How To Be A Rogue Trader - News and Current Events | futures io social day trading
futures io futures trading


How To Be A Rogue Trader
Updated: Views / Replies:842 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

How To Be A Rogue Trader

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,893 since Nov 2010
Thanks: 3,307 given, 3,341 received

How To Be A Rogue Trader

Becoming a rogue trader is easier than you think, and now there's a handy little ebook to show you how to do it: "How To Be a Rogue Trader," by Financial Times columnist John Gapper, published by Portfolio/Penguin on Friday.

Maybe you want to impress your friends and family with an enormous, but undeserved, year-end bonus.

Or maybe you'd just like to take a big bite out of a major world bank like Kweku Adoboli, who allegedly lost $2.3 billion trading for UBS AG (UBSN.VX, UBS) and was arrested in September; or Nick Leeson, who brought down the 233-year-old Barings bank with a GBP830 million loss in 1995, at age 28.

"We have become so used to rogue traders that, no matter how severe the shock to the banks involved, it is no longer a surprise when another one appears," Gapper writes.

To become a rogue trader, you need not have attended an Ivy League school. You need not have come from a wealthy family. In fact, it's better to have a chip on your shoulder about your relatively impoverished past. It keeps you hungry and steels your highly evolved aversion to risk aversion.

Gapper says it's also best to start your career in the back office, where you learn how the trades are supposed to be reconciled and befriend the people who are supposed to do that. Then, once you are promoted to the trading floor, you'll find plenty of economic incentives to trade aggressively, double down on losses and then conceal the losses when the ill-advised doubling down goes south.

Along the way, you will learn to enter fake trades and cancel them before they are checked in the back office. And you also will learn many simple but effective accounting tricks, playing with the valuations of exotic securities.

You will be amazed at how willing your bosses may be to look the other way on violations of trading policy as long as you appear to be making money, Gapper writes. They may not complain about sloppy accounting because, despite all the talk about tough financial controls, the whole place has incredibly sloppy accounting.

It also helps to be charismatic, but the bosses may tend to believe any fake gain you tell them about because, well, they want their year-end bonuses, too.

"Rogue traders exploit the gullibility of their bosses by producing low-volatility returns, which is what every bank craves," Gapper writes. "They do not appear to be reckless gamblers; they seem to have solved the conundrum of finance, that high rewards involve high risks. It is so enticing that no one realizes it is too good to be true."

It's so good, why not leave it alone until the losses mount into the billions and threaten the continued existence of the entire firm?

"The simplest thing you can do is follow the money," Gapper said in a telephone interview. "It's a weird thing that banks, after all these years, keep falling into this trap.

"A lot of this stuff is extraordinarily simple. A lot of times, rogue traders are just putting on fake trades and canceling them. And they are taking advantage of these little gaps in the reconciliation system," Gapper said.

The most-difficult part about being a rogue trader is dealing with the growing pressure that comes with the game. "Most of us, if we were a couple of billion down, we'd have a hard time carrying on," Gapper said.

Leeson resorted to over-eating, stuffing his face with candy. David Bullen, who cost the National Australia Bank AU$360 million in 2004, became a Buddhist. "He tried to convince himself, religiously, that it just didn't matter," Gapper said.

But most rogue traders do not have the composure of a Bernie Madoff, who ran a Ponzi scheme for decades and didn't seem the least bit bothered by it, Gapper said. They can, however, easily blend into a crowd on a trading floor where everyone seems to be nervously playing a vicious game.

"This sort of behavior is absolutely common on trading floors," Gapper said. "The difference is, does it stop after a few hours, or does it stop after a day or two? The weird thing with rogue traders is that they just carry on....You can't just say they're like everybody else. There's something freaky about them."

Life after rogue trading typically involves prison and writing a book, like Jerome Kerviel, who concealed an unthinkable EUR4.9 billion loss at Paris-based Societe Generale (SCGLY, GLE.FR) until 2008.

"To the fury of those who failed to catch him, Kerviel quickly became a cult hero and promoted the idea of himself as a victim," Gapper writes. "In his memoir...he described being surrounded at Societe General by a 'giant fraud perpetrated by all the trading floors in the world.'"

If the banks are routinely committing fraud, why not get a job at a bank and commit your own fraud?

"The natural strategy is to say, 'Well, really, the bank made me do it, and it was never my fault at all,'" Gapper said.

And the bank will counter by labeling their once-trusted trader a rogue and claim its own victimhood.

"With all these repeated cases, you'd have to say it's like a bad relationship," Gapper said. "Both sides are kidding themselves about it."

eFXnews : How To Be A Rogue Trader

Reply With Quote


futures io > > > > How To Be A Rogue Trader

Upcoming Webinars and Events (4:30PM ET unless noted)

Fundraiser: Feeding Families in Need (ends Dec 17)


Battlestations! Show us your trading desks w/GFF Brokers ($750 in Prizes)


An Afternoon With Morad Askar (aka FuturesTrader71)

Elite only

TBA w/Brett Steenbarger

Elite only

Traders Tax Advice w/Ryan Curran CPA

Elite only

Black Swan Events w/Adam Grimes

Elite only

Similar Threads
Thread Thread Starter Forum Replies Last Post
Ninja Trader chart trader toggle? GaryD NinjaTrader 5 December 17th, 2011 12:40 AM
Guest Post: When Governments Go Rogue Quick Summary News and Current Events 0 December 2nd, 2011 04:20 AM
Rogue algorithm may cause billion dollar damage in 2012 kbit News and Current Events 0 December 1st, 2011 06:58 PM
What makes a bank trader go rogue? kbit News and Current Events 0 October 27th, 2011 11:40 PM

dow, ebook, how to, portfolio, strategy, trading, volatility

All times are GMT -4. The time now is 03:31 PM. (this page content is cached, log in for real-time version)

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432 WhatsApp Business,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-12-16 in 0.09 seconds with 14 queries on phoenix