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Why do traders in investment banks feel their jobs are immune from AI, etc?

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Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#211

Post by user5994461 »

neximo64 wrote: post #73
hueving wrote: post #68

Earlier quoted context omitted.

The salesman is incentivized to screw you. They work on commission so the faster they can move houses, the better. Real estate agents are screwing both the buyer (feed you bullshit to get you to buy) and the seller (convince to back off of higher prices because the 0-15% difference in price isn't worth the weeks more effort on their commission).

Like a restaurant though, if they were bad at their job they wouldn't attract new clients. Under a HN analogy if they screwed clients they'd have a 0 rating and lose future clients. The assumption you have is they are simply a market matcher but they're offering more than that. Their incentive is to get the highest possible sale price in the shortest amount of time and a good reputation. That high price has to also b…

> Like a restaurant though, if they were bad at their job they wouldn't attract new clients.

In many places, the law is forcing you to go through an accredited agent to make a deal.

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#212

Post by user5994461 »

IIIIIIII wrote: post #156

Famous last words for a lot of businesses: >When it comes to AI/Machine Learning: the nature of ____ and markets are drastically different to other fields that AI/ML have previously excelled in. The main reason being what are the laws and rules that govern how an AI/ML should view a field? >Since the very nature of a market is… a constant change respecting an infinite and broad amount of variables (____), a complex s…

Markets predictions were at 20% of Brexit and Trump the day before the vote. And moving from 15 to 50% during the week before that. Noting they followed similar patterns.

They assessed the risk fine.

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#213

Post by user5994461 »

sverige wrote: post #88

Well, an equally good question is why do programmers feel their jobs are immune from AI, etc.?

Because we're needed to write and maintain the AI.

well, until the day an AI will be good enough to write and improve itself, then we'll all be doomed equally.

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#214

Post by user5994461 »

zump wrote: post #97

God I'm so fucking jealous of computer specialists who work in investment banks. How do I get in without going to Harvard?

> I'm so fucking jealous

Don't be.

They've had to work insanely hard to get into and finish Harvard, only to be granted hundreds k of debt. Then they had to work their ass harder to get into hard-to-get into-companies and acquire the experience required to get into even harder-to-get-into companies (i.e. investment banking). After a decade, they're finally there and all they got is long hours, too much responsibilities and no free food.

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#215

Post by user5994461 »

fffds wrote: post #191
phyalow wrote: post #41

Earlier quoted context omitted.

My 2 cents: The job is actually extremely complicated. I wear many hats daily including working as a software developer, IT project manager/architect, salesman to clients, point of contact to other institutions trading desks, legal drafter, tax/accounting policy design, deal negotiator, risk taker/manager, systematic/fundamental strategy research etc. My job title is "Trader". There aren't any dumb big swinging dick…

And this is why traders won't be replaced by AI - Because most are smart individuals who are continuously increasing their worth by learning new skills and ensuring they work WITH new technology rather than opposing it. They regularly elevate their skillset e.g. from manual trading to monitoring, performing trend analysis on a more automated trading system. I worked in the finance industry as business facing software…

What industry is that?

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#216

Post by user5994461 »

sirclueless wrote: post #8
argonaut wrote: post #2

Because investment bankers are just salespeople? Nobody is suggesting AI will replace salespeople in the near future. I could see there being fewer grunt analysts in the future, though.

> Nobody is suggesting AI will replace salespeople in the near future. They aren't? Because I see this happening all the time. Automated checkout lines, E-Trade and online brokerages, etc. Low-value transactions are handled more and more by electronic "salespeople". All it takes to reach high-value transactions as well is for the clientele to decide they trust machines more than humans, which is not all that unlikely…

You'll note that for a lot of online financial services, there wasn't anyone at all to serve low profile customers before robot-advisor/self-serving services came in.

There is a line (few hundreds k) where it's enough to play but not enough to pay for the costs of a human to help you (sales people/financial advisor/trader type).

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#217

Post by zump »

user5994461 wrote: post #214
zump wrote: post #97

God I'm so fucking jealous of computer specialists who work in investment banks. How do I get in without going to Harvard?

> I'm so fucking jealous Don't be. They've had to work insanely hard to get into and finish Harvard, only to be granted hundreds k of debt. Then they had to work their ass harder to get into hard-to-get into-companies and acquire the experience required to get into even harder-to-get-into companies (i.e. investment banking). After a decade, they're finally there and all they got is long hours, too much responsibiliti…

What's the hourly wage pre-tax after a decade of experience at these companies?

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#218

Post by lordnacho »

bhewes wrote: post #202
coding123 wrote: post #195

Earlier quoted context omitted.

I bet Google "could" write some algorithms that can predict if a stock will go up or down seconds before change based on live search data. All it takes is for an article or something to come out, then watch people search for "Will IBM stock drop" - and perform live sentiment analysis across all such live queries involving the stock name. In a sense, it's all about what information you have access to.

So the rumor is Goldman Sachs got out of the financial crash first because their systems saw the market move before anyone else. I don't know if that is apocrypha, but it is more to the point Google would not be predicting the market, but instead see market movements before anyone else.

I highly doubt that it is as technical as you seem to make it.

GS is very well connected, and they are constantly out there asking people for their opinions. Ten years ago they probably had some sort of database where people could share experiences, and that is most likely what led to them guessing the financial crash.

But it's not like they had some machine that one day told them to short mortgages.

Re: Why do traders in investment banks feel their jobs are immune from AI, etc?

#219

Post by user5994461 »

zump wrote: post #217
user5994461 wrote: post #214

Earlier quoted context omitted.

> I'm so fucking jealous Don't be. They've had to work insanely hard to get into and finish Harvard, only to be granted hundreds k of debt. Then they had to work their ass harder to get into hard-to-get into-companies and acquire the experience required to get into even harder-to-get-into companies (i.e. investment banking). After a decade, they're finally there and all they got is long hours, too much responsibiliti…

What's the hourly wage pre-tax after a decade of experience at these companies?

So, you're in only for the money?
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