How do you get a job in Trading stocks and investing if you have no relevant work experience? And what are the key things one could learn to get up to speed with current Trading and investment trends, and tools/techniques that are being used in industry?
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I am a recent Engineering major from a top 20 university (worldwide). I have always liked investing (virtual stocks) from a young age, though gave up during my university years and completely lost touch with my former hobby. After doing odd office and research internships during my university years I have finally come to realise that my true passion has always lied in investing and analyzing stocks. But I realise that I have no experience in working at Trading firms at all if I apply now, hence will be at a huge disadvantage competing with candidates who have done past internships in Trading. So how I can get a job or internship at a Trading firm when I have no relevant work experience? What are the key things I should learn to get upto speed with current Trading and investment trends and tools/techniques that are being used? Thanks in advance and I eagerly look forward to any helpful advice. PS: When I was into virtual investing, I remember using various graphing techniques and models to analyze and predict the stocks performance. So I guess I liked the more predicting side of Trading to predict the stocks performance, if that makes any sense...
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Answer:
Trading and research are typically two different distinct roles at investment companies. Additionally, trading and research can significantly mean different things depending on what strategy the investment company specializes in. You should clarify what role you want to be in as well as what kind of strategy you understand.
Anonymous at Quora Visit the source
Other answers
You can get a job as a software developer at a big bank or financial firm. That will get you in the door. One thing that you will find that with big banks, trying to predict the stock market is useless, and banks are *terrible* at predicting stock performance and they generally don't try. The irony is that if you *can* predict stock movements, then you are often in a position where you can't take advantage of that information. Traders *trade*. You can think of trading as working for Walmart. Walmart buys cheap stuff from China and sells it for a slightly more expensive price in the US. Traders do more or less the same thing. This means that Walmart isn't necessarily an expert in what to use the stuff for. For example, Walmart sells pencils. Walmart really doesn't care anything about those pencils other than the process of getting the pencil to the store. Trading is like that. Traders care about what the price of the stock will be in two hours. There are times where they *might* care where it is in two weeks, but they don't care about anything much longer than that. When you are trading, you are looking at things that investors would consider random noise. The analogy for Walmart as also apt since it turns out that most of the work in moving stocks is grunt work. If you get hired as a trading assistant, no one will let you make any sort of real decisions with money for probably a year or so, and most of your work will be typing numbers into spreadsheets, staring at computer screens, and generally doing non-glamorous grunt work. As far as stock prediction. This turns out to be mostly useless. The problem is that you are dealing with such large amounts of money, that you can't put it all in one stock, and if a stock rises you can't sell immediately. If I have $1 billion, I just can't put it into one company, and if I have a $10 million position, it's difficult to move money into or out of a company. There are lots of deals to be made with private equity, but the trick in those is to make the deal. If you want to make money with small tech companies, then by the time it hits the stock market, it's too late. You want to get in before anyone knows that the company exists, and this means just talking to people and making deals. Again, if you want to get into that world, get hired as a software engineer. If your political skills are good, you'll end up sitting next to traders and you'll absorb stuff with osmosis.
Joseph Wang
You don't necessarily need job experience. You need personal experience with trading stocks. In hindsight, you should have nurtured your stock trading skills by practising whilst you were in university. That way, you would've learned a lot about trading, and you could even trade on a virtual account and showed potential employers the account statement in demonstration of your ability. I would suggest learning to trade proficiently, opening a virtual account, trading stocks there, and use the trade history statement to show employers your ability.
Abel Gaiya
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