What does a new assistant trader do on a typical day?
Hey guys. Long time viewer, first post. I am trying to figure out what an assistant trader would do on a typical day. Say you are helping some traders in a more exotic product like interest rate swaps or caps. I should mention I am going to be post graduate degree. Are you doing a lot of programming in a particular language? Or end of day book checking? Or just getting coffee for the traders? Thanks!
If it is not a quant firm, you will get coffee in the morning, get print outs for the trader (re his positions), watch the market at your own leisure, get lunch for the traders, watch the market some more, write up trade tickets after market close.
You get the tea/coffee. If your trader likes you, you'll (eventually) get more responsibility, but everyone starts as a 'go-for.'
Don't expect to get much of your trader's time, but when you do, have a trading idea or two ready. In the beginning, your ideas will suck. If your trader is a good boss, you'll get valuable constructive feedback. (If not, you'll get grunts.)
Either way it's up to you to learn from that to come up with better ideas next time. Don't make the same mistake twice, and know your place. Just because a trade would have made money, doesn't mean it was a good idea ex ante.
Eventually you'll generate good enough ideas and he/she puts them on, possibly in modified form. Pay attention to how the trade is executed -- choice of instruments and hedge strategy -- each part is critically important.
Next you want to become more consistent with your ideas. Better ideas, proper structuring, better timing, more of them. The final step is gradual freedom to put things on yourself... and then you're no longer an assistant.
Hmmm, that kind of turned into advice for assistants.
I was an AT at a major proprietary trading firm for a year. It was a lot of spreadsheet work, coordinating systems, booking trades, dealing with technology, operations, legal, compliance, etc. We had a mock trading session after trading hours where we learned to make markets.
After the close, I'd be in charge of running sheets to generate pnl estimates and get portfolios ready for the next day.
Over time, you get involved in larger projects and eventually get to trade and grow out of the AT title.
In my experience, it depends on the firm. When I was working at a firm in Chicago I actually worked on the floor, writing up trades, as well as upstairs, dealing with creating spreadsheets, pnl, etc. One of my class members actually wanted to work more in the development side of things so he was working with the IT team and helping out on the floor too. Sometimes we'd have to grab lunch for a trader or two but most of the time it was hands on where we were learning the ins and outs of the trading industry and the company itself. The best thing about it was that they held classes and mock trading sessions, where we were able to practice market making with one of the head traders.
Honestly, what you'll be doing all depends on what company you're with and what the employees are like. If the company is team-oriented, then you'll be part of that team (yeah you'll still have to do food/coffee runs--its tradition) and you'll have the support you need to learn and become a successful trader. If not, you'll be getting food and coffee for the traders and trying to pick up a clue or two about what it is that they're doing. Also, make sure the company knows where you're interests lie because that'll help you get a job that suits you best.
Good luck.
Those of you who have worked at prop shops, can you recommend which firms I should look into? Preferrably ones in Chicago. Any I should avoid?
I recommend Cygnus Atratus; I worked there for sveral years. I attribute most of my current success to that company.
What kind of hours would an AT work? What about an actual trader? Obviously they're around when the market is open, but how long before and after?
Is there a difference between a trader clerk and an assistant trader?
im not familiar with the term assistant trader. i know "trading clerk" as the old school salomon brothers speak for what we call trading assistants today.
at my old BB firm we called the people that entered our trades trading assistants. these individuals do pretty much exactly as LETSGOMETS described. their hours on paper are typically less than actual traders (but if youre trying to move over to a trading role i would recommend you stick around, ask questions, absorb the process and verbally express your interest in being a trader rather than just heading home at 6pm. dont expect to be coddled or invited).
trading hours vary depending on what you have going on and your market, but Id say a typical work day is from 700am to about 7pm. if youre an analyst or an associate that could stretch to 10pm on average, with a good sprinkling of even later nights. i really all depends on your desk tho. for example, a desk that does more structured trading is likely to line up with what i have said. a flow desk however is more likely to have less working hours for both traders and trading assistants.
btw. programming and other technological necessities are usually handled by trading support (not general computer tech support mind you), which is usually a bunch of super smart computer science majors from top schools itching to get onto the desk. and they use their interactions to their advantage. so as a trading assistant, beware you have competition.
Depending on the shop. At some smaller firm, you will be essentially doing what junior traders are doing except trading. Things such as funding, forecast, position management, reconciliation etc. At bigger firm, still the same except you have no decision making power.
However, all trader assistant are expected to learn as they go. Even if you may be stuck in TA job for the rest of your life, you still have to learn about each trade so that you will be better at your job. Being able to jump to trading takes certain determination but most of all LUCK.
The things you learn as TA can leverage you a trader position if you network like crazy and when economy gets better. But you have to be fking good at it and gain lots of respect.
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