Hello,
I'm interested in pursuing a career in trading. My research (M&I,Job Descriptions) has shown me that one of the most important pre-requisites to a career in trading securities is strong numerical skills (I'm not talking about analytical capabilities).
I didn't do so great in Calculus in my first year of University, but graduated with a BBA degree specializing in Finance - I bet I would be great in Trading given my analytical skills, communication abilities, and understanding of financial markets, but my numeric experience says otherwise to anyone who recruits in the trading field.
What is the bar for numerical ability to get into trading and is it the same bar to actually be successful in the role? Can someone who is very interested make up for their lack of numerical experience/skills after graduation and already working full-time to somehow find a way back into trading?
Note: This is only about trading, agency or prop, not sales. Note 2: I'm from Canada, if that changes anything in terms of what recruiters/traders look for in candidates when hiring.
Hey whatsapitchbook, sorry about the delay, but are any of these useful:
You're welcome.
I think it could go both ways: I don't think you need to understand how to rigorously prove theorems in calculus, so if your calculus class was overly theoretical, it might not matter too much that you performed poorly in it. However, I do think being able to apply math (such as calculus or linear algebra in certain cases) and probability/statistics well is an important skill.
Be good at mental arithmetic- you should be able to do standard operations with two numbers that each have 2-3 significant digits (this includes decimals like 0.00027).
Have an intuitive and accurate grasp of probability concepts, especially Bayes' Theorem.
Know basic game theory- Nash equilibria and the like.
Know basic stats/be fluent in data.
Know enough calculus to be able to compute Greeks (i.e. be able to take a partial derivative and understand it.)
Helps to know some Python.
This is for a non quant role. If you are interviewing for a Quantitative Trader position, you want heavy stats/machine learning expertise.
Is this just more toward prop trading or does it apply to flow trading S&T at BBs also?
This is geared towards reputable prop trading shops. My own experience is interviewing for an options market making role so that's what it's most tailored to. I would suspect it's similar for market makers at BBs as well, though maybe with less emphasis on game theory. Several well known prop shops really like poker players so the subject probably comes up in interviews more than it otherwise would.
Consequuntur tempora ad molestias nihil. Ipsum ut impedit ut praesentium iste aut. Provident reprehenderit in officia. Laboriosam earum voluptatum perspiciatis inventore neque repellat. Sint optio saepe molestiae est consequatur quae.
Eum dolorem dolores maxime inventore. Occaecati omnis sequi non enim at veritatis. Quia doloremque rem debitis placeat. Sint explicabo iusto facilis sint quas asperiores.
Qui consequuntur explicabo et temporibus. Eveniet et eaque soluta qui perferendis quas aliquam ipsa. Sed numquam est molestiae dolores consectetur. Voluptates consequatur id qui repudiandae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...