Is becoming a quant a waste of time?
- Thread starter fatrat
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Quote from sjfan:
First, if you are still in HS (and I wouldn't brag about 3.0 gpa really), then please, for the love of god, listen.... there are things traded that aren't stocks, options on stocks, futures on stocks, or commodities. And you also make the mistake of thinking that I don't trade. But that's alright.
So, here's a bit to hopefully broaden your horizon a little. Whereas Jack is an idiot ,I think you are just a bit misguided. Hell, I didn't know about half the stuff that's traded until much much much later on. For example, I trade something called synthetic tranches. They are very complicated derivatives. Each night, every dealing desk on the street runs these VERY complicated algorithm that computes the mark-to-market price of the contracts, the delta sensitivies (so we can hedge our books and do other assorted things), and various hedging exercises. We can't trade these things without pricing quants. If the traded spread goes from 250 to 300, I can't even figure out how much money I've made without running a lot of calculations (full of calculus and matrix algebra. We can't even understand these things without lots of math. Yet, billions change hand each day.
Now, math may not be the holy grail (I don't believe in a holy grail), but math is useful. It's analytical discipline. It's also allows rigorious analysis of very complicated instruments and trades. With the exception of specialized quant investment groups, general quant is about being able to understand your positions, figure out your optimal risk budget, and how to express certain views in the most favorable way.
Yes I am in high school but have probably had more market experience than 3/4 the people on et. Im not bragging about a 3.0 gpa I wish it was higher but I know I will be going to a state college so I don't really care.
I can understand now why you would need quants. I thought they were just people who did nothing but try to find relationships between numbers and where the market is going. So correct me if im wrong but they just help price the market and figure out risk reward ratios?
I trade mainly grains and other physical commodities. I live on a farm so that helps me with the grain trade. It is a lot more cut and dry in the commodity markets and way less complicating than the stuff you are talking about (frankly I dont know why anyone would want to trade something that complicated). I only need to know how to add and subtract to trade my markets and would not be trading if I had to figure calculus and algebra equations throughout the day! That would suck!
Shame, this thread once had value and purpose before all the threadjacking..