Goldman Sachs et al.

[DITD]

Star traders from Goldman Sachs and other large banks and hedge funds have been in the news recently for the bonuses they earned in 2005.

This may appear a stupid question but do they use the same principles as me (a novice) which focus upon support, resistance and trendlines? An obvious follow up question is why are they so damn successful when the rank and file are struggling to make a decent return? Is it to do with very sophisticated computer programs which we simply do not have access to?

Are any posters here successful traders who are or were once employed by the likes of Goldmans or are they just too busy making money to devote time to this or any other discussion board?

 

[TWI]

A particular trader will often focus on a specific areas of expertise and in the banks see a large amount of customer flow, have talented teams of originators, quants and analysts and have enough capital to take on large positions. There are many different methodologies employed including technical discretionary, algorithmic and fundamental. You also only hear about the big success stories.

 

[billiondollars]

Not all big boys are performers. Even Citi group has losers. But 1% return on 100bn account can bring 1bn to the bank and handsome bonuses to the traders. Don't think that they are any better in terms of personal discipline. As for the small timers, 20% return can hardly make them seriously rich. That's the bitter sweet situation about capitalism. You gotta be big. Play with money. Money is based on perceived value which in turn can be created, like credit creation. When a middle-class professional is trying to save a few thousand dollars out of hard earned income, billions of dollars are being created at the banks and financial institutions. Just try to be a better trader each and every day. Play with leverage and become seriously rich sooner than you expect. Think like a billionnaire and become one.

 

[jmreeve]

Yes it all come down to trading with very large sums of money.

They will likely not be trading the same way as you because the practicalities of
moving hundreds of millions in and out of the market means they can't.
For example, stop losses are not practical for large positions.
To exit you have to pick times when the market is liquid enough to let
you out.