Merchant banking (1 Viewer)

[§eraphim]

mmm..program trading

 

[Arkad]

One thing which is potentially very lucrative - trading for yourself.

For those who understand this, trading Futures have made alot of people rich, and can be done with a personal account. Some technical info:

The SPI200 Futures contract (SFE) trades for $25 per point per contract. The daily fluxuations are around 26-27 points per day on average. If you were to say trade a 100lot (meaning 100 contracts at a time), you'd be making $2500 for each point you make.

So say you pick up 10points per day, every single day of the year (not that likely, but you can trade other contracts, traders have been known to make more) - $2500 * 10 = $25,000

Meaning

Daily profit = $25,000
Weekly profit = $125,000
Yearly profit = $6,500,000

This is without pyramiding (using daily profit to buy more the next day, and so on - compounding).


With regards to Random Walk Theory, it's one of the biggest wall street joke subjects of all time. Uni finance teaches this (sometimes), and uni finance doesn't teach you to trade profitably. Trading requires insight, money management, risk management, phycological factors, timing etc.

Yes futures is the way of the future! Add in options, you'll be even richer and with more options in the future. Hedge funds are the way to go.

http://www.investopedia.com/terms/f/futures.asp
http://www.investopedia.com/articles/optioninvestor/02/061302.asp

Don't you believe the efficient market theory with regards to share picking? It has a point.

http://www.investopedia.com/terms/e/efficientmarkethypothesis.asp

 

[gm]

Yes futures is the way of the future! Add in options, you'll be even richer and with more options in the future. Hedge funds are the way to go.

http://www.investopedia.com/terms/f/futures.asp
http://www.investopedia.com/articles/optioninvestor/02/061302.asp

- I prefer straight futures.... options on futures are only very occasionally viable. You need to be predicting a big market swing for them to really be of benefit.



Don't you believe the efficient market theory with regards to share picking? It has a point.

http://www.investopedia.com/terms/e/efficientmarkethypothesis.asp

- No I hate the EMT, i have no interest in any of it.

 

[treason]

for those of you that wanna be in ib, all I can say is, if you want to score an interview, just be passionate and show enthusiasm in what you are doing.

i had an IT degree from Swinburne (read: irrelevant degree from 3rd tier university) and even I managed to score an interview for an internship with CSFB in Singapore (IB Division).

I could tell you more about the interview, but you'd probably be bored out of your mind.

 

[gm]

No that would be good. More about you interview.

Also, you went to swinburne, so you're from Australia. How did you get the interview with the Singapore office? Did you fly over there to interview?

gm

 

[RIZAL]

GM: Yeah, uni finance teaches that most markets in Australia are between being semi strong form efficient and strong form efficient. i.e. that most new information is compounded into prices immediately and that some non public information is already taken account into prices

so basically they are saying that a normal person with no inside information could not gain abnormal profit from buying what they think are undervalued or shorting what they think are overvalued assets.

have you seen people make abnormal profits with no inside information?

and yeah i think random walk is bs.

 

[aditya]

lol treason u genius this is a merchant banking thread, just write 5 pages about ur itnerview we'll hang on every word lol....

!!!!!

 

[aditya]

hey this postgrad masters thing at SIA are there any preqreuisites? if so what are they please?

 

[gm]

Inside information isn't needed to be profitable in financial markets. There are alot of examples of this...

>>>

SIA postgrad, like any other postgrad requires an undergrad qualification.

To do the masters you also need to have 3 years of financial services experience.

You can do open entry though, which is a diploma. It may show you're keen, but it's more focused on licensing and financial advising (as opposed to making money through corporate restructuring or whaterver you want to concentrate on).

 

[doe]

see for yourself

http://www.securities.edu.au/courses/?Course=MAFI

 

[RIZAL]

Inside information isn't needed to be profitable in financial markets. There are alot of examples of this...
QUOTE]


yeah but what about abnormal profit?

and do you regularly find arbitrage opportunities? and do you guys apply CAPM or APT?

 

[treason]

lol treason u genius this is a merchant banking thread, just write 5 pages about ur itnerview we'll hang on every word lol....

!!!!!

well i figured seeing that everyone here talked the talk, you walked the walk. So I chose not to persist.

but if you all really want to know, it was one interview, a phone interview which I didnt pass. Not surprising seeing as I didnt know a single thing about finance (hadnt done a single finance subject)

I applied for the CFSB internship after seeing a friend apply for it. I liked Singapore and wanted something to do over summer so I figured why not, cover letter would only take like 5 minutes to pen on msword. The only selection criteria they seemed to be pushing was intelligence. So I emphasized the hell out of that on my cover letter. Really pushed my 97 TER, the fact that i went to the only selective state school in Vic, my 3 scholarships (which arent hard to win at a 3rd rate uni) and my HD average which I did on an overloaded time table (again, not hard at Swinburne, but then it might just be me).

Anyhow applied, get a phone call 2 weeks later at like 7 pm on my mobile. "Hi this is xxxxxx calling from credit suisse first boston" , my first response being the ignorant lad that I am was "which company?" Fast foward 20 secs into the phone call and I remembered I applied for an internship with these people. She said someone from HK would be calling me in a couple of days to interview. At this stage I was confused because I thought I applied for Singapore.

Few days past, they call me. I guess this is the part that you are hanging out for, the questions. Couple of lock stock standard questions, what is your greatest achievement, have you had to deal with difficult people, why do you want to be in investment banking, where do you see yourself in 5 years. The only technical question I got was with regards to stocks. i.e. they asked if I invested, I didnt, but I said yes, see if I could bs them. Dont think it worked. Anyhow, asked my about eps and pe of the company I had an investment in, as well as where I thought the company was headed, why did I buy it, etc. Also asked me to do a quick calculation in my head which I muffed. At this point I knew I had no chance of getting to the next round so I thanked them and hung up.

Few days later, surprise surprise, get an email telling me I didnt pass.

Moral of the story is, for me anyhow, dont lie in an interview. Good exprience all in all.

Funny thing is I still ended up interning in Asia.

 

[CrashOveride]

well i figured seeing that everyone here talked the talk, you walked the walk. So I chose not to persist.

but if you all really want to know, it was one interview, a phone interview which I didnt pass. Not surprising seeing as I didnt know a single thing about finance (hadnt done a single finance subject)

I applied for the CFSB internship after seeing a friend apply for it. I liked Singapore and wanted something to do over summer so I figured why not, cover letter would only take like 5 minutes to pen on msword. The only selection criteria they seemed to be pushing was intelligence. So I emphasized the hell out of that on my cover letter. Really pushed my 97 TER, the fact that i went to the only selective state school in Vic, my 3 scholarships (which arent hard to win at a 3rd rate uni) and my HD average which I did on an overloaded time table (again, not hard at Swinburne, but then it might just be me).

Anyhow applied, get a phone call 2 weeks later at like 7 pm on my mobile. "Hi this is xxxxxx calling from credit suisse first boston" , my first response being the ignorant lad that I am was "which company?" Fast foward 20 secs into the phone call and I remembered I applied for an internship with these people. She said someone from HK would be calling me in a couple of days to interview. At this stage I was confused because I thought I applied for Singapore.

Few days past, they call me. I guess this is the part that you are hanging out for, the questions. Couple of lock stock standard questions, what is your greatest achievement, have you had to deal with difficult people, why do you want to be in investment banking, where do you see yourself in 5 years. The only technical question I got was with regards to stocks. i.e. they asked if I invested, I didnt, but I said yes, see if I could bs them. Dont think it worked. Anyhow, asked my about eps and pe of the company I had an investment in, as well as where I thought the company was headed, why did I buy it, etc. Also asked me to do a quick calculation in my head which I muffed. At this point I knew I had no chance of getting to the next round so I thanked them and hung up.

Few days later, surprise surprise, get an email telling me I didnt pass.

Moral of the story is, for me anyhow, dont lie in an interview. Good exprience all in all.

Funny thing is I still ended up interning in Asia.

So that was how you didnt get the job...so how did you end up getting the job? ^^

 

[aditya]

ur obviousli not street smart..... but ur damn book smart (stop being so modest) 97 ter HD average = all good shit (Y)

but yeh, so typical questions... ic ic

 

[aditya]

so say if i havnt done a finance major but i did an accounting and econometrics major would i be able to enter the SIA masters degree?

 

[mashi]

If only I had read this thread and met u guys when i had the dilemma between choosing BCOM/LLB @usyd on scholarship or Bcom(finance) co-op @UNSW.. (i chose co op cos by the time i finished dwaddling main round prefs had closed)....

I have so many questions on the financial world and IB but its 2am in the morning (it took me THAT long to read this whole thing) so my brain's not functioning properly...

anyway gM i Pm'ed u pls check ur inbox and maybe we can go from there

 

[Arkad]

I have so many questions on the financial world and IB but its 2am in the morning (it took me THAT long to read this whole thing) so my brain's not functioning properly...

Which time-zone do you live in? Maybe it's just me.

If only I had read this thread and met u guys when i had the dilemma between choosing BCOM/LLB @usyd on scholarship or Bcom(finance) co-op @UNSW.. (i chose co op cos by the time i finished dwaddling main round prefs had closed)....

Which scholarship is this for law at USyd? It's not the 99.95 scholarship because of your uai is 99.7 right?

Congrats on your co-op, you're going to be rich.

 

[mashi]

haha joyce wats ur email/msn//... check ur private msgs la~

its the 95+one thats NOT auto based on UAI..only $5000/yr

r u being sarcastic abt getting rich with 13.4K ?

 

[treason]

So that was how you didnt get the job...so how did you end up getting the job? ^^

Nah I ended up interning with EY - TAS div. Doing due diligence stuff.

 

[§eraphim]

hey are big4 consulting firms open to ppl with maths degrees who wanna move into finance?