Finance Job questions

[rock1]

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]

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]

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...

[wpr101]

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.

[MindGamez]

hey, im a freshman in college majoring in finance, and im lookin to get into the trading business (i know my mind can change a bunch of times in 4 years tho). Anyway, do you think it would help me land a job if i minored or majored in engineering? Technically im not even in the business school yet, so i have some time for those type of classes. Just wonderin if it would be worth it. thanks

[rock1]

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...

[donkey]

rock1,

can you talk more about why you think equity option type jobs > commodity jobs. i just started working as an analyst at a trading firm, and i'm doing natural gas/electricity/etc. so far i enjoy commodities but dont really know what's on the other side. thx

[rock1]

the engineering help more in the more quantitative areas...but getting an engineering degree when you arent that interested is brutal...finance degrees alone are obviously enough assuming you do fine and bring other skills....for that matter an english degree is enough if you can show other skills

[rock1]

i dont quite mean it that way...commodities is one of the hottest areas in any market at the moment, and friends that trade power love their jobs...i just think commodities are in a huge bull market which has created a lot of jobs, and could slow down over time...the point i was trying to make was more that derivatives for me has opened a lot more doors...1. equity derivs makes it easier to ascend the ladder of equity sales/trading...trader/head of desk/head of derivs/head of equity department is a very reasonable progression..2. equity volatility is very much linked with credit levels and opens up fixed income doors...3.hedge funds/investment vehicles will always need derivative experts and may not always trade commodities...

i think the more important point is that derivative areas > cash areas...commodity derivative traders will have the same doors as equity/fixed income traders as they have knowledge of the same types of products...cash areas are already starting to die out as trading becomes more electronic.

[The DaveR]

[ QUOTE ]
rock1,

can you talk more about why you think equity option type jobs > commodity jobs. i just started working as an analyst at a trading firm, and i'm doing natural gas/electricity/etc. so far i enjoy commodities but dont really know what's on the other side. thx

[/ QUOTE ]

Derivatives are more financial engineering and a lot of it is about figuring out new products faster than the rest of the market.