Anton Kreil Explains What A Trader at an Investment Bank Does
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- Опубліковано 20 лис 2017
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Clip from "INVESTMENT BANKS DESTROYED" Parts 1&2 - • INVESTMENT BANKS DESTR... & • INVESTMENT BANKS DESTR...
Can't believe this type of video is free on internet.
J M and yet so many people keep falling for the same traps
It's not. Don't forget that UA-cam content is free thanks to Google!
You mean thanks to ads?
God bless the Internet.
well you and me may appreciate a video like this but the views on this video is only 117k ...
Finally a detailed explanation of what traders actually do and not just some bs like they create markets.
He reminds me of someone from slitheren house
A. S as I have always said Hogwarts missed a trick in not disbanding slytherin.
so true
Malfoy
now i am depressed even though im not a trader at an IB
I'm curious to know how many of the students in that auditorium still wanted to be investment bankers after hearing this.
A Mf why what is wrong?
This is not investment banking, it’s trading
Probably all of them. The biggest thing about the industry is ego
@@justusmattern6869 same shit in M&A
He wasn't talking about investment banking, he was talking about block trading.
Love how his videos have nothing to do with any flex.real and factual information.
Thankyou for being real :)
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I worked in Canary Wharf , and UBS Broadgate for the last 4 years, not as a trader, but I did experience the live floors, and it really is not very exciting, Also most the trading floors were empty.
It's increasingly all happening online.
>UBS Broadgate
Dealing with you lads sure is a lot of fun except for the fact that your bloody settlements/operations are all Indians that barely speak English. Jesus fucking Christ, god forbid if you have to process a coupon claim with UBS, I'd rather eat a sock than do that if it can be avoided.
Goldman does the same thing, but their Indians appear to be better at English at least.
I worked at Citi bank Canary Wharf for a month and saw the trading floor. It wasn’t empty at all..
@@heinrichb 😁😁😁😁 god bless us so that we can learn better English
This is Beautifully put, and so on point. 🤑
Thank you so much! This is gold!
What a great teacher
Good to hear some honest commentary
I'm a fan of AK but in this speech he seems to revel in smashing the dreams of these people.
Maybe for some of them - but now they will be making an informed decision when they choose a career.
I know two professional writers - the reality is basically the same as this with the publishing house - but they knew the reality before they went into the profession. And they don’t regret it.
@@thomaslink2685 Same with the military. Most are enlisted through deceptive practices and that's one of the main reasons why suicides are through the roof.
Anton telling it how it is no fkn bs
This is very insightful. Thank you ...
This man is my favt interms of personality!!
Simply amazing ❤️
Great explanation!! They hedge their risk by buying the underlying! The goal is to stay delta neutral, this is why following unusual options activity can pay off big time! Thank you for your insight.
Hey what do you mean they buy the underlying?
@@rachellyu underlying asset in a derivatives trade (ie stock, currency, commodity etc)
Sir, this is an art class...
i need this kind of confidence
Instesd of trying to gain it realize you already have it; now remove everything that takes away from it.
My man is crushing dreams and taking names lol! Amazing vidoe!
Confused on the risk trade - why would the client want them to sell the shares as opposed to an agency trade where they simply buy the stock through the trader
Anton Kreil.... could you post this again BUT with the camera footage of your audience? These lectures shoyld be compulsory veiwing for all financial industry interns.
I generally figured if one is getting involved in trading these days that it would mostly involve understanding/creating computer algorithms. Of course it's not literally a guy sitting there thinking, "I should buy x shares of y," anymore. Learn the computers instead.
like? what
I think you're refering to High Frequemcy (aka Algorithmic) trading which increasingly does makes up most of the trading on today's markets. The days of humans doing this job are indeed coming to an end.
However, I think he's trying to explain "How it Works" (in layman's terms) without giving away such trading secrets - pun intended!
Yep, unfortunately the nerds have ruined it. This industry had its day, and that day is over. Shoulda been born earlier :(
@@stancurry6265 that's not true at all. Those programs are done by humans. They're programmed to act like a human, only faster.
How could I make 4 options trades the week before last and hit a profit in all four? Computers are no different than humans.
They are not AI, they are simple programs meant to do specific things but faster. So actually they can be as predictable as humans if not more.
I went from the prop world to an investment bank and I couldn’t believe how dull it was. It was simply a case of handling orders pre-open and then watching the algos run through to close. Paid very good money though. Luckily I’ve now gone on to a fund where I am hands on spec trading all day and i wouldn’t swap it for the world.
Sean Mahoney what do you mean, “hands on spec trading”?
@@rickymcu probably means he is manually trading options
Which company are you working with ? I want to apply so badly!
2 year old comment but interested if you're still active on YT - do you have any tips/resources/insights for a young person who wants to put most, if not all, their money in small cap companies?
@@Conxnut how old are u
Amazing speaker!
LOL at the red bull on the desk.
I love how GREEN I feel watching antons shit. I've got so far to go and I feel like I already have a nice base.
I would like to know what you said later.
someone with ibank trading experience please explain to me how can you be a market maker x% of the time and be a pop trader x% of the time? there is conflict of interest here if I am that trader sitting on my desk and I see a massive buy order on let's say Tesla from let's say Blackrock, when I am trying to process the buy for blackrock (which might take 1 week), guess what I would do in my pop trading portfolio? To me execution trader and pop traders are and should be separated by a fire wall, based on logic. Again, I have not worked in an ibank trading desk, I worked in front office in the buyside but wasn't in trading so any answer from sellside traders would be good.
perfect anton
Moar, please! .. thanks
Great watch thankyou.
Many of you don't know what an investment bank is..... smh
1 of the biggest businesses of Investment banks are M&A.
Sales and trading has declined because of tech innovation. thus salaries lowered.
but on M&A side its slightly higher.
But everything else he says is right on and yes it does suck to go work 80 hrs a week but most bankers do it for only 2-5yrs and leave
Nice one Anton. Cheers
Leader of the dark brotherhood
Anton, can you help me out? I'm at University on an investment course but there is next to no technical analysis and fundemental analysis. Is there any books you would recommend as I am too poor to afford the institute courses.
Go to work
Maybe because they really dont matter that much
no FA or TA... what the hell are they teaching you?
@@notsahsoj5155 yes they don't teach you any of this, it's a private industry. Most of TA is just speculations it is also mentioned on the CFA website thats y it says you don't really need FA that much for trading.
@@saleh.hashmi that's bullshit everyone knows technical and fundamentals are important especially betting against the federal reserve ! Trade on your own and save your energy
here is my problem I have been making losses trying to make trade. I thought to trade demo is just like the real..can anyone help me out or at least tell me on what to do.
He’s more like a life Guru
now what am i supposed to major in, i want a job where i can feel that i am doing something productive and not watching algorithims.
Management Consultants with finance backgrounds are always usefull
Is he against hedge funds as well or does he like hedge funds?
Basis on an audience there, most of transactions would be like „I will give you 10 sheeps for 1000kgs of curry”
What should I do to make money in finance that is not watching an algorithm?
trade on your own its easy and fun manage your own funds gather people around you who got a real life job giving them a nice lifestyle ask them if you want a manager if they said yes risk will be theirs and the profit will be yours
NooBuildsPC lol “easy and fun”
What is the purpose of bringing in clients if you are losing money on the negative selection trades? Wouldn't the banks be better off investing the entirety of their capital into prop trading, considering they are using this mechanism to win back the losses from those negative selection trades?
because it gives them a sense of where the money is going before everyone else. see, they first take commission and fees on everyone else's trades and once they figure out which way the money is flowing they'll assign traders to do prop trading. or piggy back riding on the flow of money
New Regulations dont allow too much prop trading today. Prop traders have gone to hedge funds.
THE ANSWER: because 80% of the trades are ZERO RISK & FREE PROFIT.. While ONLY 20% are the “negative selection trades” u/he mentioned . Not all of these 20% = losing money, only a portion. That is what the 10% Prop trading aims to recoup.
Hence why the 80% Risk Free is the “bread & butter” ... ITS FREE MONEY!
How do you get in????
If 10% of time is given to prop trading to make up for the losses from agency trading and the negative selection portfolio which takes 80% of time, wouldn't it make sense that there is more money to be made prop trading than taking dumb positions because of dumb clients? Maybe I'm wrong.
Yes but as he mentioned their sort of forced to make negative selections to retain clients. If they spend more time prop trading then they are spending less time making markets and therefore losing clients to other investment banks which will obviously drastically decrease their commissions
If I was rich I’d hire him as an advisor on everything
Dream Profession
Which college is this?
What do you need to study to apply for an investment bank job in the trading and sales department ?
They prefer majors in finance, economics, maths that sort of thing
Went to a course similar to this last year in December, a note is that they are very snobbish at where your degree is from, i.e, if it's not from the top 10 or so Universities in the Uk (for UK jobs), you're most likely going to get your application declined.
@@Reverez top 10 for what? the top 10 changes depending on whatever it is. Top half of Russel group would probably be hard to differentiate between...
I'm graduating from chemical engineering university studies soon. Currently Im applying for a position as trader at several financial companies. I have experience in technical analysis, machine learning and programming. Anybody got tips for people switching to the financial sector?
Any update?
institutions dont use technical analysis you will get laughed out of the company
This guy is ace
someone mind giving me an example of "making markets in assets"
thanks
Usually providing a quote bid/ask for an asset.
a sandwich with too much mustard on it.
The best traders have no reason to stay working for someone else
Nice voice
When he talks about the bank selling the stock directly to the client is he talking about leverage? Can a client just say I want 50 million worth of APPL stock and I want the bank to pay for it?
They are paying the bank for the $50mn of apple stock
Is he hinting that the money is in retail trading now?
Jodi Mack no, feedom is the foundation wealth, that, and long term investment
I think he's trying to give the relatity of working at the major financial institutions that so many graduating business students aspire and compete to work for. Cut through the glits and glam, give students a realistic view of the industry today.
He has an business that trains retail traders.
After 2008 IBs in America don't prop trade
is the reason for 80% decline in capital/profits(?) due to stricter regulations after the 2009 crush? or, due to online passive trading platforms like Blackrock etc?
Due to technology mostly. The Algorithms are so good so fast, all the trading range is super small. Short term trading are profitable only to the brokerage creating spread and charging commission. Long term trading is not even trading, is just investing. On top of 2008 make all business leveraged up. So they have to pay off debt
Pretty cool guy :D
What you are looking at is automation. Technology is automating everything that does not change over time. If you want to make a good living, you need to be in the change part of the economy. If it is still not clear, the trillion market cap companies in US are all changing companies. Meaning what they do 10 years ago is totally different than what or how they are doing it today.
U seem like an insightful guy. Got any book recommendations that cover stuff like this?
Okay so as a retail trader, every stock or trade I buy and go long in, the market makers are taking a position in the exact opposite direction to deliver that to me, and often always win being short. 0% tax liability if the stock goes bankrupt from the excessive shorting. This continues to be the story of heavily shorted stocks. Brokerages are a scam even though they make it accessible for us peasants to invest. What a system.
Market makers absolutely have tax liability if the stock goes bankrupt. Might want to check your sources
Odd lot theory. They have done this for years
pretty soon all the prop trading will be done by machines too
Machines are great for short term trading but humans are better in long-term trading
The IB will take the 10M, charge the client 5k brokerage .Then they will use the 10M to short Apple then buy it back at 495 and keep another 100k and tell client he has his Apple at 500. The next day or week they will give the client a negative report on Apple convince him to sell it. They Sell at 497 and tell client the market moved fast and they got him out at at 492 and keep another 100k :D. They will keep doing variations of this until the client has no money. :D
What are you even saying
Calm video g.
Just trying to figure out why they would pay the bank to carry out the trade for 10Mill when the bank isn't even risking anything? Couldn't they do it themselves?
The trader "makes a market" by matching a buyer with a seller (so they don't have to) and charges a commission for doing so. A FOREX works the same way.
Marketmakers are "middle-men".
They're like an Estate Agents that buy properties from sellers then finds buyers for them.
Estate Agents don't go this far because property isn't liquid enough to justify the risk.
The value in company X being able to transact with the bank is that the bank can guarantee that the company gets their full block of shares for the same price. Someone please correct me if I am wrong.
Cool! Another one! First Post!
10 y or 9y?
trade on your own that's it
And where u gonna get the money to trade from?
@@a.3160 Learn Forex properly. You don´t need a lot of money to open an account.
@@a.3160 options baby you can start with like 2 grand and go up quite easily as the propositions are naturally leveraged
As a former Investment Banker i would like to share my experience and give advice for people breaking into career of finance: Get in, work as analyst for 2-3 years and start looking for new opportunities. Typically you would preferr to work in M&A department. Why? Because other departments are waste of time and energy. Be prepared to work at least 100 hours per week and taking shit from seniors. Say goodbye to your social life, workouts and healthy lifestyle. After couple of years start applying for Senior Analyst/ Associate postions at PE firms or Corp Dev.
Thanks! Do you have any more advice?
@Adam Dahl requesting can you please guide on how can one get started into this who has spent around 2.5 years working as a hedge fund accountant in India. Thanks!
Call out. MD on far stage right.
BIg job burn out by the time you are 30 then most die from heart attacks or stokes. Most are single as they work every hour possible so better ways to make money.
Yea the risks of heart attacks and strokes real.... can’t sleep well when sheet hit the ceiling.
Is this the same IB as in the US? Is he describing the same Investment Bank divisions as M&A and valuation? seems like a different job than what we know here in America, analysts at Investment Banks spend their time doing valuation models and putting decks together.
From my understanding trading is not all an investment bank does. They help make the prospectus for a company's IPO, help with bond issuance, do sell side research and advisory, handle M&As, raise capital etc... I think he misses a big point which is that a lot of people do investment banking for the exit opportunity. You learn fundamental skills in modeling and network within the industry, many then go into PE or start a fund, it's not just to stay their whole life at one company slaving away. I'm always skeptical of these financial gurus, as they say "those who can't do, teach" and I think that especially applies to finance more than any other subject.
Did you even bother to watch the video, let alone read a title. What “TRADERS” do at an investment bank
Wow.. very informative, but i think he really need to have enough sleep..
is that draco
malfoy
Investing make up the top notch hemisphere of the wealth. that's the more reason one should save and invest to secure profit and ensure success .
How many millionaires do you know who have become wealthy by investing in saving account?
I rest my case .
Looking a little sleep deprived
Well they dont fucking sleep obviously
You'd make more as a plumber,,,,,find a computer to do that.
Change your job and join our programmer world, LOL
Troof
I'd hire this guy for anything. He is hot too. 🤣
So….investment banking is shit. Got it. 👍
I very much prefer Anton Kreli to Martin "ballsack" Shkreli.
But the real question is *where have all that wealth gone* ??
Deze man is steengoed. Geen student gaat meer werken....
Most people who apply to investment banks don't want to be traders, they want to work on M&A deals. This talk is only relevant for like 10% of university students
lol this is like selling drugs forfilling ordersfpr clients and getting payd commission
The hair is throwing me off, I've seen so many other videos with it short. Focus dammit, but the hair... 😅😂
Me neither! this is fucking gold 🪙🪙🪙🪙🪙 I literally worship this man and his team. Thank you Anton k!!