I have been around many engineers turned traders and the ones who make it are the ones who come up with the simplest system. I know one engineer who just buys moves above flat levels of resistance on intra-day charts and does well. Another one has been developing a system for about 3 years and loses money every time he steps in with real money. He is in the stage of analysis paralysis. Engineers have been trained to analyze, analyze, and when they are finished, they do more analysis. If you can't break this vicious cycle you're doomed. The cardinal rule: KISS. In the market, less is better!
Transition from Engineering to trading
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I must clarify that I have never considered leaving my current engineering job even for a minute unless I find a position in the trading arena. When I talked about moving to the northeast area, what I meant is that I will find a similar position in the northeast area and continue working for the same company. The company I work for is pretty big and has locations almost all over the country.
Quite a few people on this board implied that I should concentrate more on trading in my own account while still holding my day engineering job. My thesis of wanting to leave the engineering field and be a full-time professional trader (working for BB) is my heart is just not there in my current job. Working as a trader for BB would also allow me to continue swing trading in my personal account.
The biggest problem I am facing right now is that the hiring system at the BB firms is set up to hire only the recent graduate.
Quite a few people on this board implied that I should concentrate more on trading in my own account while still holding my day engineering job. My thesis of wanting to leave the engineering field and be a full-time professional trader (working for BB) is my heart is just not there in my current job. Working as a trader for BB would also allow me to continue swing trading in my personal account.
The biggest problem I am facing right now is that the hiring system at the BB firms is set up to hire only the recent graduate.
You are so right! I wonder why that is. There seems to be some prejudice. Is it that they are better with video games?
As far as the KISS method, I agree, however, having the education is well worth it. Allows you the confidence to pull the trigger, and then manage the trade. Also, you get alot of coaching with things like psychology, trade execution.
As far as the KISS method, I agree, however, having the education is well worth it. Allows you the confidence to pull the trigger, and then manage the trade. Also, you get alot of coaching with things like psychology, trade execution.
From my experience, recruiters at investment banks or hedgefunds do not care about personal trading experience, unless it is a very superior track record. A lot of people seem to apply with experience managing family money or their own, so they tend to dismiss it. But even with a superior record a bank will most often want to hire traders from within by promoting assistant traders that are familiar with their corporate/banking industry culture.
I think you could probably apply your engineering math skills to quant related work. So best bet would be to try to build a terrific track record and try applying to hedgefunds. And forget about networking.
I think you could probably apply your engineering math skills to quant related work. So best bet would be to try to build a terrific track record and try applying to hedgefunds. And forget about networking.
Interesting thread. I'm in my third year getting my degree in Mechanical Engineering but I have no intention of staying an engineer for longer than necessary. I think that, in general, engineers are undervalued employees, which is a shame. I'm going to finish up and get my degree just so I can have the fall-back option (which is still comfortable), but my hearts really in trading.
As a part of my school program I worked at an engineering corp. for 6-months and I can relate with you. Its really hard to get trading practice when all you can do is click refresh on a chart every hour to see how things are going. One thing I did is map out places that I thought were key levels the night before and see how well price acted when it reached these zones when I got home. My strategy heavily relies on S/R zones based on a number of things, so this type of pre-homework was possible to do and very helpful.
For the past month, I've been trading the strategy I've been working on and my accounts up almost 20%, so the homework has paid off. I think the key thing is to start to develop your strategy while you're still an engineer. Then if you ever try to make the jump you'll bypass the "spinning your tires" phase of trying to figure out what works and what doesn't and what suits you best.
As for the salaried trader part... your best bet is probably to find a hookup or to get your MBA. I have a couple friends who say its impossible to get a trading job anywhere with just an undergrad degree.... but then again, they're finance majors
As a part of my school program I worked at an engineering corp. for 6-months and I can relate with you. Its really hard to get trading practice when all you can do is click refresh on a chart every hour to see how things are going. One thing I did is map out places that I thought were key levels the night before and see how well price acted when it reached these zones when I got home. My strategy heavily relies on S/R zones based on a number of things, so this type of pre-homework was possible to do and very helpful.
For the past month, I've been trading the strategy I've been working on and my accounts up almost 20%, so the homework has paid off. I think the key thing is to start to develop your strategy while you're still an engineer. Then if you ever try to make the jump you'll bypass the "spinning your tires" phase of trying to figure out what works and what doesn't and what suits you best.
As for the salaried trader part... your best bet is probably to find a hookup or to get your MBA. I have a couple friends who say its impossible to get a trading job anywhere with just an undergrad degree.... but then again, they're finance majors
Hi Dividend,
Thanks for the reply.
There is a difference between managing family money and trading. Please elaborate what specific experience are you talking about when you say investment banks or hedgefunds do not care about personal trading experience. How do you think the assistant traders got hired in the first place ? Also please explain the part when you say, "Forget about networking".
I am not necessarily disagreeing with you but wondering what the thought process is behind your logic.
Thanks for the reply.
There is a difference between managing family money and trading. Please elaborate what specific experience are you talking about when you say investment banks or hedgefunds do not care about personal trading experience. How do you think the assistant traders got hired in the first place ? Also please explain the part when you say, "Forget about networking".
I am not necessarily disagreeing with you but wondering what the thought process is behind your logic.
Unless you have experience or are extremely smart, I don't think you can do this. Those two hours are very fast. Video gamers will do better than engineers in this respect.
Watching the market tick by ticking is important for anyone who wants breath along with the market. Engineers are usually book smart, not street smart.
Someone has mentioned this as: "Putting in screen time."
Plenty of swing shift job out there. How about taking some exams for a Microsoft or Linux certification and make good money working swing shift ? Your morning can be used to trade ?
I think a lot of the advice here is good for someone wanting to be an independent trader, but not really on point for this guy, who wants to work for an I bank or hedge fund. My advice would be to look up recruiting firms in NY who specialize in this type of job and talk to them and see what is required. I doubt you will get very far sending in unsolicited resumes or applying to online postings.