Career in Trading
I am looking at different finance divisions/sectors to see where I believe I could fit in more and get to know each area better. Trading seems very interesting so I would appreciate any information, advice or insights you can offer on Trading. I would like to know more about how it is to work in trading, including the typical hours, the people you work with, the required skills, and the day-to-day job responsibilities. Also if it is alyas Sales and Trading or it can be only Trading, this may sound like a stupid question but I don't really know much about this.
I am also curious about the reality of working in trading. Are there any misconceptions about the job or the industry that I should be aware of? Are there any particular challenges that I should be prepared to face if I decide to pursue this career path?
Finally, I am wondering about how to land a job in trading. Do you begin in trading? Or do you start in for example IB and then exit to Trading?
Thank you in advance for your time and advice.
Cheers!
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Broadly speaking, there are two common jobs people talk about when they say "trading." Working in the S&T group at a bank and physical commodity trading. They are two different worlds. I would read up on the differences from the thousands of other resources out there and then ask more specific questions about what you think you are interested in. Your current questions are broad enough that someone could write an entire book to answer them.
I don't think of physical commodity trading when people talk about "trading" in the way you have described (I.e S&T at a bank or commodities trading); I think of commodities as a group/subset within an umbrella group of Sell-Side Trading & Buy-Side/Prop Trading more likely.
Still agree that OP should look up the difference between the more client-facing S&T-esque trader and the less franchise-focused Prop Trader. Although traders in S&T (depending on the group) can warehouse risk and take on certain prop views under the guise of "pre-hedging," the primary day-to-day in S&T is much different than prop trading.
The biggest difference in S&T would be the day-to-day tasks heavily focusing on client-centric related objectives: I.e., pricing and executing trades, hedging and managing risk that you're warehousing, and thinking about ideas to pitch to clients. In Prop Trading, day-to-day tasks heavily focus on strategy generation/backtesting, hedging, managing positions you're warehousing, and automating important tasks on the desk. Prop Trading emphasizes alpha generation/strategy since you do not rely on franchise flow to take on positions.
I have been in both S&T and Prop now, and the autonomy, tie to P/L, and responsibilities are much more discretionary and dependent on the individual at a prop trading firm. Within S&T, it's a well-oiled machine that services clients and manages risk. Within prop trading, there are several small teams of a few people who specialize in certain product strategies and are competing against other firms. The payout is heavily dependent on individual contribution/team performance. This is all very generic; within certain bank groups, the role can be very similar.
Mate very few think of "physical commodity trading" when they say trading, especially college students. Maybe the Javier Blas book has changed that haha
Seems like there is a new post a couple times a week on here from someone asking about breaking into physical commodity trading so that is why I said what I did. Granted, I am not in college or anywhere close to it so it appears I was off base.
Agreed physical is hot right now but as we've seen in history, things will get out of fashion in a matter of time.
what is the title of the book you speaking about
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