Be a commodities trader

Originally Posted by yyw8522

Dear all esteemed bros,
I am 31 this year. rot in construction sector for my last 7years in a low income for a lost cause. I work as an engineer and I'm very keen to try commodities trading. I have nothing to lose....paycut im ready, I'm willing to work and learn fast. any pointers? esp from ppl with the same background whom made the switch.

Even a junior trader will likely be paid much higher than you. The problem isn't your willingness to paycut, this industry is just not the kind that you can just put up your hand knowing nothing and nobody and expect to get in.

Originally Posted by Unregistered

Even a junior trader will likely be paid much higher than you. The problem isn't your willingness to paycut, this industry is just not the kind that you can just put up your hand knowing nothing and nobody and expect to get in.

True. Unless you want to start in admin or execution, which is pretty damn operational.

TRAFIGURA GLOBAL COMMODITY TRADING GRADUATE PROGRAMME
://jobscentral.com.sg/jobs/trafigura-global-commodity-trading-graduate-programme/singapore/management-trainee/jhp37j6c01dfwfcnr2s/

hey guys, let me share some insights.. im current a trader with one of the major. here are some facts to pop ur bubbles or hopefully shed some light.

physical trader vs paper trader, who earns more? Normally paper traders.
Big commd coy like paper traders with solid physical exp. Why? because you understand the market, what makes it move and be able to put a position which is more fundamentally sound. i.e. not going to gamble with coy monies.

ways to become a trader? there are many.
1) join the grad program/ trader program = have higher chance, training and exam not easy to clear, so its not a sure thing too.
2) from ops/ other roles become trader = very hard, because everyone is gunning for those role. what makes the global manager pick an ops over a trader trainee? quite clear right. not impossible, but very very hard. more likely to happen in a small shop but then again jumping from a small shop to a big shop - not easy as well.

Pay wise
trainee = 5k- 6k/mth (bonus depends on your team and PnL, maybe 6mths? or more)
jr trader = 7-8.5k/mth (bonus depends on ur PnL, can be more can be less)
trader = 9-12k/mth
trading manager = 12-15k/mth
goes higher as we go and so do the bonus.

BUT guys, please dont think its easy money.... working hours are mad.... you prolly start late like 930ish but you end like 930ish... if you do the paper markets prolly till midnight?

depends on what you want in life. all i can say is trader life isnt for everyone.

Originally Posted by Unregistered

hey guys, let me share some insights.. im current a trader with one of the major. here are some facts to pop ur bubbles or hopefully shed some light.

physical trader vs paper trader, who earns more? Normally paper traders.
Big commd coy like paper traders with solid physical exp. Why? because you understand the market, what makes it move and be able to put a position which is more fundamentally sound. i.e. not going to gamble with coy monies.

ways to become a trader? there are many.
1) join the grad program/ trader program = have higher chance, training and exam not easy to clear, so its not a sure thing too.
2) from ops/ other roles become trader = very hard, because everyone is gunning for those role. what makes the global manager pick an ops over a trader trainee? quite clear right. not impossible, but very very hard. more likely to happen in a small shop but then again jumping from a small shop to a big shop - not easy as well.

Pay wise
trainee = 5k- 6k/mth (bonus depends on your team and PnL, maybe 6mths? or more)
jr trader = 7-8.5k/mth (bonus depends on ur PnL, can be more can be less)
trader = 9-12k/mth
trading manager = 12-15k/mth
goes higher as we go and so do the bonus.

BUT guys, please dont think its easy money.... working hours are mad.... you prolly start late like 930ish but you end like 930ish... if you do the paper markets prolly till midnight?

depends on what you want in life. all i can say is trader life isnt for everyone.

Currently a junior trader and whatever this guy says is 100% correct. Late nights up to 230am is a norm because that is when the market closes.

[unknown84]

Hi Guys, I just left my previous job as a oil scheduler and now joining a big AG house as an AG trade executive. Just curious, since im still junior, would it be possible for me to go back to oil or other commodities in the future or would i just be stucked at doing my own commodities. How often do you see people moving around commodities? Any answer would be good!! Thanks

Originally Posted by unknown84

Hi Guys, I just left my previous job as a oil scheduler and now joining a big AG house as an AG trade executive. Just curious, since im still junior, would it be possible for me to go back to oil or other commodities in the future or would i just be stucked at doing my own commodities. How often do you see people moving around commodities? Any answer would be good!! Thanks

For junior/back office roles, we do see people jump between different commodities every now and then (not often though) but when you talk about traders, we seldom see a agri trader become an oil trader and vice versa...i guess trading is all about the networking and difficult to jump between comms...

Movement WITHIN that particular commodity space (be it inter-department or joining a competitor) is more commonly seen than movement BETWEEN commodities (oil to metals to agri etc) but it is not impossible. Also, note that most commodity houses do not often openly advertise that they're hiring for particular positions as they do not want their competitors to know. As someone mentioned earlier, it's essentially all about networking and who you know in the industry

for a commodity broking desk, what are the pros of hiring someone with no experience and grooming him as compared to hiring someone who has experience/related experience?

Originally Posted by Unregistered

for a commodity broking desk, what are the pros of hiring someone with no experience and grooming him as compared to hiring someone who has experience/related experience?

cheaper in the long term and short term. Because they are willing to learn and say yes to everything, can pay them less, do lots of stuffs, and complain lesser than the old birds.