<p>What exactly does "trading" involve, specifically for an energy company like Shell or Exxonmobil (a commodities trader). How does one get into the profession (are there internship for instance)? What types of majors are good preparation?</p>
<p>I'm curious because I have a number of friends who seem interested in this position (as college undergrads).</p>
<p>Thanks for any replies,</p>
<p>This is just a little look into what traders actually do. </p>
<p>You can certainly learn more by just searching the web, there is a whole lot out there. Also there are many more products than suggested in this article, like you mentioned Commodities is one of them. Equities trading is practically gone, its certainly not the most glamorous trading position because the spreads have become so small (decimilization, lack of arbitrage, etc). Besides Equities, FI, and Commodities, there is Rate (FX, etc), Derivatives for all sorts of products (Futures, options, etc), Exotic (like structured CDOs, etc), there are more that I can't think of right now. I'm not positive how commoditiy trading is through a company like Shell or XOM, but I'd imagine they would use it as a hedge. </p>
<p>There are tons of internships in S&T. You generally apply to S&T in general, and then are given the option to weigh in on whether you'd prefer Sales or Trading, and rank which desks you'd prefer. Or in an internship you may cycle around. The most prestegious Sell Side trading internships would be at many of the BBs, different ones specialize in different products, so if you'd like to know more about that then just reply. I don't know as much about the buy side, but most people would start on on the sell I believe.</p>
<p>Good preparation for trading would most likely be finance, economics or anything math intensive, like mathematics in general or engineering, though like anything there is no "one route". Computer science is also in demand because someone needs to create all the algorithims and platforms. It really depends, there are people who are math heavy (Quants) and those who look at larger picture (Macros) and all measures in between. Depends on your strengths really, and how well its working out haha. If you want to know anything else, just let me know.</p>
<p>Is a long term career in trading likely? Do traders last?</p>
<p>In that article they mention "firm brochures", what are the major firms that recruit traders (I'm assuming this is where the internships are)? Also what kind of hours does a trader work?</p>
<p>The reason I mention shell & XOM is because of this I found on the shell career website:</p>
<p>if you try real hard, maybe you can sell equities in dallas</p>
<p>A long term career in trading is certainly possible, many do it. It can be very stressful though, so its not for everyone. </p>
<p>I took the firm brochures to mean the sales literature given to institutional investors, but I could be mistaken.</p>
<p>Almost all the Investment Banks have S&T as part of "Investment Banking," randomly look at the career pages of any big banks (JP Morgan, GS, etc). There are also firms that specialize in trading, like a prop firm, but generally you need experience for those, because you are playing with the firm's money (big banks also have these divisions, they are generally considered more prestigious). On the Buy Side, Hedge Funds hire traders, but likely it would be difficult out of undergrad. And I guess companies hire them too occassionally, like Shell. I assume you are familiar with derivatives? Shell would use, for example, Oil futures to limit their risk in fluctuating prices, a la hedging. I'm sure they do lots more, since they are international they probably do currency hedging, don't know if it would be in-house though.</p>
<p>As far as hours are concerned, it can vary drastically by product, are we talking commodities or what? If you want hours at shell I have no idea, but I can give you an idea about BB.</p>
<p>mattistotle</p>
<p>I'm not sure i know what you're talking about. Is that supposedly hard to get into?</p>
<p>Sorry, what aren't you sure about?</p>
<p>I'm sry I was referring to what mattistotle said</p>
<p>And yes I'm referring to commodities trading, not necessarily shell. BTW what's bb?</p>
<p>I'm having trouble finding anything on the career websites of GS, Morgan Stanley, JP Morgan etc... Are there any other names for the profession other than "trader"?</p>
<p>I apologize for my 3rd post in a row</p>
<p>BB= Bulge Bracket</p>
<p>Generally hours are around 6-4 for Oil Trading, 7-6 for Gas Trading. Usually 11 hour days for most people, though it can vary. Not as long as IB, unless you are in something like structuring which really doesn't matter on market times.</p>
<p>It's under the heading sales & trading, generally in the investment banking division.</p>
<p>Equites in Dallas, lol, from Liar's Poker.</p>
<p>Don't make fun of equities in Dallas!!! I live in Dallas and plan to return upon graduation from business school! (~cry~)</p>
<p>Vector I thought you said in another thread that you had retired already. What are you doing in biz school?</p>
<p>how hard is it to break into S&T if you go to a semi-target school like USC or Michigan? Is it as hard as I-banking and consulting or what?</p>
<p>Mich isn't a semi target. USC is a league below Mich.</p>
<p>And yes its as hard as (if not harder that) banking, consulting and what have you.</p>
<p>really? I thought mich is a solid school for recruiting. Oh well, I guess I was wrong again lol.</p>
<p>No I think he means its a target and not merely a "semi-target." Mich is very solid for business.</p>
<p>USC owns Mich in business recruiting, solely based on location. Even though Mich may be "better," USC grads end up in a nicer location and have more opportunities.</p>
<p>Get mad and upset with me if you want, but you don't know how recruiting works if you think Mich grads get more good jobs than USC kids</p>