PEAK6 co-founder Jenny Just explains how facing constant small losses on a trading floor shapes risk tolerance.
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Just: PEAK6 employs more female capital allocators than any other firm
“I think peak six has done a really good job of bringing, you know, a wide range. Including a lot of females, more than anybody else in the market in terms of capital allocators. People are actually making decisions around money.”
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Just: PEAK6 has not had a single losing year in 28 years
“And, you know, we've had 28 years, never had a losing year.”
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Just: PEAK6 rejected an equity derivatives deal with Jamie Dimon in 1999
“I said no to Jamie Dimon. So we were, we had a plan A, and it's 28 years later, we've never done our plan A. We were trying to get a bank to be our partner to do over-the-counter equity derivatives. That was what we were, that's what we left to go do. That's w…”
Insight
Just: Risk-taking is a learned skill, not an innate personality trait
“As much as I look like I take a lot of risk. Nobody would have called me a risk taker when I was younger. You can actually learn it.”
Insight
Just: Poker offers the best accessible simulation of options trading risk
“When I saw poker, it was the closest thing I've seen to the training I got as an options trader, right? Because people aren't just going to become options traders. First of all, there's not that many in the world, men or women, and I'm going to go study option…”
Insight
Just: Traders must amortize windfall years over a three-year timeframe
“We tell our traders too, when you have that great year, think about it over a three year timeframe. Don't think about it as today's money, right? We don't want, because traders can be like athletes in many ways, way too much money at too young of an age.”