Which is better, an MBA or PhD?

Not at all.

I just don't like blowhard, groundless, know-nothing statements being made. So sometimes I question them.

And if the poster comes back by dissing me, sometimes I'll reply.

And if I reply, I provide proof of my position(s) and stances I take.

Very rarely does the counter party reply back with anything other than more insults and stupidity.

That ends the matter.

Furthermore, if anyone wants to debate the merits of formal higher education as it pertains to successfully trading in the markets, I suggest they read about LTCM and consider what happened when the most highly educated and well-connected traders and finance engineers on earth had their account BLOW UP in their face due to them being total idiots, before entering the debate.

In college it's you. In the ForEx it's me.

skz

 

Check his post history. He's entered a flame war in just about every thread he's participated in.

Even on Sunday, that troll does not rest...

 

Trading for a Living ›› Career Trader ›› Which is better, an MBA or PhD?


As a trader, if you can make 30 or 40 % a year consistently, they will pay you in London more than a MBA or PhD. Even if you graduated as a plumber or even if you didn't graduate at all.
You can not learn how to be a successful trader, so MBA or PhD has no importance if you want to become a trader.

How many successful traders have a MBA or A PhD?

 

keep on runnin' boy, with all your delusions.

you can run but you can't hide.

fx

 

I went through the PhD, started focusing on exotic derivatives for an employer, ended up trading futures outright on my own. So don't fall for snob advice and thinking the "most" money is in exotics.

Deringer implies only the most exotic derivatives are worth trading and index futures are for the less educated crowd. Not true. I've seen kids right out of college employed as trading assistants for credit derivtaives/ exotics desks at i-banks. Trading these derivatives is as simple as selling for more than what you bought them. What's so complicated about it? Without a PhD you won't be able to price. Correct. But what's pricing useful for? try making lots of money with one of those multi-factor, fractionally integrated stochastic volatility yield curve models.. nothing... so you go to risk management replication (market making) or structuring.

Exotics are profitable for i-banks because of underwriting fees. They have access to lots of suckers that buy their hype. That's how they make their money. You don't need to have a PhD for hyping, and in fact, there are lots of MBAs and college boys/girls doing it. They hire PhDs to gain authorithy over their sucker clients. This is a 90% persuasion/selling business. This is not necessarily trading as in taking proprietary positions.

On the other hand, there are quite sophisticated PhD-designed trading models out there to trade futures outright, James Simons' Renaissance Capital is an example.

There are also sophisticated trading models for exotics but not necessarily more profitable than those for outrights.

Second, about employment prospects.

As I said I started with the quant career path. I discovered I strongly dislke working for someone else. So I tried to figure out some way I could make some bucks for myself trading exotics. I went to outrights and forgot about exotics simply because I realized the most money is made on directional trades and exotics have too many other distractions like time decay vega this-risk that-risk etc etc.

Bottom line, specializing in exotics is worthwhile only if you want to work for someone else or manage OPM.

Getting an MBA is not an impediment for either. The guy from Citadel started trading convertibles as a college kid, he needed no PhD to do that.

In any case if you lack any PhD-taught skill you can go and hire one for cheap.

And your physics background is perfect because you have solid basics in maths and possibly programming.

MBAs have so much more options in the job market. The market for PhDs is quite small. Those wilmott.com ads are just a tiny portion of the market... plus there's always lots of hype from headhunters.

Most of those jobs are just database maintenance, programming, lowly employee jobs. There are also "glamour" jobs like "phD exotic derivatives strategist for 50 gazillion global fund" they are OK if you like to hang out with snobs, and work 15 hours a day 6/7 days a week plus they are still not as well paid as smart MBAs

Get a PhD only, I mean only, if you want to teach.

 

Spot on.

 

THANK YOU, Spike500, for making a sensible post on this thread, that is based in reality!

 

I think we all digressed from the original point of the posts which is - which is better, an MBA or a PhD?

FXScalper went on and talked about "I'm the biggest baddest thing in FX Trading without a degree". Well, whether that's true or not, that's not the point. I don't think the OP is interested in whether an MBA or PhD will help him make better trades nor did he express interest in trading for himself full time.

My take on this: Go with the MBA. It's broader and you have more flexibility and options in choosing which position in the industry you want to start a career in.

 

buzzy2, you're a PhD, right?

what do you think about the level of difficulty and complexity it takes in order to competently and successfully access and trade the ForEx?

 

well I think he did. at least that is what I think he was alluding to.

he wants to know if trading as a PhD or an MBA will make him more money.

I basically pointed out that it doesn't take either to be a great trader, neither does having either degree make someone a great trader.

and that only the best traders in the world make the most money.

so, if he cannot trade, there's little use getting a PhD or MBA because having either will NOT make him a better trader who earns a better income.

If he's just talking about wanting to get a degree to become a clock-punching paper shuffler who draws a check, then I'm outa here because that has nothing to do with trading the markets.

Mcclean, why don't you settle this.

skz