Thoughts on private/retail trading as an advantage to office based/corporate trading

[MrPaul 10]

I thought I would start a thread on the ADVANTAGES of retail/private trading.

 

Feel free to add...

 

The ability to customize the workspace in fine detail (colors/space/smells etc.)

 

No one watching over your shoulder, no one to report to.

 

Ability to practice relaxation techniques that may seem intrusive or distracting in an office

setting.

 

The choice of complete silence, talk, or even music.

 

The flexibilty to leave your desk at any moment, for any reason, without notice.

 

Your choice of attire is limited only by your imagination. No dress code.

 

Your trading machine is not dictated by office politics (as customized as you want it, with

the platform you are most comfortable with, and the indicators you utilize the most)

 

You don't have to feel pressured to trade, or be in the market constantly (the 9:30-4:00 grind)

[walterw 10]

Resuming... Trading your own acct = pure enjoyment ¡¡

 

No doubt that once you master a method and trade it for yourself on the confort of your home, trading, probably is one of the most confortable careers in the world.

 

cheers Walter.

[Soultrader 12]

Interesting thread Paul, I will add a few comments from my exprience.

 

Advantages of a retail trader:

 

- Flexibility of trading tools. Insititutions require traders to use tools that they have only. Third party add-ons are unlikely to get approved.

 

- The level of noise. Retail traders can enjoy their choice of dead silence or loud noise such as listening to pit noise.

 

- I found this to be most important. The FLEXIBILITY OF TRADES. A retail trader can easily call it a day after 2 morning trades. Insitutional trading requires you to sit there and trade all day. (leads to poor setups)

 

- The flexibility of the financial instruments and markets you choose to trade.

 

- Politics as usual.

 

With the current technology and information retail traders have sufficient tools and knowledge to compete evenly in this game. Although there are definitely disadvantages for retail traders (mainly information distribution), retail traders have an edge in terms of flexibility. I think trading tools and equipment retail traders now use are more sophisticated than insitutional traders. Also due to the size of the trades, retail traders are able to get in and out easily.

[Nick1984 10]

Advantages of institutional traders:

 

-Superior information collation and dissemination

-Large capital reserves (you can afford to make a few mistakes!)

-Highly Competitive environment forces you to be good or you loose your job!

-Friday night drinks at that lane way bar after nailing a nice move

-Chicks dig guys in nice suits

[Soultrader 12]

Advantages of institutional traders:

 

-Superior information collation and dissemination

-Large capital reserves (you can afford to make a few mistakes!)

-Highly Competitive environment forces you to be good or you loose your job!

-Friday night drinks at that lane way bar after nailing a nice move

-Chicks dig guys in nice suits

 

So true... lol

[OAC 10]

-Chicks dig guys in nice suits

 

I don't know about other countries, I think dress code for all traders in the U.S. is casual.

[MrPaul 10]

I don't know about other countries, I think dress code for all traders in the U.S. is casual.

 

It may be in prop firms or other structures like that. But in many banks/funds/institutions it's formal work dress

[OAC 10]

Back in the 90s, I remember every Friday was a casual day for everybody on Wall Street. When you are in the center of the financial universe, you don't need to prove anything. i think financial people outside of Wall Street dress up to look the part. If I had to dress up, I wouldn't just throw on a tie, I would put on a suspender too. :o

[walterw 10]

I love my pijamas in winter and my swimsuit in summer lol...

[Soultrader 12]

We had casual Fridays also and our dress code was extremely casual during the rest of the days. It makes you wonder why do we even have casual Fridays? But this is only for the trading floor.

 

However, I chose to go in a suit everyday. And yes, we had the typical Gordon Gecko suspender looking managers as well.

[OAC 10]

I love my pijamas in winter and my swimsuit in summer lol...

 

http://www.trading-naked.com/, one of the best trader's sites on the net.

[walterw 10]

http://www.trading-naked.com/, one of the best trader's sites on the net.

 

after TL ¡¡ jejeje..

[Troutboy 10]

NYSE is still jacket and tie (except for Steve Case). Don't know about other exchanges.

Don't you find things a little distracting to trade at home? (vs. private off site office)

[OAC 10]

Don't you find things a little distracting to trade at home? (vs. private off site office)

 

If you live in a mansion like some of us, then it really does not matter because you will be spending most of your time in the trading wing.

[MrPaul 10]

If you live in a mansion like some of us, then it really does not matter because you will be spending most of your time in the trading wing.

 

But of course!... and let us not forget we always have the private jet and the yacht to take out when the help is busy.

 

 

 

:o

[walterw 10]

Absolutely true... key is having all the villa personal trained not to disturb... jjejeje

[mister ed 10]

I think trading tools and equipment retail traders now use are more sophisticated than insitutional traders.

 

James - could you expand on this? The conventional wisdom is instos have next generation tools compared to retail etc., not the case though? Thanks!

[Soultrader 12]

James - could you expand on this? The conventional wisdom is instos have next generation tools compared to retail etc., not the case though? Thanks!

 

For retail trading, third party vendors are getting so competitive that they need to keep making their charting platforms better. Majority of the trading tools in insitutions are built in-house or use Bloomberg or Reuters. These two platforms are great for data and news but can not compete with top industry charting platforms.

 

However, systems that insitutions build for automation, arbitrage, etc... can not be built by a retail trader. The more money you are trying to generate out of the markets, the more tools you will need imo. But I think the typical retail trader has all the tools that he needs to trade successfully.

[Troutboy 10]

Dear OAC, WalterW and Mr Paul,

I'm starting to get a little intimidated here, stuck here in my servantless hovel.

[mister ed 10]

For retail trading, third party vendors are getting so competitive that they need to keep making their charting platforms better. Majority of the trading tools in insitutions are built in-house or use Bloomberg or Reuters. These two platforms are great for data and news but can not compete with top industry charting platforms.

 

However, systems that insitutions build for automation, arbitrage, etc... can not be built by a retail trader. The more money you are trying to generate out of the markets, the more tools you will need imo. But I think the typical retail trader has all the tools that he needs to trade successfully.

 

Thanks James - valuable perspective. Be interesting to hear about the execution technologies employed, advantages/disadvantages - if you can speak about them.

[james_gsx 16]

For retail trading, third party vendors are getting so competitive that they need to keep making their charting platforms better. Majority of the trading tools in insitutions are built in-house or use Bloomberg or Reuters. These two platforms are great for data and news but can not compete with top industry charting platforms.

 

However, systems that insitutions build for automation, arbitrage, etc... can not be built by a retail trader. The more money you are trying to generate out of the markets, the more tools you will need imo. But I think the typical retail trader has all the tools that he needs to trade successfully.

 

I have seen a few prop firms use a institutions software for clearing and information that the retail side can't get, like arbitrage etc. But they use eSignal for charts. Is this becoming more common?