Prospective S&T asking for help

Hello, I am going into my Sophomore year of college and have been super interested in sales and trading. However, when I try to find content guides like that of someone trying to break into IB might have there does not seem to be too much. 

While I have been reading and following both equity and crypto markets for the past 2 years the last thing I want to do is try to secure an interview without fully grasping the scope of the content I might be asked. 

Any suggestions or guides that people have found helpful would be greatly appreciated! 

6 Comments
 

Based on the most helpful WSO content, here’s how you can prepare for a career in Sales & Trading (S&T) and ace your interviews:

1. Understand the Role and Fit

  • Sales & Trading is about managing relationships, understanding client needs, and balancing the interests of traders and clients. Highlight your ability to think quickly, manage risk, and fit into a fast-paced team environment.
  • Be prepared to explain why S&T suits your personality and skills. For example, if you enjoy debating, persuading, and working with clients, emphasize these traits.

2. Build a Strong Foundation

  • Reading: Expand your knowledge by diving into recommended books:
    • When Genius Failed
    • Fooled by Randomness
    • Reminiscences of a Stock Operator
    • Trading in the Zone
    • Market Wizards (all volumes)
  • Technical Knowledge: Learn about specific products and their pricing, risk factors, and hedging strategies. For instance:
    • Understand factors affecting MBS (Mortgage-Backed Securities) pricing, such as interest rates, prepayments, and credit risks.
    • Explore hedging techniques like using UST or derivatives for interest rate and credit risks.

3. Practice Interview Questions

  • Use resources like the Vault Guide to Finance Interviews and Heard on the Street for brainteasers, math-related questions, and technical concepts.
  • Prepare for questions about market environments, client outcomes, and risk management. For example:
    • "What market environment would make a client choose a specific product?"
    • "How would you structure a trade to manage FX risk?"

4. Engage in Practical Learning

  • Start trading on your own to gain hands-on experience. This will help you understand market dynamics and develop a trader’s mindset.
  • Stay updated on market trends by reading sources like Risk.net and other financial news platforms.

5. Leverage Networking and Mentorship

  • Connect with professionals in the field through platforms like Wall Street Oasis or LinkedIn. Attend networking events, conferences, or social gatherings to build relationships.
  • Consider mock interviews or mentorship programs, such as the Wall Street Mentors program, to refine your skills and gain insights from experienced professionals.

6. Focus on Continuous Learning

  • Never stop asking questions. Early on, it’s okay to ask “stupid” questions to build your confidence and understanding. Over time, aim to ask more insightful and strategic questions.

By following these steps and utilizing the resources mentioned, you’ll be well-prepared to break into Sales & Trading and excel in your interviews. Good luck!

Sources: Sales & Trading Interview Guide - Gekko's Guidance Part 2, https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, Sales and Trading - A Comprehensive Guide, Q&A: 25 years Sales / Trading Experience, Q&A: 25 years Sales / Trading Experience

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Tl;dr there isn't one in the same sense. 

IB is a specific set of skills that's going to be ~~ the same across banks and sectors at a base level. In S&T each desk is a world unto itself and even people who's jobs sound very similar, don't fully understand what the other is doing (ie inst v corporate, or rates vega vs rates gamma).

Imo, this makes your job easier because there isn't the same preordained set of things to know going in. I would have a strong answer for "why markets", and a grasp of how the Fed / macro trends tend to affect things. It seems like you've been focused on the equities side, so I would recommend spending some time with FICC - for most banks this is the bread and butter business where the bulk of people in S&T actually sit. For following the market purposes, BBG puts out some great podasts (they're on spotify) and some banks also put their research podcasts on spotify. I personally am a fan of FICC Focus, At Any Rate, and Daybreak (reading research, even after doing this for years, is something I can't sit through). In terms of product knowledge, I would have the basics down (for FX, what is spot/fwd/swap, for rates what is a swap/cap/floor etc) and some idea of when to use. If you want to get realllllly in the weeds, I can recommend you some textbooks but it's likely overkill.

Last thing, interview process is ususally a hirevue (or equivalent) - then interviews with actual people, but they will often tell you which people ahead of time. Once you know, you can hone in on that knowledge, it's not possible to know every product, in every market (you will lose your mind trying to do this).

Good luck!

 

comment above describes it well, I also will mention salesandtrading (dot) org is pretty solid for high level knowledge of how this space actually works and what you might expect through the recruiting process

 

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