Technicals to Focus on for ER?
I know following the markets (knowing what NASDAQ closed at, where do you see the market heading etc) and having a few solid stock pitches is important.
I’m focusing on accounting and valuation questions at the moment, but are there any technicals (eg stuff in or not in the 400Q guide) I should know for interviews?
TIA
For Equity Research (ER) interviews, technical preparation is crucial, but it’s equally important to tailor your focus to the role's specific demands. Based on the most helpful WSO content, here’s what you should prioritize:
1. Accounting Fundamentals
2. Valuation Techniques
3. Stock Pitch Preparation
4. Market Awareness
5. Industry-Specific Knowledge
6. Modeling Skills
7. Behavioral and Fit
Bonus Tip:
Practice writing a short equity research report. This will help you articulate your investment thesis clearly and concisely, which is a critical skill for ER roles.
By focusing on these areas, you’ll be well-prepared to tackle both technical and behavioral questions in your ER interviews. Good luck!
Sources: Studying process, 3 Key Tips for Getting an ER Interview, Notes for Technical Interview Questions, Investment Banking Interview Questions - 15 Answers to Land the Job
Bump
Brush up on your technical indicators like bollinger bands, RSI, moving averages (50 vs. 200 day), Fibonacci sequences, non-euclidean surfaces, and non-newtonian fluid dynamics.
Jk - if you have the following down you should be in a good spot:
Should I know when to hedge commercial paper against libor and the delta hedge puts?
Fr though thank you beast
Damn you must be as old as me, LIBOR isn't a thing anymore haha.
Former PM ($1B AUM) here. You're focusing on the cover charge, not the main event.
Technicals (accounting, valuation, the 400 questions) are just the cover charge. If you don't know them, you don't get past the door. But reciting the definition of EBITDA doesn't get you a job offer. It just prevents you from being kicked out immediately.
Knowing where the NASDAQ closed yesterday is irrelevant. I have a Bloomberg terminal for that. I don't need a junior analyst to tell me the index level. I need one who can tell me why the market is mispricing a specific asset.
In my 15 years managing money, I never hired a candidate because they got a tricky accounting question right. I hired them because of the stock pitch. Most candidates lose the offer during the pitch defense, not the resume screen.
Stop writing "book reports." A write-up without variant perception or a view on what's priced into the stock is just a summary. You sound like a student, not a risk-taker.
Here's the trust metric: You don't get hired because your DCF has five scenarios. You get hired because the PM trusts you wouldn't blow up the portfolio while they're on vacation.
Treat technicals as a checklist. Master them and move on. But realize your interview isn't a test—it's an audition. If your pitch isn't bulletproof, you're leaving the offer to chance.
Focus 90% of your remaining prep on your stock pitch. That's where the seat is won.
You are definitely correct, but for sell side ER what would be the equivalent of a "PM trusting you to not blow up the book" phrase?
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