I'm not sure how to tackle this question when they ask it in an interview. Does anyone here have any advice/tips that they could share? Thanks
"Why Sales and Trading?" Interview Question
In any sales and trading interview on Wall Street, candidates will likely be asked to answer some variation of this question: Why Sales and Trading?
To tackle this broad question, you need to consider two components. Why are you interested in the division and what experiences do you have that can back up this interest? This story should highlight your interest in the markets and in the competitive, fast paced nature of sales and trading. If you can speak to the atmosphere of the trading floor (after having visited), you should touch on that as well.
In many summer analyst positions, candidates will also be asked to preference why sales vs. trading?
Why Do You Want to Work In Trading?
When explaining why you want to work in trading - you should curtail your answer to strengths and experiences that you can speak about. You could use a combination of the reasons below or a myriad of other reasons to explain why you want to work in trading.
Traits to Mention in a Trading Interview:
- Entrepreneurial / Merit Based - Fast advancement for high performers
- Client Interaction - Relationship manager and problem solver for clients
- Passion for the Markets
- Competitive Nature - Love taking risks and having a "score board" each day
You can also mention that you like the continuously changing nature of the business.
You should structure your interest into a story format. Please see an example below.
My interest in trading started in high school when my economics teacher had all the students complete a mock portfolio challenge. I started trading a mock portfolio of $100,000 which ended up being my favorite assignment throughout high school. Eventually I opened my own personal portfolio and traded micro-cap names. I came to realize that I loved the constantly changing nature of markets and I loved that there was a score board at the end of each trading day in my account. With all this in mind, I spent time networking with NAME OF FIRM and realized that I loved the fast paced nature of the trading floor. All of this led me to want to pursue a career in trading.
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Maybe try telling them the truth? Why you want to do trading. If it's not a good answer, then you probably shouldn't be doing trading anyway; there's no point in doing something you don't want to do.
If you want a canned answer, there's a million of them out there... which is probably why you won't hear this question too often (especially once you get past the first round).
My answer revolves around the way I played varsity basketball during my high school years and played against some players who are now in the NBA, and how the dynamic of coming back from a loss/rejection and also enjoying being in a pressure situation make me a good fit for trading. I would also throw in how my experiences in finance over the past 2 years tie in / lead to a natural progression into trading. Would that be a sufficient answer? Or should I include something else? . Thanks
love risk and markets
just tell them b/c you couldnt get into banking, so you settled for next best thing
If you're talking about high school stuff, that makes me think you really haven't accomplished a lot... I would never mention anything I did in high school (either on a resume or in an interview)
mack387, are you west coast or east coast?
^^^east coast...nyc to be exact.... I did an investment banking internship at a boutique firm already and didn't really like the experience, and am much more interested in trading. I think me having been an athelete all my life since I was in grade school/being competitive definitely should tie into my answer. I'm a rising sophomore, and with recruiting season coming up, would like to know what a more apt answer would be. Thank you
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why must you ask such a stupid question?
But I'm not...
Is this an interview?
I believe that this person want's to know why others at this forum are interested in sales & trading so he/she has a starting point on which he/she can elaborate during interviews.
What are pros / cons Im guessing?
Because i want to trade size
ye i too would like an articulate way to show my interest when probed during an interview
Why do you guys have to troll this kid so hard...he/she just wants to get a feel for why others are interested in S&T. hop off ya BISH
TOP 3: 1. Always moving & challenging environement. 2. Curiosity & passion for learning 3. Money
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
There's more to life than money? At the end of the day, S+T pays well by most people's standards, and I'd rather be doing a well paying job that I love than a slightly better paying job which I'm not interested in.
Who claims S/T pays less than IBD? In fact, the contrary is the case: during analyst years, they pay about the same, later there is much more upwards potential in S/T than in IBD.
As concerns prestige and exit opps, however, you're right.
Actually get to have a life, more exciting environment, potential for much more $, much more interesting work
Before I went into trading, I researched the IBD vs trading thing in detail - mostly through conversations with alumni who were in the senior associate - MD range. I chose trading because (not in any specific order of preference)
There IS more money. A VP at GS IBD told me - if you are more into money, you should go into trading. Coming from him, that statement in itself told me a lot about the money aspect. If anyone told you trading pays less than IBD, that is pure BS and the person most probably doesnt yet work in a banking firm.
It is more 'intellectual' (at least the fixed income side). You are required to use a little bit of your grey matter, whereas schmoozing and networking are primary skills required in IBD (which are essential skills no doubt but everyone has their likings). Also given that I am an engineer, I realized that whereas I could grasp the finer aspects on both sides, I would have nothing up on the history major in IBD whereas I could whoop anyone else's ass on the trading side.
The org structure is more egalitarian. There is a little more respect for people below you as opposed to IBD where things are way more hierarchial and your ass belongs to the guy above you
Work life balance is WAAAY better. You can look forward to having a life while earning a ton of money and there isnt really much of a painful tradeoff
Traders pretty much control all these firms. Look up the top execs at all the BBs to figure out for yourself. The GS IBD head (GS arguably being the fountainhead of IBD) is actually a trader! That says a lot doest it :)
With the money and ability to generate more money from that money, I sort of dont really think exit opportunities are that bad.
That is sort of a biased view towards trading but then again, you seem to be coming into this pre-biased towards IBD. By all means talk to LOTS of people on both sides before you come to conclusion.
But remember that for a bulk of the trading (at least to enter into BBs) you need to have some quantitative training. It is necessary. There are always boy wonders who are philosophy majors and end up being stars but most BBs 1) do not have them time to go looking for the 1 in 1 million wonder 2) have sufficient number of 1 in 10k smart people ready to work for them. Hence they will not bother much with you.
Best of luck. My only advice would be to research extensively and go into why you really like and think would excel at. I have a lot of friends in IBD who love it and it gels well with what they want in life. Just make sure you go into it for that, not just for glamor.
maybe some guys that are on desks could post what kinds of traits they look for though, the types of people that CAN succeed. I know Jimbo has talked about it before. I feel like with the internet and trader monthly talking about $15,000,000 bonuses now a lot of people are going to want to go into trading because they see how much money is there. But you do have to decide if you can handle the risk, if you wash out of ibd then you go to get an mba, if you were at a bb youre pretty much guaranteed a great job. I have a feeling if you cant show a good P&L in trading you a little more out of luck.
If all you are doing is market making, it is not exactly that hard. Also, there are a lot of forms of trading where the risk is quite little. Plenty of people go to get MBAs from trading, and I suspect some schools might prefer their applications because a lot less trading analysts exist on Wall Street than banking analysts, and many of them want to make a career of it.
very little in any of these fields is 'hard'. what the trading desk quants do is ridiculous though....
two other points: one i don't consider trading any less presitigious than banking. not for a second.
also market making is not the mindless task mrbubba and others sometimes make it out to be. in many ways it is harder than prop.
Please explain how it is "harder" than prop. How are the two different?
I am very interested in trading. How does trading at a BB firm differ from this guy I watched last week trade his own money in equity options. He was in and out of trades and by the end of the day was out of every single trade. He told me that once I graduated he could help me get a desk and some money with this firm to trade. I think basically I would trade other people's money and get a percentage of profits. Is this much like trading at BB firm?
Thanks for help. I am quite uninformed at this point of career.
what this guy does is prop trading his own capital. basically saying i have a view that x will happen and putting on a position to reflect the view. most trading at banks is not like this. rather it is market making, which may include a large prop component though/
market making means you will make a price on something for a client, regardless of whether you want the position (though obviously your price will be better or worse depending). this is what makes it hard...you can get stuffed with things you a) don't want and b) can't get out of, especially in the less liquid/more exotic stuff.
the term prop trader, or proprietary trader can be confusing when your first trying to figure out career possibilities. ive come across three types: 1. bank prop trader: trades the banks money to increase their rev on the year 2. prop shop like group 1 or drw: prop traders have the same function as the bank prop traders but the lack of clients makes the cutlure different sometimes 3. prop shop arcade: this is the most confusing because there are places that are good for people that know how to trade and want cheap commissions, there are others that are good for people in their midlife crisis wanting to "do trading" and they can offer good training, but there are a whole slew that want you to come in put like 5000+ into an account where they leverage it and charge you commisions, and wont care once you lose it all because they'll move on to the next guy
So, why prop trading? (Originally Posted: 10/08/2008)
What interests you about prop trading? Or trading in general?
I guess the generic answers are "the markets are always changing" and "its fast-paced".
The best thing about prop trading is that you are responsible for your own P&L and you are compensated accordingly.
Why Trading? - Best career for you? (Originally Posted: 11/08/2009)
I was wondering why many of you decides that trading was the best career for you. I am leaning towards trading now, but I am wondering why you chose to go into that vs. IB or industry.
It was all money for me. I was never a team player, so the individual nature of profit and loss in trading appealed to me. Can't speak for anyone else, but for me it was all about the dough.
Have you ever seen the office? As much as I'd love to work 40 years in that type of environment, we'll I just couldn't.
It sounds like you may be deciding your career path like a lot of prospective moneys.
ie: What jobs pay the most?
Now, how do I choose between consulting, IB, or trading??
I don't know if this is the wrong way to think about things, but I think you should at least think about your personality and what it is you'd like to be doing for the majority of your waking hours.
"Why are you interested in switching from banking to trading?" (Originally Posted: 12/04/2013)
I feel like all the answers I've been able to gather are too much BS.
Any thoughts or recommendations?
what's the real reason?
I did was a SA in M&A before accepting FT in S&T. My reasoning was that I preferred something that was centered around the market and much more fast paced. The easiest and most legitimate reason is the first one. IBD is no where close to being as market centric as trading. If you eat, sleep and breathe securities markets, S&T is the only place to be.
You can also say better hours and you want to have a life...most traders will appreciate the honesty. In fact, if you don't bring this up they will likely be suspicious!
The two most common ones are also the most realistic. The desire to work in a faster-paced role that is market facing is an acceptable and understandable answer. People on both sides understand the nuances of each role that may appeal (or not) to each person differently.
Banking and trading are worlds apart in terms of actual work and lifestyle. If you're switching, then you obviously have a reason(s) and it's probably a legitimate answer. If you have to ask strangers what you should say, then you should familiarize yourself more with trading.
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
So, why prop trading? (Originally Posted: 10/08/2008)
What interests you about prop trading? Or trading in general?
I guess the generic answers are "the markets are always changing" and "its fast-paced".
Why Trading? - Best career for you? (Originally Posted: 11/08/2009)
I was wondering why many of you decides that trading was the best career for you. I am leaning towards trading now, but I am wondering why you chose to go into that vs. IB or industry.
"Why are you interested in switching from banking to trading?" (Originally Posted: 12/04/2013)
I feel like all the answers I've been able to gather are too much BS.
Any thoughts or recommendations?
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
So, why prop trading? (Originally Posted: 10/08/2008)
What interests you about prop trading? Or trading in general?
I guess the generic answers are "the markets are always changing" and "its fast-paced".
Why Trading? - Best career for you? (Originally Posted: 11/08/2009)
I was wondering why many of you decides that trading was the best career for you. I am leaning towards trading now, but I am wondering why you chose to go into that vs. IB or industry.
"Why are you interested in switching from banking to trading?" (Originally Posted: 12/04/2013)
I feel like all the answers I've been able to gather are too much BS.
Any thoughts or recommendations?
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
So, why prop trading? (Originally Posted: 10/08/2008)
What interests you about prop trading? Or trading in general?
I guess the generic answers are "the markets are always changing" and "its fast-paced".
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
So, why prop trading? (Originally Posted: 10/08/2008)
What interests you about prop trading? Or trading in general?
I guess the generic answers are "the markets are always changing" and "its fast-paced".
Why are you interested in Sales & Trading? (Originally Posted: 07/01/2011)
Why are you interested in Sales & Trading?
Why Trading? - Why do you all prefer S&T? (Originally Posted: 03/24/2007)
Given that many traders posting on this board have admitted that the exit ops., prestige, and comp. potential are less for S/T than IBD, why do you all prefer S/T?
So, why prop trading? (Originally Posted: 10/08/2008)
What interests you about prop trading? Or trading in general?
I guess the generic answers are "the markets are always changing" and "its fast-paced".
Why Trading? - Best career for you? (Originally Posted: 11/08/2009)
I was wondering why many of you decides that trading was the best career for you. I am leaning towards trading now, but I am wondering why you chose to go into that vs. IB or industry.
"Why are you interested in switching from banking to trading?" (Originally Posted: 12/04/2013)
I feel like all the answers I've been able to gather are too much BS.
Any thoughts or recommendations?
Why Trading Over Quant Research/Software Development/Tech (Originally Posted: 09/20/2014)
Hey guys,
I'm in my junior year looking for summer internships in prop trading or S&T.
I'm anticipating that interviewers will ask me why I want to become a trader as opposed to a coder/quant, because my past internships have mostly focused on coding, and my major is mathematics.
My real answer is that I don't see myself having a job where my main task is to code. I don't want to do research or develop software tools merely to assist traders, but to actually be a trader myself: execute my own trades, generate my own P&L, take my own risk, etc. I feel like I wouldn't be involved in the actual finance aspect of the business if I'm just a coder.
I know that's probably not the best way to phrase it, so how should I actually answer this question?
Any help is appreciated. Thanks!
How the fuck are you going to come up with new trades if you aren't going to research them? The quant teams aren't just going to be like "start making markets in QQQ today, here's your model". And if they do, leave that firm because that just means their traders are expendable drones.
You should probably be concerned about how well you can flip coins and count cards before you sweat the "fit" portions, which honestly matter very little until later rounds.
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