Corporate Finance to Power Trading

Currently have 4 YOE working as an SFA at a f100 energy company, looking to shift into the power trading world... The main reasoning being that I can't handle the boring monotonous tasks of corporate finance on a monthly basis.

I have a couple of contacts who work in power trading and talked to them about potentially breaking in, but am looking for an outsider's perspective on best resources to learn more about what I should be targeting to break in (RT trader, trading analyst seem like common positions).

My main questions are related to:

  • What should I expect to target for compensation in applying for roles? What does progression look like? 
  • As mentioned above, what roles should I be targeting?
  • Are there any resources to read/watch ahead of time to become better versed in the power trading world?
  • Are the interviews behavioral, or is there a technical aspect? 
    • Are there any good resources for this?

If there is anything I missed, I welcome and heed and additional wisdom/feedback, thank you.

 

Based on the WSO content and discussions around transitioning into power trading from a different sector, here are some insights and resources that could help you navigate this career shift:

  1. Compensation and Progression:

    • Compensation in power trading can vary widely depending on the company, location, and your role within the trading team. Generally, starting roles such as trading analysts might offer a base salary complemented by performance bonuses which can be substantial if the trades are profitable.
    • Career progression typically moves from analyst roles to trader positions, where you might start managing more significant portfolios or specific commodities. Senior traders often have the potential for higher earnings through bonuses and profit-sharing mechanisms.
  2. Target Roles:

    • As you're transitioning from corporate finance, roles like Real-Time Trader or Trading Analyst could be suitable entry points. These positions will allow you to leverage your analytical skills while gaining specific trading knowledge and experience.
  3. Preparatory Resources:

    • Books: Titles such as "Energy Trading and Investing" by Davis Edwards provide a comprehensive overview of the energy markets, trading strategies, and risk management.
    • Online Courses: Websites like Coursera or Udemy offer courses on energy markets and trading fundamentals that can provide a structured learning path.
    • WSO Resources: Engage in forums and discussions specific to energy trading on Wall Street Oasis to gain insights from current professionals in the field.
  4. Interview Preparation:

    • Behavioral and Technical Aspects: Prepare for both behavioral questions, which will assess your fit within the team and company culture, and technical questions, which will test your market knowledge and analytical skills.
    • Resources for Interview Prep: Consider the WSO Interview Prep resources, which include guides and mock interviews tailored to finance roles. Although not specific to power trading, these can be instrumental in honing your interview techniques.
  5. Additional Advice:

    • Networking continues to be a crucial element. Since you already have contacts in the industry, consider expanding your network through industry conferences, seminars, and online platforms like LinkedIn.
    • Stay current with market trends and news related to the energy sector. This knowledge will not only aid in interviews but also prepare you for a successful career in trading.

By focusing on these areas, you can better prepare yourself for a transition into power trading and set a foundation for success in your new role.

Sources: Trading Vol in an IB - what are the good resources for Rates, Credit, FX, Equities? Market-makers' help greatly appreciated, Power trading - forecasting, Resources for learning about distressed debt investing

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