Steps Needed to Become a Quant Trader
- Comfortable With Failure
A quant keeps looking for innovative trading ideas. Even if an idea seems foolproof, dynamic market conditions may render it a bust. Many aspiring quant traders fail because they get stuck on an idea and keep trying to make it work despite hostile market conditions. They may find it difficult to accept failure and are thus unwilling to let go of their concept. On the other hand, successful quants follow a dynamic detachment approach and quickly move on to other models and concepts as soon as they find challenges in existing ones.
- Innovative Mindset
The trading world is highly dynamic, and no concept can make money for long. With algorithms pitted against algorithms and each trying to out perform the others, only the one with better and unique strategies can survive. A quant needs to keep looking for new innovative trading ideas to seize profitable opportunities that may vanish quickly. It is a never-ending cycle.
Quant trading requires advanced-level skills in finance, mathematics and computer programming. Big salaries and sky-rocketing bonuses attract many candidates, so getting that first job can be a challenge. Beyond that, continued success requires constant innovation, comfort with risk and long working hours.
Shobhit Seth can be contacted at: FuturesOptionsEtc