Better Know A Trader: Jeb Molony

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Click Here Today's BKAT hails from South Carolina, and works five minutes from the beach.

How did you get your first job in finance?
My first job in finance came while attending college at Clemson University. A former trader moved to Charleston jmolony.jpgfrom Chicago to start a hedge fund. Our paths crossed as he was raising capital because my father runs an accounting firm that the fund was using. Knowing I was looking for an internship he set me up clerking for Owen Williams in the corn options pit. After spending most of my summer in Chicago I was convinced trading was for me, but being from Charleston the weather was not. I later lucked out as my current boss moved his shop from Chicago to Charleston.

Describe your trading strategy.
As far a trading strategies are concerned my primary focus is on short term trading in the U.S. treasury markets. Although many groups have gone to black box trading ours has stayed firm in what may seem to be old school manual trading. I have begun working with some auto spreaders seeking edges, but that is currently a very small percentage of the trades I work. When trading this way I like to watch the curve and try to work trades leaning on the basis between the futures and the overnight markets. The other market I trade is the bund futures. Although this forces me to wake up at 2am I have found that the correlation between rates is worth watching and can lend itself to some pretty nice trades. I like to watch and chart as much information as possible because I believe that today's markets are truly global in scope and require a much broader view than in the past. Beyond that the biggest key to my strategy is staying disciplined by cutting losers as fast as possible and pushing winners harder.

If you were starting out in your career now, where would you want to work?
I would probably seek a market that has not been overexposed to computer trading, but I would still like to be involved in the treasury markets. For instance I have worked with the foreign exchange markets and find those are still widely untouched, but the trick there is the bank relationships to obtain market access. I think oil and natural gas markets would be intriguing. Honestly I feel I landed in an almost perfect scenario and would be hard pressed to choose another place.

What is your favorite career accomplishment/best trade ever?
My best trade ever. A very tough question, as I really do not remember the best trades, but the big losers are vivid. I think going an entire trading session disciplined is better than a monetarily big winner I stumble into. A couple of very good times when I stayed disciplined through chaos are when the London bombings occurred two summers ago, and when China de-pegged the Yuan. Those two events I remember as being good trades. Beyond that I really do not remember days when I have taken single big winners.

Who are your heroes or role models, fictional or real?
I draw most of my influence for both work and life from my father and my boss. Fictional hero would be Bodhi from the movie Point Break as he pushed life to the edge and stopped at nothing to achieve what he considered the ultimate. Though slightly different I also find solace and influence through the music of Guns N Roses. Lyrically and musically I believe they are head over heels superior to any other band in the past two decades (on and off stage). Their music can get you fired up to trade or aid in licking your wounds after a rough day.

What is the most important quality a trader should have?
Discipline. That is the only trait that without will destroy any trader. The markets are so volatile that stubbornness is not an option. A trader must realize that even a winning position in the long run may not fit into their risk reward matrix and is therefore a loser and must be cut immediately. The one thing everyone seems to say after a bad day or even a blowout is I lost my disciplines.

What is the worst character fault for a trader?
Narrow mindedness. This applies to both individual trades and overall career moves. On a single trade I find I have to avoid tunnel vision and try to find what is driving the market I am watching. From there you can expand to whatever time frame you hold trades for. More importantly in today's markets with the rapid increase in technology, thinning margins, and new trades an individual must keep looking everywhere they can to seek out markets that fit their style and try to adapt to the situation. A trader can never stop learning as there is more opportunity and information today than ever before.

Tell us about the lowest of low points, the time you thought should just give it all up and take a simpler, easier job.
The lowest of the low is tough, as you increase your size and volume they increase as well, but I do remember one particularly ugly day when I was loaded up long basis and out rights going into an auction day. The norm is for the market to sell off as more supply comes available, but I believed I could sneak out before the open. It only took about 15 seconds for the market to tank so hard I truly thought I was done permanently. This was when I learned the most valuable lesson of all; make sure you can come back the next day. Every trader goes through ups and downs, but the key is to make sure the office's locks are not changed when you show up the next day.

What job would you have taken? What's your 'exit strategy'-how long until you retire or move on?
Had I not gone into trading I believe I would have pursued a law degree and practiced criminal defense. However, as things tend to happen for a reason I love where I am and have no regrets on passing up that route. As far as exiting trading I hope to always be involved in some way in the markets if not directly than perhaps through money management. As it stands today I am trying to expand my horizons and learn as much as possible so that I may always push the limits of what is possible.

What is your motto?
"Go big or go home" and "I'm not here for a long time, just here for a good time."

I believe these two mottos sum up my life as I balance work and everything else. I like to cross the line from time to time, so trading is a perfect fit as it gives me an outlet and an adrenaline rush when I need to feel alive. Keeping a level head in all the emotion that goes with trading can be tough. Remembering to leave it all at the office can be a challenge, but when achieved it makes life far more enjoyable. I consider myself blessed to have a job I enjoy in one of the best cities in the world.

Whose teachings are most useful in your business-Machiavelli, Sun Tzu, Jesus Christ or Marquis de Sade? (Feel free to nominate another choice.)
I have to say now more than ever I believe Social Darwinism applies to trading. This goes back to what I was saying earlier about being able to adapt. Over the past year especially we have seen the people who are unwilling to change their styles die out. For prop traders such as myself I believe the game and the rules are ever changing and it is survival of the fittest. The traders who remain steadfast in what they are doing are not long for this business. Every day presents new challenges and opportunities which though scary for some is what I live for, it breaks the monotony.

(If you missed the last installment, featuring Mike Mooney, click here. And if you think you'd make a good subject, or want to nominate someone else, please email us at tips (at) dealbreaker (dot) com--subject line: "Better Know A Trader").

Comments

1

Posted by What a Loser! , Nov 17, 2006 12:15PM

Does Jeb actually dress like that? Or is that an outfit DealBreaker put him in to make him look more like a huge douche bag?

2

Posted by Bob Fleming, a.k.a. Badger Watch , Nov 17, 2006 12:33PM

I disagree. Polo shirt & flat-front khakis is a good, professional look.

It's a much better look than the guido fashions and Afro-pimp looks that a lot of clueless i-bankers and hedgies seem to adopt.

My question is, are his trousers Charleston Khakis? Or Bill's? It's important.

3

Posted by Bitch, Moan, & Whine , Nov 17, 2006 12:40PM

I think the lesson here, kiddies, is the importance of nepotism in finance.

Also, admitting that one's hero is Bodhi and finding "solace and influence" in G&R is probably best left unsaid.

4

Posted by JB , Nov 17, 2006 1:04PM

If you want the ultimate, you've got to be willing to pay the ultimate price. It's not tragic to die doing what you love.

5

Posted by Cheezy Peaz , Nov 17, 2006 1:23PM

I think the Bodhi and G&R references were sarcasm. Sort of an in-joke, I would guess.

6

Posted by Clay Eltzroth , Nov 17, 2006 1:55PM

Hey, originally from Charleston here...do not worry, no one knows that Khakis and a Polo shirt are a staple down in Charleston...

7

Posted by Foxhunter , Nov 17, 2006 2:36PM

Khakis and a polo are Southern Preppy, although it's usually combined with a baseball hat.

Charleston Khakis are much better than Bill's Khakis.

8

Posted by The Corner , Nov 17, 2006 2:48PM

Also from the south. And I was in a fraternity. This guy absolutely oozes southern stereotypical. Shaggy hair, tucked in polo (collar down, duh) and best of all, the white undershirt creeping from underneath his collar. This picture was taken during Jeb's head shot session for entrance into the Clemson Fratshion Show.

9

Posted by NRO , Nov 17, 2006 2:53PM

I'm slightly disappointed in Jeb's leather belt. He should have a ribbon belt with embroidered ducks or labs on it. Plus, he should be wearing brown cordovan loafers with no socks. Or (dirty) white bucks.

10

Posted by What a Loser! , Nov 18, 2006 1:04PM

This guy sucks. You couldn't find anyone more interesting to profile?

11

Posted by Vikram , Nov 18, 2006 1:34PM

what is it with the southern dudes and the same outfits.

12

Posted by ZZZ , Nov 18, 2006 4:21PM

This guy is another yawner. Why do you keep interviewing Jr trader types? Every one of the interviews have been of wannabes that are primarily good fodder for ridicule. Hardly real traders.

13

Posted by Tsunami , Nov 19, 2006 12:33PM

Matt Damon...Team America World Police

14

Posted by RR , Nov 19, 2006 8:52PM

Check it out

"And if you think you’d make a good subject, or want to nominate someone else, please email us at tips (at) dealbreaker (dot) com--subject line: 'Better Know A Trader'"

15

Posted by PP , Nov 20, 2006 5:39AM

He's a cutie. Is he single?

16

Posted by Raddude , Nov 20, 2006 4:43PM

I've met Jeb before. And yes, he actually does dress like this. This picture makes him look half as big of an jackass as he actually is.

17

Posted by tradar , Nov 20, 2006 5:17PM

lets not be too harsh on this fellow- i assume he's young, dumb, and full of cum

18

Posted by 666 , Nov 21, 2006 9:09AM

To: ZZZ

I'm guessing that you are a real trader? I'd be happy to take your money!

http://one.revver.com/watch/95332/format/flv/affiliate/564

19

Posted by Billy Bob , Nov 21, 2006 10:10AM

Y'all are missin' the point. Why would real Big Swingin' Dicks take time out of their busy day to be profiled on Dealbreaker?

I have nothing but respect for Ms. Spiers and Mr. Carney, don't get me wrong.

But what we have here is a Maxim situation. Just like the Maxim girls are all low level trade show booth babes, wet t-shirt contestants, and would-be straight-to-DVD cheerleader slasher movie fodder looking for exposure, cred, and a marketing opportunity, so too are the young lads (where are the lasses JC?) featured on DB just looking for their big break.

Still waiting for that Alexsey Vayner interview, guys!

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