Brushing up on my math skills...
I'm somewhat amazed on how I got myself into the world of Financial Derivatives. I do not have a quantitative degree (I majored in Management Economics) and didn't pay much attention to my math and statistics classes in college. Yet I find financial markets (derivatives in particular) fascinating. And becoming knowledgeable in them actually gave me an edge in the industry.
Looking back, it seems that I chose the wrong college course. But my interest in the subject matter and the willingness to learn did not stop me from attaining my goal. Although not for quants, the CFA program gave me a good background on the financial markets in general; as well as valuation methods for plain vanilla derivatives.
I searched the net for papers. Marketing and research papers published by the big banks are of great help. Sites like DefaultRisk has loads of papers on Risk Management and Derivatives. But reading them is no simple feat as most of them are written by PhDs or PhD students. My lack of academic foundation in mathematics do get in the way, especially when I encounter a lot of greek symbols.
Finding like-minded individuals to discuss topics of interests and ask for advice also did a lot of good. I am an active member of Wilmott -- an online community of quants (Username: Jomni). At first, I was the one asking questions, and now I give answers and advice myself (on topics that are not mathematically deep).
I never stop reading. Part II of the PRMIA Professional Risk Managers' Handbook is a good refresher on quantitative finance topics. It covers Matrix Algebra, Differential and Integral Calculus, Probability, and Statistics. Other good books would be Hull's Options, Futures and Other Derivatives and Paul Wilmott on Quantitative Finance.
Tags: derivatives finance math quant books cfa
6 comments:
have you considered the CQF, i'm doing it now and it's awesome
josef stalin,
Interesting name. I am familiar with the CQF program. A good advantage is that distance learning is possible. I would recommend that to quant wannabe's as well. But I can't afford it at the moment.
BTW, are you also a member of Wilmott?
It's encouraging to know someone who majored in econ succeeded in this field!
I am new to the industry and I also didn't have a maths degree. I am also interested in derivatives and I hope I will be successful in the field like you. However I find quantitative finance too difficult for me, but I know it is a must to be very good in quantitative finance if I want to be a good trader. sigh...
Don't lose hope. Math is just a part of it. And you don't need to be a Math Major to succeed (unless you want to do pure quantitative roles). Besides, anything can be learned and it's not too late (I hope).
Congrats for a very informative blog! I am enjoying reading it. Keep up the good work!
Btw, you can get the electronic version of Hull's book here (might come handy):
http://stochastix.wordpress.com/2006/11/05/options-futures-and-other-derivatives/
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