|
| |
|
It’s obviously the age of the computer, and no where is this more evident than the changing landscape of Wall Street. Boston-Based researcher Aite Group estimates that algorithmic TRADING, or trades executed without human intervention, will account for over 40% of trading on all markets by 2008, up from about 25% today. Growth in complicated financial instruments such as DERIVATIVES are also fueling demand for computer and math savvy financial professionals and will continue to do so for years to come. |
|
|
|
It means that the HIGH PAYING JOBS on Wall Street are no longer reserved for those from wealthy families with sports backgrounds and the gift of gab. The most HEAVILY RECRUITED TALENT on Wall Street is no longer the top sales person or the testosterone filled pit trader, but the quantitative analysts from the likes of MIT.
Quants are highly recruited for trading jobs!
A quick look through any of the job boards focused on careers in finance will not only show many jobs for ALL LEVELS of EXPERIENCE as quantitative analysts, but also quickly demonstrate the OUTSIZED PAY PACKAGES available for anyone with the relevant skill set.
High paying jobs for ALL skill levels
Examples of recent jobs posted on efinancialcareers.com, a popular site for finding jobs in finance, shows jobs ranging from entry level to senior level positions with salaries for the least experienced quants starting above $150,000.
|
|
|
|
| |
 |
| |
As you can see from visiting the quantitative analyst section of efinancialcareers.com, these jobs are in no short supply. In fact, the above examples represent less than 1% of the over 400 jobs posted under the category of quantitative analyst on the site.
Sample represents less the 1% of total job listings |
|
Requirements for these types of positions differ depending on specialty and experience level.
A strong math background is obviously a must for all positions as well as coursework in computer science, engineering, and the ability to program. The large majority of senior level positions require a PhD and heavy past experience related to the position.
Most attribute the rapid growth to the equally impressive growth in complicated financial instruments (primarily growth in derivatives) and trading floors that seek to profit from these instruments. With the growth of derivatives set to increase for the foreseeable future, the outlook for quantitative analysts should continue to be bright for quite some time.
Bright outlook for a forseeable future |
|
|
|
| |
While a math and computer background alone may suffice, a sound understanding of the financial markets and trading in general will help to impress in interviews, and separate you from the pack. The fastest way to gain a basic understanding of the financial markets is to start with the market that encompasses all markets the foreign exchange or currency market. Since currencies of countries move as a result of investment and trade flows, a sound understanding of what moves the currency market, assures a sound understanding of the commodity, equity, and bond markets. While many interviewees will understand and be able to speak intelligently about the US stock market, very few will be able to speak intelligently about global markets. A basic understanding of the foreign exchange market will allow you to do this and allow you to impress in interviews where others stumble.
Impress your interviewer with a sound knowledge of global markets. |
|
STEP #1:
DEVELOP A GENERAL UNDERSTANDING OF THE FX MARKET
There are many resources to help you learn about the foreign exchange market, which will also give you great overview of the equities, commodities, and bond markets. Most foreign exchange dealers also offer free paper trading accounts, which allow you to test your skills out and learn the market without risking any live capital.
Most FX dealers offer FREE paper trading accounts to test your skills.
| |
 |
|
 |
|
 |
| |
The FX Power Course Workshops
Online FX Trading courses that give you a general overview of the market as well as specific strategies for trading different currency pairs. |
|
Day Trading the Currency Market
An introductory book on trading foreign exchange by FXCM Cheif Fundamental Analyst Kathy Lien. |
|
Demo Trading Account
Free demo trading account with real-time quotes, charts, and 24-hour news feed from Thompson Financial’s IFR Markets. |
|
|
|
|
|
|
 |
 |
|
|
|
STEP #2:
MASTER THE PSYCHOLOGICAL ASPECT OF TRADING
Probably the most overlooked aspect of trading successfully, emotional control is also considered by most
successful traders as the number 1 factor that separates those who prosper on Wall Street from those who fail. For more information on developing a winning mindset check out
| |
 |
|
|
 |
|
Trading for a living
One of the few books on trading psychology written by a practicing Psychiatrist, Dr. Alexander Elder |
Market Wizards
One of the top selling books of all time, Market Wizards is a compilation of interviews by Jack Schwager with 17 of the world’s top traders. |
|
|
|
|
|
|
|
|
|
|
|
STEP #3:
GAIN A BASIC UNDERSTANDING OF ENGINEERING AND STRATEGY DEVELOPMENT
Once you have completed the above resources, the final step is learning how to leverage your mathematical
and computer skills to gain a basic understanding of financial engineering and strategy development.
|
|
| |
If you follow the above steps and combine this new knowledge with your existing mathematical and computer background,
you should have a good chance at landing a job as a quantitative analyst at a top investment bank or hedge fund.
As careers in quantitative analysis are fairly specialized, it is important to look beyond the major job search sites when
searching for your new Wall Street career.
Two sites which cater to this type of position are:
1. EFinancialCareers – site specializing in finance jobs, primarily in New York and London.
2. The Ladders – job site specializing in positions with a starting salary of +$100,000
While the lure of landing a 6 or 7 figure job on Wall Street is strong and a definite possibility for those with a quantitative
background, the freedom, excitement, and unlimited earning potential of trading for yourself is often greater.
|
| |
 |
|
|
