- Published on
Derivative Trading - CFA and Wheat
- Authors
- Name
- Manoj Gowda
- @nemesis_manoj
What Did I Do in the Last Five Months?
In the past five months, I embarked on an exciting journey into the world of finance. Here are the key highlights of my experience:
Joining the Finance Company: I had the privilege of joining a finance company that operates much like a hedge fund. This marked the beginning of my immersive journey into the finance industry.
Training Period: During the initial weeks, I underwent comprehensive training on various topics, including futures, commodities trading, yields, interest rates, and exchanges. This training laid the foundation for my understanding of the financial markets.
Introduction to Milling Wheat: One of the intriguing aspects of my role was being assigned to trade milling wheat, a commodity traded on Euronext, the commodity exchange in Paris. I started by trading in simulation mode, focusing on learning price action.
Trading License: Approximately one month into my role, I acquired the necessary trading license from the exchange to begin real trading activities. This transition marked a significant milestone in my career.
The Grains Pit: I was assigned to the grains pit within the company, which was one of the four main trading pits. These pits covered various areas, including oil and gas futures, stock futures, commodities (such as sugar and cotton), and grains (including wheat and soybeans).
Daily Loss Limit: As I began trading, I operated under a daily loss limit of $500. This constraint added an element of challenge and risk management to my role. I received guidance from experienced senior traders and leaders in the pit.
Unusual Working Hours: My job in quantitative trading was both exciting and demanding. It came with unusual working hours, with my schedule spanning from 2 PM to 10 PM. Additionally, frequent meetings were held to discuss global events and develop quantitative strategies using proprietary tools.
Is CFA Really That Tough?
Enrolling in the CFA (Chartered Financial Analyst) program was a significant decision in my journey. Here's a closer look at my experience with the CFA:
Motivation to Learn Finance: I decided to pursue the CFA certification as a means to delve deeper into the world of finance. The CFA program is renowned as one of the most challenging finance exams globally, making it an ideal choice for someone eager to gain expertise.
Securing a Scholarship: I was fortunate to receive a scholarship for the CFA program, which significantly reduced the financial burden associated with the certification. The scholarship, valued at close to $1,000, made the pursuit of this prestigious qualification more accessible.
Understanding CFA's Importance: The CFA designation is highly sought after in the finance industry due to its rigorous curriculum and comprehensive coverage of financial topics.
Commitment and Consistency: Initially, I approached my CFA studies with dedication and consistency. However, I confess that I became less focused on my CFA preparation in the last three months.
Taking the CFA Exam: Despite feeling less prepared than I would have liked, I decided to attempt the CFA exam, driven by my determination to push my limits. As expected I could not pass the exam which would have been a suprise if I did.
Learnings From the Experience
My journey into finance and the pursuit of the CFA certification have imparted invaluable lessons:
Opportunity in Finance: I strongly advocate for anyone to explore opportunities in the field of finance, especially early in their career. The experience of handling money and witnessing how global events impact financial markets is eye-opening.
Significance of CFA: Enrolling in the CFA program introduced me to a world of new knowledge. Its vast coverage and the structured, professional approach required to succeed in the program made it a unique and enriching experience.
Why I Decided to Pursue a Career in Tech
While my journey in finance was fulfilling and educational, I've made the decision to transition back to the world of technology. Here's why:
Balancing Risk and Reward: My initial fascination with understanding how money works led me to my finance job, which exceeded my expectations. I gained knowledge, made lasting friendships, and acquired skills that will benefit me throughout my life.Despite the excitement of my finance job, I couldn't ignore the advice of close friends and family who encouraged me to reconsider the risk-reward balance. While the financial rewards were enticing, I realized that my passion lay elsewhere.
Pursuing My Passion: I've decided to return to software development because I believe it's never too late to build a career in something you're truly passionate about. The tech industry offers a dynamic and ever-evolving environment that aligns with my interests and goals.
What the Future Holds
As I transition back to the tech industry, I have a clear vision of what the future holds:
Returning to Tech: I'm excited to re-enter the world of technology and leverage my experience to contribute to innovative projects.
Learning New Technologies: I'm eager to learn and master new technologies that drive innovation and progress in the tech sector.
Collaboration and Creation: I look forward to collaborating with like-minded individuals to build exciting and impactful solutions.
Enjoying the Journey: Above all, I intend to savor every moment of this new journey, embracing challenges, and celebrating achievements along the way.