How to Break Into Trading with a STEM Background

STEM graduates bring a unique set of skills to the trading floor, including:

Quantitative Problem-Solving: Trading involves analysing large datasets and making quick decisions under pressure.

Programming Expertise: Automation and algorithmic trading rely on coding proficiency.

Logical Thinking: STEM students are trained to tackle complex problems methodically.

Roles like quantitative analyst, algorithmic trader, and market risk specialist are a natural fit for STEM backgrounds.

1. Build Your Financial Knowledge

Even if you’re new to finance, start with the basics:

Learn about markets, asset classes, and trading strategies.

Read books like "Market Wizards" by Jack Schwager or "Options, Futures, and Other Derivatives" by John Hull. “The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution” by Gregory Zuckerman is a great insight into the world of mathematics and trading.

2. Develop Technical Skills

Trading is increasingly tech-driven, so sharpen these essential skills:

Programming: Python, R, and C++ are common in trading roles.

Data Analysis: Learn libraries like Pandas, NumPy, and Matplotlib for working with market data.

Mathematics and Statistics: A strong foundation in probability and optimisation is vital.

“Many of the mathematical concepts I’ve learned are highly relevant to the quantitative finance industry. Traders use probability to size their bets and make informed decisions based on the probability distributions of potential outcomes from various events. Quantitative researchers leverage statistical models and algebra to design trading strategies and optimise trading systems. These skills are also essential for building strong programming skill, which is a critical component of the modern quant trading industry” - Citadel Quant Researcher and AmplifyME 2018 alumni Tianzi Liang

3. Gain Practical Experience

Simulations and competitions can give you a feel for trading:

Participate in free trading simulations like those offered by AmplifyME.

Join university trading societies or take part in finance hackathons.

Explore platforms like QuantConnect to practise building trading algorithms.

4. Network Strategically

Connect with industry professionals who can offer advice and mentorship:

Attend finance career fairs and employer events.

Use LinkedIn to reach out to alumni or professionals in trading roles.

Join forums like QuantNet to learn from others’ experiences.

5. Polish Your CV and Application Skills

Highlight your technical expertise and problem-solving abilities:

Showcase coding projects or trading competitions in your CV.

Practise explaining your thought process and approach to problem-solving during interviews.

“I’d recommend taking time to explore the industry by attending career events and company insight programs to gain a clearer picture of what being a trader entails. Once you decide trading is the right path, start preparing early by developing knowledge in probability, statistics, and programming, as these will help with interviews. Enrich your experience through trading-related spring weeks, internships, and participation in university trading societies will also be very helpful” - Tianzi Liang, Imperial College London - Mathematics and Statistics 2022 

Misconception 1: “Trading is all about gut instinct.”

Modern trading relies heavily on data analysis and technology, skills STEM graduates excel in.

Misconception 2: “I need prior finance experience to get started.”

Many firms value technical skills and a willingness to learn over direct finance experience.

Misconception 3: “Trading is all about stocks.”

While equities are popular, there are opportunities in commodities, fixed income, currencies, and derivatives markets.

Fast-Paced Environment: Trading offers a dynamic and intellectually stimulating workplace.

High Impact: Your decisions can directly influence profitability.

Innovation: From machine learning to blockchain, trading is at the cutting edge of technology.

“I think trading provides a unique opportunity to apply what you’ve learned at university to real-world problems, combining diverse knowledge to analyse information and test your assumptions in the market. The fast feedback loop keeps the work dynamic and engaging. You also stay closely connected to global events, making every day different and exciting. With the field constantly evolving and highly competitive, you get to collaborate and learn from some of the brightest minds“ - Tianzi Liang, former The D.E. Shaw Group and Goldman Sachs summer intern