Trading Relevance for Summer Internships in IB

Based on the WSO content, setting up a trading firm during the summer can be an impressive addition to your CV, especially if you can demonstrate success and relevant skills that align with investment banking (IB) roles. Here’s how it could be perceived by recruiters compared to conventional work experience:

1. Entrepreneurial Spirit: Starting a trading firm shows initiative and entrepreneurship, which are highly valued in the finance industry. It demonstrates your ability to start and manage a business, which involves risk assessment, decision-making, and strategic thinking.

2. Relevant Skills: Running a trading firm can help you develop skills directly relevant to IB, such as market analysis, financial modeling, and understanding of financial instruments. Highlighting these skills can make your experience very appealing to recruiters.

3. Leadership and Management: Managing a firm with friends shows leadership and the ability to work collaboratively. These are crucial skills in any business environment, including IB.

4. Quantitative and Analytical Skills: Successfully trading requires strong quantitative and analytical capabilities. These skills are directly transferable to many roles in investment banking, particularly those involving financial analysis and valuation.

5. Outcome and Performance: Be prepared to discuss the outcomes. Recruiters will be interested in how you managed the firm, what trading strategies you used, and most importantly, the results of your trading activities. Positive financial outcomes or insightful learning experiences from losses can provide great talking points.

6. Professionalism: While unconventional, ensure that your trading firm is set up with professionalism. This includes proper documentation, a clear business strategy, and adherence to any legal requirements. This level of professionalism will be crucial when discussing the venture with recruiters.

In comparison to conventional work experience, such as internships at established firms, your trading firm might lack some formal structure and brand recognition. However, it can still be highly valuable if presented effectively, focusing on the skills gained and the professional approach taken. Make sure to articulate how this experience has prepared you for a career in investment banking, emphasizing any direct impact on your analytical and financial skills.

Sources: https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, Interview with a Senior Software Developer for a Prop Trading Firm, Two Internships Later: What I wish I Knew While Recruiting! (Toronto), Conversation with an Equities Sales Trader, Q&A: 25 years Sales / Trading Experience