I'm looking for some basic, blunt and very realistic advice regarding the pursuit of a career in the application of statistical modeling for the purposes of trading (be it LF or HF). I know these threads get old, but bear with me.
Background:
I'm an undergraduate at Indiana University enrolled in the business school (Kelley). My majors are finance, economic consulting and public policy analysis. I will graduate May 2016. I had grown really tired with the prospect of working in consulting or IB (common routes for similar students). I'm not much of a 'schmoozer' (a valuable skill nonetheless). I don't have a traditional background, I spent every summer since 16 fabricating trailers for a family member's small business. I've yet to meet a fellow welder in the finance world but I'm sure you're out there somewhere!
In short I really want to avoid the usual bschool route and avoid dealing with clients on a daily basis. I find I grow disinterested quickly by that which does not challenge me. I'm the kid who's never in class if there's no attendance policy but still manages to do just fine. I think anyone who just gets by like that though eventually hits a wall. For me, it was econometrics. We didn't spend a lot of time discussing application, so talking about p-values and logs was boring and I tuned out. Time-Series analysis flipped a switch though. I've always been interested in markets and securities pricing but didn't see how it would connect to a job.
I always envied (as many do early on) the idea of becoming a 'trader', whatever that means. Two years ago I scrapped together some left over education money (don't tell mom) and started trading on optionshouse. I gravitated to derivatives immediately as it offered the prospect of returns greater than my fees and lets be honest derivatives are just plain sexy. Analyzing financial fundamentals was a bore though and technical analysis seemed like a lottery. I wanted something measurable and usable for strategy creation. Not a good value pick. Once I was introduced to the idea of model creation with time-series data I was hooked. (The idea of back-testing was something I always saw the value in, I just never had a name for it). I went from being apathetic towards my future to excited about finding the HOW of my passion. I realize the odds are not stacked in my favor, but I don't expect anything to happen quickly. With mathematical finance you either can or can't. There's no faking it.
Education
First things first, I am focusing on addressing the problem of really being in the wrong major. I used to see the trader skill set as Finance >> Economics >> Mathematics But its more accurately Computational Modeling >> Mathematics >> Economics (or some ambiguous variant).
I've dedicated several hours a day to learning programming. I use R for statistics and have been using the language to both get an introduction to object computing and become an expert in econometric basics. (Statistics with R) I've been working with java, python and c++, really trying to decide which to dive into and become fluent. I've found that I'm learning quickly and the problem solving structure fits my mind perfectly.
What is the most efficient and effective method for becoming a expert in CS for quantitative purposes? What skills do you find most important? What do you wish you would have learned?
I understand I'm years away from being any use to a firm. Everyone starts somewhere. With that said, I'll be entering the job force in two years. I know I'll need to excel at a comp. fin. master program, but a year a quant does not make.
What career route did you find effective? How can I use a three - five year job to prepare for entering a masters program? What skills/experiences will be most impressive to a masters program?
Generally, I'm looking for advice and personal experiences. I see myself in a master program in 5-7 years. What would you spend that time doing if you could go back?
Advice on what area of mathematics to focus. I'm a math minor (idk if I listed that), but I've read every piece of math course advice in the book. From don't learn stochastic to you'll never work anywhere near a desk without differential (probably true considering black-scholes. Obviously mathematical modeling is a key, I'm enrolled in a course specifically on it this fall.
Any resources you find helpful for any relevant subject. I've found many sources but you are the insiders!
Feel free to slap me with some reality! In fact, please do. I'm the only one who has to believe in myself - I need you to show me the walls.
Thank you in advance for your thoughts. I haven't explained everything so feel free to ask clarification. I'm not an 18 year old who opened eTrade and thinks he's the next Buffett. I'm very serious about being apart of this industry and have a great deal of respect for those who are. Time and effort will get you anything. Again thank you to communities like this. The amount of material available for people like me is astounding.
Background:
I'm an undergraduate at Indiana University enrolled in the business school (Kelley). My majors are finance, economic consulting and public policy analysis. I will graduate May 2016. I had grown really tired with the prospect of working in consulting or IB (common routes for similar students). I'm not much of a 'schmoozer' (a valuable skill nonetheless). I don't have a traditional background, I spent every summer since 16 fabricating trailers for a family member's small business. I've yet to meet a fellow welder in the finance world but I'm sure you're out there somewhere!
In short I really want to avoid the usual bschool route and avoid dealing with clients on a daily basis. I find I grow disinterested quickly by that which does not challenge me. I'm the kid who's never in class if there's no attendance policy but still manages to do just fine. I think anyone who just gets by like that though eventually hits a wall. For me, it was econometrics. We didn't spend a lot of time discussing application, so talking about p-values and logs was boring and I tuned out. Time-Series analysis flipped a switch though. I've always been interested in markets and securities pricing but didn't see how it would connect to a job.
I always envied (as many do early on) the idea of becoming a 'trader', whatever that means. Two years ago I scrapped together some left over education money (don't tell mom) and started trading on optionshouse. I gravitated to derivatives immediately as it offered the prospect of returns greater than my fees and lets be honest derivatives are just plain sexy. Analyzing financial fundamentals was a bore though and technical analysis seemed like a lottery. I wanted something measurable and usable for strategy creation. Not a good value pick. Once I was introduced to the idea of model creation with time-series data I was hooked. (The idea of back-testing was something I always saw the value in, I just never had a name for it). I went from being apathetic towards my future to excited about finding the HOW of my passion. I realize the odds are not stacked in my favor, but I don't expect anything to happen quickly. With mathematical finance you either can or can't. There's no faking it.
Education
First things first, I am focusing on addressing the problem of really being in the wrong major. I used to see the trader skill set as Finance >> Economics >> Mathematics But its more accurately Computational Modeling >> Mathematics >> Economics (or some ambiguous variant).
I've dedicated several hours a day to learning programming. I use R for statistics and have been using the language to both get an introduction to object computing and become an expert in econometric basics. (Statistics with R) I've been working with java, python and c++, really trying to decide which to dive into and become fluent. I've found that I'm learning quickly and the problem solving structure fits my mind perfectly.
What is the most efficient and effective method for becoming a expert in CS for quantitative purposes? What skills do you find most important? What do you wish you would have learned?
I understand I'm years away from being any use to a firm. Everyone starts somewhere. With that said, I'll be entering the job force in two years. I know I'll need to excel at a comp. fin. master program, but a year a quant does not make.
What career route did you find effective? How can I use a three - five year job to prepare for entering a masters program? What skills/experiences will be most impressive to a masters program?
Generally, I'm looking for advice and personal experiences. I see myself in a master program in 5-7 years. What would you spend that time doing if you could go back?
Advice on what area of mathematics to focus. I'm a math minor (idk if I listed that), but I've read every piece of math course advice in the book. From don't learn stochastic to you'll never work anywhere near a desk without differential (probably true considering black-scholes. Obviously mathematical modeling is a key, I'm enrolled in a course specifically on it this fall.
Any resources you find helpful for any relevant subject. I've found many sources but you are the insiders!
Feel free to slap me with some reality! In fact, please do. I'm the only one who has to believe in myself - I need you to show me the walls.
Thank you in advance for your thoughts. I haven't explained everything so feel free to ask clarification. I'm not an 18 year old who opened eTrade and thinks he's the next Buffett. I'm very serious about being apart of this industry and have a great deal of respect for those who are. Time and effort will get you anything. Again thank you to communities like this. The amount of material available for people like me is astounding.
