I am addicted to following the markets. More then just intellectual curiosity, I just have a natural interest in economics, finance, trading and everything else about the financial markets. I just graduated from electrical engineering from a top school in Canada, and I'm passionate about becoming a trader. I'm going to be offered a job in an internship program for a big pension fund, rotating between their equities and fixed-income/derivatives team. The people who interviewed told me while they aren't traders, rather they are 'very active portfolio managers'. They also plan on having me do a CFA. Is this a worthwhile opportunity for someone who has ambition to become a trader. Or should I hold out for an entry-level junior trader role? I'd also appreciate any insight based on current market conditions for employment. Many thanks, Cheers
Those jobs don't pay dick, dude. Plan on being broke, squeezed into a compact car, living in a rent-controlled studio, and voting Democrat if you take the job. Bonus points if you can tell me what book that's from.
I think you would be fine either way- I think you just get in the door where you can, but I think the more presitigious the firm/position the better. Maybe I am reading your question wrong, but imho I wouldn't trade down in job titles in exchange for being closer to "action". Like I wouldn't clerk or be a very junior floor guy if your resume can get you onto a buy side or research team. I know it is hard when you are super enthralled but try to think long-term.
That's what's making the decision even more difficult. It's definitely buy-side n research, in fact I believe the position would be alot of equity research. I was also thinking it would be fantastic to really make contacts there if i ever decided to switch to the sell-side. What's makes you even more correct is that I didn't study finance, so getting that foot in the door is of even more importance. Do you believe it offers a path towards trading, or working in a hedge fund? I'm absolutely not trying to gloat, because until i have the job, its still not mine, but would u consider a 48 billion dollar pension fund prestigious? If i was offered a job as a graduate trainee market maker for a reputable bank, should I consider that with more thought?
If you got very good grades at this top school and you've seriously looked around for jobs (not just internships) in a finance related field then I would suggest you go for it. Work for a few years and then go to a top MBA program. If your ideal is to prop trade with your own money and live a certain lifestyle, then I think you're going down the wrong route.
My ideal would be to prop trader at a BB Bank. Learn everything I can from all the talent that dwells there. Learn as much as i can about as many asset classes I'm exposed to (although I'm particularly interested in Energy trading, carbon emissions) And go from there. Would it be nice to end up at a hedge fund? Yes, but right now I'm alot more concerned with getting the right foot placed to learn as much as possible about the markets and trading. (not to say I haven't been aggressively researching myself..)
I think this sounds like a good opportunity. I know a guy who works for a state pension fund and is getting very good experience. He is basically picking/monitoring managers and asset classes, and running models. Not making the decisions, but getting alot of input. Sounds fun too - he gets to talk to a lot of big managers and ask them what the hell they are doing. And mellow hours by finance standards. You will probably not get paid much now though, that comes with the next job or when you get enough experience to hang a shingle out and work for yourself. And be prepared to be at the entry level of a bureaucracy, which is not right for everybody, and probably not pulling the trigger on any trades or getting any kind of track record you can claim. But I think there is upside- experience with lots of asset classes, contacts, and hopefully influencing big dollar decisions.
Thats the one thing I'm very prepared for no matter where I go..paying my dues. Like i said, I just want experience. Black Diamond (or anyone else), i hope it doesnt seem like this convo is doing loops but again, see with this position would my next step be to enter a junior trader role? Thats what has me in thought-turmoil. If I was to take this, only to end up in the same position that are being offered to people with my current background (junior trader/assistant... logistics on trading book, consolidating daily trades, monitoring P&L, ...)... its like back to the future. Then again, with the pitiful job market out there... ugh... i wish I had of graduated 2 years ago, hiring frenzy on wall street and canary wharf!
There are so many permutations that can get you where you think you want to be and even more to leave you at a dead end. Luck can even play a bigger role than skill. But my suggestion to you remains the same. And forget about being knowledgeable in all different asset classes. They will want you to fit into a box.