I was talking to my friend who did several S&T interviews for FT last fall (didn't get any - working for a fund of funds) and he mentioned that in two of his interviews he was asked a question along the lines of:
Would you rather make 3 decisions and get all of them right, or 10 decisions and get 8 of them right?
We debated about what the interviewer was looking for with this for some time, so I was wondering if some traders could provide insight as to if there is a right answer to this question for a S&T position.
I am not a trader, but do want to get into S&T next summer so take what I say with a grain of salt. My guess is the interviewer was looking for something regarding the risk/return of each of the decisions.
8/10 although from an investing perspective its kinda a tough question to answer without details. if you had more conviction on the 3 and put them all on in huge size, could be better than 8/10 on a smaller scale.
Only a first-year here but...
As a trader you're not always going to be right. Several top guys on prop desks are wrong on their views on trades several times. The only difference is that when they're right they make a significant amount of money compared to when they're wrong and they do not lose too much.
So I'd say the quantity of the right decisions made is less important than the quantity.
Making more decisions right (8) is worthless if the two mistakes you made erase any gains from the 8.
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