May 6, 2020 1:53 am
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There are so many types of trading careers out there...Sales and Trading at the banks (like Goldman, Morgan Stanley, etc.), prop trading firms (like Citadel, SIG, PEAK6, etc.), Hedge funds and the list goes on.
It all seems like so much. How do I pick which path is best for my strengths and interests?
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May 31, 2020 2:09 am
Whichever one pays the highest.
Also factor into account location and where you want to be, a lot of these shops are in Chicago not NYC so keep that in mind.
Wherever you work, trading is a risky business and you can lose your job at any time. Big banks are less likely to lay you off for poor performance and will give you more wiggle room to start performing. Prop trading firms are riskier entities - even if you're doing well, if the markets fluctuate it can result in a massive upturn or a drastic fall for your propshop and they may cause it to go under.
poliwag May 31, 2020 2:37 am
@short_icejuice
Prop shops/quant trading firms USUALLY do well in more volatile markets because more opportunity, but yes this is true. Definitely riskier but you'll have probably have more upside on the buy-side than at a big bank
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May 31, 2020 2:43 am
I mostly agree with IceJuice. Obviously you should consider money (if you like that kind of thing) but finding a good culture is pretty important. Citadel usually pays the most to first-year graduates from undergrad, but is known for being a really cutthroat environment, and having high employee turnover. So make sure the shop is a good culture fit for you.
Also, the types of skills they look for/want you to use to trade should match your interests and skills as well. For example, some quant trading roles are almost no manual trades, a lot of programming and the role is kind of like a data analysis role (companies like Jump Trading, Virtu, Volant Trading, and some low touch trading desks at Citadel). Others (like peak6, SIG, Jane Street) historically use their quant traders to build tools, but make more manual trades.
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