How to become a trader

[smithsi]

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

[Dupont666]

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

Do you know what a derivatives trader does?

Are you FSA approved?

have you been on any of the courses (look up BPP for some not too abd ones).

have you read around the subject?

Will they give you all the training you need?

If not go get the FSA approved section of the training and you are in a better prospect straight away.

[Jock Strap]

Buy some stuff, then sell it ?

[carter711]

You do not need to be FSA approved to be a derivatives trader, even the 'manditory' Eurex qualification isn't that important.

It depends if the role includes a good salary or not. If it does then go for it you have nothing to lose. If it is a self employed position then be wary, you can easily go for months without receiving a bean despite working your nadgers off.

I started as a group of 7 graduates on a derivatives trading training program at the start of 2006, not one of those 7 that started continued a career in trading. It's very easy to make money, but even easier to loose lots of it.

[JohnLatham]

With your extensive back office experience, you should find all sorts of ways to innovate as a derivatives trader.

It worked for Jerome Kerviel!

[smithsi]

Dupont666 said:

Do you know what a derivatives trader does?

Good question, yes I do, although practical experience is zero (although I have supported the trading function as part of my role).

Dupont666 said:

Are you FSA approved?

No it's not been required for the role, so I would have to do the exams in order to trade.

Dupont666 said:

have you read around the subject?

Part of my function is as a business analyst, so yes and I also studied derivatives at the business school I attended in France.

I'm doing as much revision and reading as possible, before I apply for the role.

Dupont666 said:

Will they give you all the training you need?

Remains to be seen. It would be an internal transfer, so I'm going to start discretely networking and finding out as much background as possible. I may take the advice and go get the training myself if that is what it takes.

Thanks for the response.

[smithsi]

carter711 said:

You do not need to be FSA approved to be a derivatives trader, even the 'manditory' Eurex qualification isn't that important.

It depends if the role includes a good salary or not. If it does then go for it you have nothing to lose. If it is a self employed position then be wary, you can easily go for months without receiving a bean despite working your nadgers off.

I started as a group of 7 graduates on a derivatives trading training program at the start of 2006, not one of those 7 that started continued a career in trading. It's very easy to make money, but even easier to loose lots of it.

Even as a trainee trader, it would be a slight increase in salary.

PS Loved the comment re: Jerome Kerviel ;-))

If anyone can recommend any specific books then that would be great.

[JohnLatham]

smithsi said:

If anyone can recommend any specific books then that would be great.

Traders, Guns & Money.

[NoelWatson]

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

[smithsi]

NoelWatson said:

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

Mainly credit I understand.

[smithsi]

JohnLatham said:

smithsi said:

If anyone can recommend any specific books then that would be great.

Traders, Guns & Money.

Is that another liars poker? I think I might have read it.

I was hoping for something with a bit more detail.

[NoelWatson]

smithsi said:

NoelWatson said:

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

Mainly credit I understand.

In that case I may be able to help, but firstly what type of credit will you be trading?

e.g.

Single name CDS
Indices
Tranches
Strucutured

[smithsi]

NoelWatson said:

smithsi said:

NoelWatson said:

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

Mainly credit I understand.

In that case I may be able to help, but firstly what type of credit will you be trading?

e.g.

Single name CDS
Indices
Tranches
Strucutured

Misled by HR, turns out it may be IR derivatives. Will investigate further.

Thanks for your help.

PS Interesting web site Noel. I come from a IT tech background, in particular familiar with SQL Server and C#.

[NoelWatson]

smithsi said:

NoelWatson said:

smithsi said:

NoelWatson said:

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

Mainly credit I understand.

In that case I may be able to help, but firstly what type of credit will you be trading?

e.g.

Single name CDS
Indices
Tranches
Strucutured

Misled by HR, turns out it may be IR derivatives. Will investigate further.

Thanks for your help.

PS Interesting web site Noel. I come from a IT tech background, in particular familiar with SQL Server and C#.

Good luck - sounds like a good opportunity,and IR trading should be a lot safer than working in the credit markets at the moment!

[smithsi]

NoelWatson said:

smithsi said:

NoelWatson said:

smithsi said:

NoelWatson said:

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

Mainly credit I understand.

In that case I may be able to help, but firstly what type of credit will you be trading?

e.g.

Single name CDS
Indices
Tranches
Strucutured

Misled by HR, turns out it may be IR derivatives. Will investigate further.

Thanks for your help.

PS Interesting web site Noel. I come from a IT tech background, in particular familiar with SQL Server and C#.

Good luck - sounds like a good opportunity,and IR trading should be a lot safer than working in the credit markets at the moment!

Thanks - although perversly, I would have thought recession made the demand for credit derivatives go up and not down!!!

[NoelWatson]

smithsi said:

NoelWatson said:

smithsi said:

NoelWatson said:

smithsi said:

NoelWatson said:

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

What type of derivatives?

Mainly credit I understand.

In that case I may be able to help, but firstly what type of credit will you be trading?

e.g.

Single name CDS
Indices
Tranches
Strucutured

Misled by HR, turns out it may be IR derivatives. Will investigate further.

Thanks for your help.

PS Interesting web site Noel. I come from a IT tech background, in particular familiar with SQL Server and C#.

Good luck - sounds like a good opportunity,and IR trading should be a lot safer than working in the credit markets at the moment!

Thanks - although perversly, I would have thought recession made the demand for credit derivatives go up and not down!!!

The volumes/liquidity have dried up, meaning that there are a lot of people left twiddling their thumbs, especially in the structuring areas.

[smithsi]

NoelWatson said:

The volumes/liquidity have dried up, meaning that there are a lot of people left twiddling their thumbs, especially in the structuring areas.

Yes, I've being made redundant from an IT development role supporting a structured area.

Good point on liquidity, I see from your blog that you did the Certificate in Quant Finance. Perhaps that could be advantageous for me in accomplishing my goals, think I will definitely need to refresh my maths!!!

[NoelWatson]

smithsi said:

NoelWatson said:

The volumes/liquidity have dried up, meaning that there are a lot of people left twiddling their thumbs, especially in the structuring areas.

Yes, I've being made redundant from an IT development role supporting a structured area.

Good point on liquidity, I see from your blog that you did the Certificate in Quant Finance. Perhaps that could be advantageous for me in accomplishing my goals, think I will definitely need to refresh my maths!!!

Ping me an email if you want some honest info on CQF

[ThatPhilBrettGuy]

smithsi said:

Any advice.

Position has come up within my company to be a trainee derivatives trader.

I've within IT for financial companies for 10 years and am interested in a career change. Any hints, there must be a few City traders on here from time to time.

Depends on what sort of person you are and what sort of traders your company prefers (old hands or up and comers).

The thing that this depends on is how quickly you'll think they're all cocks. Pure traders (not people trying algo trading etc) are a breed as are some I.T. people. They're breeds that were born to hate each other.

There are exceptions obviously and I'm lucky to know a couple of traders that I really get on with, but it's best to know what it can be like. If you like expensive shirts and shoes, thought Audi TT's were cool and have a 100% (or more) mortgage on a flat just outside the worst part of town you'll fit in fine

[2something]

Unfortunately the answer is it really depends.

Is this a sales trader job, or a market making trader job ?

Depending on the technology/setup/etc. your level of IT knowledge could give you quite an edge on the desk. Just be ready to hack out rapid prototypes and improve them on the fly.

Even if it doesn't work out, front office developers who have spent time trading are nearly always valuable.