Career Help in broking/trading needed!

[MrOfficer]

Hello,

Im new to this forum, however i need some help in regards to a possible career route in finance (Stockbroking/Trading). I am 20 years old and have always had an interest in shares/stockmarket and how they work but didn't take the decision to do a degree in finance or economics, however i did do a degree in quantity surveying (which has financial and economics modules) and i am currently working full time as a quantity surveyor aswell as doing a 5 year degree (part-time) at Essex university. Im in my 2nd year and will finish when i am 23, i have averaged a 2:1 and have a-levels in maths and physics.

My question is, with my current background, and what i am working towards, in 3 years or so will i be an able candidate for a trainee stock broking position or similiar? I am currently investing in a small portfolio of my own and attempting to learn how the markets work with what money i have saved up.

Any help will be GREATLY APPRECIATED!

Thanks

 

[Adamus]

Ello ello ello MrOfficer, what is going on 'ere then? Looking to get into stockbroking are we? I think you'd better come with us sir. :jester:

Just in case I missed it, what degree are you currently studying for at Essex? Not that it matters too much.

Search the archives here. Loads of people ask this question and often get pretty good answers. Probably not from me though

I'd say be aware that trading your own portfolio is not looked on as very clever in the City unless you make impressive returns. Basically everyone dabbles in the stock market, don't they?

Trading for yourself and trading for a bank/finance house are 2 v. different things. On the other side of the coin, trading for a bank won't necessarily guarantee that you can trade well for yourself.

There are also lots of other positions with stockbrokers that don't require you to trade.

 

[barryb]

Broking and trading are two very different things. It would be best for you to thoroughly research the difference between the two before going any further.

 

[jw264]

Quick overview
Very, very generally speaking the 2 roles differ as such,

Trading: finding the best price to buy/sell assets in a given market.

Broking: buying and selling normally via a trader on behalf of clients

The 2 cross over depending on specifics and some 'trading roles' are very similar to broking roles.

I would guess that what you want to do is to take opinions using research/technical anaylsis etc and buy/sell in order to make a profit. This is the role of a type of trader called a proprietary trader and it what people (wrongly) assume is the role of most traders.

You can do this for a bank, It is one of the most coveted roles in investment banking and is virtually impossible to get into, unless you have one of the most impressive academic records in the country. This is down to the intense competition for places.

Another way is to day trade like a lot of people on this forum and try and make money that way. This requires much more discipline as you can not access finance when trades go wrong (like an investment bank). when a trader in a bank makes a bad trade (series of trades) he may lose his job. A Day trader may lose everything.


In my honest opinion...If you are an Essex lad then have a look at inter-dealer broking. There are a lot of east-end boys in the industry and it may be easier for you to get interviews etc. As for working for an investment bank (like Goldman Sachs, J.P Morgan etc) you would have very little chance of getting in. In terms of pay, IDB's can earn decent money in line with the average trader.


If you are interested in longer term trading, the job you may be interested in is a really a portfolio manager.

Good place to start is to research the following terms:

Inter-dealer broker
proprietary trader
investment bank
stock broker
fund manager

Sorry if this is too basic for you. Hard to judge level of knowledge.

 

[MrOfficer]

Thanks for all the help, all opinions have helped and i will continue to thoroughly research before taking the step.

Although i wasn't aware of the fact that i would have very little chance simply because i am from Essex, i know the industry is extremely fierce in terms of competition but that seems a little extreme! Thanks for the advice it has really helped my understanding.

 

[jw264]

Sorry re-read that - meant from your academic background. Nothing wrong with Essex.

Thanks for all the help, all opinions have helped and i will continue to thoroughly research before taking the step.

Although i wasn't aware of the fact that i would have very little chance simply because i am from Essex, i know the industry is extremely fierce in terms of competition but that seems a little extreme! Thanks for the advice it has really helped my understanding.

 

[MrOfficer]

O thankyou, i understand what you mean, so are you a trader yourself? And how did you work your way into the industry?

 

[Omoh101]

The degree is not as important as the grade to get into the IB Graduate Scheme. Holding on and graduating with a 2:1 is a good start.
Out of interest, why Stock broking and Trading as a career?

 

[MrOfficer]

I enjoy making money directly, E.G seeing profits from the decisions i make rather than dedicating my full time for a company and not really being in control of the money i can make, i know trading is hard to learn but it's something ive always been interested in and im educating myself more and more each day. I know it cant be learnt in a day, but it's a career that im hoping to work towards, and i want to get myself in the best position possible.