What it Really Takes to be a Leading Quant?

What does it take to be a leading quant? This question is really focused on the challenges of the technical side of quant finance. Of course you need personal skills to develop a career however this question is more regarding the technical/quantitative side.
Is it a natural gift or can one develop the knowledge? We need to look at actual science for this though. It seems from the psychological research that IQ is something we can't change. HOWEVER, I feel most people don't reach their potential. This is my opinion and not backed by any research that I know of. However I do think you are born with some maximum IQ but it does takes a lot of practice to reach your potential.
Also remember, IQ and intelligence is NOT the end all be all. There are a lot of other jobs, careers, and characteristics that are more important in life.
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[@Marcus001]

I used to have these sorts of intellectual debates with my best friend in HS math classes, I miss that.

[@BbB-vx2ji]

When I was younger, I thought intelligence is the most important thing and I didn’t see the importance of soft skills but now I can see that the iq is the least important factor. Optimal iq for finance jobs would be 115 -125 (sd 15) but people with iq of 110 (sd 15, which is still high enough) + great soft skills would survive better in job world than people with iq above 130 (sd 15) and no soft skill (of course there are people with high iq with great softskills but somehow I havent seen many of them-probably because I have STEM background). Iq is really nothing anyone should ever care unless their iq is lower than 80.

[@constipatedbowels3473]

Doing a PhD in statistics and Operations Research and completing my actuarial papers!!......Hoping to become a quant soon!!....

[@ResilientFighter]

u at USC? you got the coveted phd.

[@constipatedbowels3473]

@@ResilientFighter No,not at USC.....!!!! .

[@Professional-Hater]

Heyy! I'm starting my BS Math and Stats this year and I plan to do a few actuarial papers by my graduation and then MFE, Do you think it's a good idea, Also, how did things work out for you

[@marinecobra]

That was an extremely valuable personal story. Reminds me of iron sharpening iron when passions raised the performance levels

[@Rizzickk]

Great video Dimitri. Thanks!

[@noellezeng]

Your content is very genuine. Thank you for all those tips: they are helpful for us to get a better insight of what is actually a happening in the field.

[@DimitriBianco]

Thank you for the feedback!

[@FranciscoIgnisci]

You are the best Dimitri🙌🙌

[@yilunlu4270]

Good points. I think the side effect of becoming an expert is the overgrown pride and ego which might hold one back. That's why every time I'm in an intellectual debate with others, I always tell myself that what matters is not who's correct, but what is correct.

[@DimitriBianco]

The book, "Black Rednecks and White Liberals" actually tries to address this. I have not read it but it is on my reading list. Here is my affiliate link if you are interested in the book. amzn.to/3t5DvMc

[@t.a.r.9332]

Omg this video is fire 🔥 all ur vids are

[@ResilientFighter]

Dmitri, I share that issue with you in the workplace. i did not know best way to navigate confrontational environment. you are not alone

[@chrisschmidt7947]

Great descriptive commentary. I love mathematics and am just constantly amazed at the linkages and relationships between all the various maths but am also aware I will run out of life before I am able to commit enough knowledge to usable recall. Like the great Clint Eastwood said " A man has to know his limitations". I sure do enjoy listening and watching folks like you that don't have those constraints. 😁

[@sentralorigin]

a PhD program will assist in gauging the potential of your abilities, especially if you choose a good advisor. your advisor will set the bar of your thesis problem and adjust accordingly as you progress. as you push yourself, over the years you'll have a better understanding of the extent of your abilities in addition to where your strengths/weaknesses lie. completing a PhD will also be your final test of perseverance and teach you to not give up at the first sign of an impasse, but also teach you to strategically understand when you cannot pursue an issue further and move on. these skills will come in handy when performing your quant duties at a firm.

[@jonathaneidam2289]

Thanks for such an honest approach 👏

[@DimitriBianco]

My pleasure!

[@MrFrazerz]

This was something I had been fixated on for a very long time. I have a lot I’d like to say about this. I might return to this later because I am quite busy right now.

[@BiancaAguglia]

I like the story you started around 12:40 about yourself, one of your favorite colleagues, and the ways you challenged each other and helped each other grow. In a recent video you said you didn't like people. That made me smile and think to myself that you *did* like people but that the people you liked were relatively rare (e.g. smart, interesting, curious, willing to challenge and to be challenged, etc.). This story confirmed my thoughts. 😊

[@DimitriBianco]

Very true. I might bring him on the channel one day. He's the best credit risk modeler I've met.

[@BiancaAguglia]

@@DimitriBianco I like that idea very much. Thank you.

[@MrFrazerz]

Had listened to this while driving somewhere. Just wanted to say I particularly enjoyed the part where you had said something about the whiteboard being your guys' favorite. lol

[@DimitriBianco]

Thanks! I have been criticized for writing on the board too much lol.

[@manojkumar-go9hx]

Dimitra, can you please consider doing a video on model validation. Request to please cover good books and colleges that cover model validation/development in their programs

[@marcusbirdman]

Second year too doing actuarial science patiently to get to Ms in financial engineering

[@luiscedilllo7831]

Thank you for your videos Dimitri! could you do another book recommendation video?

[@luiscedilllo7831]

I am an first year undergrad in computer science, maybe you could recommend the top topics I should be learning, or a "road map" to be a quant?

[@DimitriBianco]

This video should help: kzbin.info/www/bejne/p6epiq2AbZKtmLM

[@DimitriBianco]

Not much has changed from the 2019 reading list. I might add a few books here and there but the core concepts don't change much. I will consider making one in the future though.

[@4seth]

Why would someone with a Ph.D. use their qualifications as a reason for why they are right about a certain problem? Kind of mindblowing, really.

[@DimitriBianco]

Sadly this happens more than I expected.

[@juntyd]

Hey Dimitry, you’ve always been a critic of online degrees for financial engineering; almost all top schools I checked have included online learning coz of COVID and more than half had already this option slightly preCovid. For your audience, I’d love to know your take on this now. Are these programs now bogus because they are online or should we wait some day till they resume on-site lectures?

[@ResilientFighter]

the top shools just migrated to online, content, professors, and what not are still the same... maybe not networking opportunities. wait until covid is over.

[@johiidk]

Get the European version of a textbook, will save your a lot of time.

[@nischaylando4132]

Hey Dimitri, What is your learning process when going through a textbook to truly master a topic? And what are the steps you take to validate your learning of a topic?

[@ResilientFighter]

try teaching it, that is the ultimate form of showing you have mastered it and understood it

[@liqritrs8391]

What’s your iq, if you don’t mind me asking.

[@kotoriacgll4449]

interested too

[@phen9250]

Do people actually know their IQ?

[@user-ej7ss8ei2g]

Yeah, I may need an MRI or something. I was tested in school as a child and my IQ was 124. I have horrible ADHD and am pretty lazy nowadays. I've forgotten all the math since high school. So I've picked back up and am struggling immensely with basic algebra concepts. Either the test was wrong, though it was legitimate, or IQ is not fixed. Because I refuse to believe that my current IQ is even in the 20s. Online IQ tests (I know) place me from 110 on a bad day to low 120s on average, and yet here I am.

[@DimitriBianco]

Have you read our watched any of Jordan Peterson's content? He talks a lot about getting your life more organized. His self authoring program might be of interest as well.

[@user-ej7ss8ei2g]

@@DimitriBianco I actually have. He does give solid advice, I think I need to just get on medication, but the side effects are detrimental. It's hard to put all of that into practice. Thanks for the content by the way.

[@spinLOL533]

@@user-ej7ss8ei2g take aderrall or modafinil, see a psychiatrist

[@spyrex3988]

genius james bond

[@gguurrpp]

Man, listening to this makes me even more excited to work in an environment like this. I've always been that guy who asks why for everything because I hate just believing stuff without understanding the foundation of it. Love the videos!

[@ashishgangshettiwar5615]

What are the usual cutoffs for IQ scores in finance companies?

[@DimitriBianco]

I've never seen a finance company conduct an IQ score so I couldn't answer that. It would also vary a lot based on department.

[@shukailu6731]

So in summary, to be a leading Quant - welcome challenge on your ideas to be confident in your knowledge?

[@vuminhquanle1426]

The first time I tested my IQ is 89 (below average) because I didn't know how the test will proceed and what factor affect it so I spend almost all of my time on some questions that are more difficult to me than other. I get upset and tried again immediately with different questions and this time I got 128 ~(top 7%). I don't think that my true IQ is higher than average since I have constantly met people at work with really impressive abilities to analyze and solving problems in a short amount of time that surpasses mine whether this is a result of experience or high IQ is hard to distinguish. In my opinion, people who study mathematics and constantly focus on the subject at a young age will develop a certain way of thinking about how to solve the problems, this will give them a head-up at doing tests including IQ compared to others in the circumstance of 2 people having almost the same IQ say 5~10 points. Although there definitely are a lot of people that are smarter than you, my thought is that rather than focus on your IQ, maybe focus more on learning and training to solve problems through a variety of subjects in trying to become a quant.

[@hydarkhoumassi8205]

LOOOL same exact story here. My 1st iq test I ran out of time because I would spend so much time on questions I could not answer, i got a score of 95. 2nd try I got 110. It think many factors come into play with iq tests. Things such as understanding how to answer, mood, environment, concentration etc.

[@MrRazorblade2]

Hello Dimitri, I am about to go into a Statistics Master's and I wanted to ask of your opinion on which topics (general description would suffice) should I focus on so that I can specialize in the field of Economics and Quantitative Finance. I understand about topics related to risk management, but I am interested in what other kind of ideas in Statistics would be directly applied in Economics and Finance. Thank you!

[@ResilientFighter]

from economics the biggest thing i see borrowed is the time series focus, so i would put alot of heavy emphasis on that.

[@kekkekson2484]

proud to be first interested in quant as a young person but cannot watch now will save maga