9 Things I learned in Sales & Trading
9 Things I learned in Sales & Trading
172: Arbitrage Andy's Learned Lessons
For those of you who are unfamiliar with the origins of Arbitrage Andy, the meme finance page on instagram that I built over 5 years — the account was a bi product of the 4.5 years I spent in Sales & Trading.
Whenever I had free time or needed a mental break I would turn to creating memes and content as a way of stimulating my creative muscle — not something always appreciated or exercised in the finance space.
Now I can’t share too many specific details without the risk of doxxing myself — but I will give specific examples and just swap out terms, products, titles, etc.
I wasn’t some white-shoe banker or trader at a bulge bracket bank, but I ran my own book of business for my time in the space and did decently well for myself before ultimately wanting a break and moving into a pure sales roles selling primarily to the buy-side within the financial technology space.
The first shop I worked at was probably one of the only shops left that had a lawless trading floor. Shit getting thrown around constantly, phones being pounded for orders, aggressive cussing, insane booze filled happy hours and parties, and ridiculous company events and night’s out.
My friends at bulge brackets and other “prestigious” shops were shocked at the stories I would share.
I never had family or friends that worked on Wall Street — I worked to get in anyway I could and ultimately chose the role I could find with the most responsibility and ownership out of undergrad.
I completely own the “JT Marlin” esque rep that the shop I was at had and what it lacked in distinguished Harvard educated Managing Director’s, it made up for in raw capitalism and sheer unadulterated aggression and competition. There was also untapped earning potential if you could produce.
Today I wanted to synthesize 9 of the lessons that I learned in my time working in a sales and trading role to hopefully help out others and maybe give some solid perspective to those that are just starting out in the space.
Many of the qualities that I was forced to hone and develop during this time still pay off to this day in my life, allowing me to succeed in my personal business, social life, financial endeavors, and much more.
1 - Aim For Ownership and Responsibility
The key distinguishing lesson I was able to learn early in my first year in Sales & Trading, was that responsibility and ownership was essential to growing into a successful salesman/trader.
Sure, new recruits and graduates who get into the top banks have excellent career opportunities if they survive, good pay, and a highly regimented/structured role from the get go.
But, in my humble opinion with the exception of the smartest and most capable kids who make it, not many get to climb right into the driver’s seat right away. They learn from Associates, VPs, and Managing Director’s and when the time comes they’ll get more responsibility and chances to lead.
When I started out — I got some excel books of prospect companies and individuals, 1 or 2 warm leads, and was told to begin studying my products, markets, and the region that I was to be assigned. Then it was cold calling, messaging and email outreach to find prospects and get in touch with the handful of small clients I was given.
Two weeks later I made my first trade for a nice five figure first deal. From the get go, with little guidance except from senior employees, I was responsible for the execution, trade confirmation, contract, and internal ops recap for the transaction.
At a larger shop - most of these proceses would be spread out among different individuals, I did them all.
Over the next year I was responsible for building up an entire book of business from zero — locating buyers, sellers, and intermediaries in my given market, developing relationships, and reaching my revenue target for the year.
Because of this quota responsibility at such a young age I became proficient at not only selling, but analytical work, contract writing, settlement, and other functions you’d normally have to work 3 or 4 roles to get the same experience from.
As a 23 year old who didn’t know anything at all about business, sales, or trading before I was thrust into that role, I can’t reccomend enough to try and get the most responsibility you can from the get go.
It is the single best way to grow and learn. Double points if you manage to get into an emerging products role, new market, or untapped region.
Whether it’s late nights or fire drills for bankers, or fucked up trades and and pissed off clients for S&T guys, make sure you’re in the mix and don’t always be misled by fancy titles or promises — do your research and try to own the most when you start. Make yourself as valuable as possible by knowing a lot and being able to think through stressful problems or hiccups.
You’re not going to get better or develop if you’re contributing occasionally to pitches, decks, deals, or focusing on just playing the politics game. Climb into the trenches get punched in the face and learn from it to move forward and crush shit.