Hi everyone; I am a new member in here and I need some advice on what to do to have a good career in Hedge funds, Investment Banking or Trading. I should say that I have a Bsc in Electrical Engineering and an MA in Econ and I'm going to start my PhD in Econ next year. I should say that I know that a PhD is a waste of time for someone who wants to go private sector, but I have to do it. I first wanted to ask you to introduce me some good books about Trading/Investment/Hedgefunds.... so that I get some knowledge about what they do, what kind of strategies are used in the past and etc. Second, what is the closest branch in Economics/Finance that you think it will help me in pursuing a career in hedgefunds. I will be grateful for any other advice that you think will be useful for a person like me. Thanks in advance
if you want to run a fund you need to learn to trade you won't learn by reading you will learn by doing I don't know why I bother, no one ever takes advice from internet anyway
I know what a PhD is for, but as I said I have to do it and I really like Economics so I enjoy my time doing the PhD, plus that it gives me a fairly good insight. I should say that I have done research and I know what research is and how it is done. You won't be able to learn any trader or hedge fund strategy by reading any "Scholastic Article", because as you said their purpose is much different. These articles, will give you very good insights, but they dont tell you how the things are in the real world. What I asked for was a reference for Trading/Investment Banking/Hedge Funds as I do not have a clue what the Traders or an Investment Banker do, what are the differences, what kind of mathematical or computer skills are needed for Hedge funds. I don't consider being a trade as my future career; rather my dream is to have a Hedge Fund of my own some day, implementing my own strategy (I know it seems like a dream!).
Engineers suck at trading. You think things need to make since. You have the idea of everything acts the way it should. The market will prove stubborn people wrong. The market can outlast your idea of what's right long enough to make you puke your position on a huge loss, and then go the way you wanted. It's all about psychology, sociology, economics, and a little bit of balls. I suggest with your background that you move on to an endeavor more suited for an overeducated individual. The stock market is a jungle. You have to learn to kill or be killed. No matter what your logic says, you may have to fade it.
Hey Dreamer, start by looking in your local library, there are usually a pile of books on trading: equities, futures, 4X, CFD's; trawl the web for info: 95% BS and most of the "no-brainers" want to sell you something (open/use a trash email acc) then open a real-time demo account or ten, thats where your learning curve starts. There are "Thousands of books/sites and snake oil sellers out there, its up to you to realise what "Type" of trader you are: trend follower, volatility scalper, TA junky, strick Hedger... What instruments you feel best with: Options could be good for all those Phd neurons; [CFD's, futures & 4X have great leverage as well] What markets you want to trade: equities, futures... You will learn a lot about yourself along the way, degrees don't mean much: I read 40 Phd grads were shown how to trade? (4X I think, how I don't know) given real time demo accounts; 38 lost money. Ground work: 1/. Educate yourself, continually 2/. Don't "know" anything (preconceptions/locked in "I know whats going on here..." thinking will empty your wallet, painfully) Look, Learn, Confirm. 3/. Develop strategies: Entry/Exit, Money management, Money management, Money Management... 4/. Develop a trading plan: Studies, Pre-trade, Trade, Money Management, Targets... Do your Phd on it, become a consistantly successful trader and then write your own book. Cheers, have a good journey.