I'm a senior doing a double major in finance and economics. So far I only had 1 trading interview (operations role) and tons of interviews for structuring, investment banking and research. Almost snagged an interview with Getco, but my contact said my technicals are not up to par. Do Economics + Computer Science Psychology + Computer Science Comp sci is really important. I should have done it and not waste my credits on BS econ classes.
Most of this is horrible advice. You can only learn about yourself and how you react from placing real trades. You won't get much from a psychology degree related to trading. People offering this advice have more than likely never taken college level psychology classes. They are confusing the word "psychology" with the psychology involved with trading. Again, you will only learn "trading psychology" from actual trading. Math wouldn't be the best choice either unless you want to do programming and quant models. Basic math skills will suffice. If you can add, subtract multiply, divide, and do percentages you will be fine. Econ and finance are the best degrees related to trading. You won't use much from these degrees either, but at least you are studying something relevant. Bottom line -- any degree is better than none but if you want the BEST for trading the obvious answer is econ or finance.
My vote is a BS in Comp Sci w/ a minor in Stats. You can always take a few Finance courses that interest you as well.... If things don't work out w/ trading at least you have a decent degree to fall back on. Good luck.
The following information is based on looking through actual job postings at hedge funds, investment banks, and other places where people ACTUALLY make a consistent, high (at least 6 figures) pay check. In addition, I have talked to several individuals employed at institutions such as Goldman Sachs to confirm what is about to be stated. If you want to get into the trading business, take the quant path. Top institutions and trading groups are looking for phd holders (at the minimum, a masters degree) from top universities who have degrees in a hard science such as math, biology, chemistry, or physics. A degree in finance or economics won't even get you through the door at several institutions. If you want some confirmation of this, view the jobs board at wilmott (url below) or any other job board. http://wilmott.com/categories.cfm?catid=5 Comp sci is also EXTREMELY useful if you want to be a quant - more or less a necessity (at least a minor). However, if you want to be in a trading position as opposed to a support/back-end position, comp sci should be an add on to a degree in the hard sciences rather than your only focus. I should add that a sole degree in economics or finance (I would prefer finance) will get you a job at several places. However, quants on average will have a significantly greater salary. I am currently an undergrad student majoring in applied math, with the intent of going ivy league for grad school. I'm stating this because I want you to know that I am confident enough to follow my own advice.
Given that you are a finance major Greg, take a look into double majoring in stats, or at least take up a minor in stats. If taking up a minor in comp sci is too much of a load, teach yourself c++ so you can at least state on your resume that you have basic understanding of some programming. It's easier than it seems. The website below is a great place to learn: http://www.learncpp.com/
I have a BBA with finance major and wish I had a better understanding of economics. But I trade my own account so am not looking for what might help in getting a job. Seems to me that comp sci, statistics, math, psychology, accounting are tools and nice courses to take but my goal would be toward understanding the big picture of finance, economics, and politics..... but very, very few do that anyway. Stosh
I agree. It totally depends on what type of trading you want. If quant trading is your thing math and science are the way to go -- but its worth noting: George Soros -- London School of Economics Stevie Cohen -- Wharton School of Business Paul Tudor Jones -- University of Virginia, Economics Warren Buffet -- Wharton School of Business And a great example of relevance to major: T. Boone Pickens -- Oklahoma State, Geology
True, but the above are examples of extreme deviations from what can be expected. Bill Gates being a college drop out is not indicative of college drop outs having a higher probability of becoming wealthy. You are completely right in the sense that you can major in something completely different from what the industry expects and still do well. However, it would be dangerous to assume that something like that is normal, or even probable to a significant degree. I am not implying that you made such an assumption; I just wanted to point it out for anyone that might have fallen into the trap.
Wow, this has really been an eye-opener for me. I think I will start looking at the requirements in computer science and statistics, and maybe start taking the beginning classes in them. I might also just call a few companies and ask what they are looking for. Thanks!
Call alumni that have the jobs you want and figure it out. If you don't have any contacts, make cold calls. I've done it before and found that many will find a few minutes to tell you about themselves. There's no secret formula here. I would think finance plus a demonstrated proficiency in math and/or computer sciences would work nicely...but, go with what worked for those in prior years and what interests you.