<p>What do traders usually do when they want to move up in the world? It seems the skills you acquire through trading are very specific and tailored to one thing: trading. Any insight?</p>
<p>Traders trade, they don't really have transferrable skills which would allow them to other industries. You're not going to see someone going from being an energy trader to being director of strategy for pepsi. They can however probably move to/up the ranks in trading-related fields(investment management, maybe write for financial publications, work for the exchange), you can probably stop trading and become management after having a good career track record. </p>
<p>That being said, sometimes the lines can blur. Hedge funds for example are moving in on the turf of venture capitalists and private equity. They have so much money and they're looking for new ways to generate returns, so now they're putting some money into start ups, existing businesses, and even buying soccer clubs.</p>
<p>The idea of limited exit ops may seem bad but you have to remember that everything is balanced. Traders have the potential for huge pay (better than their banking peers), hours shorter than their banking peers, and work that's more exciting. The flipside would be that it's a risky career with limited exit opportunities.</p>
<p>Dfca,</p>
<p>I'm curious about MBA's and trading. If someone enters the game after getting a top MBA, are they given a significant advantage over others who start fresh as analysts. Do they start off as associates? Faster promotion?</p>
<p>Typically after undergrad you become an analyst for 3-4 years, then get your MBA, and then become an associate. Of course this is all easier said then done.</p>
<p>Also like dcfca mentioned there isn't really any exit opportunities for traders. From what I have heard it is harder to go into trading rather than ibanking from undergrad; so trading would become an exit opportunity for a banker (hedge fund, VC, PE, angel, Mutual Funds, etc).</p>
<p>Do both analysts and associates trade, or only associates?</p>
<p>You start at a desk and work your way up, your pay matches IBD intially with huge upside potential. an MBA is not needed to become a trader. </p>
<p>Grandpabuzz is quite off on the trading exit ops thing. Most of the people I talk to actually start out as traders, the reason it's harder is that trading is getting more and more quant oriented, so it'll be rare to see art history majors landing trading jobs.</p>
<p>Major in a quantitative field (stats, engineering, applied sciences/math). Other traders may get corp law degrees (ones that work in risk arb for example). </p>
<p>Winning traders don't worry about exit opps. Losers do. A winning trader will move up the ranks and earn enough money than no exit options is necessary. A losing trader will be kicked out in which case s/he can go back to business school and go another route. </p>
<p>Bankers don't wake up one day and become traders. </p>
<p>Typically you enter as a trading assistant where you help out the desk and observe what the traders are doing. Depending on the desk you may begin trading after 6 months-2 years.</p>
<p>Thanks a lot for the info dcfca and mahras. You're extensive knowledge of these career possibilities is very helpful!</p>
<p>Guess I was mistaken. Sorry if I gave any wrong information tupac.</p>
<p>No problem. I'm glad to have the input of a pro trader on this forum.</p>