Ernest Chan is a quantitative trader based in Manhattan as well as an expert in the development of statistical models and software for trading stocks and futures. With more than a decade of professional experience, Chan has worked at various well-known investment banks and hedge funds, including Morgan Stanley and Millennium Partners. He currently works as a quantitative strategist at his own consulting practice, E. P. Chan & Associates, which provides services for companies and individuals interested in automated, quantitative investment strategies. Chan added author to his list of many achievements in 2008, when his book "Quantitative Trading: How to Build Your Own Algorithmic Trading Business" was published by John Wiley & Sons. As an accomplished writer, he also maintains a blog, Quantitative Trading, where he shares his ideas on quantitative trading and investing, as well as research and analysis.

Why did you decide to pursue this career field?
I chose this field because I wanted to live in Manhattan, and with my background as a physicist/computer scientist, the only field that would enable me to earn a decent living in Manhattan is quantitative finance.

What type of preparation did you do to get into this field?
I have a Ph.D. in physics from Cornell University and three years of postdoctoral research experience at IBM's Watson lab.

What types of classes and projects did you have to do?
The statistical physics and computational physics classes were the most important to my career. And the thesis I wrote for my Ph.D. was a worthwhile research experience too.

How did your education help you in your career?
Without a Ph.D. in physics, it is much harder to be hired by the top-tier investment banks' quantitative trading groups.

What was your career path like in this field?
My career path led me through a few different companies doing work in different fields. Eventually, I settled down in independent quantitative trading as I found the field to be the most suitable for my temperament and experience.

What types of skills is someone required to have to work in your position?
To work in my position, someone needs an equal measure of programming and financial knowledge.

What do you do on a typical workday?
I begin working at 7 a.m. to start the trading programs for the day. I then spend the day conducting research on my computer, as actual trading is done by the computers.

Do you plan to advance to another position within your career field?
Until recently, I ran a hedge fund with a partner in Chicago. Even though we closed it despite reasonable profitability, I would like to advance by managing assets for others again soon.

What type of person do you think is best suited for a job in your field?
The type of person for this job is someone with great interest in finance who is also a good programmer.

Do you have any advice for those who are looking to launch a career in your field?
Read every book, blog and magazine you can find on the topic, and brush up on your programming skills.