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The Trading Pitt

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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  1. The Trading Pitt October 18th, 2010

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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.

  8. 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

  9. 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.

  10. 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

  11. 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

  12. Questions? • Send us an email at thetradingpitt@gmail.com

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