Trader Career Guide and Counseling

Question: why is trader joes so popular and do they offer the best value for your money? I work at Trader Joe'e in Ardmore I would love to know what the appeal is to this store. If you havent been there you might want to check it out and post an answer.

Answer: I think it is the diversity of their products, the quality of them and the way the company makes shopping there fun. I love going to the one in Westfield, NJ. You can always find somthing different for entertaining and I think their prices are good value for the products.

Question: How drawings work with sole trader and company strucutres? I may be wrong but my understanding is under a sole trader structure: Your earnings from wages (such as from a job) and earnings from business activities are combined to calculate tax, therefore there are no drawings as such as it is all under the one umbrella (yourself). Under a company strucuture: Profit is taxed under the company, then the owner can take out drawings, these are then taxed again under personal income tax. I'm probly wrong, but can somenoe show me where I'm wrong.

Answer: You're right about the sole trader structure. You are just drawing on your own net profits which are already subject to tax on an individual entity basis. So it makes no difference to tax. You have every right to withdraw your profits from the bank at any time without taxation consequence. With a company it's different. The company is a separate legal entity to your own individual entity even if you are a shareholder/director/owner of it. A company is like a fake person. You can be an employee of a company (because it's a separate entity to you) but you cannot be an employee of yourself (as a sole trader or partner in a partnership structure). If you are personally paid any money (or withdraw) from company funds then it generally has to be in the form of wages/salary which is subject to PAYG withholding (just like when you work for someone else as an employee, because the company is not you) or as a franked dividend (being a distribution of profits which the company has already paid tax on, entitling you to an imputation/franking tax credit). The company is entitled to claim an expense against income for PAYG wages/salary paid to you, but not for distribution of profits (dividends). If you just go willy-nilly personally withdrawing money from the company bank account without accounting for it under PAYG or the franking account then it gets very messy. Unless you have a legitimate documented loan agreement, the payments to you are deemed to be unfranked dividends which are neither deductible against company income nor carrying tax credits to you like franked dividends do. Not good... and a total nightmare for your accountant to avoid ATO audit. Never ever take money out of the company bank account without accounting for it properly! If you're operating under a company structure then you need to have a very good understanding of Division 7A of the Income Tax Assessment Act. And an accountant who can explain it to you with a good understanding of your individual circumstances. Good luck :)

Question: How can I obtain a trader plate as an independent business owner? I am looking to start a business trading cars in the UK. I would need a trader license. Where could I obtain one, what are the requirements and procedures that I have to go through and how long each stage will take? Cheers.

Answer: Im not sure why you would need a trader license. I think you could simply start the business with a business bank account.

Question: How does one become a professional stock market trader? What type of schooling or degree do you think is required to make a good professional trader or investor? a cut above a home trader.

Answer: Finance

Question: How can I get a job as a floor trader on the Merc Exchange on Wall Street? Just heard a little bit about this from the book "Rigged" and I'm curious if a floor trader can make as much money as the book talks about and if so, how to go about getting a job as a floor trader. Thanks!

Answer: First off you need some kind of financial education. Then apply with the different brokerage houses. You may have to work in an office for a while before a position comes open. Good luck to you!

Question: What can you tell me about being a derivatives trader? What is derivatives trading? What kinds of things do you do? How do you invest derivatives? What skills are needed? What makes a good derivatives trader? What is the life of a trader like? Where you can get a job?

Answer: Derivative Is a financial product, which is based upon another product. Futures are based on commodities, financial indices or securities. Options are based on futures, securities or cash markets. Forwards are extensions of the cash market across time. Generally, derivatives are risk management tools, however they are also used for investment or speculative purposes. Option trading strategies They can be market directional, volatility directional, market neutral, volatility neutral, time value capture, time value payment, and numerous variants of the aforementioned. The basic building blocks are puts and calls. Futures contract It is a binding agreement between two parties to exchange a standard amount of a standard quality of goods, at a specific time and under specific terms and conditions set by the exchange. They are instruments predicated on a cash commodity or currency, a financial instrument, or an index. These are standardised contracts, which are traded on organised exchanges. The standardisation is one of the key factors, which differentiates these instruments from forward contracts.

Question: What is the difference between a trader and an investment banker? I am interested in majoring in Business Finance and I am trying to find out about some jobs I could get after college. The two jobs that I am interested in are investment banking or trading (possibly stock trader). So, what are the major differences between the two? Also, are these jobs ones that you could get an internship and do you really have to be in the top schools to get into a good job in these fields?

Answer: I have done one and am in the other industry. A trader is someone who... errr... trades. I hate to be so non-descript, but that's what they do. There are two types of traders, those that trade for their own 'book' and other that do not. Typical traders trade for the company they work for, either a brokerage, investment firm, bank, or other company that needs to deal with securities. You buy and sell according to orders given to you. So if you are given an order to buy 123 S&P 500 S&P 500 contracts, you call up a brokerage and you arrange with them how to sell. If you work for the brokerage, you arrange a counter-party if the security is traded over-the-counter (not listed). Otherwise, you place an order on the system if it is publicly listed, either through the specialist or electronically (if it's an automated market). An investment banker is like saying you're in the aviation industry. It's a broad industry that includes lots of different roles, from origination (ie, relationship management), capital market (ie, execution of deals), M&A, sales, research, private equity and other portions. However, the entire industry revolves around turning money into securities, servicing securities and/or buying/selling/advising about securities. Yes. You need to be from a top school. It is EXTREMELY competitive to get into the field. I had to beat out over 2,000 applicant to get into my entry level job way-back-when. Good luck... and careful what you wish for. You might get it.

Question: How do I get set up as a sole trader and what sort of costs are involved? I am interested in preparing myself to act as a sole trader - I have something in planning which will raise some capital, but then I want to become quite literally a trader - buying/selling/arranging inland transport and import/export of goods, buy cheap sell higher with an emphasis on quality of goods and a high level of service - nothing too complicated. I have access to a storage facility+ a contact who has agreed in principle to assist in the running of operations. I am not quite ready to start this yet and wonder if there is a way of "setting the scene" so that I can hit the ground running. Advice heard previously was to ask questions of those who have been involved in similar operations for at least five years where possible. I am and always have been a grafter, have done 96 hour weeks before now so I'm not scared by multiple commitments. The floor is open, I am in the early planning stages and don't think I could borrow from the bank for this sort of thing - any loopholes?

Answer: Get registered as self employed with the tax office. Go see a business startup specialist in a Bank. One of the best banks out there from personal experience were Barclays they have a team of business specialists they can provide loads of info including Starting and running your own business guides on CD Rom and information fact sheets, there are other sources of information you can obtain through Business Link too. Banks usually lend on a matched funding basis to new businesses, ie 50/50 but only if you can provide a cashflow projection and business plan up front. If you have already bought equipment to use for your business and can produce receipts this would be included in your 50% You sound like a hardworker, working for yourself is not always easy and does demand your time and effort, from what you have said you have no objections to doing this. The benefit obviously being that any money you make (less any deductions) is your own clear profit not someone elses. Anyhow, best of luck!

Question: What are the things a professional trader considers in a stock for short-selling? What is that they usually follow, what are their technical aides? What are the factors that they think would support short-selling? Just any professional trader.

Answer: Stock needs to have supply and not be already too short (which could result in others covering). Additionally you will want to have a catalyst that will result in either an up or down move. Example is the company has a drug that is passing phase 2 testing and the market has already priced-in that the drug will go to phase 3 trials. You will also want to review current short interest and understand the rationale for the short. Also, professional traders (be it sales traders, prop traders, hedgies, or buy siders) all communicate via IM during the day. You would want to be as close as possible to that inner circle. Briefing.com is a good way to also start to go.

Question: What kind of education is required to become a professional investor/stock trader? I am in the military, so I won't be making much money in my present vocation; however, when I do have time, I would like to study to be a professional investor, stock trader, or maybe even dabble in the foreign exchange. I am not looking for an MBA (I have a MAcc) or something to hang on my wall, I am looking for practical ways to learn to be a trader. Does anyone have any advice?

Answer: you do not need a formal education to become a stock broker. the guy that handles 5 of my mutual funds was in the navy for 6 years then went to work as an assistant at t rowe price. he now manages 9 funds and does a great job. your military background will help you get a job but you must know how the market works. read all you can about it. there are different series test you might have to take, series 6,7,62,63,65, depend on what you want to be able to trade. practice questions are available online. this will give you an idea of the things you need to know. it is not just about how a stock does during a trade session ex: The Securities Act of 1933 pertains to which securities market? a. Primary b. Secondary c. Third d. Fourth What is the third markets??? Which of the following does not apply as far as trading stocks on the floor of the NYSE is concerned? a. Time priority b. Price precedence c. Time and price parity d. Premiums How much of one company can a mutual find own? good luck this is a list of the series test you might need. dont be nervous, if it something you want to do, you will have no problem

Question: I just got an interview for a internship trader position at BNP Paribas, can someone give me tips? I'm a junior in college and I just found out that I got an interview to be a intern trader at BNP Paribas. Is there anyone who works or has worked for the company that can give me interview tips? Or is there anyone who has been a trader or is a trader who can give me tips? I'm very excited and I really want this job. Thanks for all your help.

Answer: wow!!! Congratulations....the only tip that I can offer is RESEARCH RESEARCH RESEARCH the organisation......They will ask you, "what do you know about us" and really impress them with details about their organisation...Don't just repeat the usual blurb: the number of offices and number of employees (they have heard that millions of times)..but try and have unique facts such as the projects that they are currently working on etc....

Question: Why would a day trader sell short and buy to cover simultaneously? What benefit (profit) does an institution's head trader reap from trading on margin, selling short and buying to cover simultaneously?

Answer: In the United States, you are not allowed to "reserve" a borrow for a stock. So, suppose the borrow for a stock is tight and you want to lock it in. The way you can do that is by "shorting against the box". You sell the shares short (thereby locking in your borrow) and buying the stock against (so as to not have an economic position). When the price is right for you to short, you can sell your long position and not have to worry about whether the stock borrow is currently available.

Question: Can I clear day trader pattern tag by transfering $25k and then get back to my previous funding amount? I am going to use my $20k so Iam not allowed to put them in trading. I just have been tagged by day trader ( B/c I have done 4 times daytrading in 5 bussiness days..., this really sucks). I am planning to raise my fund to $25k so that I can clear the title without waitting for 90 days. Can I do this?

Answer: http://www.finra.org/Investors/SmartInvesting/AdvancedInvesting/DayTrading/p005906

Question: What is the difference between a Stock Broker and a Trader, and? What would a person have to do become one. In other words what are the steps to becoming either a stock broker or trader. (background experience, education, skills, etc)

Answer: A world of difference. A trader could always be a stock broker, but very few stock brokers can be traders. One can call a stock broker a trader and they would be honored, but, if you're in your right mind you would never call a trader a stock broker, (it would be an insult). Many have college educations, but it is not a requirement, unless you want to work for a bank and/or mutual fund company who do require degrees even though there are no academic courses that can prepare one for trading. You should have some basic understanding of finance, accounting, and economics. It would help if you know the various markets, what products are traded in those markets and how trading is done. This will require some of your own education and willingness to study hard on the path to becoming a trader. There is no such thing as a trader trainee or training programs. Those that end up in trading had taken jobs in the trading departments and have worked themselves into trading. You don't worry about salaries, or what jobs they have you doing, you just do it since it's a way of learning or getting the shot at being a trader. Traders work as long as the markets are open, they don't stop and unless it's to get a drink, (and traders are known for that) they just keep going so you never complain about the hours or the working conditions. In the US - You need to be an employee of a Broker/Dealer so they can sponsor you in order to become a licensed stock broker. Firms usually want college graduates, but it is not really necessary nor really a requirement but many firms like it and make it their requirement. Bank broker/dealers usually want all the sales reps to be college graduates. Your college major is not important, (No courses in the Academic world prepares you to be a broker). But since your coming into the world of Finance, some of the more helpful majors would be Finance, Accounting, Economics or Statistics, You should be good at math and have a decent idea about the stock market.You should be good at selling, and it would help if you have an outgoing personality. So if you‘re good at sales, or have a good sales background in place of a college degree, you’re part way there. Try to get with any major brokerage firm they will put you through an in-house training program, which is primarily getting you ready to take the necessary test for licenses. You will need a Series 7 which is a General Securities Brokers test, and a Series 6 which is just for state approvals. Most brokerage firms, except bank B/Ds, will put you on salary and once you have passed the test, they will slowly take you off salary and put you on commission basis pay out. Banks will usually keep you on salary. If you have your choice, you’re always better going to work for a regular B/D rather than a bank - You will learn, faster, better and the proper way of how the industry works. As a broker for a B/D you can always find another B/D that will hire you or at the worse, you can always work for a bank. But if you’re Bank B/D trained and licensed, it’s very difficult to go work for a regular B/D Regardless of which direction you go, you won't regret it, just study hard and you'll do well.

Question: How do I become a trader / investment banker? I am 20 and have just majored in finance and economics (double major). I was wondering what the steps I need to take to have a fighting chance to try to become an investment banker or a trader? Also what are to big differences between the two?

Answer: move to manhattan or london. first step. try getting an internship at one of the big banks, citi, merrill, etc. but good luck, they are laying off lots of people because of the credit mess, etc. plus connections help ALOT. get to know the right peeps.

Question: Whats the difference between private ads and trade ads on auto trader? When searching for vehicles on auto trader, there is an option to choose either trade ads, private ads or both. Whats the difference?

Answer: Private ads are vehicles sold by private people like you and I. Trade in ads are vehicles sold by car lots and dealers.