MBA for trading, time allocation
Hi Folks,
I'm a full time MBA student at a state college that has a good reputation as a school, but is not a target school. I'd like to shoot for either bank trading, or prop trading at a good shop (i.e. a place that pays a draw and trains you, not one of those 'bring your money and generate commissions' joints).
So far, I have a very good academic record, knock on wood. I am also studying for the CFA at the same time.
Unfortunately, I did not land any summer internship, and instead decided to focus that time on taking more classes and studying for the CFA exam.
I'd like to budget my time best while I'm finishing up my MBA. So far, I've been investing all of my time into studying and that has paid off. However, I'm concerned because it appears trading attracts athletic types who are into competitive sports, or very quanty individuals who spend most of their time with math equations and computers. I don't fit into either category.
I've basically broken down the trading recruiting matrix to the following:
- School brand - I'm non target, and I'm hoping the CFA will help make up the difference at least partially.
- GPA - here I am fairly confident I can continue to do very well. I like the subjects and get on with the cohort very well.
- Market knowledge - this is all about following the market and knowing the fundamentals, keeping the pulse and having some market memory.
- brainteasers and math - square root of 25.9, how many golf balls can fit into Vesuvius, etc.
- Competitive nature - extracurriculars and sports. Here is probably my weakest link. The only extracurricular activity I actively engage in is attending my house of worship. Sports wise, just a few laps around the track every now and then. No team sports, no poker, etc.
My main concern is that there is only X amount of time and energy to invest in the coming year. My task - find the best category to invest it in. I'm afraid if I get too spread out, my key core competency, GPA and CFA prep, is going to badly suffer.
Any advice is greatly appreciated!
I would start with not emphasizing sports. i'm embarrassed for you that you have never played any. high school must have been miserable for you
No one cares about the CFA. No one cares about your GPA as long as it's above 3.6 (and even so...). No one cares about your sports. No one cares about your school brand.
What people care about is your past experiences. and whever you are personable.
If the trading role you are looking at is for exotics or the like, unless you have a strong mathematical background you can forget about it. If the trading you are looking at is more flow driven as long as you can have a brew with the boys, and have something interesting to say about the footie (or American football in the US I guess..) You should be fine.
But based on your background it doesn't seem that trading would be a good fit... Try M&A instead much more MBAs there, MBA are not very well respected on the floor. A few sales have them, so if you want to do sales it can't hurt you.
Traders have either PHds or came out of the mail room (no joke), or started of from an internship that they got through networking during their bachelors degree.
If trading is really what you want to do, I won't stop you and you should bust your ass networking. I thought people didn't care about grades in MBAs though...
Thanks for all the comments, and yes, I wasn't in with the jocks when I was in high school for sure (I was in the artistic crowd). I only got into respecting sports later on in life.
Trading is definitely what I want to do, no question about it. I love the financial markets. Doing cash flow valuations and pitchbooks is not really my cup of tea. I could do it if I had to, but if I want to get into those roles I have to love it. I know I don't.
I'm aware that my background isn't what recruiters like to see. This MBA was my main opportunity to create some kind of track record that would let them consider me, that piece of paper and my enthusiasm is the main asset I have to offer at this point in time. Whatever it takes...
If nobody takes me, I'm just going to work odd jobs to make a stake and take my cuts trading the S&P's in the basement. That is my alternative :)
Traders for the most part are not MBAs; unless you are talking about the quant traders and then you're best bet would be to consider something like a MSF.
I would not recommend doing an MBA straight out of undergrad.
Also, IMO "not caring about grades" is a relic of the pre-recession 2007 attitude, and does not reflect the current situation at business schools. Recruiting is ultra competitive (doubly so for career switchers like the OP), and in my view the focus on excellence / grades is not overlooked by employers. I went to a pretty intense school though, so I might not speak for all programs. Although I'd probably agree that networking is more crucial.
Just my $0.02
If I were you, I'd very seriously reconsider that degree. If you are anywhere near as interested in trading as you claim, you would be far better served with a MSc in Quantitative Finance, MSc in Mathematical Finance, MSc in Computational Finance or at least a MSc in Finance with some programming and computer modelling thrown in.
Not on that list is the MBA, useful for things like marketing and sales, but recruiters aren't exactly enamored.
You would also be even better served if you went to a school near a derivatives exchange, where you could have the strength of both a concentrated alumni base (for networking into a job) and entry-level recruitment job opportunites at your fingertips. In the US, that means Philly, Boston, Chicago, NY, SF
If you're an American citizen, it's even better: no work-visa issues to deal with means more doors are unlocked for you (you still have to get them open!)...
Another way to think of it: if you could clone yourself and watch how multiple outcomes play out, the clone that has a MSc in Mathematical/Quantitative/Computational Finance from the "University of Near a Derivatives Exchange" gets hired first (Why? He/she interned there for over a year!), with the best likely offer on the best desk available, whereas the unfortunate clone that gets an MBA from University of State NonTarget is still looking and hoping and wishing along with his cohort of graduates from that and all the other MBAs from University of Oout-of-State NonTargets, all chasing and knocking each other out over the same one recruiter....
yeah, as far as I have seen, there are not many people with MBA on trading floor. It is all about your track record and experience.
15ish people from my SA class this year are in grad school, most (if not all) are getting MBAs. don't let these guys discourage you.
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