Being a trader sounds like an exciting job that promises a lot of dynamism. Though working in highly active financial markets is by no means an easy job and one has to be highly strategic and proactive for it. Working in Walls street as a trader is a dream come true for many but there is a certain trajectory to getting there.
Traders generally work for an investment management firm, bank or even exchange. Their job entails buying and selling securities as representatives of the assets controlled by their firm. It is on specifications of the portfolio manager at investment firm that they buy and sell securities. They might also be required to manage accounts and form a suitable investment strategy for their clients.
Traders deal in various markets such as stock, derivatives, debt and more but they can also specialise in a certain type of investment. If you are keen to learn to trade and excel your skills then you need to have some essential knowledge and qualification.
- Get a degree
In order to become a successful trader or get hired by reputable financial companies, a degree is essential. You are likely to not get the right job or have a real hard time working if you don’t hold the relevant understanding of math, accounting, finance, banking, economics and business. Those looking to take up this profession must go to business schools and take up a relevant degree.
- Get training at a brokerage firm
Many Wall Street traders streamline their career with this move. Brokerage firms are highly selective about taking in the right candidates and give weight to a good degree. By gaining experience at such places one can get a great insight into the industry and its various financial tools. You will also understand how trade is carried out in such a job.
- Obtain the necessary license
Trading money on behalf of the bank for clients is not an ordinary job. It has certain legalities and terms to it which is why you need to obtain a license before you trade. This pre-requisite is a stipulation that every trader must meet, else they would be breaking security laws. Financial Industry Regulatory Authority (FINRA) is the license in question that one needs to obtain and for that, they need to clear a mandatory test.
- Register yourself
Post getting the license, another essential qualification on the list is being registered with FINRA. This official body that gives license to traders keeps a tab on the financial market and brokers. One can easily search for any professional trader in their record.
- Work on the floor as an analyst
After you have cleared your test, registered with FINRA and obtained your license, you can make a request and asked to be assigned any available trading position. You will work at a junior position as an analyst where you will create trading strategies and direct trade executions.
These are the important stipulation that everyone is required to fulfil before embarking on a career as a trader. Each one is designed to serve a necessary purpose in the finance industry set-up.
