Coffee Chat with Head of FX Trading
Hey guys, I recently got in touch with an alumni from my school that is a senior MD of FX trading at a pretty reputable MM shop. I'll be meeting with him for a coffee chat in the near future and I was wondering if anyone has some advice as to what are good questions to ask and the best ways to make a good impression. Just to give my general background I'm a non-target who graduated last May and was a member of my school's equity research group, have been doing an online course on financial modeling along with studying for my cfa since graduation. I've also read at least a dozen relevant books throughout the summer on trading and macro stuff such as two of the market wizards series, alchemy of finance, the big short, etc. I don't personally have any real experience trading because I've never actually had any worthwhile sum of money to even try due to paying for school but I feel like trading a macro type of product is the career path I would enjoy the most.
1) open a retirement account at TD Ameritrade (free) 2) in your online profile, request realtime data for equities and futures (its free for retirement accounts, but you have to select it in your account) 3) put a couple hundred dollars into that account...think of it like another bank account 4) from the TD website, download thinkorswim (their free trading platform) 5) on the charts tab, setup a grid of 5 minute charts, follow a few stocks that have good volatility (XOM, ROKU, FB, NFLX), and a few of the major FX crosses (EUR/USD, GBP,USD, USP/JPY) Also look at macro futures (/ES, /CL, /GC, /ZN) 6) play around with different chart indicators...i suggest MACD and Bollinger Bands. Look at the settings and learn what kind of options you have. Be inquisitive...ask questions...they have a good support desk during market hours. Try changing the settings on the indicators and see if you can find something that helps you predict turning points.
7) start watching the markets. Remember that the job of a trader, 90% of the time, is just sitting there, staring at the screens, watching the charts tick....so try it and see how you like it. Imagine going long or XOM or NFLX at some price ...and then imagine having real P&L based on your positions...and see if you like the stress...try reversing your position when you think the market will turn...if you like watching the charts tick. That's 80% of the battle.
8) NOW, after having some very basic experience in the market, you'll be in a better position to talk to a trader and ask intelligent questions. 90% of college kids don't do this...you want to stand out..you want to seem like you are actually interested n trading...and the ONLY thing that demonstrates interest, is actually having a trading account and watching charts tick...and trying to actually trade with real money (even if its only a couple hundred dollars).
if you think this is too much work...then why are you bothering to talk to a trader? Trading takes internal mental motivation....otherwise you won't survive.
Also - the "MM" designation only applies to M&A type investment banking...when it comes to trading desks...any desk can make billions (theoretically)...every trader is potentially the next PTJ..maybe your boss friend...maybe you..
Thank you for your extremely insightful and honest opinion. I will definitely try and scrounge up a few hundred for a small account to do this. Are there any other good (preferably free) resources for up to date news on these types of markets that I wouldn't be getting with the TD Ameritrade account? Also some general basic reading introducing technical analysis so I can use these chart indicators to the best of my ability?
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