What kind of things would you recommend I learn and brush up on to prepare for an internship in sales and trading (no information on rotations yet)?
Also, are there any specific things you would recommend doing over the internship?
Thanks!
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id do the following:
-go through a general book that covers various products (Hull is fine for this, just to become aware of the various tenents of finance) -find a book that specializes in a product taht you are most interested in (as you should be trying to actively get on this desk over the summer so you need to show you are a cut above the rest) -follow markets daily starting now (browse trhough FT/WSJ/Economist is enough really). Passively following a little bit everyday will get you to picjk up whats important,price actions etc (always better to do 20 mins each for 4 months then 2 hours a day 2 weeks rpeceeding) -practice common internship trading games
Any recommendations for good books/resources on options? I know the basics, just looking for a good way to learn them a little more in depth before the summer.
John Hull's Options, Futures and other Derivatives should do.
Hull isnt great if you want a true options book, good for an overview but thats about it.
I think the best book on practical trading is by Sinclair: http://www.amazon.co.uk/Option-Trading-Volatility-Strategies-Techniques…
Lot of people will recommend NAtenberg but id avoid that.
If you really wanted to go all out id do the following:
1) Introduction to Options Trading (Frans de Weet): amazing starter book, very quick read but really makes things simple and clear
2) Sinclairs book (above): takes Weet book to a bit more advanced of a level
3) Talebs Dynamic Hedging: goes through some more advanced concepts
If you can get through and grasp the concepts, i think you would be the intern to watch in terms of the options desk.
Agree with Derivstrading in regards to following the markets. This is absolutely critical and as he also said, checking in on the WSJ or FT is not enough. Something you could consider doing is to even open a demo through TD Ameritrade or some other broker and trade product(s) that you have an interest in. This has nothing to do with making money (real or not) but everything to do with picking up on little details that you may notice regarding your products.
All books above are musts
Natenberg's book on options is considered a pretty essential read so I'd recommend that
Natenbergs books is one of those that has gotten an overly good rep through word of mouth, and tons of people recommend it on this forum just because they have heard others recommend. And althought its a good book, in terms of prep for BB trading its leagues below the links I posted. Natenberg has the basics, but it also wastes so mcuh time on things that are only really relevant if you are trading options in a pit or something similar.
interesting, i'll have to give the others a look. i will say that while virtually everyone at the bb options desk i was on rec'd natenberg, on first read it did seem a little rudimentary
anyone have S&T intern trading pit game guides?
Algorithmic trading and DMA is a really good read, even if you aren't going to be on an algo group. Its a good overview of how it all works, and isn't too in depth of a read that it would overwhelm those without a math/CS background.
Ill probably get a slap on the wrist from Patrick for this, but I go through a common intern pit options trading game in my guide.
Is an intern options trading game usually done during the summer at most banks?
Most banks do some form of game, some only do the general markets game (i.e. run some form of virtual portfolio asa team).
My bank and a couple others i heard of did an options open outcry game at least in the equities division (my program was split into equities and FICC, but all kids did at least on rotation in each so everyone played the game). We actually had several MDs sit it to observe the games so it was clearly something they were using as a data point.I was lucky and knew what was coming so prepared, and i remember it scored me major brownie points.
How can you stand out in these pit games?
S&T SA Prep (Originally Posted: 02/13/2013)
I recently accepted an offer for a sales and trading SA position at an upper-tier BB. Was curious what you guys did to prep for the summer? Also, how did you add value during the summer since it seems you're limited in what you can do in this position. Thanks.
Look at the thread below. There is some insightful advice.
http://www.wallstreetoasis.com/forums/st-summer-intern-prep-2-months-out
Preparing for S&T SA (Originally Posted: 01/24/2014)
So I've accepted my offer to work at a top BB for the summer in S&T. Now I have a shit load of free time because my classes aren't hard. I have two questions I'm looking to get answered here:
How do I figure out which desk I want to be on? I like macro stuff even though I have a very limited Econ background, but I know a lot about accounting so I'm thinking maybe credit trading? But honestly I really don't know and would like to find out so I can start networking
What should I do for the next few months to get ready for the summer? AKA what books should I read, should I learn VBA or take some Excel course, should I start reading something besides the WSJ everyday, and most importantly: is there a way I can practice for the stuff I'll be doing this summer?
Any input is greatly appreciated.
interested as well
My couple of recommendations .
First, research what type of role you want to be in: Trading, Sales, Research, etc? - You won't really know, but it is better to have a good idea what you want to do.
Next, research the different products and how your education might fit into them: Accounting is prob best for Corporate Credit, Economics - FX, Treasuries, Math - Securitized Products (MBS, CMBS, etc)
Network with people within each desk. Get their opinion on what makes someone successful at their job with their product.
Study the products you are most interested in. You will know nothing (more or less) when you show up and you will be of no use to anyone - you will get coffee and annoy people (key is to not mess up coffee and be someone people like being around). I would become familiar with Bloomberg and maybe get familiar with efficient use of Excel.
Always stay on top of the market
With all that being said, kick back and enjoy the next couple of months because you will be working your dick off during the summer.
Best of luck
What details have they given you about the program? Is it rotational? Do you know if you're going to be assisted the sales guys or traders? Do you know if it's equities, FICC, etc? Any more details you can give will make it easier to point you in the right direction.
If you're at a "top BB" you don't get to choose a desk so you probably aren't at a "top BB." Almost all SA's are either rotational or selected based on where they think you'd fit best. That said since we have now deduced you're probably at a tier 2 BB like Citi or UBS or something, accounting shouldn't matter. You will be taught all the accounting you will need in your first week of training anyway (aka you don't really need much.) Gravitate towards the desks that interest you most. Since you know nothing right now, don't sweat making the decision right now.
Get very comfortable with excel and powerpoint, take free courses or read tutorials on them if you haven't been trained on them already. If you have bloomberg access at school take the free tutorial on that and just generally use it as often as possible to get comfortable. Use the NEWS tab (or type it in the menu bar) and you can read more than just the WSJ from there. Hard to learn much more because each place will use its own software for modeling, pricing, etc.
It is a top 2 BB and the program is not rotational which should make it incredibly easy to figure out which bank. I don't get to "choose" my desk, but evidently there is some kind of "speed dating" thing where I go in to the office in April and get a bit of time with each desk and then rank my preferences. I'm reasonably sure I want to be in fixed income, and I am leaning away from derivatives as I don't have a math major (although I am pursuing a Stat minor).
TLDR; Not rotational, Top shop (JPM/GS), want to be in trading but won't know until April, leaning towards FI -specifically credit.
Also,
You won't really have any clue what product you will want to work with - you might come in with an idea but the summer is also an opportunity for you to choose the product that best fits you in many ways: academic background, how you see yourself fitting on a desk, socially, etc.
I went in wanting to trade FX - ended up in a completely different role and couldn't be any happier
Do you have any suggestions about how to start figuring out some of those things before a non-rotational internship? I know my academic strengths and what sort of people I work best with, but I'm not really sure how to match those with specific desks...
Adding to that: I do have Bloomberg at my school and use it frequently to research news/companies. However, I spend most of my time looking at stuff from an equities perspective and am not sure how to use Bloomberg to follow FI stuff effectively.
Any advice on how to prepare outside of "follow the markets" and "know Excel and Bloomberg"?
I really liked these courses to prepare me for my internship. It taught me to use bloomberg and decode jargon. Taught by actual traders and not academics that just want to throw formulas at them. There is a fixed income course and an equities course.
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