Like many different jobs in finance, the quant finance world is advancing at a speed which might seem difficult to keep up with. That is why, if you’re wanting to pursue a career in quant finance, you should learn Quantitative Finance and make sure you are keeping up to date with what is going on within the industry.
To get a job as a quant finance analyst, you need particular skills to succeed. The fields that are represented in this industry are advanced mathematics (calculus, probability theory, algebra etc.), computer programming (Python, C++, Java, etc.), and trading. Read on to find out more details on the skills needed to become a quant analyst in 2021!
Programming
To make it in the quant finance world, a strong knowledge of computer programming is essential. A quant should be able to show how systems function, as creating systems of their own is a vital skill to have in quant finance.
One of the skills in programming that is essential to quant finance is the ability to create and operate algorithmic trading applications. To do this, quant analysts should be knowledgeable in some of the more popular programming languages, such as Python, C++, Java, and Perl.
Whilst these are just a selection of the popular languages used to code trading applications, there are many others that are used, so don’t just limit yourself to the most popular ones!
Risk Assessment
As most analysts know, there is an element of risk with every single trade you make. No one can predict how volatile the market is going to be from day-to-day, and so to be a successful quant trader, you have to be a risk-taker.
Whilst the computer programs you code and operate give you the opportunity to reduce risk by opting for safer trades, this often only brings small returns. To make the big bucks, a trader needs to be able to handle risky trades.
Mathematics
An excellent standard of mathematic knowledge is absolutely vital if you want to be a quant trader in 2021. To properly research trade and market data, garner results from tests, and to implement complex trading algorithms, a strong background in maths is essential.
Mathematic concepts such as VaR, kurtosis, and conditional probability are just some of the advanced terms thrown around in quant analysis. If you don’t recognise these concepts, it is recommended that you study to a higher level of mathematics than you have done previously.
Education
A lot of the skills needed to become a successful quant analyst aren’t skills that can just be attained through thorough research. Many of the skills can only be gained through educational courses, such as a university degree (usually master’s level) or a vocational course, such as the Certificate in Quantitative Finance (CQF).
As with most technological careers in this day and age, the skills needed to become a quant analyst are constantly changing as time passes, so it is important for you to keep learning and taking part in education, to make sure potential employers will want to hire you.
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