Becoming a Trader

College Majors Business Major
1

<p>I have been looking into a few of the MS Mathematical Finance degrees at a few of the top universities because after I graduate college I would like to work as a trader. However, I question whether a successful trader actually must know all of the in depth math that is a requirement for these programs. I might be off on this, but it seems more like the trader must understand how to apply and interpret the models to every day trading rather than actually develop them. It is much easier to do the former than the latter. Many of the graduates of these programs go on to become traders but I wonder whether it is actually necessary to have such a rigorous math background. I have been planning all along to enroll in a Masters of Science in Finance program which is much less quantitative than a mathematical finance degree. I took Calculus 1-3 in high school and a few higher level Statistics classes in college but nothing more so I am clearly not mathematically challenged. I am majoring in accounting with plans to do a MSF degree; I enjoy accounting and am doing really well so I have all intentions of sticking with it but I would like to become a trader one day.</p>

<p>So, my question is whether or not I would need more math than Calculus 3 to become a successful trader and if an MSF degree would prepare me adequately?</p>

2

<p>Most traders don't use too much math, and you certainly don't need a Masters in MFin to get into the field. For the most part, that degree is more of a requirement for becoming a quant... (overly simplified the people who make models the traders rely on). But the nature and requirements for becoming a trader can vary depending on where you are looking at. For almost all BB Sell-Side trading products though, a bachelor's degree is sufficient.</p>

3

<p>I feel like trading is a lot more about Game Theory and knowing how people behave. Is this an accurate assessment?</p>

4

<p>A lot more accurate than the math deal.</p>

5

<p>Not entirely true, can depend on the product. Not to mention whether you are buy-side or sell-side, etc. There are also plenty of quantitatively based firms, and pretty much all of them rely at least somewhat on models built by quants.</p>