DEBT FINANCING. True tales from the commercial floors

We should distinguish between traders and the punters or gamblers, because the distinction is huge. Traders who are successful in time are people of head level, they have a calm and method, humility and discipline.
They have an ethic of working more closely to one thing that another religion. They do not drink evening because a person is likely to appeal to midnight in another time zone.
They get up early and get in front of the screen, because static data that they checked yesterday must be checked again today. They do not include risk, they intimately understand their risks.
There is a great analogy, although somewhat cringe-worthy for real professionals.
In the descriptions of Tom Wolfe in "The Right Stuff", large merchants are similar with its test pilots. Austere professionals and almost without imagination, they are errors.
The flair of hunting-esque pilot is an embarrassment for them, and they leave well alone because they know that these types do not last. These types are always at the centre of the place of the accident, at the bottom of a slow stack of the wreck.
In reality, things go wrong, and errors are committed. But the difference between a great merchant and one claiming that happen. Swearing and breakers of things are for lovers. You can indicate the best by the fact that the worse it gets the more calm and more silent they are, they speak more slowly.
They could lose it if their breakfast is cold or there is step of sugar in their coffee, but if they are low a few million on the day they are calm and orderly, bleeding and try to make things better by on in. The bluster and fluster is for those who know not what to do next because they had not thought it could happen to them. I've seen punching, lying down, screaming, even crying - these traders were all contenders.
Every day, a moment ago really fun - when traders turn on their systems and see the first revaluation for the day. Sometimes, there are a large number of Red look back.
When it happens to you, the first reaction is to rub the eyes and look again. If it is still there, your stomach drops and could throw up (some actually have), so you recalculate the system once more. If you are good, then it is just a question of rooting out the problem. Something yesterday is reserved the wrong way autour, book poorly or not at all. Flows are bad, the links don't work does step, the corrupted data. Good traders do not get any nasty surprises.
Very rarely you are facing a situation that your return is wrong, or you are wrong.  In my most memorable incident, I thought that I knew where I was right, and they were wrong. There was a desire almost tell them where their error was, just to see if they agreed. The difference on the a trade line was $ 15 million in my favour, but the initial reaction was relief not celebration. I witness once someone who thought they were right and the wrong market lose about 300 million in 30 minutes. If everyone comes to you, it is likely that you are wrong that steps them and you better back off the coast.
My method of survival has always been this: If the issue is something you can solve. If it is then you must sort it so quickly that you can, if you do not - and this may be difficult - but you cannot let you bother. Amateurs have excuses and blame for all the world except themselves. A good trader will take responsibility when he is wrong.
If a bank is not working properly large accidents do happen. Banks lose money, but never too. The first loss is the loss of best, and it is resolved quickly and correctly. No trades larger than the liquidity of the market allows, in case you need to close quickly and quietly. Positions are revealed every day, and there are no nasty surprises. Obviously a fraud can short circuit, but then in decline, that you can designate questions and irregularities that someone should have picked up.
Hedge funds are invariably different. Many have the discipline and diligence of learning on the market and the trading floor, they have no product controllers and mathematical modeling, they are extremely under disadvantaged by comparison.
Many think that something other than the loss and cumulative daily profits can determine their future. It is not. This explains why my experience may be that 75% of hedge funds fail in their first five years. You can be lucky only if long, he is no substitute for what that you made in trade. It is sometimes said that one would be rather lucky than good, but luck is transient and well is good.

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