Physical commodities - how do you overcome the operations trap?
WSO has touched on this a lot, as a fundamental "problem" of careers in physical commodities trading.
This is the dynamic I've observed in my specific product/region.
Operations/scheduling is very important, if not THE core driver of how my shop generates PnL. It's a fairly well paying job (probably $90 - $120 K all in), but doesn't have the upside and excitement trading does.
Where trading is primarily a relationships job. Although the financial/analytical side does matter too. The vast majority of traders in my industry are 35 - 60 year old people that have been doing it forever, and know everybody. There's also definitely optics reasons why shops don't want a very young person to be the face for dealing with 50 year old counterparts, etc.
So let's say I'm a really good, but very young, ops person. I have the quantitative skills to be a trader, and I'm good with people. But I don't have an established network like the old guys do (which would admittedly make it hard).
I've been doing scheduling a few years now, and want a trading role.
My company is basically steering me into a role that's essentially a glorified senior scheduler/scheduling supervisor. The rationale is that I can make more of a PnL difference in operations than trying to compete internally with other senior traders.
It's honestly a good job. Comp is very good, hours are good. I have another scheduler(s) below me to take the most menial parts of the job, or some of the on-call stuff. I absolutely get dialled in on commercial discussions, and entrusted with understanding it. But it's still a glorified ops job; I won't really be doing my own deals.
So I feel like I'm at a bit of a crossroads.
My particular gig is great job by conventional definitions, but I'm quite dead set on being an actual trader. I feel like doing operations is ultimately settling on what I want, even if I'm making money for myself and helping my shop save money.
There's really no way for me to fully overcome the lack of connection problems, other than sticking it out for many years and hustling to meet people.
So does anyone have career advice for me?
Step 1: Develop a relationship with the traders and trading managers
Step 2: Ask them to put you on a path to become a trader
One thing I have noticed is that people are way too busy to design a career path for someone. If you never bring it up, no one will dangle it in front of you. Ask and you shall receive... or not, but at least it puts you into consideration.