Let’s say someone was a trader at one point in their career. If this person would move to research, how would their past experience help them?
I did this and I think it has helped in my ability to pick stocks. It tells me what stocks to stay away from covering and what stocks are worth covering. I think I have a better feel for how different stocks react to different things than what typical analysts I speak to do. Plus I’ve been offered several PM jobs as a result of having experience as both a trader and an analyst. A lot of HF’s seem to like their PMs to have experience in both capacities. One day I might go that route.
RAwannabeCFA Wrote: ------------------------------------------------------- > I did this and I think it has helped in my ability > to pick stocks. It tells me what stocks to stay > away from covering and what stocks are worth > covering. I think I have a better feel for how > different stocks react to different things than > what typical analysts I speak to do. > > Plus I’ve been offered several PM jobs as a result > of having experience as both a trader and an > analyst. A lot of HF’s seem to like their PMs to > have experience in both capacities. One day I > might go that route. I think that is the big thing; having a “feel” for what is going on. I think that is even more important on the credit side (but then again, I am biased). I think (hope) it goes both ways: experience as a trader will give you a different angle when put in an analyst role, while analyst experience will give you a different angle if you should end up moving a few seats over into a trading role.
Would you say that most research analyst have experience in trading? Or that most PMs have experience in trading and research?
No & No. I think the vast majority of people pick one path and stick to it. The only reason I ended up a trader was because I didn’t have a clue what I wanted to do when i got out of college. Then after working as a pretty successful trader I got burned out on the hours and I really didn’t enjoy the work. So I went back got an MBA and completed the CFA did some time as a research associate and finally am a senior analyst. But to do that in many regards I took a big step back in my career both from a prestige standpoint and from a salary standpoint. Had I continued on as a trader it is possible I could have been a PM 3 years ago but now I’m not even sure that is what I want to do. However, in talking with a couple of the CIOs and DoRs I deal with I’ve been told that I am in many ways their dream PM candidate because I have several years of buyside experience, several years as a sell side analyst, and several years as a trader and I am still relatively young. But there are certainly easier and quicker routes to get there than the one I pursued.
So how did you explain your story in your essays? I mean an MBA isn’t really necessary to move into research. And BTW, if I continue on as a trader at my firm, there’s no way I’ll make PM at this frim.