I'm sure it's been asked before but....

[Jaydee]

I'm not sure if this is a completely stupid question or not so please forgive my ignorance but, how much can a decent prop trader make in a year, assuming average market conditions?

The reason for my question is:

I work in London for a well know firm at the centre of the financial markets. I earn a half decent wage and have a pension, private medical insurance, etc. I really want to be a trader, mainly because I want to be my own boss in charge of my own earnings and not have to wait for the yearly pay review. Also, I love the markets and am well read when it comes to trading, tech analysis, candlesticks etc (I do appreciate that reading books will not necessarily make me a good trader though).

So, I'm trying to weigh up whether I should take a chance and join one of the exciting trading arcades for a pittance of a wage with no benefits at all, or stay in my secure job with benefits.

Thanks
JD

 

[tommog]

Hi,

Getting into a firm isn't your meal ticket to a fortune by any means. The majority of traders work for their own profits and get nothing from the company, nothing is gauranteed. It is quite possible to go into a firm and not be profitable at all. As for how much you can make that is pretty much determined by : leverage available x risk willing to take x skill. All of these vary from trader to trader so its almost impossible to say. But if you want a ball park figure a good trader with a good few years experience under his belt can make in excess of £100,000 per year, some make much more, but others dont make money and fall to the wayside its a hard question to answer.

Tom

 

[Jaydee]

Hi,

Getting into a firm isn't your meal ticket to a fortune by any means. The majority of traders work for their own profits and get nothing from the company, nothing is gauranteed. It is quite possible to go into a firm and not be profitable at all. As for how much you can make that is pretty much determined by : leverage available x risk willing to take x skill. All of these vary from trader to trader so its almost impossible to say. But if you want a ball park figure a good trader with a good few years experience under his belt can make in excess of £100,000 per year, some make much more, but others dont make money and fall to the wayside its a hard question to answer.

Tom

Thanks for the reply.

Hmmm, it's as I suspected. I guess the only way to get some securtiy and a decent start is to work for one of the big merchant banks - very hard to get into though. Oh well, I'll have to have a think.