Going to be a bit vague here. I'm currently working as a paper financial trader. I'm curious about a move to physical as I want to understand the market better and perhaps take on a new challenge. In my early thirties, so I'm wondering if such a move is possible and what tips would the phys traders have for me.
| +39 | Breakdown of Commodity Trading Houses | 8 | 2s | |
| +22 | Best macro desks | 7 | 2d | |
| +17 | Delta One Trading | 8 | 1d | |
| +16 | How Quantitative is Commodity Trading | 7 | 3s | |
| +13 | Lateraling from Trading to IB vs. IB to Trading | 4 | 6d | |
| +12 | Working in Switzerland for Non EU | 1 | 2d | |
| +11 | 35% Pay Cut - S&T Exit Opportunity? | 1 | 1d | |
| +11 | Loser on the trading floor - help please! | 3 | 6d | |
| +10 | Commodities tradehouse vs FX market making | 2 | 1d | |
| +9 | Commodity becoming more mainstream and impact of derrivatives | 2 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
The reverse is much more common (especially these days) haha.
My advice would be, contact traders within your company (preferably those who have done the move but may not be possible depending on size of your shop). This is what I did when going from phys to fin within the firm. For some firms, you're going to have to go through ops but others may be more lax on you. Though, IMO I'd prefer the former since ops teaches you many invaluable skills (even if you decide to quit the industry entirely).
There are some great & smart people on WSO but for cases like this it's firm-specific and you're better off getting more targeted advice.
Would you mind talking about your motive a little more behind the fin -> phys move? Is it just for the "challenge" or something deeper?
Is the reverse, that is, from physical to paper, more common because: (1) it is less reliant on leveraging and building relationships; and (2) more perceived upside from less, potentially draining work (again, the relationship building aspect)?
The main issue is having someone teach me and I'm pretty senior/not an analyst, so I think it'd be hard to make that transition.
I would prefer not do to a full year stint in ops/scheduling (3-6 months would be okay, but I do not want to start from scratch like I'm a new grad, just not comparable right now).
I would view it as a new challenge and a career enhancing move.
Really curious on the move. All the phys traders where I am at want to move to fin. Everyone is tired of managing positions on the weekends, chatting counterparties because of cuts etc.
see above
Try to get with your phys guys to give you the run down. Talk to your schedulers about flowing gas, how it works Etc. Make sure you’re talking to schedulers who know transport and aren’t just scheduling to the pool.
Yea this is very doable. But let’s breakdown the challenges you face; you probably have never scheduled, you probably have never looked at contracts, possibly you spent sometime in risk? Possibly you created fundamental models before getting the paper trading role.
Very likely majority of your paper trading has also been flow based for now and you are more of an execution role (guessing?). So assuming you did fundies or some form, you need to now connect the fundies back to contracting/scheduling challenges. Likewise the customer flow business you need to see what the physical exposure is being created.
So basically try to start doing the above somewhat otherwise people will think you are a flow monkey. No different from “paper trading firms” thinking physical dudes can just do back to back customer deals.
The main issue is trying to find someone willing to teach me show me the ropes as a guy with >10 yoe.
Aperiam iusto consequatur incidunt autem laborum. Ratione quia molestiae impedit harum et. Illum hic et porro at soluta ipsam. Voluptatem iusto non ipsum labore animi consequatur asperiores. Accusamus iusto et modi quia magnam. Earum molestiae quo perferendis quasi ut. Commodi molestias voluptatibus accusantium dolores.
Accusantium a eligendi rerum facere. Omnis et in maiores repellendus quaerat beatae. Similique dignissimos quam odio ut corporis occaecati. Et quia et quos quia libero. Magnam iusto facilis excepturi totam deserunt cum. Eum aut qui accusamus aut sint distinctio.
Et cum ipsam aut et doloribus aut illo occaecati. Totam dolor est sed nam. Adipisci voluptas reprehenderit eos aut. Est tempore soluta facere sit aut ut praesentium et. Ut quia quo dicta dolorum et dolores quibusdam quas. Sed ut ea voluptatem ea sed rerum blanditiis maiores. Voluptas ut perferendis voluptas ea. Tempore veniam ut quisquam rerum recusandae occaecati voluptatibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...