I start working on a vol desk at a BB this year and was wondering how much time the traders here spent in their early years doing research/self-learning over the weekends/after work ?
While I understand the work-hours as a sell-side trader, how much effort they put into what they do after work hours is something there's very little information on (since it's quite subjective). How to strike the balance between using time-off to go above and beyond, vs actually taking the time off ? I was wondering if someone could shed some light on how they handled this.
Hi ridersonthestorm, just trying to help:
If those topics were completely useless, don't blame me, blame my programmers...
you want to learn how to trade...there are many ways to skin this cat...you need to find a way that "speaks to you"...and its different for everybody. This usually takes a number of years before you get exposed to all the different methods, and go thru the emotional highs and lows of each method. Anybody can read about a strategy and say "ok, i get this" but actually trading a strategy with your own money...its a different experience. Generally, vol desks are not scalpers....they play for larger moves (that could be 20 ticks instead of 2 ticks...or it could be something else)...so you want to focus on strategies that are relevant here.
Just because you are playing for larger moves, doesn't mean that you are not trying to buy the low and sell the high...of course you would love to do that....but how? This is more art than science...there are so many things to consider....you should read everything...take your time, because it takes time to absorb it all...experiment (with small size, so losses don't get you fired) and see how you do with different methods until you find how your brain works under the stress of PnL.
On my desk I could see which traders worked after work by how well they were prepared for each trade and by how tired they were at times. Personally I push as much overtime learning as I can without feeling I'm burning out or risking underperforming. This comes in many forms - reading materials, doing my own quant research, going to networking events to drink and chat with other traders, at times just sitting on my terrace and running through the trading day in my head and making notes. Sometimes this means working up to15 hours a day, but never less than 10. How do I cope with it? I've learned to become conscious of my mental health and make sure to set all out of office work aside if I'm feeling too tired to perform, no matter what. Then there's the little things that help, I.e. going to a massive party every at least every 4-6 weeks, taking a week or two of holiday every 2-3 months, both act as a reset button for the body and mind. In the short term a game of squash here and there to keep in touch and stay active. The key part I found was organizing your life very well. The senior guys on the desk don't worry that I'll underperform when they see me half asleep because they know who the heavy lifter is in the group. They don't care I made a silly mistake today that lost some money because the fact that I worked 15 hours yesterday made the desk much more profit (I emphasize MADE THE DESK money, not just for my pnl). I don't work in a BB, and this is just my way of doing things, but then again all the younger traders I know who are doing well do some form of self improvement after work. Unless you're a genius I don't think you'll get ahead just coming to the office. The important thing is to find your own balance - work hard but if you're feeling constantly tired or drained for a few days or a week then take a step back and relax - avoid burning out at all costs.
Very very helpful comments already on this. I'd say find your own balance. Remember the Pareto principle and don't burn out - you need to be physically and emotionally rested.
I also tend to believe in the 10,000 hour rule, so spend them wisely!
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