As I’m studying workers on the trading desk (Wall Street) I’m noticing more and more this industry is going downward. Structurally, the core fundamentals of this business are repositioning its’ market participants into new areas of value. All thanks to regulation, the banking industry made up of investment bankers and hedge fund managers is in structural decline.
Let’s not forget the Internet has made it possible for anyone with a 21st century devise the means to gone online and gain access to the same information any professional trader has access to. That’s real power, opportunity, and marketplace change i.e. volatility.
The profit centers at Investment Banks are decreasing more and more in terms of compensation and number of jobs. Even the traders are getting paid 15% less then they did years ago.
Source/Research – Insitute of Trading & Portfolio Management – a new company I’ve discovered who have built interesting educational products.
Professional trading in big business is structurally declining. Currently, it’s reaching a point where the commission aspect of the business is causing their MVP’s i.e. traders, to earn less money.
Why? Many reasons, such as an inflated surplus of applicants to investment banks, declining commissions payout in the industry.
My Thoughts (no data to back up)
Retail traders and small hedge fund businesses without public stakeholders in their ear have an opportunity to beat professional traders at Wall Street.
Small entrepreneurs across the world are working on Artificial Intelligence and Quantitative Analysis problems to implement into their business operations and investment decision matrix. That’s a smart business model.