Switching from physics to finance

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Discussion Overview

The discussion revolves around transitioning from a background in theoretical physics to a career in quantitative finance. Participants share resources, personal experiences, and recommendations for books and qualifications relevant to this career shift.

Discussion Character

  • Exploratory, Technical explanation, Conceptual clarification

Main Points Raised

  • One participant mentions their background in mathematics, physics, and computer science, and their transition to finance through a post-graduate qualification as an actuary.
  • Another participant emphasizes the importance of understanding derivatives pricing in quantitative finance and recommends John Hull's 'Options Futures and Other Derivatives' as a key resource.
  • A supplementary recommendation is made for Baxter and Rennie's 'Financial Calculus', noted for its mathematical approach and connection to stochastic processes and measure theory.
  • Emmanuel Derman's book, 'My Life as a Quant: Reflections on Physics and Finance', is suggested as a valuable read for insights from a physicist who successfully transitioned to finance.
  • There is a suggestion to explore old posts by a user named TwoFishQuant for additional insights into the transition to a quant role.
  • One participant acknowledges having Hull's book and finds it appealing, despite not being in the finance field.

Areas of Agreement / Disagreement

Participants generally agree on the importance of certain resources for transitioning to quantitative finance, but there is no consensus on the best approach or all necessary qualifications.

Contextual Notes

Some recommendations may depend on individual learning preferences and prior knowledge in finance, mathematics, and physics. The discussion does not resolve the varying degrees of relevance of the suggested resources.

Who May Find This Useful

Individuals with a background in physics or related fields considering a career in quantitative finance, as well as those seeking resources for further study in finance-related topics.

dumbperson
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Hey everyone.

I'm currently doing my Master in Theoretical Physics, because I like to study physics, but I don't want to have a career in physics. Right now I'm looking at a career in (quantitative) finance. I don't have any knowledge of it yet. Does anyone have any tips on making this switch? (Such as recommended books, etc.)

Thanks :)
 
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I studied maths, physics and computer science at uni, then embarked on a career in finance by doing a post-graduate qualification as an actuary.

If you are doing quantitative finance a core part will be understanding derivatives pricing. The 'bible' of the subject is John Hull's 'Options Futures and Other Derivatives', which I would strongly recommend. A good supplement to that, being somewhat more mathematical and relating the stochastic processes being discussed to fundamental results of measure theory, is Baxter and Rennie's 'Financial Calculus'.

Emmanuel Derman, a physicist who switched to finance and succeeded, wrote a book about it 'My Life as a Quant: Reflections on Physics and Finance'. I haven't read it, but I'm told it's quite good
 
You could search for TwoFishQuant's old posts. In some ways they may be a bit outdated now, but they should still give you a lot of flavor for what the switch to a quant involves.
 
I have John Hull's Finance book and it looks very good although Finance is not my area.
 
Thanks for the suggestions everyone. I'll check them out.
 

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