Just wondering how folks in banking are investing their own money given the various trading constraints imposed by the firm.
Most of my co-workers just invest in index ETFs/mutual funds to avoid the hassle of getting trades approved by compliance and the risk of the freezing period.
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At a BB. The trading constraints stop you from trading on MNPI and also stop you from day trading. I am still allowed to pre-clear a trade and within minutes buy shares. We have to hold for a period of time, though.
"Trading" is difficult but "investing" short term (1 to 2 months) is very easy.
Thanks for the reply! very similar rules at where I work.
Our holding period is 2 weeks so I don't know if that makes individual security investments riskier (e.g., what if something negative happens during the 2 weeks and I can't offload my holdings).
We have a rule in place where if your position drops a certain amount you can offload (I forget what the % drop is before this rule gets activated).
Obviously the mentality is to invest long term and try to stick out any downturns. So you'd have to be investing in a really small / mid-cap company to risk a 10-20% downturn within a few weeks. For example I don't think the protocol would have been activated for any of the large cap stocks intra-day swings in the last few months.
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