prop trading.. opportunities that we will HAVE to capitalize on while they exist, because as this market has shown, when the wolves are out the meat does not last very long. I believe that uncertainty creates volatility and volatility creates opportunity.. Looking out even the next 6 months we have: US Presidential election, European crisis, the possibility for more global QE (including Fed's QE3 which I believe will be announced before the election) China hard (maybe not?) landing, major elections / turning points in the Middle East, building tensions between Iran and Israel (calm before the storm?), and you can even throw elderly ass Japan in there (Kyle Bass is a major bear, and I respect Kyle Bass).. Then you always have the black swan potential for any number of derivatives meltdowns / ponzi schemes / bank runs to emerge, including one of my looney ideas that there could be a run on physical precious metals after gold goes parabolic (im thinking $1800-$2400 within 12-18 months) and the PM ETFs / ETNs will be unable to deliver, which only causes prices to rocket even higher.

Sorry for long tangent.. PM me if you want to talk any further.

tl;dr: goodluck man, im going into the same industry, there could be some decent opportunities for us, i'm down to have a drink with ya