Sales traders act as intermediaries between a client and the market, investing their clients’ money. They talk to clients directly, advising them on the market and investment opportunities. The main difference is that sales traders only invest where instructed by their clients, so the trader is not taking a risk with the investment. Some traders will specialise in a particular product or market area. [1] X Research source You could also work independently as a day trader if you had enough capital.
Traders will need exceptional analytical skills and an aptitude for working with large amounts of quantitative data. Traders will also need softer skills, such as the ability to communicate well with clients and provide detailed advice on market movements and opportunities. [2] X Research source You must be able to work well in a team, but take responsibility for yourself. [3] X Research source Traders must have a keen interest in the workings of the market and be able to learn quickly. Traders need very strong personal discipline and motivation. You will have to make split second decisions without emotion, based on your analysis. [4] X Research source
You will look for mispriced assets or other opportunities. You will work to keep people informed and up-to-date on relevant events and prospects in the markets, liaising closely with clients and colleagues and building strong working relationships. You will make numerous trades, acting quickly to respond to the shifting financial landscape. You may seek to gain new clients and present opportunities to them. [5] X Research source
Economics. Mathematics. Finance. Accountancy. Sciences. [6] X Research source
Many financial institutions will run schemes, so it is often best to contact one directly to inquire about the possibilities. You can also ask your professors, who may have a contact or a recommendation for you. There are also a number of websites that list internship opportunities online that you can search through.
But employers will also want people who have strong interpersonal and communication skills. You should try to demonstrate strong mental and physical stamina, and a preparedness to work exceptionally hard. [8] X Research source
Ask around friends and family to see if there is someone you know working in trading. Stay persistent throughout. It is a difficult industry to break into so you will need to prepare for a long struggle, and not be put off by some setbacks. [9] X Research source
You will take the necessary qualifications as part of your graduate position. Usually the company will pay for your examinations, but you will have to commit a lot of spare time to studying and preparing. This may include attending lectures, seminars and conferences. You will also be expected to pick up the more practical everyday skills by shadowing a more senior colleague. [11] X Research source
You will need to have completed all your exams and be fully certified before you can trade. After a few successful years you can expect to move up to an associate position. The next step up to executive level is much rarer and harder to achieve. [12] X Research source
This is a job that requires professional training and extensive knowledge. You will also need sufficient hardware and software to create your own trading desk. You should be realistic about the profits you want to make, and don’t take it lightly.
Understanding the markets is essential to any trader. You need to have an in-depth knowledge of the functioning of the market, including all the terminology. You need to learn about the different securities, stocks, bonds and assets that you are interested in trading in.
You can register online for the exam. The exam consists of 100 multiple-choice questions, and takes approximately two and a half hours to complete. [15] X Research source
One guide estimates that someone wanting to work full time as a day trader will need around $100,000 to get started. [16] X Research source Remember that every trade is a risk, and once you start trading you need to be managing those risks.
Markets can be highly volatile. A clear plan is vital, but so is the ability to read situations and adapt to circumstances quickly. If a strategy stops working, you need to be ready to adapt it or drop it. Having multiple strategies that you can use support each other is helpful. [17] X Research source
You will need some designated personal space to pursue market trading. If this space is in your home, you may be able to use it as a tax-deductible expense. You will need the relevant software and a high-tech computer to monitor and track the markets and make quick trades.
