Hey all, I was wondering if this transition is difficult. Being a trader is very execution-oriented while being an analyst is very research-oriented. It would seem to me that a trader wouldn’t really have the skills to analyze companies. I’m just trying to figure out possible career paths for myself. Thanks in advance.
In this market, every transition is tough. Recruiters are saying no for transition and recommeding you to stick to what you have been doing in last few years. It is easier for them to place in the same position. But keep on trying, you never when you get an interview.
Depending on what type of trader you are. For sales trader, switching from a trader to sales will seem to be an easier transition but certainly different than analyst, in terms of the roles. There is still the intelluctual challenge on analytics of market and not purely execution base. The mentality and skills set of trader are very different from most of the other jobs in the industry, especially for the older generation (floor trader) who are at the edge of distinction. Nevertheless, there is still the demand of traders especially in large buy-side houses due to the lack of execution by PMs on sophiscated and/or unfamiliar mkts. Just wondering why you want to switch from Trader to Analyst, it’s like switching from HF to PE.
duplication, pls ignore
I’m not a trader. I was just wondering if I should/could pursue trading in addition to analysis if my ultimate goal is to be in investment analysis. For example, I’ve had an interview for a derivatives trader position, and was wondering if that could possibly lead to a role as an analyst later on (i.e. 1-3 years later).
I would say it depends. I mean, if you are simply taking orders from the PM and hitting buttons, I would say no. If you were a prop type of trader utilizing an algorithm and strategy of a fund, I would say you may have a better shot of using that knowledge in an investment role.
If you are a successful trader, there is no way you would want to become an analyst. The remuneration for a good trader is the sky.
agree with former trader. though some desks are more research oriented, ie credit trading. from my understanding at some firms you do a year in a non publishing research role before you move to a jr trader role. also depends what type of derivatives you are talking about. but in general the 2 jobs require completely different skill sets & draw completely different types of people. if you think you are a research guy in most cases you will not enjoy a career as a trader.
Agree that if you are a good trader you are not going to switch to become an analyst. But some people are good at analysis, try trading and find that they dont have the right psyche or risk management. And they end up being good analysts where they can sleep at night without worrying about having risk on. Most successful portfolio management teams on the buyside have both and they work closely together in my experience