What sort of educational track should I persue if I want to become a quant?

[euroazn]

Hello everyone! This is my first post on this forum.

I am actually currently a high school student, and I am considering a future career as a quant. I have a pretty good aptitude for mathematics (I took calculus my freshman year of high-school), computer-science, and finance. I have already read the investment classics (i.e Graham's Security Analysis, Fisher) and am now starting more quant-like material, specifically Stochastic Calculus For Finance by Steven Shreve.

I was wondering what the best educational path to persue would be. For example, for undergrad, should I double major (my current plan is doubling in finance and computer science)? And should I be planning to have some MBA degree like a Masters in Computational Finance?

Thanks in advance for all your input!

 

[Dibbs]

MBA degrees and master's in computational finance are two very different things. To have a quant kind of job, a master's degree is almost a necessity now. To do real quant work, people usually hire phds.

 

[Connor]

1) Go to a good university, the "best" you can given cost, location, and other limitations.

2) Math is king. You probably can't take enough math, which basically means you end up majoring in math.

3) You need to know how to program, but how much computer science you take should be based on how much you like it. I would suggest at least a minor in computer science.

4) Majoring in finance isn't necessary. You definitely want to take some finance courses to get some exposure and make sure you like it. A course in investment management and derivatives would be good (probably some prerequisites to take them). I wouldn't recommend majoring in finance if you are sure you want to do quant work, but a minor in finance is an option.

5) Other options for majors are hard sciences, such as physics, and engineering. These are mathematically rigorous and usually include a programming aspect too.

A common double major you'll find suggested in these forums is math/computer science.

 

[euroazn]

Oh, wow! Seems like being a quant is more math than finance (if even a measley finance minor isn't required!)... I sort of assumed it was an even mixture of both.

What similliar job would you guys suggest that involves a lot of math/sci but is more directly finance related?

 

[Connor]

It's not that knowledge of finance isn't required, but learning finance is much easier than learning math. For example, when I was looking for jobs last year, many investment management firms and banks were willing to take smart people with whatever background and train them in finance/investment.

If you have your heart set on studying finance then don't let me dissuade you. I myself double majored in finance and accounting with a minor in computer science, and I will tell you that I currently don't have the math skills to be a quant. A subject that pairs well with finance is economics (my opinion is that undergrad finance doesn't require enough economics). A difficult but cover-your-bases-type plan would be to double major in finance and mathematics/statistics then minor in computer science and economics.

It's really early for you but something to keep in mind is relevant internships; in finance is a definite plus.

 

[euroazn]

Hehe... it's actually not that early for me! I am currently an intern dev at a commodity price services company and next year will be interning for Morgan Stanley Smith Barney.

But this career development stuff seems really overwhelming D:

 

[Connor]

Career development can be a *****. Sounds like you are do a great job of it so far though, just keep it up.

The thing is that there is no one correct path to becoming a quant. Most advice is based on how someone that is a quant became one. By following a well trodden path (i.e. MFE) you lower your risk and increase your chances of getting a quant job say, but you can't really predict what skills or knowledge will be in demand. I think a good example is machine learning. From my understanding it is becoming a hot topic right now, but how many people knew that it would 5 years ago and started doing a PhD in machine learning? Not many I guess. For all we known astrology will be the next big thing and the MFE graduates will be out on the street begging for change (illustrative purposes only).

The best thing you can do is have an understanding of what current quant positions and MFE programs what in terms of qualifications and skills, then go and study something that interests you while covering these skills.

 

[euroazn]

Another thing is I'm afraid I can't really afford an expensive college for undergrad... is that going to be a problem?