Interested in Being a Financial Analyst

[Razor Ramon HG]

I'm interested in becoming a financial analyst.

Does anyone on here have that as their career?

Is there a good book that you would recommend so I can start familiarizing myself with everything?

[shawnly1000]

Others can probably confirm this, but networking definitely helps getting the foot in the door and career-wise

[GGnoRE]

I am in my 4th year planning on applying for Master of Financial Engineering programs in Europe or US next year.

Everyone in Finance is pretty much an analyst; that ranges from risk management, to brokers, to traders, to quants, to fund managers etc... What type of field are you interested in?

As for beginner books, I highly recommend Capital Markets for Quantitative Professionals. It covers pretty much everything you wanna know (all types of market participants and all types of markets like treasury, equity, derivatives, swaps, options, futures etc...)
http://www.amazon.com/Complete-Quantitative-Professionals-McGraw-Hill-Investment/dp/0071468293
Second choice is Financial Engineering - The Evolution of a Profession. I prefer the first one better though.http://www.amazon.com/Financial-Engineering-Evolution-Profession-Robert/dp/0470455810/ref=sr_1_5?s=books&ie=UTF8&qid=1342680873&sr=1-5&keywords=financial+engineering
As for fun reading, everyone has read this one, http://www.amazon.com/My-Life-Quant-Reflections-Physics/dp/0470192739/ref=sr_1_1?s=books&ie=UTF8&qid=1342680962&sr=1-1&keywords=my+life+as+a+quant
If none of those books are of interests you, have a look at this list. https://www.quantnet.com/threads/mas...-students.535/

[LiquidTurbo]

Is this job stressful? Managing other people's $$?

[GGnoRE]

Stressful but highly rewarding. Most people never look back after they enter this field.

[Razor Ramon HG]

How do you find it rewarding? Did you mean in terms of knowledge and money?

[GGnoRE]

Knowledge-wise? Yes, because I consider finance to be one of the most complex, dynamic, and challenging industry today. Research in theoretical finance is huge, along with technological advances in trading softwares and algorithm development.

Money-wise? Yes, since 6-digit salaries are not uncommon. Hedge funds offer incentives up to 20%. If you move past associate level in a decent firm, your 6-digit salary can be pale in comparison to your yearly commission. VP's literally hold meetings at the end of the financial year to divide, among themselves, the millions of PnL's racked up in the trade books.

[Razor Ramon HG]

Sorry, I meant in what ways that you personally find it rewarding.

[GGnoRE]

Well, I am only a student right now so I can't share any first hand experiences.

I do sense a great pride from the people working in the financial sector for the reasons listed above.

Whereabouts are you in your life? a student? working professional? If so, which field or industry?

[DaFonz]

You realize financial analyst covers everything from corporate development to quantitative trading to investment banking right?

It's a broad term which can mean a lot of different things.

For example, everyone wants to be in front-office finance. I've been there and let me tell you, it's fucking miserable. You get fat, you work long hours and most of the work is bullshit make busy work like putting together comps and presentations that no one gives a flying fuck about.

Not only are you slaving away, but come bonus time, if your company is doing badly, congrats, you get a nice round donut.

GGnoRE doesn't know WTF he's talking about seeing as he's never worked in the industry before.

[GGnoRE]

Originally Posted by DaFonz

For example, everyone wants to be in front-office finance. I've been there and let me tell you, it's fucking miserable

Well since your the one knows exactly 'wtf' you're talking about, why don't you explain to us why it is so 'fucking miserable'?

Originally Posted by DaFonz

You get fat

I don't think you should blame your job for that, yet alone the whole finance industry.

Originally Posted by DaFonz

you work long hours

Boo Hoo. If you weren't prepared for that, this field was not for you in the first place.

Originally Posted by DaFonz

most of the work is bullshit

I am sorry that you were once a useless employee at some company but that reflects more of your own capabilities rather than the industry itself.

Originally Posted by DaFonz

come bonus time, if your company is doing badly, congrats, you get a nice round donut.

True, but keep in mind, bonus is a bonus. It's an extra reward, not your salary. No profits? than obviously no bonus. How is that unfair?

Originally Posted by DaFonz

GGnoRE doesn't know WTF he's talking about seeing as he's never worked in the industry before

Following that logic, every user on this forum who haven't worked in the automotive industry should stfu when it comes to cars or automotive buisness?



Its unfortunate that you didn't have a successful career in finance, but reading from your post, it doesn't seem like a big surprise. Consider it as natural selection.

[DaFonz]

Originally Posted by GGnoRE

Well since your the one knows exactly 'wtf' you're talking about, why don't you explain to us why it is so 'fucking miserable'?

Have you spread comps at 12am in the morning?

Have you spent weeks pulling all nighters only to have a deal fall through?

How about having to put together shit for a 3am e-mail deadline just because your MD was feeling like an ass?

No, you haven't because you're a fucking student who doesn't know shit. This is common in the industry and if you don't think so, then you're effing delusional.

Originally Posted by GGnoRE

Boo Hoo. If you weren't prepared for that, this field was not for you in the first place.

Have you ever worked 120 hours a week? Have you done it for weeks on end?

No, I didn't think so. Again, you're a fucking student. Pulling all nighters for studying and homework is COMPLETELY different.

Originally Posted by GGnoRE

True, but keep in mind, bonus is a bonus. It's an extra reward, not your salary. No profits? than obviously no bonus. How is that unfair?

Who the fuck would work 80-120 hours a week for $75k base? You work in finance for the bonus.

Originally Posted by GGnoRE

Following that logic, every user on this forum who haven't worked in the automotive industry should stfu when it comes to cars or automotive buisness?

.. but you don't know what you're talking about.

"VP's literally hold meetings at the end of the financial year to divide, among themselves, the millions of PnL's racked up in the trade books."

VPs most certainly don't split up millions of "PnL's" (who the fuck says that?) racked up on their books. VPs most certainly aren't pulling in millions of dollars either.

Investment Banking Vice President Salary | Glassdoor

Originally Posted by GGnoRE

Its unfortunate that you didn't have a successful career in finance, but reading from your post, it doesn't seem like a big surprise. Consider it as natural selection.

One day you'll learn that there are way better ways to make money than trading hours for dollars.

Now keep on drinking the koolaid. The real world is going to be a bitch when it hits you.

[TRDood]

There are some merits to DaFonz comments. Good that you find interest in finance at school. The working world is a whole other monster. Since you are doing a Master degree, or maybe eventually a PhD, a professor might fit you better.

I personally find finance not interesting. I took finance at the graduate level.

People do work 10-16 hour days. Can you handle it? Is the 100k worth it? First step is to network like mad and suck people's dicks. Get paid 40k-50k for a few years working like a dog.

[Geoc]

LOL at the fact that you guys are already talking about how much a person makes as Investment VP. I highly doubt you'd make it there that easily if ever.

Like any positions even when you finish your education you're still going to be working your way up. And if you are planning to become someone who manages others money, prepare to take a shitload of courses such as CSC, CIM, IFA, and if you really plan to make it big, CFA. This all while working at a entry level job in the in finance industry. It's a huge time commitment (you'll spend many years if not decades working your way to the position you want) If you have good networking and have good luck, you get to move up or get into a good position. If you have terrible luck and don't network much you won't get anywhere. It's a steep uphill race against tens and thousand other people.

[shawnly1000]

No offence, but I find that most students in finance have a distorted take on the true finance world whether it be trading, managing a fund etc... it's partly on the school's fault for instilling such a mentality/view.

[Ulic Qel-Droma]

Financial Analyst, CFA, etc... pfft lol.

I say if you wanna get into "finance", if you don't have the psychological strength to make it as a trader, fuck it. There's other easier ways to make money.

trading is the really only lucrative thing in finance. by lucrative i mean work:reward ratio lol.
make money from nothing. if you really want, sit at home, in your PJ's with your thumb up your ass raking in more than you can imagine.

I never understood why anyone would wanna be a dog in the corporate finance world. or a dog in any company lol.

that or run a brokerage firm, you win either way, just keep making that commission.

[dasani604]

Originally Posted by DaFonz

One day you'll learn that there are way better ways to make money than trading hours for dollars.

Originally Posted by Ulic Qel-Droma

There's other easier ways to make money.

tell me your secrets

Trading as part of a brokerage firm or a bank is one of my backup plans so I'm a bit curious about what you guys are talking about before I stick my feet into the finance puddle.

[Hehe]

From my relationship with my parent's financial adviser/analysts, what I get is this, you have to be really good at socializing and pulling in clients.

For a FA to really make money, they need clients with deep pocket that trust them. But for big clients to trust them, they have to be very good at making money for them. And there is no way to show that you are good at making money unless you have clients with deep pocket who trust you (so you have the fund to invest in the first place).

So it's a bit of paradox. And for all the big fund managers out there, usually they are good at investing, but they are usually better at getting big clients.

If you don't have the social connection to make a foot in this market, it's really hard to make a name.

[shawnly1000]

So glad nobody has mentioned World Financial Group here LOL

[strykn]

hahahahah I use to think like that. damn bros get the degree, be a FA and make it rain. Until I learned & became a good trader fuck that shit now, only reason I'm still in school is for my parents.

and ggnore smell the fuckin coffee brah. dafonz is spitting realtalk the quicker u learn this the less miserable your life will be.

[Razor Ramon HG]

Hmm.. lots of good stuff in here.

I wasn't aware that FA was so broad. I'm just finding that accounting might not be the best career choice as much as I originally wanted.

Since most of you seem to be traders, are there any books you guys have personally read that would help me judge for myself if this is something I want to get into? I'm somewhat under the impression all you guys do are buy and sell stocks at home?

[sh0n]

Working in the field of Finance of being a Financial Analyst in general can be pretty board.

And it can be any of the following:
- An accounting related job (CA, CGA, CMA, Accountant, Clerk, etc)
- Corporate. You can work in the roles of business development or corporate financial planning and analysis These roles are what they are titled. BD makes sure the the strategies and plans of the company is property executed and end of day they are making money. FPA work encompasses work that make sure the company is on track to do X and more is a more of a risk adverse type of position to make sure the company does not fuck up.
- Banking. There's all sorts - Investment, Commercial, Retail & Consumer. I won't get into too much as most people know what the job entails. You also have the people who become independent Financial Advisers and the salary is usually a cut from the entire book or salary based
- Proprietary Trading. This involves trading assets whether its for a company or your own dime for profits.

DaFonz is pretty much spot on with what an Investment Banker does - you're pretty much a glorified paper pusher and hoping that the right amount of dick sucking and putting in the hours and years will get you your promotion the VP or above level. There's no skill as to what an Investment Banker does as the saying goes you can train a chimpanzee to do all the grunt work.

As far as Finance work is concerned. Unfortunately Vancouver is not a Finance Hub unlike New York, London or Hong Kong. The closest to a Finance Hub for a Canadian city is Toronto.

In terms of Finance experience or success from what I've seen and heard from the people that post on RS it seems they like to trade invest and trade heavily on their own account.

What I personally see with the entry level Finance people in Vancouver is that many of the fresh graduates go the CA route.

Fresh out of undergrad, they'll apply for a position with a Big 4 CA firm, put in their hours, pass the exams, become designated and leave for bigger fish (become finance manager for local national corps)

Big 4 Pay
First Year (out of underground): All in 38 - 45K
Second Year (working towards designation): All in 45 - 50K
Third year (Designated): 50-60K
Fourth Year (Usually become Senior Manager): All in 60-70K or jump company for better pay

I'm not advising on going the CA route, but from my experience that's where I see local finance students can have the most success as its stable and proven.

Hope this helps.

In terms of working in Finance and being a so called FA - you never really stop learning. Like a chef in the kitchen there's always a new recipe or skill to be learned - same should be applied for someone working in the field of Finance.

P.S I would to love to hear from the people that work in the industry, your feedback and experiences

[trix4kids]

Being a senior in highschool, the word around the block to those interested in getting into investment banking is to get into Ivey,Queens commerce or desautels. , get an internship by cold calling and learning to suck dickThis seems to be the formula I see so many people following, however, I see this process more of a marketing tool for universities to charge ridiculous amounts for tuition (22k for the last 2 years at Ivey) Can anyone shed some light on working in bulge bracket firms and how shit actually goes down.

[sh0n]

Originally Posted by trix4kids

Being a senior in highschool, the word around the block to those interested in getting into investment banking is to get into Ivey,Queens commerce or desautels. , get an internship by cold calling and learning to suck dickThis seems to be the formula I see so many people following, however, I see this process more of a marketing tool for universities to charge ridiculous amounts for tuition (22k for the last 2 years at Ivey) Can anyone shed some light on working in bulge bracket firms and how shit actually goes down.

Getting into a good school (Ivey league or top 5 school in the country) is the first steps.

It's also about how well you network, who you know and what you make of your opportunities.

Aside from getting good grades your 1st year you need to branch out, reach out and expand your network of connections. Build up your confidence, soft skills, textbook and technical knowledge. Wanna make sure you have the extra circulars (team sports, volunteer at a prominent society, school clubs etc).

After building your network after Year 2 and 3 you can try and see if you can land a summer internship as a Summer Analyst. If the company and team likes you they'll ask you back the following summer and when you graduate they may have a position for you. This should give you an idea what investment banking is all about - you'll work on deals, paper pushing and see how the other analysts, associates, vps, mds present themselves.

Gotta keep in mind that everyone working in finance wants to work in ibanking. But you also got to realize not everyone can become a banker. It's the same process how the top 20% get into the best undergrad business school, the same top 20% is fighting for the 1 summer analyst position or permanent graduate position.

Don't mind setting for less....

Because end of the day there are still many people who want to work in investment banking but settled for work in accounting, risk management, insurance, commercial and retail banking.

Work is all the same - just different hours, work/life balance, pay. levels of stress and so on.

[Scudz]

If you're interested in learning more about the world of finance and the culture in it, check out Understanding Investment Banking | Mergers & Inquisitions

This website has everything from interviews of past employees, strategies to positioning yourself from target and non-target schools, the differing career paths to take, etc.

From my research, DaFonz is pretty much spot-on. The world of Wallstreet from afar is glittering in gold.