One of things Wall Streeters seem to fear the most is change. New organizational structures, new bosses, new underlings. Well. . . I suppose the underlings usually don't scare people. All things considered though, these things should be seen as opportunities. Of course, constant organizational changes are just disruptive, but the occaisional shake-up can definitely be something to take advantage of.
New bosses give the opportunity for advancement. Having a new manager puts everyone on the same footing again. If you weren't in the limelight before, now you can be. If you were the boss's right-hand guy before, you get to show you were there because you're that good, not because you were his buddy. It's usually more the latter that find these situations fearful. I have found that the guy who can steadily be the number 2 guy though several organizational changes usually gets the next promotion. He's proven that he is the best guy for the job through several regimes. The changes just give an extra early opportunity to prove it.
Sometimes the fear comes because the company is cutting back. Well, that fear may be justified. There are times when good producers are let go for poor or unrelated reasons. You may feel you were unfairly let go or a friend was unfairly let go. If you were unfairly let go, well. . . can't do much there other than look for your next career move. If your friend was let go, you still need to view it as an opportunity for advancement. If you think it was truly unfair, you vote with your feet. Leave institutions that practice unfair human capital mangement and join institutions that treat talent as it should be treated.
Monday, February 25, 2008
Saturday, February 16, 2008
Pop Culture and Wall Street
In my opinion finance has never really been part of pop culture. In fact, the stereotypical "finance geek" has been the paradigm of un-cool in the world. Sure, there is the occaisional film about the finance world (Wall Street, Boiler Room, Trading Places), but those are really financial world cult classics. The average person doesn't really care much for them. Recently, however, I have come across a strange phenomenon. Wall Street is really becoming part of main street.
Why did I come to this conclusion? It's a long weekend, and I was watching a new pop-culture phenomenon over lunch. I watched an episodes of this new show "Gossip Girl" online over lunch (don't ask). While I probably won't be watching another episode, it did provide me with some amusing insights into pop culture.
Normal people don't use the term "done" in normal conversation other than "I'd like my steak well done." These kids were regularly using "done" as a phrase in itself to communicate something being agreed upon. I think this clearly came from the trader's lexicon: "Bid fifty ten year notes." "Done." Normal people don't talk like that. Only market players talk like that. Apparently though, the new breed of teens out there are. Interesting, no? Maybe I'm extrapolating too much about pop culture from one episode of some teen show, but I don't think I'm extrapolating too much. Media does define language, afterall.
I suppose this progression is not too surprising with how much press Wall Street is getting lately. Hedge funds and investment banks are becoming part of everyday conversation. They're constantly in the news, and while they always stood as an illustration of wealth/greed they now stand as the glorified exemplars of wealth creation. Everyone thinks of bankers/traders and associates them with wealth and excitement. Well. . . maybe not so much excitement but some form of living the dream life. It's like investment types are starting to gain rock-star status.
Why did I come to this conclusion? It's a long weekend, and I was watching a new pop-culture phenomenon over lunch. I watched an episodes of this new show "Gossip Girl" online over lunch (don't ask). While I probably won't be watching another episode, it did provide me with some amusing insights into pop culture.
Normal people don't use the term "done" in normal conversation other than "I'd like my steak well done." These kids were regularly using "done" as a phrase in itself to communicate something being agreed upon. I think this clearly came from the trader's lexicon: "Bid fifty ten year notes." "Done." Normal people don't talk like that. Only market players talk like that. Apparently though, the new breed of teens out there are. Interesting, no? Maybe I'm extrapolating too much about pop culture from one episode of some teen show, but I don't think I'm extrapolating too much. Media does define language, afterall.
I suppose this progression is not too surprising with how much press Wall Street is getting lately. Hedge funds and investment banks are becoming part of everyday conversation. They're constantly in the news, and while they always stood as an illustration of wealth/greed they now stand as the glorified exemplars of wealth creation. Everyone thinks of bankers/traders and associates them with wealth and excitement. Well. . . maybe not so much excitement but some form of living the dream life. It's like investment types are starting to gain rock-star status.
Friday, February 15, 2008
Between Jobs
Getting lots of e-mails and calls from people who are looking for jobs these days. Some are fresh out of school but finding the current hiring environment difficult, others are veterans recently laid-off due to "cost cutting." What should you do when you're between jobs?
Well, I suppose it depends on the person. First off, a safe bet for someone straight out of school is to go find some productive job. Just make sure it's related. Financial consulting is a popular choice. Another is working for a financial research or financial software firm. Just keeping a hand in financial products helps.
Always be tracking what markets are doing and always be growing your network of people in the industry. The number one way into the industry is through connections. Don't be afraid to bug them fairly regularly (like once every 3-6 months, not once a week).
Some people help their resumes along during such periods by trading a small PA (personal account) and tracking returns or publishing a newsletter/blog regularly to anyone who will read. Such activities, while not really jobs at that point, help keep you up-to-date in the industry. They help you build some experience working some aspect of the industry and feeling the joys and pains of being right or wrong. Ultimately it also helps you attract people who are interested in people like you.
What if you've worked for a bit? That largely depends on what you did.
Traders and some salespeople might be perfectly fine trading their own acount for a while between jobs. I know plenty of people who enjoy trading their PA (Personal Account) enough to use it as a temporary job. Some of those people end up enjoying it enough to just do that forever. Depending on the risk profile of the trader he may trade a cash account or a futures/margin account. I'm a fan of the futures account. Some traders move on to sales or risk roles after their first lay-off. They find those jobs easier to find, and their experience as a risk taker gives them most respect as a salesperson or risk manager.
Some people go off to start their own firms. I know risk managers who started software companies, traders who started brokerages, and salespeople who started newsletter services. Each has its own appeal, but generally I think these people were fairly well-off and wanted the freedom of having their own shop.
Find something productive to do. Grow your skills. You'll find no new skill gained is ever wasted.
Well, I suppose it depends on the person. First off, a safe bet for someone straight out of school is to go find some productive job. Just make sure it's related. Financial consulting is a popular choice. Another is working for a financial research or financial software firm. Just keeping a hand in financial products helps.
Always be tracking what markets are doing and always be growing your network of people in the industry. The number one way into the industry is through connections. Don't be afraid to bug them fairly regularly (like once every 3-6 months, not once a week).
Some people help their resumes along during such periods by trading a small PA (personal account) and tracking returns or publishing a newsletter/blog regularly to anyone who will read. Such activities, while not really jobs at that point, help keep you up-to-date in the industry. They help you build some experience working some aspect of the industry and feeling the joys and pains of being right or wrong. Ultimately it also helps you attract people who are interested in people like you.
What if you've worked for a bit? That largely depends on what you did.
Traders and some salespeople might be perfectly fine trading their own acount for a while between jobs. I know plenty of people who enjoy trading their PA (Personal Account) enough to use it as a temporary job. Some of those people end up enjoying it enough to just do that forever. Depending on the risk profile of the trader he may trade a cash account or a futures/margin account. I'm a fan of the futures account. Some traders move on to sales or risk roles after their first lay-off. They find those jobs easier to find, and their experience as a risk taker gives them most respect as a salesperson or risk manager.
Some people go off to start their own firms. I know risk managers who started software companies, traders who started brokerages, and salespeople who started newsletter services. Each has its own appeal, but generally I think these people were fairly well-off and wanted the freedom of having their own shop.
Find something productive to do. Grow your skills. You'll find no new skill gained is ever wasted.
Saturday, February 9, 2008
Building Your Personal Network
We traders tend to understate the importance of networking compared to salespeople, bankers and other investment/finance types. In truth though, building your personal network can be one of the most important moves even as a trader. Of course your PnL will speak for itself, but your network can speed up your progress serveral-fold. All new finance analysts/associates should be purposefully building a network of people that will be helpful in the future.
Here's a list of who you should try to befriend:
1) All your salespeople, brokers and/or clients. Depending on your role you will either have sales-coverage, brokers, clients or some combination of the three. They are the first set of people you should befriend. Meet outside work. Go out clubbing/barhopping together. See an occasional movie. Have dinner. The more you interact with these people on a personal level, the better it will be for your current role and for future prospective roles. I can't tell you the number of people I know who made great job changes because their broker, sales-coverage or client decided to either reccommend them or hire them straight-out.
2) Two to three up-and-comming big shots. There are a few on every floor. Those people who are clearly favored by management, are producers, and are about to make it into a big role. Everyone wants to be the corner office's friend, but the easiest way to being on walk-in chat terms with the corner office guy is to be his buddy before he gets there. This takes some speculation and perhaps is a bit calculating, but it can pay off big. I think your best bets are principals/SVPs who are about to make MD or MDs who sit on the floor who are about to get a managerial or C-level position. They tend to be interesting people who make great friends anyway. An extra bonus that they're about to become really important. To some people, this actually comes naturally--the people they befriend tend to become important.
3) The Admins. Have you read the book Monkey Business? I'm sure you have. Well, you know how they say the production people (copiers, printers, binders, mailroom whatever you may call them) need to be your best friend? The floor admin should be your best friend too. On many levels they hold the keys to the floor. They know schedules, events, passwords, relationships, the whole shebang. You can gain a surprising amount of leverage, support and knowledge by having frequent chats with your admins.
4) Rockstar junior people. As you get senior, you want to have the new rockstar analysts and associates be your friend. It's those people who are going to propel into big important roles, so they're worth knowing. Even better, if you befriend them you might eventually get to hire them into your group. The key to a strong franchise is getting the right people.
5) Peers. Know the people from your entering class. They will be with you and grow with you throughout your career. Some of them will continue on to become great people and do great things. Some will remain trusted mates and be around when you need a hand.
6) The office "hotties." Unfortunately this is mostly for guys, and it reflects how chauvinistic and male dominated the industry still is. As wrong as the state of things may be, that doesn't mean you shouldn't take advantage of it. The fact of the matter is the industry is dominated by guys. Guys also respect (consciuosly or unconsciously) guys who are with hot girls. Just being friends with the most attractive girls on the floor and frequently having conversations with them gains the floor's respect. Odd, but true. Okay, maybe not that odd. Just a quirk of society I guess.
Some of these recommendations may seem shallow or calculating, but they are just some part of building your in-house network that I've observed. I'm the least politically correct person I know. I despise office politics. I don't come across as a friendly person. I do, however, respect that there are some rules that can be broken and others that you just need to take advantage of. Just trying to tell it as I've seen it.
Here's a list of who you should try to befriend:
1) All your salespeople, brokers and/or clients. Depending on your role you will either have sales-coverage, brokers, clients or some combination of the three. They are the first set of people you should befriend. Meet outside work. Go out clubbing/barhopping together. See an occasional movie. Have dinner. The more you interact with these people on a personal level, the better it will be for your current role and for future prospective roles. I can't tell you the number of people I know who made great job changes because their broker, sales-coverage or client decided to either reccommend them or hire them straight-out.
2) Two to three up-and-comming big shots. There are a few on every floor. Those people who are clearly favored by management, are producers, and are about to make it into a big role. Everyone wants to be the corner office's friend, but the easiest way to being on walk-in chat terms with the corner office guy is to be his buddy before he gets there. This takes some speculation and perhaps is a bit calculating, but it can pay off big. I think your best bets are principals/SVPs who are about to make MD or MDs who sit on the floor who are about to get a managerial or C-level position. They tend to be interesting people who make great friends anyway. An extra bonus that they're about to become really important. To some people, this actually comes naturally--the people they befriend tend to become important.
3) The Admins. Have you read the book Monkey Business? I'm sure you have. Well, you know how they say the production people (copiers, printers, binders, mailroom whatever you may call them) need to be your best friend? The floor admin should be your best friend too. On many levels they hold the keys to the floor. They know schedules, events, passwords, relationships, the whole shebang. You can gain a surprising amount of leverage, support and knowledge by having frequent chats with your admins.
4) Rockstar junior people. As you get senior, you want to have the new rockstar analysts and associates be your friend. It's those people who are going to propel into big important roles, so they're worth knowing. Even better, if you befriend them you might eventually get to hire them into your group. The key to a strong franchise is getting the right people.
5) Peers. Know the people from your entering class. They will be with you and grow with you throughout your career. Some of them will continue on to become great people and do great things. Some will remain trusted mates and be around when you need a hand.
6) The office "hotties." Unfortunately this is mostly for guys, and it reflects how chauvinistic and male dominated the industry still is. As wrong as the state of things may be, that doesn't mean you shouldn't take advantage of it. The fact of the matter is the industry is dominated by guys. Guys also respect (consciuosly or unconsciously) guys who are with hot girls. Just being friends with the most attractive girls on the floor and frequently having conversations with them gains the floor's respect. Odd, but true. Okay, maybe not that odd. Just a quirk of society I guess.
Some of these recommendations may seem shallow or calculating, but they are just some part of building your in-house network that I've observed. I'm the least politically correct person I know. I despise office politics. I don't come across as a friendly person. I do, however, respect that there are some rules that can be broken and others that you just need to take advantage of. Just trying to tell it as I've seen it.
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