How do you break through as a trader at top firms?

Hi everyone,

I have a few questions:

What advice would you give a first-year college student on becoming a successful trader and making it to a top-tier firm (a good ibank or hedge fund known for its trading)?

What particular elective courses should I take for my finance major?

What extra-curriculars should I be looking into? This one's obvious, I guess.. investment club/finance student association, right?

What should I be reading?

Should I do anything else... start a fund perhaps, take lessons on modelling, anything else (after all, it does seem very competitive getting into one of these places)?

And finally--this is a really naive question--what's so hard about trading that allows some of the best traders to command extraordinary salaries; don't you just need to know technical indicators and place buy-sell orders? Or is it that you have to know highly complex algorithms and whatnot?

lol don't give me too much shit on that last one

Thanks a lot

Alex

 

Hello AlexMIH,

--What particular elective courses should I take for my finance major?--

I would suggest you take some courses in economics as it might give some clarity on how the world markets work; which is invaluable knowledge to any trader no matter what product they trade. Also, some general courses in money and banking if your institution offers those. Some general calculus, statistics or mathematics courses will also be valuable.

--What should I be reading?--

WSJ, FT, Bloomberg and the Economist are excellent publications to read and will help you stay up to date on what is going on in the world. When you interview for trading positions it's very important to know what is going on around the world and what the markets are doing (i.e. a hot topic in the news for the last bit has been the EU debt crisis). Also, books on trading (technical or narrative) will help you get a grasp on the industry. Spend some time at Amazon or Barnes & Noble and see what you can find.

--Should I do anything else... start a fund perhaps, take lessons on modelling, anything else (after all, it does seem very competitive getting into one of these places)?--

Starting a fund may be an overly ambitious idea but if the logistics work out it might not hurt (however, most students are not in a position to pull off such a feat). I would suggest you play around with a paper trading software as it will give you an idea of how to trade and what moves markets. thinkorswim is a great software platform for this kind of practice. Also, see if your university has some sort of student run fund that you could be a part of.

I hope this gives you some help. Take care.

In 1976, James Hunt broke the sound barrier through Eau Rouge only to retire before the event finished... following the race he had sex with three Belgian nurses at the clubhouse near La Source.
 

Thanks a lot.. but wait now, I might minor or double-majoring in computer science. What's your take on that vis-a-vis engineering, physics or math? And I go to JMSB--not that well known outside of my city--but with a 4.1 GPA (3.9 I believe on a 4.0 scale) and probably transferring to McGill (they're both in Montreal). Is McGill a "semi-target" for trading positions by the way? As for boutique firms, do you have any recommendations or just examples?

Thanks again to both of you.

 
Best Response
AlexMIH:
Thanks a lot.. but wait now, I might minor or double-majoring in computer science. What's your take on that vis-a-vis engineering, physics or math?

Major in what you find most interesting. If you prefer CS to math or physics then do CS. All the majors you listed are quantitative intensive majors so stick with what you would enjoy most.

AlexMIH:
And I go to JMSB--not that well known outside of my city--but with a 4.1 GPA (3.9 I believe on a 4.0 scale) and probably transferring to McGill (they're both in Montreal). Is McGill a "semi-target" for trading positions by the way?

McGill is fine school, you'll be alright there. Don't focus too much on the "rank" of your school. As long as it's not community college and it has some national pedigree you're going to be just fine there. Remember to enjoy your education too... don't be so focused on the end goal too much and soak it in.

AlexMIH:
As for boutique firms, do you have any recommendations or just examples?

These would be considered small or local (regional) trading firms. Do a Google search for what is in your area and start networking. Also, these smaller firms may not have formal internship programs but it doesn't hurt to ask; plus, it only helps to get the additional experience.

In 1976, James Hunt broke the sound barrier through Eau Rouge only to retire before the event finished... following the race he had sex with three Belgian nurses at the clubhouse near La Source.
 

Eius hic incidunt enim id et. Neque eos at quo perspiciatis omnis quis. Sed quaerat nesciunt distinctio quo laboriosam illo.

Autem voluptas natus non porro et non qui. Quibusdam explicabo commodi natus accusamus. Repudiandae neque quos velit perferendis.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (20) $385
  • Associates (89) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”