The trading pitt
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The Trading Pitt . October 18 th , 2010. Getting into Finance. Want a career on Wall Street? Why do you want a job there? Most Competitive Best Paying Best Opportunities Great Location Perks Why is a finance degree not enough? Should I get an MBA? Paper. Investment Banking.

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The Trading Pitt

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The trading pitt

The Trading Pitt

October 18th, 2010


Getting into finance

Getting into Finance

  • Want a career on Wall Street?

  • Why do you want a job there?

    • Most Competitive

    • Best Paying

    • Best Opportunities

    • Great Location

    • Perks

  • Why is a finance degree not enough?

  • Should I get an MBA?

    • Paper


Investment banking

Investment Banking

  • Biggest Companies

    • Bank of America, Morgan Stanley, UBS, JP Morgan, Goldman Sachs

    • Boutique Firms

  • Salaries

    • 60-90k base + bonus

  • Hours

  • Analyst vs. Associate

    • Associate needs MBA

  • Managing Directors


Your job as an investment banker

Your Job as an Investment Banker

  • Working 80+ Hours

  • Leveraged Buyouts, Mergers and Acquisitions, Capital Raising including IPO’s

  • Equity and Debt

  • Making Pitch-books

    • Of each deal including valuation, objectives, concepts.

    • Work for the sales desk

  • Meeting with potential clients


Investment banking resources while in school

Investment Banking Resources While in School

  • Take a class on Investment Banking

  • Check out Mergers and Inquisitions Blog and Premium Content

    • http://www.mergersandinquisitions.com/

  • Check out Wall Street Self Study on YouTube

    • http://www.youtube.com/user/wstss#p/u

  • Learn Excel and Powerpoint


Sales and trading

Sales and Trading

  • Biggest Firms

    • Major investment banks

    • Brokerage Firms

  • Salaries

    • 100k all included

  • Within an Investment Bank Usually

  • You can also go to work for retail institutions

    • TD Ameritrade, Charles Schwab, etc. for Less Pay

  • Fixed Income and Credit are the most profitable

  • Need Licenses at least 7, 63


Your job

Your Job

  • Depends on the product to a certain degree

    • Derivatives, Equity, Structured Products

  • But your main task is to be a market maker

  • Client calls with an order say sell 40,000 shares BAC you make a price of 17.00 market price is 17.15.

    • You make money off charges per share,

  • Make money off the spread between the market price.

  • Try to beat VWAP (Volume Weighted Average Price)

    • Spread order out over a period of a day

    • Actively trade the shares

  • For institutional players, sales and trading is generally separate.


Sales and trading resources

Sales and Trading Resources

  • Learn more about Market Making

  • Use Pitt’s Software

  • Practice Trading intraday and over several days

  • Market Microstructure

    • How orders large effect prices

    • Utilizing ECN’s (Electronic Communication Networks)

  • Level II Techniques

  • Beating HFT (High Frequency Trading)

  • Using Dark Pools

    • Finding deep liquidity


Proprietary trading

Proprietary Trading

  • Similar to the Hedge Fund Model but you trade your firm’s money.

  • You make a payout as a percentage of your profits

    • The firm absorbs you losses.

    • No upper limit usually

    • Cheaper commissions

  • Stocks, Options, and Futures are the three most traded products.

  • New York is the center for Equities and Chicago Futures.


Your job1

Your Job

  • Intraday Trading and Swing Trading

  • Algorithmic Trading

  • High Frequency Trading

  • Discretionary Market Making

  • Extremely Competitive

  • Make buy and sell decisions at your own command

  • Doing real work sooner

  • Technical setups primarily and short term


Resources

Resources

  • Open your own trading account and start keeping a track record and journal

  • Reading Blogs and Books

  • Check out T3 Live and Stocktwits

    • T3’s Youtube Channel http://www.youtube.com/user/t3live

  • Market yourself as a trader to firms

  • You can knock all the competition out of the park with some actual experience trading everything


Questions

Questions?

  • Send us an email at [email protected]


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