Couple of Questions About Trading

Hi,

So basically, if I want to get into trading from a non-target, is it absolutely necessary for me to major in math (my school doesn't have engineering), or can a finance major with A LOT (and I mean A LOT) of quantitative classes in economics, statistics, and maybe some CS/Programming and calc-based physics be fine to demonstrate quantitative ability? Unfortunately, I've been stupid with choosing my classes, and I've wasted my first two years working only towards my business degree, so I only have 2 years and maybe the summer term to add my quant classes, thus making a double major virtually impossible, but if I just take a minor in math or physics or something, would that be fine? I know a lot of getting jobs is networking, but do you know of any non-target kids on the trading floor, or is trading even tougher to crack than IBD from a non-target?

Also, are there particular math/physics/econ classes you'd recommend that have fairly good trading applications or develop a skill-set that's useful in trading?

 
Best Response

First off, a lot of math is necessary if you want a shot at the quant shops: i.e SIG, Jane Street, DRW - all of these shops are options based and trade vol. and include market makers. Be warned though that most math classes are useless in actual trading - they're used as a gauge of your actual quant intelligence rather than "helping" you to become a better trader. Take more statistics and applied probability, they're very helpful in getting through the interviews. SIG and Jane Street interviews are basically long statistics/logic tests. Off of the top of my head, take a higher level probability class, and stochastic processes if you have the chance (I assume you have enough background to survive it). On top of this, you need some basic/proficient programming skills to make you even more attractive of a candidate.

In breaking in with a BB, you won't need that much math beyond basic statistics and basic calc. Depending on the desk you want to get on, a majority of the time you'll find that most kids have much less math than you. Networking and getting the first interviews will be the most important in your case, less pedigree. I've seen plenty of non-target kids on the floor.

The best traders I know in the biz aren't quants, contrary to what this website/quant firms would have you believe. They're all mathematically capable people but none of them rely on pure quant to make bank. Keep this in mind kid.

 
Zalfor:
Honestly it works like this. Ur not going to get an intrview without the math major. But the job requires nothing that u learned in school

Hmmm, looks like there are split opinions on this so far. But do you really need a math MAJOR? Wouldn't a minor or just having a decent amount of quant classes be enough? If I wanted to do a major in math, it would take me at least a couple extra terms to graduate, and that's something I want to avoid.

Also, I don't need to be a quant trader. Just breaking into trading, even if it's at a boutique is good enough for me.

 

You don't have to be a math major to get a trading interview.

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock
 

^ Agreed. The type of math you'd be doing as a math major (theory, proofs, etc) is not very useful for trading, which requires more quickness and mental math. The one caveat is that if you want to do quant trading or be a quant, advanced math is certainly a plus. Most quants have PhD's in math, physics, CS, econ, etc.

 
ews09:
^ Agreed. The type of math you'd be doing as a math major (theory, proofs, etc) is not very useful for trading, which requires more quickness and mental math. The one caveat is that if you want to do quant trading or be a quant, advanced math is certainly a plus. Most quants have PhD's in math, physics, CS, econ, etc.

Yeah I'm not sure if I'm even cut out for being a PHD in physics or some shit like that. I actually think that stuff is interesting, but let's face it, everyone has different capabilities and stuff is beyond me. Proofs/extremely theoretical math murders my ass. What I am good at is doing math quickly/accurately and I like doing statistical stuff, or just cranking out math problems blindly even if I don't completely understand what the hell is going on. But for someone like me, would taking a few extra classes in statistics and doing a minor in econ be enough to demonstrate quant ability? I'll be doing plenty of trading problems in the next few years as well and practicing mental math regularly.

Also, I'm still a sophomore, so what type of internship should I look for this summer? And I'm still confused about whether IBD or trading is harder to break into.

 

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Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock

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