Do I Fit in Quant Finance?

A subscriber recently asked the question, "given my personality and interests, do you think I would fit in quantitative finance?"

This is a challenging question that each individual must answer themselves however it is important to understand what quantitative finance is really like. First off the misconception that finance is full of alpha male frat bros is mostly incorrect. Yes you might find a few but most people in finance are not like that. Second of all, quantitative finance is not really finance. It is statistics and mathematics applied to finance using programming. In my opinion quant finance is about 5% finance whereas the rest is math, statistics, and programming.

Investing vs banking is another interesting aspect. Many of the jobs in quant finance are similar in both areas however the speed of the work environment is much different. Investing is fast paced and more focused on developing new methods whereas banking is more stable however it slower to adapt new methods.

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[anuragreddy]

Content request:
please make a video highlighting the difference in the programs below:
1. Quantitative Finance
2. Financial Engineering
3. Computational Finance
4. Mathematical Finance
5. Financial Mathematics
There a lot of programs with the different names and it will help if a person can understand the subtle difference between these.

[MrWolfgangWeiss]

I work as a quant myself in finance but I honestly think the problems are a bit boring unless you are doing research. I am moving into tech at this point...pays better as well.

[piyushchandak]

Hi Dimitri, I've been watching your videos for a few months now and thanks a lot for the amazing content you've consistently put up over the years. I can't thank you enough for the many insights I got from your videos.
I have a personal question: I'm an Electronics and Communication Engineering Undergrad in India looking to pursue a Master's program in Finance (more specifically in Quantitative Finance and Risk Management). I will be applying to colleges this year, however, looking at the various aspects of prerequisites required, coursework, actual work in Quant Finance I feel a little intimidated and I don't know how to understand if I will enjoy working in this field. I love the new things I am learning right now, and a lot of the new stuff about Probability, Random Variable, Statistics really excites me. This change in the domain from engineering to finance is a bit scary and I don't know how to get know for sure if my decision is right. Is there a way I can write a detailed email to you?

[anuragreddy]

Absolutely on Point! very useful to people who are deciding to pursue a career in quantitative finance.

[JurassicJolts]

You remind me a lot of my accounting professor. He was a pretty sharp dude.

[dnaluis]

thx for the video, coz i just had an derivatives interview with private bank....

[Youthinklehh]

Hi Dimitri


First of all, thanks for your content, it is very insightful to hear from someone currently in the industry. Was hoping I could seek your opinion regarding a situation I'm facing.


I'm a student studying in Singapore, and I'm on this course where it is a direct masters program. After the first 3 years, I will be graduating with a bachelor in business, and if my GPA is above 4.0, I will be eligible to continue on to take a masters in financial engineering, fully sponsored.


My question is this: during the 2nd year in the course of my study, I have to specialise, and the options I am considering are Banking and Finance, Actuarial Science, Business Analytics, Risk management and insurance.


1) Banking and Finance will give me the prerequisite finance knowledge, but based on your video, it seems that the relevance is not as high for a financial engineer.
2) Actuarial Science is what I am most interested in, it has elements of statistics, math, and some programming which will be a good foundation for financial engineering. But im not sure how relevant it is after watching your video on "quant VS actuary"
3) Business analytics seems like a good alternative as well, with a greater focus on programming, which will be useful as well.
4) RMI is a relatively new course, to tackle insurance and financial risk management problems


Which of the above do you think is the most relevant for a quant, and which would give the best foundation/basics/knowledge to allow me to transition into the MFE with greater ease?


Would really appreciate any/all comments, thanks!

[anthonynohra]

Good video! Not enough info out there, so thank you

[tlotlisomafereka]

Hi Dimitri. Would you recommend the Certificate in Quantitative Finance (CQF) as a good certification to help secure a job in the quant finance?

[domeniks]

Thank you for answering my questions.
I think i will pursue a career as a quant researcher. That suits me more than traditional banking. Am I right?

[castan]

I had an unconditional offer for MSc in Quantitative Risk Management With Machine Learning, this video blew me up, I am moving to MSc in Management and Finance, or just MSc in Finance. I am an Alpha Male.

[small.j]

Hi Dimitri, Thank you for the insightful view. I'm current an accountant and just start to do corporate finance now with accounting as my undergraduate. maybe a little bit similar to your background. Right now, I'm planning to transfer my career to quantitative finance. Do you have any suggestion for me to switch career? Thank you

[deependrachaddha]

Hi, i have a master's in physics and am good at math and programming. Would it be necessary for me to get a phd or can I start trying to get a job as a quant? Do I have a good chance to make it as a quant or will I need a phd?

[mihainicolae]

Hi, Dimitri! What is the final step in the quantitative finance work? Does the work output get integrated into an API/software that runs in production? Or do quants make recommendations to stakeholders? If it's both, what areas (types of quant finance) involve "software that runs continuously", and what areas are for "recommendations to stakeholders"?

[jamesshkrelivanhoogstraten]

Have you ever thought about working in a hedge fund as a quant? What is your opinion on that

[kaancaylan]

Hi Dimitri, I am currently an undergrad finance student, what kind of masters degree, or additional undergraduate degree would you recommend for me to get into quantitative finance? Thanks

[nk_goyal]

Hey Dimitri, I am pursuing undergrad in Applied Maths in India and interested in taking up quant finance. Should I apply for Higher education or lookup for job opportunities right after graduation?

[tonyyoon]

Hi Dimitri! I’m currently studying my second year for Financial Mathematics BSc in Canada and I was wondering how I would be able to break into the “quantitative” side of the industry as someone who has yet to finish their undergrad. A lot of the “Summer Internship” or co-op programs for firms in Toronto for quantitative analysis and risk/data modelling have minimum requirements of being enrolled in a Master’s program or higher. I’m against working entry level finance positions through the duration of my undergrad but I may be forced into that as I’m finding it REALLY difficult to go to the quant side. Any advice would be appreciated. Thanks! Also, a lot of my colleagues at school are working summers in capital markets and investment banking but I’d personally not like to enter the sell side of the market.

[francescomatera]

Beyond finance degree, frm or CFA can help?