When To Make The Leap (Ags)
Been working as a junior trader for a couple years where I'm largely merchandising around existing positions with the occasional opportunity to spec outside our assets. I have had a nice degree of success earning margin for the business and it's largely a function of my own risk taking at least in my eyes. I enjoy the product I trade, the people I work with, and I'm aware of how lucky I am to have the seat I'm in so early in my career along with the autonomy I have to put on trades and set values. My issue is that compensation is definitely lacking both on base and with very capped upside on bonus regardless of how well I perform so I'm thinking of moving over to a proper trading shop. Wanted to get insight from those of you who made the jump to pure trading shops as to how you knew when to make the move and what that transition is like.
Ah, the age-old question of when to swing from one vine to the next in the trading jungle! Based on the most helpful WSO content, here's some insight for you:
Success and Autonomy: You've mentioned success in your current role and the autonomy you enjoy. These are golden bananas in the trading world. Before you leap, consider if the new shop will offer you the same or better conditions to thrive.
Compensation: If your wallet feels light despite your heavy lifting, it's a sign to consider other trees. However, ensure that the potential increase in compensation aligns with your career goals and risk appetite.
Timing: There's no perfect time, but a good rule of thumb is to make the move when you feel you've outgrown your current role, both professionally and financially.
Transition: Moving to a pure trading shop can be exhilarating but also challenging. You'll need to adapt quickly to new strategies, cultures, and expectations. The transition is often smoother if you've built a solid foundation in risk management and have a track record of profitable trading.
Networking: Before making the jump, use your network to gather intel on potential shops. Understanding their culture, expectations, and growth opportunities can help you land in a spot where you can flourish.
Remember, every trader's journey is unique, so weigh these factors against your personal career aspirations and market conditions. And don't forget to negotiate like a pro when the time comes – after all, every trader is also a salesperson at heart!
Sources: Is this a physical commodity shop or was I mislead by management?, https://www.wallstreetoasis.com/forum/real-estate/running-your-own-shop?customgpt=1, Why do IB directors change shops?, Transitioning from tech to a serious finance job (yes, you read that right), Q&A: Physical Oil Trading
Bumping this
What product do you trade? Not sure it would be that easy to make the jump to a big merchant if you’re coming from an ABCD trading ag commods
What was your background? I’m an AgEcon undergrad at a relatively mid sized land grant and am interested in the Grain merchant route and just like to see what other people did to get there.
Let's call my background a STEM major at an east coast school. Honestly your background is a plurality like 30% of what merchandisers are which is midwestern state school with ag-econ/business major. Lot of time guys get in right out of school to merchandising in one of the junior/trainee entry level gigs but obviously you have guys float in from back office or other business line roles.
Yeah, the degree program at my school for AgEcon/Ag Business is a direct pipeline to AgLending or trading if you don’t go back to the farm, hopefully I’ll snag a merchant role when I graduate and move up to handling a bigger book w/more money/responsibilty.
Well there ya go, best of luck to you.
DM me.
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