S&T: Future Outlook, Preparation, and Early Career Advice
Hi everyone,
I’m currently a high school student interested in pursuing a career in finance (specifically in S&T), and I’m hoping to gain some insights from those with experience or knowledge in the field. I’d really appreciate your thoughts on the following:
What does the future look like for S&T?
My understanding is that as quant algos get better, the need for humans to do anything but optimize them will decrease. Will trading desks that are run by people still be around, or will computers and AI do the bulk of the trading itself?
Are there any ways I can begin to prepare in high school itself?
I have a decent understanding of the different products that are traded (I recently finished reading Hull and tried finding as much info as I could online), but I’m not too familiar with how the products are traded or what working at one of these desks looks like. Any place I can learn more? Also, are there any internships/hands-on opportunities available for HS students?
What should I expect after graduating from college if I pursue this path?
What type of entry-level roles exist? How does the career progression compare to IB/PE? What should I focus on in terms of education and skills in college?
The future of S&T, preparation strategies, and early career advice are hot topics, and here's what you need to know based on the most helpful WSO content:
1. Future Outlook for S&T
2. Preparing in High School
3. College and Entry-Level Roles
4. Additional Resources
By focusing on these areas, you'll set yourself up for success in the evolving world of S&T. Keep learning, stay curious, and adapt to the industry's changes!
Sources: Is S&T still a good career path?, HELP: The Future of the S&T Job Market and Selecting the Right Desk, Q&A: Crypto Hedge Fund Trader, Advice for a 21-year-old entering BB S&T?, Q&A: Crypto Hedge Fund Trader
Wow, Hull in high school is certainly something. I'm only an analyst working on a credit desk, but here's what I would say after my two or so years on the floor:
- AI and automation are an ongoing conversation across all asset classes, but it gets a bit nebulous when you try to take humans completely out of the equation. S&T is a relationship business, and while algorithmic trading will certainly improve many aspects of trading/operations, it's difficult to replace every facet of a market-maker. Additionally, desks that are generally more illiquid will inherently have a greater resistance to automation. For someone like you, the bottom line is that AI/algorithmic automation is quickly evolving, so try to learn as much as you can about programming to ride these tailwinds.
- Reading about S&T is a slippery slope as it can help to explain the products many desks trade, but often misses the more important aspects of the role (e.g., how a trader might unwind a position after unfavorable news while also filling competitive bid-ask spreads for the other 20 names they cover). If you want to learn more, actually hop on the phone with these people. Curious about derivatives? Make a LinkedIn account and shoot out a bunch of cold messages to traders asking for a quick chat. Regarding internships, it's mainly capped at the sophomore/junior undergrad levels, but definitely see if you can't join a student investment fund/finance club (or make one if you can't find one).
- Career progression at the junior levels is generally similar to IB progression (2-3 years analyst, 2-3 associate), but can start to skew at VP, given that one's performance is then a huge factor. In other words, S&T tends to have a less standard career trajectory the more senior you get -- some superstars shoot through the ranks while others can stagnate for a very long time. To your question about prep, just aim for a target school that has a great finance/econ program.
I say all of this, however, with the caveat that this is all very far away for someone in high school. While it's commendable to see early interest, you may discover that you want to pursue something else in finance or even in a completely different industry. At the end of the day, keep your grades up, have an open mind, and don't forget to enjoy your time in high school.
Hey, thanks so much for the insight! I found it really helpful. Is it ok if I pm you? I had some questions about credit trading and s&t as a whole.
Sure, happy to help.
Starting early! The automation conversation is definitely real - but is the most present in liquid, cash markets. Ie - take spot FX. If you ask me for a bid in 50 euro, all I'm doing is looking at the top of the book and averaging into where I can offload that risk - this is basically just me doing a quick algo in my head, and then from experience getting more comfortable with saying "I think 50 is xx pips off the side", so not actually doing the math each time. Compare that to trading a midcurve swaption - highly bespoke, illiquid, high degree of judgements to be made pricing wise, so will come slower to be automated.
Other commentor hit the career progression point on the head - you're an analyst for ~2.5 years (you get promoted usually at YE, vs starting in the summer), associate 2-3 years, VP 2y+, Director 2y+ (if you ever make MD)
For what it's worth ... I was premed for 2 years in college and then pivoted so you are wayyy ahead of me : )
Please feel free to pm me if want to talk about FX/rates/ anything specific!
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