I know most retail traders like to think of themselves as being traders, market makers, economists and technical analysts all rolled into one. This is not the case in the institutional world where each roll is very carefully defined:
Spot dealer or market maker: You wear white socks with cheap shoes and an expensive suit. You can remember every single trade for the last 30 years but you only recount the good ones. The longest you’ve ever held a position was that time you popped out for a smoko. When you hear the following terms, (you immediately think of): Prop trader (half-day), Analyst (yesterday’s weather), Strategist (I’ll take his stops on my books), Economist (sorry, what’s that).
Prop dealer: You are of course a master of the universe and you dress accordingly, soft shoes no socks of course. Losses as well as profits are worn as a badge of honour and it was their fault for hiring you during a draw-down phase! When you hear the following terms, (you immediately think of): Spot dealer (sell 20 for me, take a pip for yourself), Analyst (Shrink, yes I’ve got one), Strategist (Puhleeese), Economist (sad sod on only $400k).
Analyst: Well, let’s face it, you’ve failed at all the others so you are now an analyst or worse still, an independent analyst (unemployed). When you hear the following terms, (you immediately think of): Prop trader (I used to be better than him), Spot dealer (I used to be better than him), Strategist (I am better than him), Economist (I am better than him).
Strategist: You get 4 out of 5 trade directions right yet you still lose money. The spot dealer wants to enter the market when you are stopping out. Your own wife asks you who you are twice a week. When you hear the following terms, (you immediately think of): Prop trader (I hate him), Spot dealer (I hate him), Analyst (Shrink, yes I’ve got two), Economist (I hate him).
Economist: You are 55 but look 42. You dress impeccably, elegant and sophisticated. You are the lucky sod on $400k. When you hear the following terms, (you immediately think of): Prop trader (Something to do with the theatre?), Spot dealer (Dog salesman), Strategist (Hairdresser), Analyst (Interior designer).
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