Career in Trading

[vishalpisal 10]

What qualification is required to get a job of trader? & How many types of trader are there?

[Obsidian 10]

What qualification is required to get a job of trader? & How many types of trader are there?

 

being a successful one (i.e. a solid trading record) would be preferred I guess

[wrbtrader 10]

What qualification is required to get a job of trader? & How many types of trader are there?

 

Corporate trader (e.g. an institutional trader for a bank, hedge fund, private trust) and the qualifications should be obvious. These folks are often refer to as "professional traders".

 

Retail trader (e.g. home base) and the qualification is having enough money to open a trading account. Also, possible license needed when trading for others.

 

Proprietary Firm trader and the qualification can easily be looked up via google search or similar. Yet, there's a quick list @ http://www.tradersnarrative.com/list-of-proprietary-trading-firms-735.html

[SIUYA 11]

Corporate trader (e.g. an institutional trader for a bank, hedge fund, private trust) and the qualifications should be obvious. These folks are often refer to as "professional traders".

 

 

a good description from wrb.....you could also further divide up what people often refer to as traders within the corporate world as well. (in a general sense)

 

Operators - those that execute the orders of others

Prop traders - those that trade basically as speculators

Fund managers - those that trade a portfolio of instruments usually under a mandate for clients eg; Asian focused equities

Arbitragers and market makers - looking for mathematical edges and spreading trades taking small edges to set clients - often combining speculative trading as well

 

As for qualifications - these days who knows -- most likely some computer science and mathematics to get a foot in the door, even then you are likely to start as a junior and just get lucky to move up.

 

Retail the only qualification you need is a bank account

[xioxxio 10]

a good description from wrb.....you could also further divide up what people often refer to as traders within the corporate world as well. (in a general sense)

 

Operators - those that execute the orders of others

Prop traders - those that trade basically as speculators

Fund managers - those that trade a portfolio of instruments usually under a mandate for clients eg; Asian focused equities

Arbitragers and market makers - looking for mathematical edges and spreading trades taking small edges to set clients - often combining speculative trading as well

 

As for qualifications - these days who knows -- most likely some computer science and mathematics to get a foot in the door, even then you are likely to start as a junior and just get lucky to move up.

 

Retail the only qualification you need is a bank account

 

I can expand a bit. Operators are the gimps on the desk. They are managed by the sales traders. Back in the old days the operators were allowed to run books (take risk) in the sectors they covered. Now they are just keyboard monkeys.

 

There are some banks that do let operators run books, but very few and positions sizes are tiny

[SIUYA 11]

xioxxio - 100%.

Most brokers/operators/sales traders say they are trading, when in fact they are doing something differently.

There are very very few people who actively speculate as a trader as we know it. The banks are still slightly smart enough to know its a tough game - they would rather have "gimps" than traders.

[Jack Francisco 10]

What qualification is required to get a job of trader? & How many types of trader are there?

:helloooo:

 

Simple- If you have a good grade in mathematics and a excellent background in finance.

If you have this- you can be a trader

[henryduncan12 10]

I think, qualification may vary country to country. However, if you have degree or certificate in trading or finance then you can get trading job easily.

[MToma 10]

Great question. I think some of the replies are focusing on educational backgrounds and experience. Albeit helpful, particularly in corporate venues such as a hedge fund where they primarily seek experience and a solid track record before even engaging in an interview.

I'll answer this with two characteristics I seek when interviewing hedge fund candidates. I am primarily looking for discipline and ability to protect losses. In other words, not get upset over bad trades, bad days or even weeks. It ones ability to stick to a plan religiously with complete compliance. If you can do that and maintain the discipline to enter when your plan says so and exit as well, you should have a great future ahead of you.

 

Michael Toma

Risk Manager

Pelagon Capital Group

[xioxxio 10]

Great question. I think some of the replies are focusing on educational backgrounds and experience. Albeit helpful, particularly in corporate venues such as a hedge fund where they primarily seek experience and a solid track record before even engaging in an interview.

I'll answer this with two characteristics I seek when interviewing hedge fund candidates. I am primarily looking for discipline and ability to protect losses. In other words, not get upset over bad trades, bad days or even weeks. It ones ability to stick to a plan religiously with complete compliance. If you can do that and maintain the discipline to enter when your plan says so and exit as well, you should have a great future ahead of you.

 

Michael Toma

Risk Manager

Pelagon Capital Group

 

 

You are referring to trading psychology. To get jobs at IB these days has more to do with who you and not what you know. In bull markets, what you know is helpful . Good grades and good school is a given. Interview skills are the most important. I have interviewed many junior traders and market knowledge is not necessary since I consider that to be on the job training.

 

Senior traders are all about track record.