by Jerry Chi Comments (101)

Sales & Trading vs. Investment Banking, Part 2: Lifestyle, Co-Workers, Pay & Exit Opportunities

Sales & Trading vs. Investment Banking, Part 2: Lifestyle, Co-Workers, Pay & Exit Opportunities
We wrap up our series on Sales & Trading vs. Investment Banking with this podcast, focusing on the lifestyle, your co-workers, pay, and exit opportunities.

Whereas Part 1 was all about recruiting, this one’s all about what happens when you actually get the job – and we go into subjects like pay and bonuses in both fields and what “models and bottles” means for traders.

Once again, Jerry’s the expert here so he’s the “interviewee.”

What You’ll Learn In This 50-Minute Interview

  • How you “learn” trading and why it’s completely different from learning financial modeling
  • A day in the life for both a trader and a salesperson, how much money you trade, and how you can take a bathroom break if you need to monitor the market all day
  • Whether or not trading floors resemble Liar’s Poker, how you interact with your co-workers, and what “going out” means
  • How you get paid in sales vs. trading at banks vs. prop trading firms vs. hedge funds
  • Exit opportunities and why we both left the finance industry

Listen to the interview right here:


Training Programs & Group Assignments

  • 1:30: How the training process differs for trading, and why you might be working with Monopoly Money at first
  • 3:50: Junior traders vs. “real” traders and how you move up
  • 5:45: Picking a desk: fate vs. free will?

A Day in the Life of a Trader

  • 8:20: A day in the life of a trader – what time do you wake up, what time do you leave, and can you take any bathroom breaks?
  • 12:40: What happens when you need to take a trip to the dentist during market hours?
  • 13:25: How much money do you actually trade as a trader – banks vs. prop trading firms
  • 15:10: Average hours per day
  • 17:00: Relations with the sales force – pleasant or do they want to assassinate you?
  • 19:15: What salespeople do all day (hint: you better like the phone)

Co-Worker Interactions

  • 22:00: How much you actually talk to your fellow traders during the day, and why the hierarchy is flatter than the investment banking hierarchy
  • 24:50: How much does a trading floor resemble Boiler Room or Liar’s Poker?
  • 26:00: Models and bottles for traders. Sorry, you know we had to say it at least once…
  • 29:15: Interests outside of work? What, really?!
  • 30:30: Is sales & trading overly male-dominated? What to do if you’re female?

Exit Opportunities & Pay

  • 34:00: Sales & trading exit opportunities
  • 36:30: The bottom-line: Pay in investment banking vs. trading
  • 40:00: How to earn a $100 million bonus (only works at Citi) and how much you’ll receive as a % of your P&L
  • 41:30: Payouts at prop trading firms and hedge funds
  • 42:20: Pay structure for sales people and how much you can make in sales
  • 44:00: Bonuses in sales: the sky’s the limit, but it’s a different sky
  • 45:30: Why we both left our respective industries – investment banking and trading

Sales & Trading vs. Investment Banking Podcast Series:

About the Author

Jerry Chi graduated from Stanford, worked in equity research and trading in Japan, and then started and sold his own prop trading firm in China. He earned his MBA from Wharton, and then worked at Google and Supercell in Japan.

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