Well… I have working in banks as a trader for about 22 years. I guess I made some money otherwise I would not be there.
In this long career, I can not remember having seen “market makers” making any money without the help of orders and client business. “market making” without any business is a lost cause. There is too much parameters against you on the long term.
Prop trading or flow trading, 2 different kind of animals do make money.
It is alot easier to make money in a big bank with a lot of flow and business.
Flow traders calling themselve prop trader is not too complicated… when you work for big franchises… you see a chunk of the market and you can quicjly identify who s doing what in terms of customers ( the good ones and the bad ones). When you
see funds coming roughly in the same time and start to hit a pair… it s not too difficult to figure out where the market is going to go for the next few hours… Same thing happening when you see some centrtal banks coming and trade or leave orders.
It s much more difficult to trade on your own and as a private trader than in an institution.
I did trade on a discretionary basis for about 14 years…
My conclusion: It is difficult to control your emotions every single day of the year. You do make mistake and try to learn from them. Everyday is a new day… and your life is affected by so many things… that it s almost impossible to be effective every day. The only problem… you only find it when the action is over and you analyse your trading day.
That s the reason that I move to purely systematic trading. All the experience I build up during those years, I tried to code it and so far so good. I feel more relax and my figures are better than before and I am still employed.