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if I could use this story, this f---ing good story, you know. Expelled from school, wins a job in a card game, top trader the world by betting on the collapse of society, you know, bank tries to stop him from leaving.

💨 tl;dr

Gary Stevenson, a top trader at Citibank, reveals the toxic culture of banking, where pressure, drug use, and questionable ethics thrive. The focus on profits distorts risk perception, and many traders come from unconventional backgrounds. The industry has shifted towards educated graduates, but the mental toll and societal neglect remain significant. Leaving banking for philanthropy faced intimidation, highlighting the power dynamics at play.

💡 Key Ideas

• Gary Stevenson, Citibank's top trader in 2011, faced immense pressure, intimidation, and a toxic culture in the banking environment.
• The trading world is characterized by extravagant lifestyles, social rituals, and a sense of detachment from reality, with many traders engaging in drug use.
• High earnings distort perceptions of risk, leading to a competitive environment focused solely on profit and loss (P&L) visibility.
• The banking culture is rife with questionable ethics, where management overlooks misconduct if profits are high, creating a 'cesspool' atmosphere.
• Many successful traders come from unconventional backgrounds, challenging the notion that elite education is necessary for success in finance.
• The shift in banking from individualistic traders to educated graduates with strong mathematical skills changed the industry dynamics in the 2000s.
• Economic conditions and central bank policies heavily influence trading strategies, with traders often betting on market unpredictability.
• The speaker reflects on the dehumanizing aspects of trading and how the system benefits the wealthy while neglecting societal issues.
• Leaving banking for philanthropic goals was met with threats, highlighting the power dynamics and legal intimidation in the industry.
• The speaker’s journey from a top trader to advocating for economic awareness reveals the mental toll of trading and the pursuit of personal fulfillment outside the banking sector.

🎓 Lessons Learnt

• Prioritize Health Over Lifestyle: The party scene is draining; focusing on your health is crucial for performance.

• Network Strategically: Having a mentor or making connections can significantly boost your career and open doors.

• Set Boundaries in Social Interactions: Know when to say "no" to maintain authenticity and avoid unnecessary pressures in professional settings.

• Understand Internal Politics: Success in investment banking often hinges on navigating office dynamics rather than just trading skills.

• Embrace Risk in Trading: Be prepared for losses; trading is inherently risky, and unexpected market events can lead to significant financial impacts.

• Balance Work and Personal Life: Maintaining a healthy work-life balance is essential for well-being and performance in high-pressure environments.

• Recognize the Power of Wealth: Wealth can create unequal advantages and allow for navigation through systems that others cannot.

• Mental Health Matters: In high-pressure jobs, prioritizing mental health and self-reflection is vital for sustainable performance.

• Adaptability is Key: Being flexible during crises can help capitalize on new opportunities, especially in trading.

• Pursue Passion Over Pay: Sometimes, stepping away from high-paying jobs for fulfilling work can lead to greater personal satisfaction and impact.

🌚 Conclusion

Prioritize health, network wisely, and set boundaries. Understand office politics and embrace risk. Balance work and life, recognize wealth's power, and prioritize mental health. Adaptability is crucial, and pursuing passion over pay can lead to true fulfillment.

In-Depth

All Key Ideas

Insights into Gary Stevenson's Trading Experience

• Gary Stevenson was Citibank's most profitable trader in 2011, revealing the intense pressure and gangster-like threats in the banking environment.
• The trading environment involved hazing rituals, excessive partying, and extravagant spending, which contrasted sharply with his poor background.
• Traders could afford significant losses due to their high earnings just for being in their seats, leading to a distorted perception of winning and losing money.
• There’s a stereotype of traders using cocaine; Stevenson shares his experience of being surrounded by drug use without realizing it, despite his own decision to abstain from drugs.
• Personal relationships and mentorship played a significant role in his career, highlighting the social dynamics within the trading culture.

Work Environment and Social Dynamics in Trading

• There’s a toxic work environment where aggression and intimidation are common, as illustrated by Rupert's growling and violent behavior.
• Brokers often take traders out to social events, which is part of their job to facilitate deals, but can create uncomfortable expectations for favors in return.
• Many traders come from wealthy backgrounds and view high-end socializing as part of their lifestyle, whereas Gary feels out of place and uncomfortable in that scene.
• Gary establishes boundaries by refusing to meet brokers outside of work and opting for casual meetings at Nando's, showcasing his desire to distance himself from the social pressures of the industry.

Observations on Banking and Trading Culture

• Many bankers are people who couldn't succeed as traders and focus on internal politics to climb the corporate ladder.
• The management culture in investment banks is described as a 'cesspool' with questionable characters.
• Experiences with management can be bizarre and unprofessional, as illustrated by the behavior of the narrator's bosses.
• There's a strong masculine, 'pirate ship' vibe in the trading environment, where issues are dealt with internally rather than through HR.
• Traders often engage in questionable practices, and management tends to overlook these if profits are being made.
• Losing money as a trader leads to significant stress and the risk of being sidelined from trading activities.

Insights on Trading and Market Dynamics

• The speaker lost $8 million in a week due to a sudden cut in Swiss interest rates, despite believing it was the right bet.
• Profit and loss (P&L) is the only thing that matters for traders, calculated daily and shared among peers.
• Traders' performance is publicly visible, creating a competitive environment where the best and worst are easily identified.
• The speaker's first significant bonus was nearly £400,000, leading to a realization of the potential for making large sums of money.
• Most traders make money from customers rather than risky bets, despite the glamorous perception of betting.
• The speaker made money during the Japanese nuclear disaster by betting on economic weakness, highlighting the unpredictability of market events.
• Payment structures in banking changed, with EU laws limiting bonuses, leading to higher salaries and lower risk incentives.

The Speaker's Experience in the Trading Game

• The speaker got a job at Citibank through a card game instead of traditional internship applications.
• Competitors in the game had better backgrounds and extracurriculars, making it harder for the speaker to get noticed.
• The card game, called the trading game, simulates financial markets with betting on total card values.
• The speaker had an advantage by knowing the game rules beforehand, allowing strategic betting.
• Participants instinctively revealed their hands by quoting prices based on their card values, which was a disadvantage.
• The speaker successfully manipulated prices during the game to gain profit.
• In the final round, despite having a low card, the speaker noticed the game appeared rigged but still won.

Insights on Trading and Banking Culture

• The winner of the game was chosen based on performance under pressure, indicating a preference for self-belief in trading.
• Many successful traders come from unconventional backgrounds, challenging the traditional focus on elite educational credentials and extracurriculars.
• There was a cultural shift in banking from rugged individuals to highly educated graduates with strong mathematical skills during the 2000s.
• The influence of 'American Psycho' on young men in banking, showcasing the allure of wealth and status despite the negative traits of the character.
• The daily routine of a trader includes early mornings, high-pressure trading periods, and a relaxed afternoon once the New York market takes over.
• Citibank's trading floor is characterized by a large, bustling environment with numerous monitors and a distinct culture compared to European banks.

Trader Insights

• The daily routine of a trader includes work hours and personal time, emphasizing a balance between hard work and personal life.
• Traders are risk holders, making decisions and taking on risks associated with borrowing and lending money.
• Interest rates traders aim to borrow at low rates and lend at high rates, often dealing with short-term loans.
• Economic conditions, such as inflation and central bank rate adjustments, influence trading strategies and predictions.
• Traders specialize in different currencies, with a hierarchy from junior positions to more significant roles.
• The volume of trades can be misleading; high volumes from one-day loans can create an illusion of significant activity.
• The trader reflects on the dehumanizing aspects of the job and the struggle between personal fulfillment and professional success.
• There is a disconnect between traders, politicians, academics, and media, with no one actively trying to solve societal issues.

Insights on Banking and Economy

• The economy was never going to get better; there was a growing crisis of inequality that would not be resolved, leading to a collapse of living standards.
• The speaker became Citibank's most profitable trader by betting on societal collapse, highlighting the lack of accountability in the banking sector.
• The best-paid 10,000 economists in the world are traders, not fixers of the economy.
• The speaker’s boss warned him that leaving the bank could lead to legal troubles, comparing it to gangster tactics.
• There's a similarity between traders and drug dealers in terms of personality types, suggesting that circumstances shape career paths.
• Many individuals in banking don’t feel responsible for fixing the economy; they assume others (like politicians and economists) will handle it.
• The speaker's desire to leave banking for charity was met with threats of legal action from senior management.
• The legal system in high-level banking serves as a tool of power, used to intimidate those who upset the status quo.

Reflections on Wealth and Economy

• The speaker reflects on their time in a bank, feeling mentally unwell but still performing well in their job.
• Wealthy individuals can often escape consequences due to their power and status.
• The speaker believes that the system is designed for the rich to get richer, leading to the decline of the middle class.
• Making money off the collapse of the economy has real human costs, affecting families and communities.
• The speaker has a strong track record in predicting economic events, like COVID, but feels unheard.
• Transitioning from high-stakes trading to a quieter life led to feelings of unproductiveness despite being busy.
• The speaker resumed trading during COVID because of market opportunities.

Speaker's Journey and Challenges

• The speaker quit their job to focus on educational work about inequality, often without financial compensation.
• They believe rich people are the primary audience for articles on economics.
• The speaker transitioned to YouTube to reach a broader audience but struggled with viewership.
• Despite their qualifications and success as a multimillionaire ex-trader, they faced skepticism about their credibility in economics.
• They have a compelling personal story, including being expelled from school and becoming a top trader by betting on societal collapse.
• The speaker is unable to discuss certain legal matters due to NDAs.

All Lessons Learnt

Career and Lifestyle Advice

• You can afford to lose more when you're making a lot of money. If you're making a significant amount just by sitting in your seat, you can take riskier bets without it feeling like a loss.
• Prioritize your health over the party lifestyle. The party scene can be draining and lead to unhealthy habits; it's easy to get caught up in that environment, but it can affect your performance.
• Be aware of the hidden struggles of your colleagues. Just because someone seems fine doesn't mean they're not dealing with serious issues, like addiction, that you might not notice right away.
• Networking and mentorship can propel your career. Having someone supportive, like Rupert, who believes in you and introduces you to the right circles can significantly impact your success.

Social Interaction Strategies

• Set Boundaries: Establish clear limits on social interactions in professional settings. Gary learned to say "no" to brokers taking him out, opting for simple meet-ups instead, which helped him stay true to himself.
• Know Your Environment: Understanding the social dynamics in your workplace is key. Gary realized that many brokers and traders came from rich backgrounds, making his own experiences feel out of place, but it highlighted his unique perspective.
• Recognize Hidden Agendas: Be aware of the underlying motives in business relationships. Gary noticed that brokers often wanted something in return for their hospitality, leading him to be cautious about quid pro quo situations.
• Stay Authentic: It's important to be genuine in your interactions. Gary felt he was pretending to fit into a social scene that wasn't his, which ultimately made him more antisocial.

Key Insights on Trading Desks

• Navigating Internal Politics is Key: In investment banking, success often relies on managing internal politics rather than pure trading skills.
• Bosses Can Be Unpredictable: Expect quirky and sometimes unprofessional behavior from bosses; this is common in high-stress environments like trading desks.
• Money Talks: As long as you're making money, management typically won't question how you're doing it, even if it's dodgy.
• Stress from Losing Money is Real: Losing money can lead to significant stress, and traders fear being sidelined from trading altogether.
• Handling Conflicts Internally: There’s an unspoken agreement on trading desks to handle disputes internally rather than escalating them to HR.

Trading Insights

• Be prepared for risk and loss. Trading involves significant risks, and unexpected events can lead to substantial losses, as illustrated by losing $8 million in a week due to a sudden interest rate cut.
• Understand the importance of P&L. Individual profit and loss (P&L) is crucial in trading, and it’s made visible to everyone, which can impact how traders are perceived and how they interact with one another.
• Work hard and stay serious. After facing losses, the trader learned the importance of hard work and seriousness in improving performance and achieving better results.
• Recognize the difference between real gains and customer-derived income. Many traders derive their income from customers rather than risky speculative positions, which can shift the perception of what it means to be successful in trading.
• Market events can be unpredictable. Making money from unforeseen events, like the Japanese nuclear disaster, emphasizes that while traders can profit from market conditions, they do not control those events.
• Payment structures can influence behavior. Changes in bonus structures can alter risk-taking behavior, as seen with the shift from high bonuses to higher salaries, which may encourage complacency.

Key Insights on Success Strategies

• Getting a job often requires networking and strategic moves. The speaker highlights that many students secured internships through connections and extracurricular achievements, emphasizing the importance of networking over just good grades.
• Understanding the rules can give you a competitive edge. The speaker mentions that knowing the rules of the trading game beforehand allowed him to exploit the mistakes of other players, showcasing how preparation can lead to success.
• Calculating probabilities is crucial in competitive environments. The speaker's ability to calculate expected probabilities in the card game illustrates how mathematical knowledge can be practical and beneficial in real-world scenarios.
• Manipulating perceptions can be a winning strategy. The speaker developed a tactic to influence the price in the game, demonstrating that sometimes you can achieve success by controlling how others perceive a situation.
• Be cautious of unexpected outcomes. The speaker's surprise at the rigged nature of the final game serves as a reminder to always be aware that not everything is as it seems, and to question outcomes that defy logic.

Key Insights for Success in Banking and Trading

• Back yourself in tough situations.
• Classism can affect career opportunities.
• Choosing the right area in banking can set you apart.
• Math skills are increasingly valuable in trading.
• Work culture can vary significantly between banks.
• Morning rush can be intense in trading.

Trading Tips

• Balance work and personal life: It's important to manage your time effectively, as the trading job can consume you. Prioritizing personal activities like exercising and cooking can help maintain your well-being.
• Understand the risk: As a trader, you are the risk holder. It's crucial to make informed decisions and be aware that you’ll face the consequences if things go wrong.
• Know your market: Being successful in trading requires understanding the economy’s strength and predicting changes effectively. Awareness of economic indicators can enhance decision-making.
• Volume doesn't equal success: Just because you're handling large volumes of money doesn't mean you're making sound decisions. Focus on quality trades rather than just increasing volume for appearances.
• Self-awareness is key: Recognizing when you’re becoming too focused on work to the detriment of your humanity is crucial. It’s important to take care of yourself amidst the pressures of the trading world.

Insights on Trading and Society

• You don't go into trading to save the world. Traders focus on profit, not on solving societal problems, assuming others in power will take care of those issues.
• High levels of banking use legal threats as a power mechanism. The law can be wielded as a tool by banks to intimidate those who challenge their authority or decisions.
• People can get sued not for wrongdoing, but for upsetting the wrong people. The legal repercussions often target those who provoke powerful entities, rather than those who actually commit misconduct.
• Awareness of societal collapse is not enough to incite action. Recognizing issues like economic inequality and collapse doesn’t guarantee that individuals will take steps to address them; often, there’s a disconnect between awareness and action.

Key Insights on Mental Health and Wealth Dynamics

• Mental Health Matters: Even in high-pressure environments, taking time for self-reflection and addressing mental health is crucial for performance.
• The Power Dynamics of Wealth: Being very rich allows you to navigate systems in ways that others can't, highlighting the unequal advantages in society.
• Consequences of Market Betting: Profiting from economic downturns can have severe societal impacts, reminding us that financial success often comes at a human cost.
• Productivity Mindset: Transitioning from a high-octane work environment can distort your sense of productivity, making you feel unproductive even when you're busy.
• Adaptability in Crisis: Re-engaging with trading during uncertain times (like COVID) can be a viable strategy to capitalize on emerging opportunities.

Key Insights from the Speaker

• Pursue your passion, even if it doesn't pay well: The speaker quit a high-paying job to focus on educational work about inequality, highlighting that fulfilling work can be more important than financial gain initially.
• Use personal stories to connect with others: The speaker realized that sharing his unique experiences can engage people and convey important messages about economics and society.
• Don't be discouraged by initial lack of recognition: Despite having impressive credentials, the speaker faced skepticism; persistence in sharing knowledge can eventually lead to a wider audience.
• Confidentiality can limit your communication: The speaker mentions being unable to discuss certain topics due to legal reasons, illustrating the importance of understanding the boundaries of what you can share in professional contexts.