<p>running a <em>PROFESSIONAL</em> hedge fund is infinitely impossible. The cold hard truth is that without connections, you’re done. The exec at JP Morgan let me in on this. Friends will screw you over without a thought, hours are long and excruciating, many end up drinking or chain smoking to calm their fears. You will literally throw up, and your fingers will tremble and all you will ever be able to think about is if you will live to fight another day.</p>
<p>I don’t personally run a hedge fund though, heck I’m just starting college, but many professionals I’ve talked to agree that it is a very stressful job. If you do choose to go into this profession, do know that many top students with recommendations have been looking for jobs like this for decades. Ask any student of the markets and they’ll tell you you’ll likely burn out before you reach your goal.</p>
<p>As for the risk, the seniors will likely come in to rescue your positions. Many already account for your losses by martingale and dollar cost averaging. If you lose they might encourage you, but they have already black listed you.</p>
<p><em>For those daring</em> Some advice I’ve learned
-THOSE WITH EGOS NEED NOT APPLY. Interviews are actually heavily psychology based. If you can’t handle yourself, you sure can’t handle other people’s money. Ego, greed, fear and worst of all hope must be controlled.
-Today their advice is to make funds accessible over the internet, without a concrete storefront.
-Watch your running book value less you find you have insufficient funds to cover your positions
-SL/TP are easily manipulated by the market, don’t reveal your positions to ANYONE but your trusting senior (if he screws you over, well you’re screwed anyways)
-If you get into a position be nimble, the market turns on a dime.
- Technical analysis (BB bands, stochastics ect are all lagging. Useless especially in investment). Charts are ok, but in the end YOU control your demise so YOU must ,make the decision. NOT the market’s indicators or whatever the news says. (Pay attention to the big players though-99.9% of market news is trash)
-do not try to hit homeruns, steady consistent profits is what they look for.
-The market is a WAR, if you can’t handle the heat get out of the kitchen</p>
<p><strong><em>Finally consider this. If you had a million dollars, wouldn’t you like to spend time w/ the family? To be at your kid’s b-ball games? Go fishing or stare at the stars for a little? These simple pleasures will last you a lifetime. If amassing money is your MO, you’re missing out on a lot that life has to offer. If you were a pharmacologist or sped teacher you make a handy 80+k, be well respected, secure, and get to go home on a regular schedule</em></strong></p>