REAL WORLD
It May Be The Apple Of Your Eye, But It's Still ...
The Business Of Trading
by Don Bright
Trading is a business, and all traders should treat it as such. Over the years, we've seen trading for a living evolve from an exclusive club of members on a trading floor of some kind to an almost universally accessible business opportunity. Technology has had a lot to do with this phenomenon, but certainly that is not the only factor. For instance, the jobs market on Wall Street has tightened over the last decade or so, leaving many traders to seek alternative ways to continue their involvement with the markets. In addition, recent college graduates, hoping to get a cushy job with a Big Investment Banking Firm, have found the competition brutal and opportunities dwindling.
What else can these young minds do to achieve success? Buy a franchise? Start a research firm? Start a hedge fund? Get a job on an exchange? Any of these options can be exercised, but another, less-known alternative not only exists but is once again on the upswing.
WHAT COULD IT BE?Back when my brother Bob and I first started trading in the 1970s, we had to buy seats on the various exchanges. These memberships were not cost-prohibitive back then, but they sure can be now. After joining the exchanges, we found an unbelievable opportunity. We could deposit a little money with our clearing firm, and use the firm's money to trade with. A million or more -- and we could keep all of our trading profits! No profit split like the trading firms were taking, back in those days.
...Continued in the August issue of Technical Analysis of STOCKS & COMMODITIES
Excerpted from an article originally published in the August 2008 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2008, Technical Analysis, Inc.
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