1 Year Update: Physical Trader
Alright, so it's been a year that I have been on the floor trading at a physical shop... yes I'm the lumber trading who was spamming the boards 6 months ago (sue me). In the last 12 months I've learned more about the business and booked some fat margin but I'm still set on looking for a different opportunity. Ideally, I'd like to be working at a top shop (LDC, Traf, ACT, etc.) trading a commodity with more open interest or a structured products trading house.
I'd like to make a transition into the O&G or metals space.
After having networked with professionals at these top shops it seems that the transition is not easy although the skills are VERY applicable. Any advice from someone who has made the transition or from another monkey that has a suggestion as to how I can brand myself to recruiters.
Thanks guys.
What is ACT?
Find some people on Linkedin and reach out for starters. College kids not in biz are hard to humor but someone in the field with some interesting questions is easier to respond to.
I don't have a ton of advice other than this is the worst possible time to find a job so don't expect your transition to be easy at all for the next few months.
ACT commodities
Ok. I have already made efforts to reach out to individuals at the firms I would like to get a foot in the door with but I am wondering how I should go about marketing my skillset to reflect properly what I bring to the table. Thoughts?
Ask them what avenues there might be for making a switch. Don't go to ACT, that's a worse job than your current spot.
As others have mentioned, looked for rotationals at supermajors, merchandizing jobs at ABCDs... You have an interesting background for all those types of roles.
Looks like they have a bunch of open roles, maybe I just don't know those markets but I had never heard of them and their website is a bit cringe.
Is the JT Marlin of commodities
What do you mean by cringeworthy? Seems like its professionally done to me.
ACT is not a top shop bruh lol
If you're early in your career, I believe you're still eligible for graduate programs, including at the majors. Have you considered that?
I have but unfortunately I am only 1 year out of school and I believe you need a few years of experience under your belt to even be considered.
A few years of experience is not required for most grad programs at majors or trading houses that I'm aware of.
What exactly are you trading right now? Like is it mixed length lumber, pulp, exotic woods, or a mix of all of them. Are you exporting or just truck trading?
My primary focus is on mixed length lumber. I trade mainly Western Hemlock but I also make markets for Southern Yellow Pine, Euro Pine/ Spruce, and Spruce Pine Fir. All of the products are imported to domestic markets, except SYP that is farmed in the southern United States. I have experience talking to mills from Europe, Canada, and Brazil but my customer base remains domestic. Do you think my understanding of import, export and general market movers would be particularly applicable to other markets?
You buying delivered US or are you trading freight (Rail, containers, bulk carriers)? Because if you’re actually trading international freight probably wouldn’t be hard to move into something else. Grains/feed/scrap metal all come to mind as easy moves.
Are you really putting Traf and ACT in the same sentence? ACT the guys that cold call energy providers in the world to sell garbage? Not bad!
I am still fairly new to the industry but from what I have read they seem to be well renowned. From my understanding they may not be an elite firm but maybe more of a B-team player. It sounds like pursuing a role there might not be the move long term but would it be a good way to get my foot in the door to learn the energy markets?
no
Given how different your product is (even if some of the skillset is transferable), it is unlikely you can join an energy/metals desk of a legit shop at the same or even slightly lower level. If you manage that, then great, but realistically the chances are slim.
As I see it, your options are 1) jump ship now but be prepared to go back to square 1 (meaning your current experience will mean something but not that much) 2) stick it out a little bit longer (you're only a year out of uni / into your current gig) and then apply for the big firms' graduate programmes (e.g. Traf, Shell, etc.) as soon as you are eligible.
PS ACT is not a b-class player and it won't get you "on the ladder" for a bigger shop. It is in a different, shittier ladder altogether.
I'd suggest you sit tight a little longer and continue to learn, develop, and master your skill set as most trading shops are going to be looking for more experience. If you are determined to break into oil & gas or metals at a trade shop I'd suggest you look for an analyst or jr trader role first. As there are also a lot of other qualified candidates trading those products already that are gunning for those jobs so you'll need to get your foot in the door on the trade floor and then prove yourself.
Honestly given you are already trading lumber you should really consider taking that market to its end in terms of trading and exposing opportunities as at the right company it may be more lucrative but Im not informed enough about that market to know for sure. All I am really saying is if you have accomplished so much so soon don't just look for a greener pasture see how lucrative you can make this current one. Good Luck!
stay away from ACT...especially in US...like said above cold calling and almost zero capital backing. Eurpoean office made money because they hired people who can speak every language and find loopholes to buy garbage in UK and sell trash in Spain for $$$.
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