In the recent past, the necessity for quant analysts has risen massively, due to numerous recessions and market crashes over the past twenty years. These financial crisis events have proved the need for businesses industry-wide to employ quantitative analysts to better manage risk and avoid future crises.
How do quants help businesses with risk management, wealth management, and stock trading? They use computer programming, complex algorithms, and mathematical models to solve real-world financial issues and make better financial decisions for the businesses they are employed by.
This article is going to help you decide if quantitative finance is a good career, and also if it is the right career for you.
How To Know If Quant Finance Is The Right Career For You?
There are a multitude of qualities a person can have that make them the right fit for a role in quantitative finance, so here’s a short list of the qualities that all quant analysts should have – to help you decide if it’s the right role for you.
- You’re a mathematical thinker – If you have great skills with numbers, a role in quantitative finance is perfect for you. One of the main responsibilities of a quantitative analyst is to use mathematical models and algorithms to analyse data to make good financial decisions for their employers.
- Good communication skills – While a quantitative finance role might seem like more of a behind-the-scenes role, it actually requires top communication skills. This is because a quant analyst will work with various departments within a company to analyse the data they produce.
- Great IT and programming skills – A lot of the work that quantitative analysts do involves creating huge databases and algorithms using complex computer programs and software. If you’re familiar with computer programming languages such as C++, Java, and Python, you’ll be a great fit for a role in quantitative finance.
Why Should You Become a Quant Analyst?
First of all, with the technological advancement in regards to data and its collection, more and more businesses across a wide variety of industries are looking for quants to hire. This demand therefore means that there are a multitude of quant jobs out there. Another trend that has led to the uptake in the hiring of quants is the popularity of investment funds and computerised trading systems.
Secondly, those hired in quantitative finance roles are paid very rewarding salaries, because of how complex and difficult the job can be, and also because quants are required to be highly educated.
Becoming a Quant Analyst
If you have a master’s degree in one of the key quantitative finance subjects (mathematics, finance, computer programming) and want to break into the quant world, it is highly recommended that you take a quantitative finance course, such as the CQF (Certificate of Quantitative Finance) or the MFE (Masters of Financial Engineering). Courses such as these are great for getting a career in quant finance, with a great number of employers looking for these kinds of courses on an applicant’s CV.