How to Begin a Career in Trading
Do you thrive in thrilling and dynamic environments? A career in trading on the London Stock Exchange or Wall Street could be for you! In order to start your career in trading, you will need to understand the nitty-gritty involved in buying and selling goods to earn money. You may want to become a full-time professional trader, or trade in your free time.
What Qualifications Do You Need to Begin a Career in Trading?
A finance or accounts degree is a smart step to start your trading career. Next, try to identify the right field for you within the financial sector, whether that’s day trading, investment banking or asset management.
Additional certifications in Forex trading, institutional trading or CISI & CPD will further your professional credentials and knowledge of the stock market.
Completing work experience or internship with an investment bank will also give you an edge in this competitive industry.
As a Beginner, Where Should I Start in Trading?
While it is not essential to have a degree to trade stocks, it will make you a competitive candidate if applying for a job at a major financial institution. A diploma or degree in economics, mathematics, finance or accounting will prove valuable.
In the UK, traders need to pass a number of exams and register with the Financial Conduct Authority before they can commence trading.
Trading involves developing a trading strategy based upon scientific methods and extensive research to predict the behaviour of the financial market.
Skill Set Required for a Career in Trading
Exceptional analytical skills
Confidence working with quantitative data or a large amount of money
Strong communication skills
Keen interest in the workings of the market
Strong personal discipline and motivation
Physical and mental stamina
What Does a Trader Do?
Trading can involve earning money for yourself, as well as providing services to consumers. Trading is an important part of the global economy by creating liquidity in financial markets, and is the main source of profit for investment banks, hedge funds and commodity companies.
Using their analytical skills and financial knowledge, traders survey the financial market and make predictions. They will then need to make prompt decisions on when to buy and sell, with the aim of making as much money as possible for the client while reducing financial risk.
There are three main ways trading can be done:
Typical Duties for a Trader
Popular Career Pathways for Traders
You may start off as a graduate trainee or entry-level trader. After gaining experience, you can become an associate, then a senior associate, and finally at a director-level. Because trading is of international significance, you may come across opportunities to work abroad.
Other opportunities as a financial analyst, day trader or risk management consultant could also be for you.