Careers in Finance: Sales and Trading (S&T) Matthew E. Reustle

Overview What is Sales and Trading? What is Sales and Trading? A Day in the Life A Day in the Life Is it for me? (Characteristics) Is it for me? (Characteristics) The Interview The Interview Further Research Tools Further Research Tools

The Fast Paced World The Rocky Relationship The Rocky Relationship The War Zone (Trading Floor) The War Zone (Trading Floor) Equities VS Fixed Income Equities VS Fixed Income Proprietary VS Client Accounts Proprietary VS Client Accounts Hours: Reasonable length, incredible intensity Hours: Reasonable length, incredible intensity

A Day in the Life of a Salesmen Early Arrival (Generally Before 7 A.M.) (Analyst Before 6:30) Early Arrival (Generally Before 7 A.M.) (Analyst Before 6:30) Chat about WSJ headlines, new ideas Chat about WSJ headlines, new ideas 7:30 Morning Call with Equities or FI division 7:30 Morning Call with Equities or FI division 7:30-9:30 Contact Clients, try and set up deals 7:30-9:30 Contact Clients, try and set up deals 9:30 Market Opens- Hit phones (you want to be the one calling) 9:30 Market Opens- Hit phones (you want to be the one calling) 11:00 Call other traders to satisfy your client’s need 11:00 Call other traders to satisfy your client’s need 12:00 Eat lunch at desk 12:00 Eat lunch at desk 1:00 You hear a block trade over the intercom, your clients want that, you start dialing. 1:00 You hear a block trade over the intercom, your clients want that, you start dialing. 2:00 You take a call from a client 2:00 You take a call from a client 3:00 You play a guessing game with your client 3:00 You play a guessing game with your client 4:30 Markets are closed, wrap up paper work, head out 4:30 Markets are closed, wrap up paper work, head out 7:30 Meet Clients for drinks (bar, sports game, dinner) 7:30 Meet Clients for drinks (bar, sports game, dinner) 10:00 Head home and get ready for tomorrow 10:00 Head home and get ready for tomorrow

A Trader’s Day 7:00 A.M. Arrive at the office, with WSJ in hand 7:00 A.M. Arrive at the office, with WSJ in hand 7:30 A.M. Equities/FI Morning Call what you’re selling and buying 7:30 A.M. Equities/FI Morning Call what you’re selling and buying 8:30 A.M. Try and get Salesmen to set something up for market open 8:30 A.M. Try and get Salesmen to set something up for market open 9:30 A.M. Market open, GAMETIME 9:30 A.M. Market open, GAMETIME 11:00 A.M. Your stock is dropping, get on your salesmen you want OUT 11:00 A.M. Your stock is dropping, get on your salesmen you want OUT 12:15 Eat Lunch at Desk 12:15 Eat Lunch at Desk 1:00 You see a big time opportunity, you want in 1:00 You see a big time opportunity, you want in 2:00 Economic news is about to release, you let salesmen know of what you want to do any scenario 2:00 Economic news is about to release, you let salesmen know of what you want to do any scenario 3:30 Make last trades of the day 3:30 Make last trades of the day 4:30 Wrap up and get out of the office 4:30 Wrap up and get out of the office

Salesmen Characteristics Incredible Communication Skills Incredible Communication Skills Translate from Complex to Simple Translate from Complex to Simple Ability to manage relationships Ability to manage relationships Good with teams Good with teams Think on your feet Think on your feet Fun and Personable Fun and Personable

Sales Interviews Rapid Fire Rapid Fire Off the wall questions (stress test) Off the wall questions (stress test) Airport Layover Test (personality) Airport Layover Test (personality) Brainteasers Brainteasers Abstract Thinking (Why are manhole covers round?) Abstract Thinking (Why are manhole covers round?) Be Ready for anything Be Ready for anything

The Trader Good with math Good with math Split second decisions Split second decisions Confident Confident Risky Risky Mathematical freak Mathematical freak One step ahead One step ahead

Trader Interview Quick Math Quick Math Assess Risk Assess Risk Quick thinking on feet Quick thinking on feet High Pressure Stress Tests High Pressure Stress Tests

Further Research Liar’s Poker Liar’s Poker Wall Street Wall Street Boiler Room Boiler Room Vault Guides Vault Guides WSJ WSJ JMU Alumni, NETWORK!!! JMU Alumni, NETWORK!!!