Trading Analyst Role Expectations

Based on the most helpful WSO content, here’s what you can expect and how to prepare for a trading analyst role:

1. Day-to-Day Tasks:

   • Data Handling: Expect to work on tasks like building supply and demand (S&D) balances, automating data processes, and forecasting. These are common responsibilities for trading analysts, especially in commodity-focused roles.
   • Research and Analysis: You might be tasked with conducting basic stock/sector-specific research or recreating research reports to understand data collection and analysis methods.
   • Trade Support: Tasks like creating graphs for trade ideas, building models to compare projected vs. actual earnings, and pitching trade ideas (e.g., long/short positions) are typical. These help traders make informed decisions.
   • Morning Reports: Some desks may have you parse reports early in the morning, extract relevant data, and share it with the team. This could involve using tools like Bloomberg or FactSet.

2. Skills to Focus On:

   • Python: Your Python skills will be valuable. Focus on tasks like pulling data from APIs (e.g., EIA API), transforming it, analyzing it with libraries (e.g., pandas, matplotlib), and automating repetitive processes.
   • Excel/VBA: Excel proficiency is critical. Learn to build models, automate tasks with VBA, and handle large datasets efficiently.
   • Bloomberg/FactSet: Familiarize yourself with these platforms to quickly pull and analyze data.
   • Intellectual Curiosity: Show eagerness to learn by asking smart questions and taking comprehensive notes. This will help you avoid asking the same questions twice and demonstrate your commitment to the role.

3. How to Add Value Quickly:

   • Be Proactive: Ask for work but not excessively. Focus on delivering high-quality outputs for the tasks assigned.
   • Understand the Desk’s Needs: Tailor your efforts to the specific commodity or trading strategy of your desk. For example, if you’re on a Nat Gas desk, understanding OPEC news and its implications could be helpful.
   • Prepare Trade Pitches: Practice pitching trade ideas and backing them with solid data and analysis. This is a great way to stand out.
   • Learn the Product: Spend time understanding the specific commodity or financial product your desk trades. This will help you align your work with their goals.

By focusing on these areas, you’ll position yourself as a valuable asset to the team. Good luck with your internship!

Sources: Navigating The Floor: A S&T Analyst's Guide, How to be a good S&T Intern, Navigating The Floor: A S&T Analyst's Guide, Q&A: Managing Director at Large Global Asset Manager, Advice I give to my incoming analysts