(Personal trading) - Heaven forbid people who work in finance are interested in markets
Just wanted to rant. And maybe get some validation for my thoughts.
Worked entry-level buy side (PE) 2022-2024 and then took a break starting 2024 and went back to work in same industry couple months ago. During my break I traded freely and jeez the past couple months under trading restrictions have been making me so depressed. How am I supposed to make money outside of my salary invested in ETFs only. This makes me so sad. I was getting familiar with my portfolio and now my company restricts almost EVERY trade. so counterintuitive. The trading restrictions are making me want to leave finance for good. Idk
It’s a common frustration among finance professionals, especially those who are genuinely passionate about markets. Based on the most helpful WSO content, personal trading restrictions are a widespread issue in the industry, particularly in roles like private equity, investment banking, and consulting. These restrictions are typically in place to avoid conflicts of interest, insider trading risks, and compliance violations.
Here are a few key points to consider:
Why Restrictions Exist:
Common Restrictions:
Coping Strategies:
Mental Health and Career Reflection:
Remember, you’re not alone in this struggle. Many professionals on WSO have shared similar sentiments, and it’s a balancing act between compliance and personal interests. If the restrictions are truly unbearable, it might be worth reevaluating your career path to find a role that aligns with your passion for markets.
Sources: Unemployed and living in parents' basement, losing hope, Trading Strategy from a Trader's perspective, 2019/2020 Sales & Trading Bonus Discussion, Q&A: ex-bank trader now running crypto hedge fund. questions?, Personal Account Trading Restrictions at MBB
Was wondering the same. Came across a PE firm entirely prohibiting personal trading in securities including ETFs. Is this common?
It’s a good thing because 99.9% of you will make more putting in SPX than dogshit PA single names
No, I have idio alpha pal.
No sweetie, you don't
How are you classifying idio ?
Depends heavily on fund size. MFs have the biggest checks to write, so take privates are more prevalent (which triggers ‘do not trade’ lists given conflicts of interest). I’d imagine some funds have such a large public company target list that it’s easier to disallow it altogether.
Other funds might just be conservative (or lazy) and not want to bother having a compliance person review hundreds of trade requests / setup a compliance system to automate, so it’s easier to not permit it.
On the whole, I’d say most MMs permit trading outside of a small restricted list, but not a hard and fast rule.
Officia autem dicta omnis ab magnam voluptas laboriosam. Quos reprehenderit laborum et veritatis facilis odio perspiciatis.
Autem et adipisci libero nostrum. Est id est magni eos quis. Et ex illo distinctio ea inventore vel. Autem dolores quia possimus sunt quisquam minus dicta.
Dolore similique quas et nihil enim. Et qui accusamus expedita placeat in. Harum adipisci nihil voluptatibus et. Sed rem tempora minima occaecati. Natus aliquam nemo delectus eos ratione. Sint soluta minus nobis enim.
Sit sed laboriosam odio expedita laboriosam quis. Aliquam qui accusamus eos eaque consequatur necessitatibus temporibus. Dolore repellendus corporis quia ab accusantium. Ut molestias eos ut ut animi et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...