“Don’t fall into the typical just out of college trap, which is that they love to waste time analyzing and hate to pick up the phone and build the relationships that will make them money.”
Well, I can’t say I wasn’t warned! Nonetheless, I still stumbled over what is apparently a very common snare for recent graduates. That above quote came to me via an e-mail, the words of my boss in New York City. He’s a great guy who’s given me a lot of guidance since even before my first day of work last June. And he’s still just an e-mail away when I need some words of wisdom.
In addition to simply being a recent college graduate enamored with analysis, there were several factors that ‘trapped’ me into failing to build trading relationships. If I could reconstruct the advice for a new employee, I think my version would go something like this:
“Don’t fall into the typical ‘just-arrived-in-a-new-city’ trap, which is that you’ll be so preoccupied with weekend trips, after work events and new friends that you'll forget to pick up the phone to build the relationships that will make you money.”
Not only is it more grammatically correct than my boss’s advice, it also addresses key factors that most contributed to my mistakes.
You see, even before I left for London, I could tell I was getting a little stagnant at work. Worrying too much about nighttime plans, busy putting together weekend itineraries or just, perhaps, enjoying life in Hong Kong a bit too much, I saw myself getting off track and knew I had to do something about it. Little did I know that my telephone was the key to success, and that by using it more often I would see immediate results.
But maybe I had to stumble and lose my balance a little. It certainly wasn’t a hard fall, and I can say I had a very pleasant trip! Now I’m refocusing on my job with renewed passion, and (surprise, surprise) enjoying work more and more.
In addition to simply being a recent college graduate enamored with analysis, there were several factors that ‘trapped’ me into failing to build trading relationships. If I could reconstruct the advice for a new employee, I think my version would go something like this:
“Don’t fall into the typical ‘just-arrived-in-a-new-city’ trap, which is that you’ll be so preoccupied with weekend trips, after work events and new friends that you'll forget to pick up the phone to build the relationships that will make you money.”
Not only is it more grammatically correct than my boss’s advice, it also addresses key factors that most contributed to my mistakes.
You see, even before I left for London, I could tell I was getting a little stagnant at work. Worrying too much about nighttime plans, busy putting together weekend itineraries or just, perhaps, enjoying life in Hong Kong a bit too much, I saw myself getting off track and knew I had to do something about it. Little did I know that my telephone was the key to success, and that by using it more often I would see immediate results.
But maybe I had to stumble and lose my balance a little. It certainly wasn’t a hard fall, and I can say I had a very pleasant trip! Now I’m refocusing on my job with renewed passion, and (surprise, surprise) enjoying work more and more.
View of Victoria Harbour from our office in 2ifc
So now that I’m back on track at work, I’m going to attempt to get this blog back on track, as well, since its original purpose has almost completely vanished from my posts.
When I was first asked to maintain this blog, the emphasis was to be on business and starting my new career. However, it quickly turned into a record of my Asian adventures. While I can’t say that’s a bad thing, I want to make sure to keep at least some of the focus on my job out here. Of course, in the future I will continue to chronicle the more interesting aspects of life outside the office. But for now, I’m going to write a bit about my work.
At my desk in the new office, with our city view in the background
The past few weeks I have been cold calling like mad. There have been days when I’ve called 20 or more contacts all over Asia. I’ve been working my way through the countries, starting with Indonesia, then moving onto Malaysia and now focusing on Singapore. Every now and then, I try to find a more exotic number to call, like one in Fiji or Sri Lanka or even Cambodia.
Quite often its fun to make the call, even if that's hard to believe. Other times it’s painfully dreadful. It all depends on who’s on the other side. Sometimes I get lucky and speak with a very friendly and receptive trader. Other times I get a rude jerk who seems very disinterested. But worst of all is when I never actually speak to the proper person at all—getting passed around from one operator to another, to a trader who doesn’t speak English to yet another operator until we somehow arrive at the mutual conclusion that there probably was no hope from the beginning and that the call should have ended before it even started. This happens most often when I call Vietnam.
The best cold calls leave you feeling confident and on top of the world, and the worst ones aren’t really so bad. I mean, in the end it’s only a telephone call. Still, each morning I dread the thought of making that first one. Once the numbers have been dialed and the ringing starts, I am fine for the rest of the day. But I have this strange, unjustified apprehension in picking up the phone that first time each morning. It’s kind of like jumping into a cold sea—once you’re in, it’s fine, but you have to convince yourself to take the plunge. This is something I’m working on, and maybe one day I will succeed in overcoming it!
One of the unexpected joys of cold calling is—believe it or not—being put on hold, as the music rarely fails to put a smile on my face. I have to wonder who makes the executive decision of what song to play for the enjoyment of those on hold at Asian banks. I’ve heard an instrumental version of Let It Be by the Beatles, Mozart’s Eine kleine Nachtmusik played on glockenspiel and even the perennial Christmas tune What Child Is This in the middle of April! Other times I get some tacky jingle with chipper voices singing the name of the bank, or its slogan, in simple harmonies. I never thought I’d say it, but I look forward to being placed on hold every day!
Of course, before I can make a phone call, I need to find people to call. I spend a lot of time trying to find contacts, and there are countless ways to do this. Most often, I use my Bloomberg terminal to find the name of banks and traders in various countries. For example, if I enter the word “trader” in the search box, I get a list of literally hundreds of thousands of traders all over the world, most with contact phone numbers. I can then distill that list by limiting the results to people in the Asia-Pacific region.
Quite often its fun to make the call, even if that's hard to believe. Other times it’s painfully dreadful. It all depends on who’s on the other side. Sometimes I get lucky and speak with a very friendly and receptive trader. Other times I get a rude jerk who seems very disinterested. But worst of all is when I never actually speak to the proper person at all—getting passed around from one operator to another, to a trader who doesn’t speak English to yet another operator until we somehow arrive at the mutual conclusion that there probably was no hope from the beginning and that the call should have ended before it even started. This happens most often when I call Vietnam.
The best cold calls leave you feeling confident and on top of the world, and the worst ones aren’t really so bad. I mean, in the end it’s only a telephone call. Still, each morning I dread the thought of making that first one. Once the numbers have been dialed and the ringing starts, I am fine for the rest of the day. But I have this strange, unjustified apprehension in picking up the phone that first time each morning. It’s kind of like jumping into a cold sea—once you’re in, it’s fine, but you have to convince yourself to take the plunge. This is something I’m working on, and maybe one day I will succeed in overcoming it!
One of the unexpected joys of cold calling is—believe it or not—being put on hold, as the music rarely fails to put a smile on my face. I have to wonder who makes the executive decision of what song to play for the enjoyment of those on hold at Asian banks. I’ve heard an instrumental version of Let It Be by the Beatles, Mozart’s Eine kleine Nachtmusik played on glockenspiel and even the perennial Christmas tune What Child Is This in the middle of April! Other times I get some tacky jingle with chipper voices singing the name of the bank, or its slogan, in simple harmonies. I never thought I’d say it, but I look forward to being placed on hold every day!
Of course, before I can make a phone call, I need to find people to call. I spend a lot of time trying to find contacts, and there are countless ways to do this. Most often, I use my Bloomberg terminal to find the name of banks and traders in various countries. For example, if I enter the word “trader” in the search box, I get a list of literally hundreds of thousands of traders all over the world, most with contact phone numbers. I can then distill that list by limiting the results to people in the Asia-Pacific region.
My Bloomberg screens, which, among other things, help me find contacts throughout Asia.
Even more specifically, I can narrow the list to people working in Hong Kong, or the Philippines or South Korea. If I have a more specific contact in mind, I can search for the name of a particular bank and then view the names and phone numbers of its employees. Each person has a Bloomberg profile, and if it seems promising, I will print it out and add it to my growing stack of future cold calls
Sometimes just walking down the street I see an ATM or branch of a bank I haven’t heard of, and by searching for that bank, I can find other names. This was the case when I went to Kuala Lumpur a few weekends ago. As I walked around town I saw scores of unfamiliar banks and noted the names. The next week at work, I searched for contacts at those banks, several of which lead to successful calls.
I can even use Facebook to help me find contacts. Since traders are friends with other traders, if I can get onto the page of a potential cold call, I can also view his or her friends. I can then search for them on Bloomberg to find out whether they are an appropriate contact to pursue.
I have a little speech written out and in the beginning I kept it open on my screen during every call. It isn’t really good to ‘recite’ my information lecture-style, so I have to make it sound more spontaneous. Still, there is information I need to include, so it’s never a bad idea to have that document nearby when I make a phone call. I pick a profile out of the collection, make sure there’s a smile on my face and then dial away.
As the call proceeds I make little notes on the page, writing down names, pronunciations, other phone numbers, e-mail addresses and types of securities traded. During the call, I also try to send the person a quick Bloomberg message, because seeing the message come through while on the phone with me is a good way to ensure they will remember me. And when the call is over, I write a few lines at the bottom of the page detailing the call, the next steps to take and anything else that is necessary.
The notes at the bottom help me when I go through the pile later on. Usually it simply has the date I called, the name of the person with whom I spoke and how receptive that person was, along with an indication that I sent over our company profile and financial data or added the person to my price distribution list that gets sent out to all of my customers.
The notes make it easier for me to remember the conversation I initially had, and sometimes provide an unintended laugh as I re-read what I wrote. One of my first calls to a bank in Indonesia resulted in the following note: “Called on 11/19… nobody seems to know what’s going on…” Last week, I wrote that a contact at one bank in Malaysia “will not be trading USD debt for a couple of years so call back in May 2012…”
Sometimes just walking down the street I see an ATM or branch of a bank I haven’t heard of, and by searching for that bank, I can find other names. This was the case when I went to Kuala Lumpur a few weekends ago. As I walked around town I saw scores of unfamiliar banks and noted the names. The next week at work, I searched for contacts at those banks, several of which lead to successful calls.
I can even use Facebook to help me find contacts. Since traders are friends with other traders, if I can get onto the page of a potential cold call, I can also view his or her friends. I can then search for them on Bloomberg to find out whether they are an appropriate contact to pursue.
I have a little speech written out and in the beginning I kept it open on my screen during every call. It isn’t really good to ‘recite’ my information lecture-style, so I have to make it sound more spontaneous. Still, there is information I need to include, so it’s never a bad idea to have that document nearby when I make a phone call. I pick a profile out of the collection, make sure there’s a smile on my face and then dial away.
As the call proceeds I make little notes on the page, writing down names, pronunciations, other phone numbers, e-mail addresses and types of securities traded. During the call, I also try to send the person a quick Bloomberg message, because seeing the message come through while on the phone with me is a good way to ensure they will remember me. And when the call is over, I write a few lines at the bottom of the page detailing the call, the next steps to take and anything else that is necessary.
The notes at the bottom help me when I go through the pile later on. Usually it simply has the date I called, the name of the person with whom I spoke and how receptive that person was, along with an indication that I sent over our company profile and financial data or added the person to my price distribution list that gets sent out to all of my customers.
The notes make it easier for me to remember the conversation I initially had, and sometimes provide an unintended laugh as I re-read what I wrote. One of my first calls to a bank in Indonesia resulted in the following note: “Called on 11/19… nobody seems to know what’s going on…” Last week, I wrote that a contact at one bank in Malaysia “will not be trading USD debt for a couple of years so call back in May 2012…”
The city view from the other side of the office
As an inter-dealer broker in the emerging Asian credit markets, there is a ton of business to be done. But, as my boss implied with his quote, it’s strongly based on the relationships you can make with traders. So while I’ll continue to make the calls to new accounts, I can’t forget to keep in touch with the accounts I’ve already called. Hopefully many of these relationships will start to grow.
The way a broker like me makes money is quite simple. I have to put together trades between buyers and sellers. In the morning, Trader A calls me and says he wants to sell a certain security, say the Indonesian government bond maturing in 2015, at a certain price, say $114.00.
I then use Bloomberg and the telephone to contact other traders and hope to find one who’s interested in buying that same bond. When I find one, he will tell me how much he is willing to pay, in this case let’s say $113.00.
Now that I have two interested parties, I have to keep going back to each of them, as the seller lowers his offer and the buyer raises his bid. Hopefully this continues until a price is agreed upon, such as $113.50. For each bond traded, I would make a commission. Considering millions of bonds can trade each time, working hard to put together the trade can really be worth the effort.
However, if a price is not agreed upon (say the seller will not sell for less than $113.75 and the buyer will not pay more than $113.25), I will try to make more phone calls and find another interested buyer or seller who can step in and get a trade done.
At the end of the month, my commissions are totaled and I get half, with the company taking the other half. In this respect there is no limit to how much money one can earn in a month. Realistically, getting started takes time, so I am fortunate to have a safety net base salary. It’s the best of both worlds: there is no limit to how much I can make, but I am guaranteed a minimum amount regardless.
As I said, now that I’m back on track again, I’m really enjoying work. While I’ve always liked the job, these past few weeks have been even more rewarding, interesting and satisfying than ever before—proof positive that I’ve found my way back to the right path. It's hard to believe it's been almost a full year since starting this job, and almost six full months since I arrived in Hong Kong. It's been a wonderful and exciting journey, and it's still only the beginning!
Now that I have two interested parties, I have to keep going back to each of them, as the seller lowers his offer and the buyer raises his bid. Hopefully this continues until a price is agreed upon, such as $113.50. For each bond traded, I would make a commission. Considering millions of bonds can trade each time, working hard to put together the trade can really be worth the effort.
However, if a price is not agreed upon (say the seller will not sell for less than $113.75 and the buyer will not pay more than $113.25), I will try to make more phone calls and find another interested buyer or seller who can step in and get a trade done.
At the end of the month, my commissions are totaled and I get half, with the company taking the other half. In this respect there is no limit to how much money one can earn in a month. Realistically, getting started takes time, so I am fortunate to have a safety net base salary. It’s the best of both worlds: there is no limit to how much I can make, but I am guaranteed a minimum amount regardless.
As I said, now that I’m back on track again, I’m really enjoying work. While I’ve always liked the job, these past few weeks have been even more rewarding, interesting and satisfying than ever before—proof positive that I’ve found my way back to the right path. It's hard to believe it's been almost a full year since starting this job, and almost six full months since I arrived in Hong Kong. It's been a wonderful and exciting journey, and it's still only the beginning!
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