Finance Job questions

rock1 · #1 10-16-2006, 01:11 PM

I have lurked on the boards (and enjoyed) for several years...i dont post as much as i should so i figure i owe 2+2 posters something...

Reading the responses to Strassa's post made me realize people seem to have lots of questions and some misconceptions about finance...I also graduated undergrad (1998) with an electrical engineering degree (and finance)...out of school, i chose to trade Equity derivatives at a major bank...moved up over time, and a couple of years ago left for a hedge fund where i run derivatives...my wife was an investment banker, and then eventually went to Bschool and decided to move into education...anyways, i have perspective on finance jobs (trading/banking/consulting) in general...if you have questions on the field, post them in this thread and i will do my best to respond. Mods, if this is not helpful, u can erase...i can only respond to questions at nights though...

For what its worth, I think Strassa should consider derivative type jobs over commodities...and while i thought differently about firm names early in my career, having Goldman Sachs on the resume is worth something down the road..

g-p · #2 10-16-2006, 05:15 PM

pulled this from other thread:
im interested in this because i am in the process of getting a computer engineering degree, but i dont want to do anything related to that. could you elaborate more on how these firms like engineering backgrounds? i have no experience in investing besides helping my dad look up info on stocks when i was a kid that was good with computers. did you have a minor in finance or anything? any info abuot the engineering -> finance transition is useful, ty

rock1 · #3 10-16-2006, 06:59 PM

GP,
I dual majored in EE and finance...but i think the engineering major was looked at as favorably (if not more favorably) than the finance degree on the more quantitative desks (equity/fixed income derivatives, converts,mortgages, structures areas on other fixed income desks)...they value the processing power and organized thinking of engineers as well as the quant skills...most of the finance learning can take place on the job (so dont worry so much about not having a finance degree/classes)...the one thing i think you will need to establish is some interest in finance/markets (non class based)...just spend a little time keeping up on markets so that you can show some base knowledge of whats going on (whats markets are doing/macro market environment/major micro stories)...if you can show genuine interest in markets, you will be fine...

good2cu · #4 10-16-2006, 11:38 PM

Rock,

Let’s say I just turned 20, have about 20 hours of college credits completed and have had a very successful poker career despite only playing the game seriously for less then a year. This and the things that come with it are basically my only qualifications. Is there any way for me to land a trading job without going back to college?

Let’s say for example if I went into a trading company (sounds like even landing an interview would be next to impossible), tell them that I am ready to work 70 hour weeks, I have shipped it hard playing poker, which has made me well versed in thinking with logic as opposed to emotion, dealing with variance and has already given me some experience with the hookers and blow lifestyle, and am already to use all these traits, and whatever they can teach me to ship it hard for their firm.

I could fruther play off my youth and lack of college experince as a plus. They could mold me into a trading robot etc.

What are the odds of me getting a job through this route? 1%?

If I had to go to back to college:
As a undergrad I was going to Michigan State University, not exactly a breeding ground for finical talent. If I went back to college would the University of Michigan be a decent enough school to win a top trading job (I got accepted there) or would trying to get into an ivy league school assure me a much better chance of success? Also what should I study in school?

rock1 · #5 10-17-2006, 12:35 AM

maybe i have been a little too generous...getting a trading job at a bulge bracket firm is very difficult...there are only a certain number of jobs, getting in the door isnt easy when you are competing against ivy leaguers who have similar interests, etc...its good to be open and hopeful, but definitely stay realistic as well...anything is possible, but you have pretty much no shot through scenario 1...

as for scenario 2, if you can get into Michigan, or ivy league, you should do so...if you are coming out of MSU, your GPA should be perfect, good job experience, with a clear interest in financial markets - and then hope you are chosen over the guy like you at other schools...

the ivy league school does assure you of a better chance just because it gets you in the door of places...study what you are interested in - but math,physics,engineering, and finance type degrees will give you best chance...in terms of classes, take the classes that are finance specific (and dont skip the ones that are hard - these are generally where you will find if you really have interest in the subjects)

finally, have the one thing that makes u different than everyone else...and being a winner at 25/50 at PP is certainly helpful-but there are a hundred guys who can say the same thing b/c its true and another 1000 that can say it even if its not...find somehting to sell yourself...

wish you the best

wpr101 · #6 10-17-2006, 06:44 PM

Of course U of M business school is good enough. They are consistently ranked in the top 10 in the nation. However, when many graduated in 2002 they had trouble finding jobs. Also, from the people I know in this field who have been working from 0-2 years the salaries talked about in this thread and the other one are exagerated.

rock1 · #7 10-17-2006, 07:15 PM

i think he was talking about undergrad...not business school...

and you are entitled to your opinion on the salaries, but i am stating the numbers of the bulge bracket firm i worked at.

Leptyne · #8 10-18-2006, 02:27 PM

Maybe, perhaps a 1% chance of getting a job as an intern at one of the major firms, who could then guide your career and educational development.

A smaller independent would be more likely to appreciate your current skills, perhaps a startup run by someone closer to your age that can relate to the talents you have, which are really pretty impressive.

wpr101 · #9 10-16-2006, 07:09 PM

Can you give more info about salaries that come with years of experience. I have reason to believe that many claims of salaries in that thread are way exagerated.

rock1 · #10 10-16-2006, 07:32 PM

this obviously is very linked to the type of job you get/firm/area you work in/are you any good...but assuming you end up at a bulge bracket firm,i would say for an undergrad an AVERAGE by year would be yr 1 and 2 - 80k-250k, yr 3 300k-500k, yr 4 500k+++++...are their people that make 1m in yr 3, yes but rare...is it possible to start at a smaller firm and receive a percentage of profit by year 2 or 3 and make 1m+ - yes, but not sure your EV is as high as having the training and name of a bigger shop...in my mind the goal is not to maximize how much you make in each year, but to raise your future EV as much as you can - especially for the first few yrs...