>>582048369 Hedge funds don't ruin economies, people do. 08/09 was caused due to the public over-estimating their wealth. So a hairdresser earning 20k/pa was able to take out a 10m mortgage by saying she earned 300k/pa. now, whether that was the banks fault for allowing it or the hairdressers fault for lying, you be the judge.
Hedge funds are a communal pool of investors money, which is invested in accordance to the fund managers strategy, be that long/short, long only etc
>>582048597 Shit tier, entry level banker position. FA's are the starting block in an IB, to be an independent FA is like being an office temp. Great if you love it, but no good if you want to actually make something of yourself
>>582047491 I'm curious about investing the penny stocks and try to make some quick cash. I have a friend who has a little bit of knowledge and knows someone who has a lot of knowledge on the subject. I don't know shit about it, but I trust my friend and have a little bit of disposable income. What are your thoughts?
>>582048967 You real stupid, and most likely not a hedge fund trader. People weren't lying about their income to get loans, stuff like that is easy to check you mong. Banks just allowed everyone to loan because the equity people were loaning against (housing) kept rising in value, so no risk, unless ofcourse housing would drop in value, it was dumb, like u.
>>582049769 Never touch OTC stocks. the regs are so minimal, they're prone to scams, pump n dumps and the like. your money is best in blue-chips. If you're hell bent on quick cash the markets not the place, try the casino.
>>582050828 Housing rising in price and the ease of house loans was feeding off eachother you retard. It's okay you don't understand, not your fault your intelligence is mediocre at best, gl trying to match the markets return, you will need it.
>>582051608 Yeah, its low tier. FA chartered or otherwise is the lowest rung on the financial ladder.
But it depends on your goals, if you want to do that, yes its great, if you want to broker, get in an IB, they'll work you through. If you want to trade, the best qualification is an active K%. On a CV a K% usually gets an interview.
>>582051847 Let me break this down for you. It's like a horse race, I know which horse will win and ofcourse I am betting most my money on that horse, you don't have the capability of predicting the outcome with a high probability so you have to hedge your ignorance so you don't lose it all.
I don't work for anyone, I don't have to. I have made a large amount of money at a young age and am now just living off investing what I have.
as for advice, work hard & make friends. the later being more important. Its not the grades you make, its the hands you shake. you need one billionaire in your book and you can retire, or 1000-2000 average folk
And, get trading, even if its CFDs, get a little record going, you'll be a step ahead going into an interview with actual results, doesnt even need to be a big account, grand or so, focus long-only, put your money where your mouth is, make some calls
>>582052673 and if your horse trips and breaks a leg at the first jump? you're fucked, your account is fucked. Live to trade another day, and by betting everything on one position you're literally setting yourself up to fail.
If it works for you, great, congrats, but the odds of that strat working is stacked against you. thats just the statistics. so if you're BSing, well, now you know, if you're not, good for you, but know your risks, the numbers say you shouldn't be making money.
Also, good for you bud, its a luxury to do well young that may aren't blessed with. Was that in finance or another business? Just curious
>>582052952 Hold it for 6 months, depending on your risk profile, a 10 x bond ladder would suit most people. If you're a little more adventurous a market tracking ETF, or try your hand at stock picking, in 6months. you dont want your cash in the market long for the next few months.
>>582052760 Start at the top, read the free publications & reports; ISM, Housing, Jobs, etc. Get good at predicting the whole market, then when you're good, try narrowing it down to sectors, when you're good at that, then try stocks. dont exceed 10% postion sizes, you should be OK, good luck!
>>582053679 Cash. But its your money, but from /b/tard to /b/tard, the unease is palpable, its not a time that new investors should be piling in to the market. I'd reccommend holding for a while, but if you do buy in, do your research, and best of luck.
>>582054113 I have 50-90% in my top pick depending on what I expect from the SP on the short term, I am 98% sure of the company doing well longterm. I am willing to take on the low risk of a black swan event happening as I haven't found any other opportunity to make an expected 1000% return over the next 10 years. Very, very few stocks where the stars align.
>the numbers say you shouldn't be making money.
Statistics would say I will see very high volatility, but an expected average return. The statistic average doesn't apply to everyone though.
Made my money playing online poker, which one could argue fundamentally is similar to investing.
>>582055608 Cheers, hope so m8 - wanna greentext how you got your foot in the door for us all though?
And that's actually what I love about /b/. People can come from all walks of life and still be equal trash on here. We got professionals like doctors and lawyerfags shitposting alongside NEETS. inb4 muh secret club, but it's like the Freemasons in that regard.
>>582047491 eurofag here. I have a BSc in mathematics with decent grades and have been trading for the past 2 years. Should I send my application to privatbankiers (Vontobel, Merck Finck) or go straight to Deutsche Bank,Unicredit Group etc.
>>582056328 Ha! I like that, /b/ = freemasons, I can see the similarity
Well, I greentext my story in the last thread, But I can do it again, with a touch more detail,
>be me >be shit in school >suck at everything no mates.jpg >see Wall St >cocaine in a limo >yes pls >get good at math >still shit at everything else >drop out >score job at bank >not broker but as a teller... pissed >put my paycheck into trading account >make bank >out earn my boss >debate higher-ups on stocks >fastracked onto brokerage arm of bank >gave shit hot tips >every client loved me, every other broker wanted me dead. >wouldnt put it passed them >mfw patrickbateman.jpg >catch attention of big boy managers >transferred to wealth management >spend 3 weeks in orientation >nothing I already knew >be today >26 >be on /b/ >make this thread to help aspiring faggots to get in the game
>>582056852 I do, its kinda funny. I held all my poker earnings in a high yielding bank account for several years as I though beating the market would be nearly impossible, because of the fact that far most of the money is being invested by the best of the best in the world, and I wouldn't want to sit down at a table and play poker against the worlds best poker players either (wasn't THAT good). But as I started looking into stocks I found that the market was a lot more irrational than I had thought, it came as a big surprise, a good surprise though.
>I cant think of any fund that can beat 30%pa...
It is also pretty much impossible if you diversify too much, like I said I don't know of any other stock where I have even half the expectation, if I was forced to keep a max of 10% in any one stock I would be happy to get 15-20%.
>>582057418 we've had a few, >FB has been a good one, had that on my book until last earnings where I was stopped out in the black, >Apple, because, applefags, >Sun Communities, >Nvidia has been a great one, & short AMD
>>582058209 Private banking will get you further than IB. If you're set on the banking industry, private>investment. Plus you won't need to take crack to get you through the day, and the pay is better.
If you've got the choice between private and investment, I'd take private every day of the week. Its not as stressful, you're not 'in the trenches', you dealing with intelligent people, who know what they want. Id take that over a phone and Morgan's client book any day
>>582059976 All in im around $1.1 a year, with most of that coming from a bonus, last one was $750k, that was a year ago, next ones due next week, so im hoping for more, but we'll see. When I get the check I'll make a thread with it.
The single greatest rule is KNOW YOUR RISK.
Long market because 'it always goes up', is bullshit. dont do it. thats not how gravity works, why would stocks. Start out from th top down, read the reports, predict the market as a whole, then put your money where your mouth is. Get good at the, do the same for sectors. then, stocks. Limit yourself to 10% per position, 5% long-5% short, if you're feeling clever, stop yourself out at 2%. Put the work in, you'll go far.
>>582059642 What can I tell you, you missed the boat. Sorry, it happens. Best thing you can do is sit on your hands. I get its frustrating, but better frustrated not, than 30% poorer in half a year. I'd really advise against piling in now out of fear-of-missing-out. everyone wanted in tech in 2000 too..
>>582051045 I wouldn't be short this market if you put a gun to my head. Also, while I think the CFA is a bunch of shit too, it's generally really well respected. I wouldn't dissuade a kid from getting it.
>>582062270 His job is totally different. Computers are very good at picking up very short term patterns and basically spooking out other computers. The whole high frequency thing is probably going to get banned, despite how much the exchanges love them.
>>582061587 >Save. >Get yourself a pot of cash. >Commit to investing, none of this filthy casual one hour a day BS. >Read the WSJ. >Have Bloomberg on your TV every hour you can, hell the Bloomberg radio is even OK. >Get in amongst it. >Read economic reports (they're boring as fuck, but the information is in there, information that pays), >Start making calls >'wow, pharma seems strong' >watch pharma >pharma is up this month >wow >do that until you're comfortable >now, take that pot you've been saving >money where your mouth is >behave, dont get too big for your boots >10% positions >2% risk >???? >profit >tell your boss to fuck themselves
With $10k, it'll take about 10 years to make a million. That is wilst geting a safe income on the way.
>>582061302 Damn /b/rother, that's a shitload of money.
You say 5%/5% for long/short; is it possible for individual investors to borrow stock from brokers to short them?
Also, any people you work with transitioned from another background? I work in Consultancy (financial sector, end-to-end technical implementation) but would like to make the jump into wealth management/private banking and just wondered if you know anybody who didn't just study Finance/Maths at uni, do some internships in finance, get a job in finance.
>>582047491 I am kinda coasting, working at MIT these days. But I keep a home in NY and know a few hedge fund types and keep that as an idea in my backpocket for a fallback career. However, I'm 36 and I think I'm getting a little old to make that change.
I mess around with options a little bit. I stay away from futures, since I don't feel like I have a strong grasp, but I really regret missing out on the recent short play on oil that I saw coming.
Is it worth looking at finance as a viable career path anymore? Is there anything you could suggest (infrastructure-wise, mostly) to improve my personal trading (maybe grow into a serious prop-shop)?
I really want some financial independence. I probably wouldn't go into finance, or maybe I would take MIT's money to go into it. But, most likely, I could just continue to coast indefinitely if money wasn't an option. As it is, my current arrangement probably has a year left, and I'm too lazy to get anything seriously entrepreneurial going.
I'm fascinated by stories like Cornwall Capital and asymmetric risk.
>>582063408 No, that was the credit side of the IB's. Thats why an FA in say Goldman, used to get paid $200kpa, now they get $50k, if they're lucky. The losers of 08/09 were the people who took out the loans, and the investors that bought the MBS from the banks.
>>582047491 my mentor told me that mutual funds are beginning to shrink because people rather just put their money in the S+P 500 as it beats managed funds 80% of the time over 10 years and has less commission. how true is this?
>>582065513 Can confirm what he's saying about research. It's a soulless grind. The good news is, if you want to do something else, it's usually an easier transition. Just don't go into research and think you're going to be balling out. The only balling you'll be doing is on the firm's tab with clients, and even then you'll be wishing you could be sleeping.
I spent $40k of my firm's money at Scores. In the course of about two hours. My boss didn't even bat an eye.
>>582064685 Every trader has the 'if only' story, it happens, it doesnt matter. keep on, keeping on as they say
lol, well, age does factor into the prop side, I mean, Im 26, and Im a fucking dinosaur on the floor. But thats fine, Im looking to do what you want to do, coast.
The key is to have some money behind you, and an MIT brain, you;ll be able to process the information on a useful level. Its getting the confidence to back yourself instantly, instead of missing out and saying 'I told you so'. You need to think, 'Californian earthquake? buy western home-builders', not 'earthquake, how sad'.
If you've got the mind for finance, it really is the perfect place to coast.
>>582066650 Asking a hedge fund trader if their firm held MBS? MBS, pre-crisis were akin to Treasuries. Low risk, low yield. The "toxic" shit that was backed by liar loans and the like might have been owned by some funds, but probably only funds that specialized in fixed income investments and even then, only small exposure. The reason why the fall was so hard was because those shit-tier MBS were stuck on bank's balance sheets, creating a liquidity crunch in the markets. Meaning, banks had to sell shit into a market where there weren't enough buyers to make reserve requirements. This selling across all asset classes hurt all the markets. Shit got real, and fast. The fucking overnight rate was trading at a 200 bps spread. THE OVERNIGHT RATE!
I know this means nothing to you, but hedge funds didn't start getting interested in MBS until they got beat the fuck up.
>>582068981 I don't doubt that you work around hedge funds. You just don't have the resume that projects front office, so it's pretty hard to believe. And the story of how you got there is highly unusual.
I know a bunch of hedge fund traders, former colleagues, and you're talking Harvard PhDs in physics here, just to get in the door.
How do you best start one? I feel like all you need is to convince some rich assholes that you're better with money than they are.
Basically all you do is take other people's money, jam it in something that takes on a shitload of risk, and hope it pays out. Only way to beat the market, and every incentive to do so, other than ruin your reputation.
Hey OP, I'm going to be studying chemical engineering and I've heard that a substantial proportion (maybe 5%, substantial considering it's a vocational course) of graduates go into finance and earn more than graduates who work as engineers. What could I do to make myself more attractive to financial employers? What kind of work would it involve?
>>582072056 Cheap index fund. Depending where you are there are plenty of index funds that track the major stock indexes which will provide you with a great return with minimal fees. I have a few index funds and the highest has a mer of like .53% which is ridiculously low. With actually picking securities it's not so much as actual stock picking as it's more asset diversification. You're going to be spending too many fees to try and get the portfolio you want when a simple index fund will grow your investment at a moderately safe and quick rate. My index fund in less than 30 days grew over 6% and all that does is track the S&p 500 which I feel is the best index to track.
>>582048967 People buying houses they couldn't afford would have happened in the first place, and would have been an issue if there was a remotely sane assessment of risk in the financial system as a whole.
The heart of finance if risk management. It doesn't matter if you assume a huge risk if it is returned with an equally huge reward. Likewise taking on a small risk, but where the reward is even smaller than the risk, is stupid (ie the vast majority of stocks: "Yay let's take 6% interest for stupidly high volatility! Doesn't make any sense you say? Well just change the math so that estimate does make sense!").
People taking loans out of homes they can only afford the interest on is fine as long as the people offering the loans and selling the loans price everything with the appropriate risk. The big problem in 08-09 is a massive underestimation of the amount of risk spread throughout the financial system.
In general there is this belief that "doing risk things" is what makes finance fuck up. But that's not at all the case. Financial crises occur whenever there is a systemic underestimation of risk, independent of how 'risky' the underlying investment is.
>>582074601 >People buying houses they couldn't afford would NOT have happened in the first place, and would NOT have been an issue if there was a remotely sane assessment of risk in the financial system as a whole.
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