Do you want to become a broker on the Wall Street stock market?
Better yet, do you want to get there before 30? Or even 25?
You can if you put your mind to it!
There are some tricks about trading and I'm here to share them with you.
This blog will show you everything you need to do to accelerate your path as a trader in Wall streetfrom high school to your first graduate job on the operating table!
Let's start at the beginning
Step 1: Study about the stock market and financial markets
Choosing the right subjects at school will give you an advantage and avoid any obstacles on the track. Everything about numbers, mathematics, statistics, economics, and finance can be a good starting point.
Hope you like numbers!
Recommended requirements by country:
+ Australia / New Zealand: Mathematics
+ UK: one level of Mathematics
+ United States: Mathematics
+ Australia / New Zealand: economics, financial literature, physics
+ United Kingdom: one level more mathematics, economics, statistics, physics, computer science
+ United States: Physics, statistics, personal finance and investment
Step 2: get a degree
Charisma and tenacity may have gotten you into a Wall Street company in the '80s, but today you're going to need both, in addition to a college degree in finance, accounting, or economics, lately more math or statistics graduates are being hired for fill these jobs.
While finance and economics are the most common careers among stock brokers, there are actually multiple avenues of study.
Let's take a look at the best titles for an aspiring trader.
Best titles to be a stock broker
When it comes to time, your best option is to study in Australia, New Zealand, or the UK, where you can earn your degree in just three years.
In the United States, you will spend four years as a student, just like in Spain. (It may not be the fastest route, but what I tell you later might convince you to take this option.)
Finance your career
You can't go wrong with a finance degree if you want to become trader on Wall Street.
As a finance student, you will gain a strong understanding of many business concepts, such as translation of financial statements, derivatives, fixed income securities, and corporate finance.
With an economics degree, you will learn about business cycles, economic indicators, currencies, interest rates, as well as monetary and fiscal policy.
This gives you economic insight that you can leverage in a trading career to understand the news flows and current events that can lead to trading decisions, the so-called fundamental analysis in the stock market.
An economics degree also covers basic regression and statistical analysis, both of which are necessary in futures trading.
Computer Science and Statistics
Computer science graduates are increasingly in demand as stock trading is driven by technology.
Large companies now employ armies of computer scientists and statisticians in their risk management teams, or to program complicated trading algorithms widely used in day trading, statistical arbitrage, or market making.
If you are quantitatively minded, computer science would be an excellent specialty for a business career.
Applied Mathematics, Engineering, Physics
Mathematical models can be used to predict the risk of any given event, and there is a lot of risk involved in trading on the stock market!
Mathematical, engineering and physics concepts are very helpful in understanding quantitative concepts and can be applied to economics creatively.
As you can see, there is no specific degree that makes you a broker, but choosing the course that aligns with your strengths and interests will ensure you excel in your trading area.
Best colleges for brokers
Where you study can be as important as it what do you study.
It's no coincidence that every Ivy League college and an elite college in the New York area has alumni working on Wall Street.
The bargaining game is seriously competitive, and the big firms are under pressure to recruit the most talented on campus.
Where would you go if you wanted to get the best minds?
For the best universities, of course!
Yes, the werewolves of Wall Street bet it safe. These firms know the universities of the United States. Who are producing the commercial stars of tomorrow and have trained the best to make sure they enter the job market first.
It simply means that the university gives the firm permission to obtain students directly for its internships and graduate programs.
En muchos casos, la única forma de conocer estos trabajos es a través de una de estas "escuelas de brokers".
For example, at the University of Pennsylvania, an Ivy League university known for its strong focus on financial services careers, and the prestigious Wharton School, Goldman Sachs hires about 25 students each year.
In fact, UPenn has more students working on Wall Street than any other university!
So, do you remember when I said that an extra year as a student in the United States would be worth it? Now you know why:
A degree from one of America's top universities can be your gateway to Wall Street!
You can accelerate your career as an operator without having to leave campus for an introductory interview.
Top 5 Wall Street Broker Schools
These five American colleges dominate the recruiting portfolio on Wall Street.
1. University of Pennsylvania
Top 10 Schools: 14 Wall Street Companies
Best High Schools for: Goldman Sachs, Morgan Stanley, Bank of America, Merrill Lynch, Barclays Capital (Harvard-linked), Citigroup, Blackstone Group, Houlihan Lokey, Moelis & Company, Nomura Holdings (NYU-linked), and Susquehanna International Group .
2. New York University
Top 10 Schools: 18 Wall Street Companies
Food College for: JPMorgan Chase, Wells Fargo and Company, UBS AG, Lazard (linked to University of Michigan), Nomura Holdings (linked to UPenn), Macquarie Capital (linked to University of Michigan and Harvard), Credit Suisse (linked to Harvard).
3. Universidad de Michigan - Ann Arbor
Top 10 Schools: 14 Wall Street Companies
Food College for: Evercore, Jefferies & Company, Lazard (NYU-linked), BNP Paribas, KeyBanc Capital Markets, Macquarie Capital (NYU-linked and Harvard).
4. Harvard University
Top 10 Schools: 10 Wall Street Companies
Best High School for: Barclays Capital (linked to UPenn), Credit Suisse (linked to NYU), Moelis & Company, Deutsche Bank (linked to Cornell), Macquarie Capital (linked to NYU and University of Michigan).
5. Cornell University
Top 10 Food Schools: 8 Wall Street Companies
College for: Deutsche Bank (linked to Harvard).
Other top-tier schools that deserve a mention
- Princeton University: Top 10 High Schools from Deutsche Bank, Credit Suisse, Susquehanna International Group, Morgan Stanley, UBS AG, PNC Financial Services.
- Boston College: Top 10 High Schools for UBS AG, Jefferies & Company, Deutsche Bank, HSBC, Barclays Capital, and Goldman Sachs.
- Columbia University: Top 10 High Schools from BNP Paribas, JPMorgan Chase, Citigroup, Credit Suisse, Morgan Stanley, Barclays Capital, BMO Capital Markets.
Step 3: take a stockbroker course
Now that you're in college, it's time to get serious!
Don't think that you can break through to your title without actively preparing for your Wall Street path.
Even being in high school is no excuse to take it easy. It still needs to stand out from the rest.
More important than the degree you study, or the institution you attend, is gaining practical skills and experience in trading on the organized and regulated stock market and financial markets.
College will give you a solid base of knowledge, but I hate to tell you, you won't really learn how to trade. That's because many of the practical skills required for a career in stock trading are not covered in the college curriculum.
In a finance degree, you will learn a lot of theoretical information, but there is likely to be any specificity in the selection of stocks or financial instruments.
That is why even if you are the best student, there will still be a huge gap between your skill set at graduation and the skill set required to successfully begin equity investing and trading financial assets.
This leaves you with three options:
1. Learn to trade with an MBA.
2. Learn to trade the stock market at work.
3. Learn to trade NOW!
Since we are pressed for time, doing your masters is not an option as it will set things back by a couple of years.
Option two is not ideal either. How are you going to get the best job without the skills? No Wall Street firm will look at you twice without a demonstration of your business excellence.
I guess that leaves you with the option to learn now. But how?.
Don't worry, I have all the answers.
What you need is specific advice, real scenarios and practical learning, and you can get it by signing up for a negotiation workshop!
A short course is all you need to learn the basics of financial markets and how to trade them.
This is, definitely, the best investment you can make for your career as a broker. But that doesn't mean it has to be big, for time or money.
Most courses will offer student discounts, and there will likely be one that runs for a few nights or on the weekend.
If you really want to land a position with a major global hedge fund or investment bank on Wall Street in your 20s, then this is a must-see step.
Not only will you develop the practical skills you need to start investing, but after two full days of intense trading conversations, I guarantee you won't want to do anything! more than trade!.
It's also great for networking, because you'll be in a room full of other operators, all of whom are at different stages of the learning process.
After the course, you will know what area of operations you want to be involved in, and you will have a solid foundation on which to base your quest to become a great Wall Street weapon.
This is a great way to supplement and enrich your studies with genuine interest and specialized skills, which will help you later when looking for an intern (Step 5).
Step 4: start trading on the stock market
Now that you have the skills, it's time to start putting them to work! When it comes to trading, practice is the key.
But you don't want to go too fast, so start by opening a demo account with an online broker to get a feel for the market and simulate live trading.
At the same time, keep up with the markets and take note of how you make your decisions.
Of course, you won't experience the psychological pressure of having your (or your parents') hard-earned cash online, but this is the best way to familiarize yourself with trading software and hone your strategies without risk.
Once you've built up your confidence, you can start trading for real!
You don't have to invest a massive amount (you have a student budget after all!). But winning and losing real money will ensure you focus more and develop your trading skills much faster.
Stock investment clubs
Take a look at what your university offers in this regard, in many economics universities, there are stock exchange clubs.
Many universities have student-run investment clubs, which give you the opportunity to participate in portfolio management scenarios with real funds (not yours!). These are great hands-on learning platforms that will accelerate your understanding of finance and give you a solid trading experience to show off to potential employers!
Not surprisingly, the top Wall Street schools lead the charge with college campus investment clubs.
UPenn's Wharton School tiene varias organizaciones lideradas por estudiantes para aspirantes a Wall Street, incluido el Grupo de inversión y negociación de Wharton, el Wharton Hedge Fund Club y el Wharton Investment Club.
Within these clubs, there are many investment teams, each with its own leaders, who focus on different sectors of the industry.
Harvard also has a few investment clubs, notably Black Diamond Capital Investors, which is not only Harvard's largest student-run investment fund, but also one of the most successful student finance organizations in the US.
Another renowned group is the Duke University Investment Club, which currently manages a $ 50,000 portion of Duke Endowment in coordination with Duke University Management Company (DUMAC).
At Cornell Investment Club, Cornell University students are in charge of managing the equity and fixed income securities portfolio, currently with assets of $ 75,000.
But with a fund of $ 400,000 (that's five zeros!), The Boston University Finance and Investment Club (BUFC) puts them all to shame. Additionally, BUFC students can go on an annual trip to Wall Street to connect with alumni and visit top companies.
The first place a Wall Street firm looks for top business talent in high school is investment clubs, so it's worth getting involved - in every way!
You'll gain more real-world skills than in any of your academic courses, and the reward for being an avid club member can be a coveted internship at a major Wall Street investment bank.
Tenga en cuenta la palabra "ávido", porque simplemente unirse a un club y presentarse a las reuniones no será suficiente para acceder a Wall Street.
Everything you do, you have to do it with a 120% of effort!
Participe en eventos del club y si realmente quiere desafiarse, ¡compita!. Hay concursos de casos en los que puede participar, como el concurso anual Point 72 Stock Pitch Competition, que le brinda la oportunidad de enfrentarse cara a cara con estudiantes de otras universidades. Usualmente hay un premio en efectivo en juego, y usted sabe lo que eso significa ... ¡más dinero para invertir!.
Don't stop there - seek an executive position at your investment club. Student leaders make up the largest proportion of interns at top companies.
Immerse yourself in the world of trading
If you really want to get to the top of the trading business, you must live and breathe like them.
You need to pursue your passion with fervent intensity.
Learn from everything, think independently. Do your thing. Trade actively. Follow the markets. Lose money. Take every opportunity to become a better trader.
Spend all of your free time studying technical analysis and books written by your favorite hedge fund managers.
Do your research. (No, seeing the Wolf of Wall Street doesn't count!).
This is what is known as self-education, being self-taught is essential to become a good trader and make investment agencies bet on you.
Remember, you are competing against equally intense and focused students at your university (and around the world). You have to take your learning into your own hands, there is no room for complacency!
The more you immerse yourself in the business world, the more you will get out of it.
Step 5: get an internship at a wall street company
Now it's really exciting! It's time to apply for an internship on Wall Street.
The easiest way to get access to a Wall Street trading desk is to approach an investment bank. Obviously, it helps if you're in high school to get a foot in the door, but you still have to prove yourself once you're there.
Start applying for summer operator internships at major investment banks as soon as they issue the call.
Trading positions will be the hardest to get, so apply for the securities analyst or assistant trader roles.
Aquí es donde todas sus "actividades extracurriculares" como trader realmente van a mostrar su valor.
Companies are looking for vocational and academic studies, so please mention the trading workshop, your stock portfolio, investment clubs, and case contests in your application, and include relevant skills, experience, and accomplishments.
These are evidence of your passion and dedication to your craft, and they're going to make you look so much better than the student who didn't do any of these things.
For each internship position as an operator at a bank, they receive around 2,000 applications, but their proactivity and willingness to invest time and money in their own business development will ensure that you stand out in any hiring process.
If you do get an interview (and you will!) Be sure to research the role at the bank and come armed with a good knowledge of it.
With all the business activities you are involved in, you will definitely not be short of content in your interviews! Make sure to cover all the bases. Talk about the trade you placed on your trading account, but be prepared to explain your logic for why you placed it.
So once you get this entry position, don't take it for granted. Work hard and sharpen your business skills like your life depends on it!
You can do an internship for 10 weeks, but we both know that's not where it ends.
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Step 6: Secure a job as a graduate
This is the best step of all!
This is when you officially become an official trader.
Obviously, you will kill yourself as an intern, and your company will have no choice but to offer you a full-time graduate position once you finish your degree.
The road to Wall Street is complex and intense, but it doesn't have to be long.
Attending a higher-ranked US university can speed up the process, but there's no reason why you can't be one of the best traders in the world if you study elsewhere.
The most important thing is that you follow these six steps and pursue your passion for trading and investing as if it is the only thing that matters to you.
Talent and perseverance will take you far.
So once you get there, you will be rewarded with hundreds of thousands, and eventually millions, of dollars in cash.
What are you waiting for? Let's make it happen!