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Engineers make the best Share Traders?

Discussion in 'Living Room' started by MTR, 20th May, 2016.

  1. MTR

    MTR Well-Known Member Premium Member

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    Anyone heard this before? I have many times, apparently something to do with their mathematics background?? ... true or false.

    I only have 2 examples of this, good and bad.

    My g/friend's husband is a full time share trader and ex Engineer in his past life, he has been highly successful, they pretty much travel the world while trading.
    He also uses sophisticated packages to monitor trades, trends etc. l

    My brother an electronics engineer, no success when he got into share trading, lost money and gave it away.... perhaps its a load of BS.... I don't know??


    MTR:)
     
  2. Hodor

    Hodor Well-Known Member

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    50% success rate is higher than general population of traders. Not sure if your sample size is classed statistically significant.
     
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  3. EN710

    EN710 Well-Known Member

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    Hahaha sounds anecdotal?

    My only thoughts about engineer makes better trader is that they are usually very process oriented, logical people with affinity towards risk management.
     
    Last edited: 20th May, 2016
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  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    If this were true, wouldn't there be no engineers left? I hear successful trading pays better.

    ;)
     
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  5. Blueskies

    Blueskies Well-Known Member

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    There have been studies that people with higher testosterone levels get better trading returns. Greater risk taking, decisiveness etc.

    Drinking increases testosterone and most engineers I know enjoy a drink or ten, coincidence? ;)
     
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  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    People can become good at share trading with persistance. The best ones I know are the ones that have developed their own unique strategies along the way.

    @barnes is a futures trader, maybe he can offer some insight on personality types that work.
    Barnes is generally a contrarian and very lateral in his thinking. - From what I can tell :)
     
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  7. barnes

    barnes Well-Known Member

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    I'm a spot forex trader with a builders background (not engineers). :) I don't think that engineers are better. I know a lot of successful traders, none of them have an engineer background, but about 50% are good poker players.
    Even though I'm a contrarian, I found that the best money is made using trend following strategies shorting.
     
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  8. barnes

    barnes Well-Known Member

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    :)
     
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  9. MTR

    MTR Well-Known Member Premium Member

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    I think engineers are too conservative to leave, don't take risks....most would never their day job...lol
     
  10. spludgey

    spludgey Well-Known Member

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    I've only ever invested $13k in shares, finally cashed it all out for $5k. So no, not all engineers make good share traders!
     
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  11. MTR

    MTR Well-Known Member Premium Member

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    any successful share traders on PC?
     
  12. norwoodman

    norwoodman Well-Known Member

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    I am an engineer, and I will declare that I definitely do not agree with this statement!
     
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  13. wogitalia

    wogitalia Well-Known Member

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    It fundamentally makes sense...

    1. Engineers make great coin, the first step to successful share trading is having the capital to generate returns to make the entire venture worthwhile. People with Arts degrees may very well be better as a whole but when you don't have two coins to rub together you can't actually do it so we'll never know!

    2. To become an engineer you have to understand the mathematics on which any technical analysis is based, you understand reading and producing graphs and the fundamental idea of risk minimisation, it's basically the job. This maths grounding also makes them very formulaic in their processes.

    3. Engineers are inherently smart people. This helps, it's not an easy degree and will weed out most of the "trying really hard but not very smart types" pretty damn quickly.

    4. Most engineers have a solid commerce foundation as well, iirc Engineers at UWA were required to do 4 commerce units as part of the degree and I imagine it's similar around the world, this fundamental understanding gives them the added bonus of having a basic understanding of fundamental analysis to back up the technical analysis side of the equation.

    Combine all of those and I'm sure a few other factors and it makes sense. I dare say they're in a better position to go into it than those with genuine commerce backgrounds (who are more likely to go in thinking they know everything already and no put in the requisite learning compared to an engineer who knows enough to know what to learn but not enough to not have to learn it). I dare say that maths and IT graduates would also be near the top. Most other degrees are going to be coming from a lot further back and thus unlikely to make it to the table in the first place, lot easier to learn trading if you don't have to learn the math and language behind it first.
     
  14. Player

    Player Well-Known Member

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    Actually everything I've read suggests that the gender with more oestrogen excels at trading. So female engineers are laughing. :D
     
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  15. Blueskies

    Blueskies Well-Known Member

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  16. Player

    Player Well-Known Member

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    I'm on my phone and away from home so find it hard to link alternatives , however I've never heard it contended that the will to take risk enhances results; usually it's the opposite. I cant search and link any double blinded randomised controlled trials to support or reject your link on my phone however would expect a paucity of evidence. As a bloke I reckon my wife and my 15 year old daughter would be far more clinical than me in executing buying and selling according to a trading plan and quantitative analysis :p
     
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  17. MTR

    MTR Well-Known Member Premium Member

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    but do engineers make the best traders ?
     
  18. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I think we need Maths/Statistics skills, Strategy skills and Self-control.
    So given everything else is same, Engineers (or similar) might be better than others.
     
  19. Azazel

    Azazel Well-Known Member

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    Hmm, mathematics.
    Maybe they meant software engineers.
     
  20. MTR

    MTR Well-Known Member Premium Member

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    Don't know? seems like its BS anyway, no truth behind this whatsoever, why am I surprised:)