as much as I hate to admit,, i must agree with energy's post.. engineers don't make good traders b/c they expect certain outcome from the equation (X + Y must = Z).. in trading even if you do everything right (or you think you do everything right), you may still be wrong.. i have been trading part time for 5 years as i work full time as a SE,, the biggest challenge for me is to admit that i am wrong.. i also know that i cannot be a full time trader simply b/c there's no guarantee monthly income in trading
I am an engineer as well an will admit that this is my biggest problem to overcome and is really the only thing holding me back. In trading X + Y does not always equal Z and that has been really hard for me to wrap my mind around.
Just as you learned the various aspects of whatever engineering discipline you're in (and I too was an engineer prior to trading) you can "learn" to not be as rigid in trading. It can, and does, take a change in mindset as the markets are more "random walks" than logical conclusions to a bunch of inputs. But it will take time and some expensive lessons (i.e. trades).
I too am an industrial engineer....but respectfully disagree with some of the postes on this site. Engineering trains your mind to think analytically and although some of what you say is correct in terms of equations and expected outcomes.....one thing you have failed to consider is our math prowess and our ability to develop and test different models and strategies using all types of criteria with different tools. Arts majors have to learn all that first. If you are a math major or a computer science major, you end up in the same category as engineers and thus if you want to classify engineers in one category you might as well put computer science graduates, math and statistics graduates in there as well. I dont buy it.
I think a distinction needs to be made between engineers and those with an engineering degree. I have met people with engineering degrees that I wouldn't call engineers. Being an engineer is a state of mind. A very logical, analytical state of mind. I think many "engineers" very well may have a disadvantage when starting trading in some respects. As stated, they expect a certain set inputs to produce a certain output. They have trouble thinking in statistical outcomes in general I think. This is most certainly something that can be overcome, and I have a friend who used to be a hardcore engineer that has done it. I have a CS/SE degree, but I don't consider myself to be an engineer/scientist type. I am hoping I have an advantage in that I have education and background in analytical thinking, but I have many interests that are more on the liberal arts side of the house. It seems that way so far. I think. Ask me again in 10 years.
While you make valid points regarding the "quant" background which many engineers bring from their previous profession, it will not make much of a difference if they are unable to come up with original ideas of concepts with which to apply these talents. I see this as one of the sources of much friction on this website. There is clearly a subliminal battle between the quants and the creative types.
Based on my own example and that of a friend I have to believe that engineers make the worst possible traders. We are constantly questioning things and have a need to innovate. In some cases we may be forced to work to a set of rules but our tendency is to try something new. Traders require above anything else a set of rules that must always be followed. It has taken me 4 years to realise that trading is actually an incredibly boring activity when done correctly. The best traders are probably pilots. Think about it. The worst are engineers, scientists and anybody in R&D or a creative field. IMHO