sjohal2006 said:
Well not literally...
Im 14, yes 14, Im competent in all subjects been learning alot about the stock exchange since xmas know a fair bit, been doing virtual portfolio's etc... started one last 2 weeks ago with 1k at £1600 at the moment, you get the gist..
I want to know the requirements to become a trader/analyst (Prefer analyst, very good at solving things etc) ...
Right, I eventually would like to earn as much money as possible/ (What is realistic?)
I want to earn 100k-250k really, thats ideal.
Thanks
P.s. What SPECIFIC things should I learn? Thanks Im asking for degree type, a levels in choice etc...
Will I need to go to a top university? Such as LSE or Cambridge?
What a great age to be interested in the markets.
If I were in your position, I would focus heavily on developing mathematical ability, both high level, and basic arithmetic. Buy a book on speed arithmetic (look up Trachtenberg's speed system on Amazon). Master it. This will put you in a very good position for a great number of market making positions. There's an options house called Optiver - try to get hold of their application tests, as they will give you a good idea of how strong you need to be.
They give you around 100 simple arithmetic questions to complete in around 20 minutes or less. Score 1 for each correct answer, -1 for each wrong, 0 for omissions. Pass mark is 50 or 60. Sounds easy, but it ain't!
Work hard on theoretical mathematics and physics. Although things may change by the time you are ready to enter the work force, currently the best paying/fastest growing field is in quantitative analysis. The previous poster's suggestion of visiting wilmott.com is a very good one. You can get a lot of info there.
In any case, to get a fast track into an investment bank, you will have to go to a top university. I would advise doing a pure science like physics or mathematics. Work hard - a 2:1 is a minimum requirement, a first will make your life easier. Imperial and Warwick are respected in the sciences. LSE has a great name, but mainly for Economics and Law. Oxbridge grads are always in demand. You should also seriously consider an MSc, and if you want to become a quant, a PhD is essential.
When you do your A Levels, choose mathematical subjects. Also, study beyond the curriculum - at the minimum, see how you can cope with 1st year uni mathematics. I say this because I understand that A Level maths is not what it used to be, and trying to do first year maths, on top of enjoying the social aspects of university, will be very difficult without prior preparation.
You should also be comfortable programming. Get Mike Staunton's book on modelling in excel/VBA, it's a good book to give you most of the skills you'll need for Excel, and a basic intro to simple quant programming. Before you leave university, you should be competent in C++. Do some summer courses to get the skills, if it doesn't form part of your degree.
Sounds like a lot, but you have 6 years to get there
Right now you should get the speed maths skills, so that they are instinctive by the time you are 16. You should also take your higher level maths knowledge to a better-than-GCSE standard now - have a serious chat with your maths teacher to find out how you can do that.
Once you're into an IB, you will learn all the relevant stuff about markets there. It's more important to have the basic building blocks and mathematical ability under your belt first, and enough knowledge about the industry to get through an interview.
I wouldn't bother with virtual portfolios, they give false confidence. If you really want to trade, do it for real with an amount you're prepared to lose. Run two books. For the first, use your analytical skills, for the second, toss a coin to decide whether to buy or sell. In each case, specify your exit (take profit/stops) before entering, and stick to them. Also, keep a diary of why you entered a trade for the first book, and the emotions you felt during the trade (both books). Compare the performance of each book. If nothing else, it will give you sonething to talk about in an interview. Comparative studies are always more interesting than listening to some guy talk about how he coulda/shoulda/woulda done xyz.
Hope that helps, and I wish you all the best in the future.
