Ok I just turned 23 and finished a masters in maths. (not quant finance)I'm a quant analyst at a hedge fund and now work on the trading desk alongside 3 trading directors of the fund. I'm involved the algo generation and NOT option pricing (as we dont sell options)I'm not getting any formal training, i.e. class room based or lecture based.I'm doing a lot of reading in my free time but I don't feel I'm learning or pushing myself hard enoughI want to do a PhD but I am not sure which one I should do.I'm confused mainly by the following.1. I should quit work and do a Phd in Mathematical Finance and hope to get a job as a quant at a bigger firm. I will earning more money as a option pricing quant. I won't be involved with the direct trading side of the business. I don' think I would be able to do this part-time as option pricing isn't really related to what I do at work2. I should do a part-time Phd in Maths and Stats while working on the trading desk. I would probably do research something within the stat arbitrage/trading model area. It will be a 5 yr commitment while working. I will be able to overlap the work from my and the PhD.The thing is I don't want to move away from the trading desk now that I'm already on it. I find mathematical finance and instrument pricing really interesting but I'm not too sure whether it will allow to get into the prop trading area. I want to do a PhD because I want to learn more through the lectures at universities as well as my own personal research. I feel I need some class roomAnyway I'd appreciate it if you could tell me which option would be more viable. Cheers in advance

I would forget about the Phd. If you want to learn about trading and markets, you're already in the best possible place, on the trading desk working along side experiencec traders. Most people do the Phd to get the job. You already have the job! I think you need to look beyond what you're being asked to do, find out more about the thought process behind the trades, ask the traders how they formulate their strategies, manage their risk etc.IMO the amount of math you need to succeed in algo\stat arb, let along discretionary trading, is way overestimated. Your masters in math should really suffice, esp. if you're looking to move into trading rather than being a quant.Personally I think you're in a great position. Being 23 and having access to these experienced guys is the best possible career start, you just need to make the most of it.

QuoteOriginally posted by: arsenalboiI want to do a PhD but I am not sure which one I should do.A Ph.D. is more than a super-masters, and it's probably not your best path if you are interested in learning things specific to your career. If you love math for the sake of math, it may be worth considering. The thing about a Ph.D. is that it is a huge commitment in time and effort that in the short run **will** be bad for your career. In the long run (and by long run I mean 10-20 years out) it will likely be a massively positive ROI, but you do have to get through the short term to go to the long term.The acid question is suppose you found out that in exchange for the Ph.D. you would be unemployable in your current field. Would you do it? If you like research for its own sake, then yeah, you might do it. If not, then you need to think hard because you might not make it through the program.QuoteI want to do a PhD because I want to learn more through the lectures at universities as well as my own personal research. I feel I need some class roomThere are other easier ways of getting classroom time, and a Ph.D. is a particularly *bad* way of getting lectures. The thing about Ph.D.'s is that they are research-oriented, so that most programs try to minimize the time you spend in the classroom. After I got my masters, I don't think I ever attended a formal lecture in the Ph.D. program, and you'll be spending practically all of your time in the library doing research on your own for your dissertation.

How much is it that you want the career enhancement of a PhD ?If you just want to be taught more maths, then >2/3 of the effort of the PhD is wasted for you.

Another possibility is to do a part-time masters in financial engineering. It will take less time (2-2.5 years) and you will learn everything you need about options pricing. Some of the best programs like NYU have courses in the evening so that you can work during the day. You should definitely have a look at their websites.

I beg to differ from most people who seem to downplay Phd program. If you are interested in mathematics, then it looks like you might enjoy your part time courses. I would recommend option number (2) because it seems like you need a few years to figure out what you need. If you can do most of the course work required for Phd program part time in 3-4 years. Then you can take a year or two off to finish dissertation. By then, you shall also know if you want to be in research or not. Phd has its importance, especially if you want to write a book, publish papers, teach at university as an associate prof, be a head of research group at some point in time. More important than career options, it will give you a sense of satisfaction and I think that is what you are looking for by going back to school. Going full time is another option but you got to be absolutely sure. You are still young and afford to stay a few years. As other people pointed out, it has a negative NPV (at least in the short run).

Just wanted to say thanks for the advice below.I stayed on and now within my first 6 months I'm managing 3 systematic books worth about $60milCheersSB

QuoteA Ph.D. is more than a super-masters, and it's probably not your best path if you are interested in learning things specific to your career. If you love math for the sake of math, it may be worth considering.Another good thing about being in grad school for long is that you have more time to learn and explore other things. For example here in the US (in a good school)- You can take/audit courses from any dept you like (CSc/Physics/EE/Fin. Engg etc.)- You can attend seminars (2-3 a week in each and every dept) and get to meet some of the experts in the field- You also have access to all the journals, books and computer facilities (just in case you want benchmark your code on the latest Cray XT5)I have an applied mechanics background but have taken all sort of courses (after finishing my core PhD course requirements). Advisors dont usually care about what courses you take as long you do your research.PhD besides a qualification is also an experience.A masters student on the other hand (specially in those 1 year programs) is so busy finishing his core courses, assignments, research requirements and what not that he gets little time for other things. Trust me I still meet people with an MS in applied sciences who cant differentiate between the advective and diffusion terms in the Navier Stokes equation.But then on the other hand a PhD makes little financial sense (specially when your friend who graduated with an MS gets himself a shiny new M3)