How Can I Make It to Wall Street?
Is There a Road Map to Wall Street?
By J. Aranoff.
Reporting from New York City.
Perhaps you may find odd the fact that a Mercedes Benz is shown as the heading before our question at hand. You might already own one or maybe several, and if not, you may be in the process of running to your nearest dealership and buy one for your birthday, wife, lover,or girlfriend. Perhaps you may be like me, and you dream that one day you become the proud owner of a German sports cars, either a Benz, BMW or a Porsche or whatever happens to be the hot wheels of the day.
The from the Financial District in Manhattan
Now let's get to the nitty gritty of our question above. I read an article this year that said that $260 billion dollars in bonuses were disbursed to employees working in the financial sector, i.e; Wall Street. And that at least 10,000 employees received a minimum of $1,000,000.00 in bonus each. Some raw numbers put compensation at the 25 largest firms at a record $135 billion in 2008, according to an analysis by The Wall Street Journal. You are not misreading, these ten thousand employees got one cool million each. Not too bad considering that many still hold a pessimistic view of the financial sector. According to my math that adds up to $10 billion dollars for ten thousand hard working individuals.
Now let's get to the nitty gritty of our question above. I read an article this year that said that $260 billion dollars in bonuses were disbursed to employees working in the financial sector, i.e; Wall Street. And that at least 10,000 employees received a minimum of $1,000,000.00 in bonus each. Some raw numbers put compensation at the 25 largest firms at a record $135 billion in 2008, according to an analysis by The Wall Street Journal. You are not misreading, these ten thousand employees got one cool million each. Not too bad considering that many still hold a pessimistic view of the financial sector. According to my math that adds up to $10 billion dollars for ten thousand hard working individuals.
The Boiler Room
"There are those that look at things the way they are, and ask why......I dream of things that never were and ask why not?"
Your Ferrari
Margin Call
Myths That Surround Landing a Career in Wall Street:
1. You must be an Ivy League student, preferably a graduate student with exceptional GPA.
2. It is who you know, not what you know.
3. You must be a business student or have an economics degree.
4. The financial markets are in shambles and they are not hiring anyone.
At the moment I cannot think of any other "myth". If you desire to be a stock broker, I assure you that it is a lot of work, but overtime can be very rewarding financially speaking. In fact if you become good, in 5-7 years from today you can be making a seven figure salary, but you have to believe that this is your dream. And you must work hard for it. You need not to know anyone to become a broker, but you have to possess or refine the qualities necessary to do the job. Albeit you have to figure out how will you support yourself the first year of doing this job.
Your French Villa
The first smart move, of course, lies on the fact that you obtain an internship with one of the Wall Street firms, even if you have to pay for it. I advice you to contact any private colleges in New York City and ask them on whether they offer any internships for outside students. Better yet, enroll in college in New York City, and you couldn't be any closer than that to Wall Street. By enrolling in college, either private or public, you will be increasing your chances of acquiring an internship in one of the firms. Granted you are driven by ambition, these schools will even push inside the walls of the global banks.
But if your desire is to become a stock broker, quit college, pack your bags and start contacting firms in New York City or better yet, in the nearest city around you. I assure you that rent will be cheaper in Oklahoma City, and you will still acquire the training and networking needed before you make a leap of faith to the Big Apple. I know several people that started in meaningless jobs as brokers in their local small cities, and because they attained the Series 6,7, and 63, along with some experience and recommendations, they prepared themselves to land a more lucrative career in Wall Street. That career of course included a much higher salary and the promise of promotion for the future. Some saw their salaries triple moving from their small cities to the big apple or even Chicago.
But if you are adventurous enough to pack your bags and move today without much education or background in the industry, you could still break in the financial services. Just be aware that you need at least one to two years of savings to support you in New York while you start making some cash. The bigger firms might require you to have a college degree, but many only ask you to be as aggressive as the guys in the Boiler Room. And you will still need to pass series 7 and 63 exams. Some may provide a small base salary. If you fail to perform, you can be out of the door as quickly, it is a tough business. However, if you apply yourself, you will be collecting your well deserved commissions and bonuses. Smaller firms only provide the commissions. Average hard working stockbrokers for smaller less known firms make from $20,000-$50,000 in commissions a month.
Now some movies that I recommend to watch.
1. In the Pursuit of Happiness.
2. The Boiler Room.
3. Wall Street.
4. Rogue Trader.
5. Margin Call.
If you find no inspiration on any of the movies above, or you rush to construct harsh criticisms towards them, maybe becoming a walking body making $150,000.00 (assume this is the salary you will be paid in the first two years) a year as a junior executive in Wall Street is not the thing for you. And that's perfectly fine, what it matters in the end, is that you do in life what suits you best. Your qualities define who you are. By no means, money does not make you a better human being, just one who can afford more meaningless things.
It is up to you to find out what you want to be in Wall Street, here are some ideas:
Financial Analyst
Financial Adviser
Bond/Stocks/Futures Trader
Economist
Stock-Broker
Insurance Agent
Information Technology Guru
Hedge Fund Owner
Investment Banker
I suggest that you read the biographies of some of the big shots. Learn about their pasts, their struggles and challenges that they were faced with as they began their careers in the financial services. Many of them are still actively involved and had little formal education. On the other extreme, some came from wealthy families and managed to get even wealthier.
For instance, Jim Cramer often claims that he was homeless, and that he lived in a car somewhere in California before hitting the jackpot to fame and glory in Wall Street. Richard Fuld, Lehman Brothers' CEO, also had a rocky start. Fuld graduated from law school and end it up driving a cab for almost a year to be able to support himself and pay off his student loans. We are not here to judge the outcome of their present lives regarding stellar integrity or what not. We are to learn from their lives on a positive light. Bernie Madoff became quite successful before turning into a bad apple, the problem was not being unethical. His problem was getting caught before finding a viable solution. But he came from a hard working Jewish family. So basically anything is possible.
Above all things, keep a positive outlook in life, believe in you, and if your dream is to end in Wall Street and if your education barely made you finish high school, don't sweat it. You can start as a stock broker, there you will network and meet lots of people, you'll be surprised how many people is willing to give you a hand. You can start looking for a stock broker sponsorship for the series 7 exam right in your town. Go to the Schwabb, Fidelity, Ameritrade, or Scottrade offices and ask how can you volunteer and learn more about becoming a stock broker. Remember to smile and give a firm handshake to anyone you meet.
Envision a life of possibilities, read books, write goals and a dream list of the things that you desire in life. Be grateful for who you are, and ask for support from relatives, friends or neighbors. And if you chose to, lean upon a Supreme Being to comfort your soul.
Phrases that make you sound smart in the financial markets:
1. "It's not a stock market. It's a market of stocks."
2. "We're constructive on the market."
3. "Stocks are down on 'profit taking''
4. "Stocks are up on 'bargain hunting''
5. "More buyers than sellers"
6. "There's lots of cash on the sidelines"
7. "We're in a bottoming process."
8. "Overbought"
9. "Oversold"
10. "It's a show-me stock"
11. "Don't catch a falling knife"
12. "You have to wait until you see the whites of the market's eyes"
15. "Take a wait-and-see approach"
16. "The easy money has been made"
17. "I'm cautiously optimistic."
18. "It's a stock-picker's market"
