Equity Research to Sales and Trading?

Was wondering if anyone here works in equity research anywhere, how do you like it and what are the hours and pay like? Furthermore, is it possible to go from equity research to sales and trading? Was advised by someone prominent that one of the best things you can do for your future in sales and trading is to build a solid foundation from research first, but don't know how much I buy it.

 

I know of several people who went from Research to S&T, one was for mortgages, the other was for FX....so it does happen.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
 

I work in ER.

Hours are strange. Non earning and no roadshow maybe 6:15-8 for an associate. Earnings or pre roadshow/confrerence maybe 6:00-10/11....

Pay is what you expect. First year associate out of UG will get the same as a first year IBD analyst, although the bonus is significantly smaller than your groups banker...

ER>S&T is common. If you want to do s&t though why not just go for it? ER is not necessarily easier to land in, especially right now....

 

Had an interview today at a boutique for S&T and after I pitched to the head of the floor a few ideas and the analysis behind them he said I'm not ready for S&T at this point in time.... Said there might be a spot in Research which would be ideal to build a foundation for S&T

So i don't know what to think really, just kind of bummed from the outcome

 

Math, math, math haha. Seriously though, take all of the highest level math classes possible--linear, differential equations, any advanced stat courses. Basically, if you don't like math/aren't good at math/aren't willing to challenge yourself at the highest levels, you're fucked. Remember, you are competing against engineers/physics/math majors at top Ivys. Obviously it depends where you are looking,but assuming you're shooting for BB (like everyone with a pulse), you HAVE to maintain GPA of at least 3.5 coming from semi-target, but would like to be a bit higher if at all possible. I know you'll hear that you don't really NEED a 3.5 but good luck with that if you are under that at a semi-target. Just make sure you major in something quant related, aka the 3 fields listed above/Finance.If you do this you should have as good of a shot as anyone! GL!

 
goldman12345678910:
Math, math, math haha. Seriously though, take all of the highest level math classes possible--linear, differential equations, any advanced stat courses. Basically, if you don't like math/aren't good at math/aren't willing to challenge yourself at the highest levels, you're fucked. Remember, you are competing against engineers/physics/math majors at top Ivys. Obviously it depends where you are looking,but assuming you're shooting for BB (like everyone with a pulse), you HAVE to maintain GPA of at least 3.5 coming from semi-target, but would like to be a bit higher if at all possible. I know you'll hear that you don't really NEED a 3.5 but good luck with that if you are under that at a semi-target. Just make sure you major in something quant related, aka the 3 fields listed above/Finance.If you do this you should have as good of a shot as anyone! GL!

From what I've heard, lots of S&T people have hard-ons for Computer Science or Mathematics majors. Don't know why but they just do,

 

BBs do the vast majority of market making by far in anything which is not equity, and are in fact the ONLY market makers in a lot of the more complex OTC products. In equity, prop shops and the like have sizeable market share but the big institutional orders are still done through the BBs. From what I know, Jane Street specializes in ETFs and GETCO in high frequency equities, though of course GETCO is trying to expand their coverage as indicated by their recent acquisition of Knight.

As for ER -> S&T, it's definitely possible since you're only a sophomore. Just the fact that you have BB ER as a sophomore will land you many interviews. After that it's up to you to craft a good story (why you want to switch from ER to S&T), demonstrate basic market/technical knowledge, and be generally likeable in the interviews.

Good S&T books, hmm...honestly it depends on what you want to do. I would start with the basic, story-like ones about the industry...things like When Genius Failed, The Big Short, etc. to get an overview. Depending on how much you already know that might be too easy for you in which case reading introductory technical books (e.g. Natenberg, Hull, etc. if you are interested in options trading) would be interesting. But in general be open to non-book resources as well...when I first got interested most of my knowledge came from following links on Wikipedia, which gave me a general base that made subsequent things easier to understand...so that is a possibility as well.

 

dont be a fucking nerd, whats a book going to do for you? go out there, network, land the actual interviews, and prep for the interview through your interviewing guides. study probability, brainteasers, mental math, stay current with the markets, follow the fed, follow the league tables for the companies that you want to interview at, and know each single product inside and out (equities, fx, commodities, special situations, risk arbitrage, etc.). Also, be likeable. It is very important that people like you, it is very cut throat in S&T right now so you want to make sure you are a total package. I am at a non-target and secured multiple SA S&T offers doing what I just told you, now imagine what you can do at your IVY. Holla at cha boy with cha inquiries.

 

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