How much Numeric Ability do you need to get a job in Trading and be successful in the job?

Hello,

I'm interested in pursuing a career in trading. My research (M&I,Job Descriptions) has shown me that one of the most important pre-requisites to a career in trading securities is strong numerical skills (I'm not talking about analytical capabilities).

I didn't do so great in Calculus in my first year of University, but graduated with a BBA degree specializing in Finance - I bet I would be great in Trading given my analytical skills, communication abilities, and understanding of financial markets, but my numeric experience says otherwise to anyone who recruits in the trading field.

What is the bar for numerical ability to get into trading and is it the same bar to actually be successful in the role? Can someone who is very interested make up for their lack of numerical experience/skills after graduation and already working full-time to somehow find a way back into trading?

Note: This is only about trading, agency or prop, not sales.
Note 2: I'm from Canada, if that changes anything in terms of what recruiters/traders look for in candidates when hiring.

 

Hey whatsapitchbook, sorry about the delay, but are any of these useful:

  • Why Did You Choose to Pursue Finance? Or did you go into the industry to pay off college debt quickly, get a fat pay check, live in NYC ... you choose the finance major, or did you actually want to study it because you enjoy it. (or are you ... yourself being miserable. Granted a job
  • How much money do you need (to be considered wealthy enough) to buy a stock at the IPO price? amount of shares you need to purchase to get the ipo price? I know there is a lock-up period. How much ... I understand that you need to be very wealthy or a financial institution to buy a stock at the IPO ...
  • Notes for Technical Interview Questions shareholders may be expecting to exit at a multiple closer to 'the good times' How do you get ... interviewers assumed I knew what I was doing. Still, I took the time to put my thoughts in order. If any of you ... to them why your numbers stack
  • If You Want to Learn How to Get a Job on the Street, Read my Story wise. Decided to double major in Finance and Economics. The summer going into my junior year I had ... what it takes to be successful in the industry. I received an email inviting me to NYC for a final ... where you are has the notion that they are going to e
  • Breaking into buy-side equity research- my experience interviewer. Expect the RA job to be very similar to sell-side RA in that you support your analyst with very ... (think the Citadel hedge fund family, Balyasny, etc) and the like. Why would you want to work in buy ... networking. Recruiting Since the
  • Choosing a Minor To Go With a Finance Major take in order to get to the Algorithm and Data Structure course. SamChappelle: From the list you ... you'd probably learn a language or two, and, if not, you'd be able to pick one up very easily ... helpful in the trading
  • My Story: From Trading Floor at UBS To Entrepreneur on Kickstarter that paper credentials don't mean much once they get you in the door. "Everyone was terrified ... regional level, a salesperson can cover multiple markets and sectors, having the ability to pick and choose ... Equities. I later learned that bureaucracy is quite normal in finance, an
  • More suggestions...

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I think it could go both ways: I don't think you need to understand how to rigorously prove theorems in calculus, so if your calculus class was overly theoretical, it might not matter too much that you performed poorly in it. However, I do think being able to apply math (such as calculus or linear algebra in certain cases) and probability/statistics well is an important skill.

 

Be good at mental arithmetic- you should be able to do standard operations with two numbers that each have 2-3 significant digits (this includes decimals like 0.00027).

Have an intuitive and accurate grasp of probability concepts, especially Bayes' Theorem.

Know basic game theory- Nash equilibria and the like.

Know basic stats/be fluent in data.

Know enough calculus to be able to compute Greeks (i.e. be able to take a partial derivative and understand it.)

Helps to know some Python.

This is for a non quant role. If you are interviewing for a Quantitative Trader position, you want heavy stats/machine learning expertise.

 

This is geared towards reputable prop trading shops. My own experience is interviewing for an options market making role so that's what it's most tailored to. I would suspect it's similar for market makers at BBs as well, though maybe with less emphasis on game theory. Several well known prop shops really like poker players so the subject probably comes up in interviews more than it otherwise would.

 
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