The interview questions for sales and trading are a bit of a puzzle because they are both easier and harder than the questions for investment banking.
They’re easier because you don’t have to remember as much, but they’re also harder because you can’t prepare or practice them the same way.
Also, there are a lot of questions that don’t have “right answers.” Interviewers ask them so that they can have a deep conversation about a subject.
Another thing that makes it harder to generalize is that sales and trading interviews are more like “choose your own adventure” games.
But if you say you’re interested in corporate bond sales, you’ll get a completely different set of questions.
Before choosing an adventure, though, let’s start with the qualities that interviewers want to see in candidates:
Unleashing Your Inner Trading Guru A Comprehensive Guide to Acing Your Senior Trader Interview
(Word count 888)
The world of finance is a dynamic and ever-evolving landscape, where the ability to navigate market fluctuations and make sound trading decisions is paramount. Senior traders stand at the forefront of this arena wielding their expertise and experience to generate alpha and steer their firms towards profitability.
Landing a senior trader role demands not only a deep understanding of financial markets but also the ability to articulate your knowledge and thought processes effectively This comprehensive guide delves into the intricacies of senior trader interview questions, equipping you with the insights and strategies to conquer this crucial stage in your career journey.
Navigating the Interview Maze A Step-by-Step Approach
-
Understanding the Role:
- Familiarize yourself with the specific responsibilities and expectations associated with the senior trader position at the company you’re interviewing for.
- Research the company’s trading strategies, risk management policies, and overall market approach.
- This in-depth understanding will enable you to tailor your responses and demonstrate a genuine interest in the role.
-
Mastering the Art of Storytelling:
- Go beyond simply answering the questions; weave your responses into compelling narratives that showcase your problem-solving abilities, decision-making prowess, and adaptability.
- Use real-life examples from your trading experience to illustrate your points and leave a lasting impression on the interviewers.
-
Quantifying Your Success:
- Back up your claims with concrete data and metrics. Quantify your achievements, such as your track record of profitable trades, risk-adjusted returns, or successful portfolio management strategies.
- This data-driven approach adds credibility to your responses and demonstrates your ability to measure and analyze performance.
-
Embracing the Unexpected:
- Be prepared for curveball questions that test your critical thinking and ability to think on your feet.
- Approach these challenges with a calm and composed demeanor, showcasing your resourcefulness and problem-solving skills.
-
Turning the Tables: Ask Insightful Questions:
- Don’t be afraid to ask thoughtful questions about the company’s trading culture, risk management framework, or growth opportunities.
- This proactive approach demonstrates your genuine interest in the role and your ability to engage in meaningful dialogue.
Delving into the Depths: Key Senior Trader Interview Questions
-
What are the qualities that make a good trader?
- A good trader possesses a unique blend of analytical prowess, risk management expertise, and emotional intelligence.
- They must be able to think critically, analyze market data, and make sound decisions under pressure.
- Additionally, they need to possess the discipline to stick to their trading plan and manage their emotions effectively.
-
What was the best trade you have ever made?
- This question delves into your ability to identify and capitalize on trading opportunities.
- Share a specific example of a trade where you demonstrated your analytical skills, risk management strategies, and decision-making capabilities.
- Quantify the success of this trade using concrete data and metrics.
-
What was the riskiest trading decision you have ever made?
- This question assesses your risk management approach and your ability to learn from past experiences.
- Be honest and transparent about a risky trade you made and explain the rationale behind your decision.
- Discuss the lessons you learned from this experience and how you have incorporated those learnings into your current trading strategies.
-
How do you stay abreast with the ever-changing financial markets?
- Staying informed in the dynamic world of finance is crucial for success.
- Demonstrate your commitment to continuous learning by outlining the resources you use to stay updated on market trends, economic data, and industry news.
- Share specific examples of how you have applied these insights to your trading strategies.
-
What strategies do you use to evaluate risk?
- Risk management is a cornerstone of successful trading.
- Explain your approach to risk assessment, outlining the tools and techniques you use to identify, quantify, and mitigate potential risks.
- Discuss your risk tolerance level and how it aligns with your trading strategies.
Beyond the Interview: Embracing Continuous Growth
The senior trader interview is just one step in your journey towards trading mastery. Remember, continuous learning and adaptation are essential for success in this ever-evolving field. Embrace challenges, seek feedback, and strive to refine your skills and knowledge base. By staying committed to growth, you’ll position yourself for a fulfilling and successful career as a senior trader.
Sales and Trading Interview Questions, Part 4: Brainteaser / Math Questions
First, keep in mind that if you say you’re interested in sales, you probably won’t get any brainteasers or math problems.
So, worry about these questions only if you’re interviewing for trading roles.
If you want to get better at brainteasers, get a good book and read through as many examples as you can.
Always say what you’re thinking out loud and explain your assumptions. If you get stuck, write down what you have so far and what you need to do next.
Pure brain teasers don’t happen as often in sales.
Mental math questions, however, will come up in any of these roles. Again, you should get a good book that explains all the tricks, but here are a few examples:
The trick here is to break up “ugly” numbers into round ones:
- 87 94 = (87 90) 4 = 181
- 334 567 = (300 567) 34 = 867 30 4 = 897 4 = 901
Subtraction questions are similar, but you need to decide when to round up.
For example, if the second number’s second digit is bigger than the first number’s second digit, round up:
- 62 – 27 = 62 – 30 3 = 32 3 = 35
- 845 – 388 = 845 – 400 12 = 445 12 = 457
It’s easy to multiply a two- or three-digit number by a one-digit number because you just divide the numbers into smaller groups:
- 47 x 5 = (40 x 5) (7 x 5) = 200 35 = 235
- 397 x 4 = (300 x 4) (90 x 4) (7 x 4) = 1200 360 28 = 1588
The number with the bigger second digit goes first when you multiply by two. Then, group the numbers back into smaller units:
- 42 x 37 = 37 x 42 = (37 x 40) x (37 x 2) = (30 x 40) x (7 x 40) x (37 x 2) = 1,200 – 280 – 74 = 1554
This formula is the trick for squaring 2-digit numbers:
- X^2 = (X – Y) * Y^2
And then you set Y such that either (X + Y) or (X – Y) ends with “0. ” Examples:
- 49^2 = (49 1) * (49 – 1) 1^2 = 50 * 48 1 = 2500 – (50 * 2) 1 = 2401
- 56^2 = (56 4) * (56 – 4) 4^2 = 60 * 52 16 = 60 * 50 60 * 2 16 = 3000 120 16 = 3136
With square roots, there aren’t as many “tricks” because the answer will usually have decimal places no matter what you do.
But you can usually approximate the answer by thinking in terms of square numbers.
For example, let’s say they ask you the square root of 90:
- You know that 9^2 = 81 and 10^2 = 100.
- And 90 is slightly closer to 81 than 100.
- So, you can say “slightly less than 9.5” (it’s ~9.49).
Questions At the End and Thank You Notes
Yes, you should always ask the interviewer(s) questions at the end.
Focus on the person’s specific experiences rather than something generic:
- “In the past, you have hired many interns. What was the difference between those who succeeded and those who failed?”
- “What do you know now that you wish you had known at the start of your career? How would that have changed the decisions you made along the way?”
- “Have you worked in any other departments or desks before this one? Why did you decide to switch?”
After the interview, you should send a thank-you email within 24 hours.
Thank the interviewer for their time and bring up something you talked about. If you didn’t know the answer to a question, remind them of it and give them the answer.
You won’t always get help from these emails, but they won’t hurt either, and sending them only takes a minute.
