Summary
Trader roles
Information
The trader buys and sells on the financial markets shares and bonds, derivative products… In front of him, in the trading room, there are screens which deliver world news, almost simultaneously. The trader must sort out what interests him between company results and national statistics. This essential step occupies almost 50% of his work time.
Intuition
An important step in his activity, which takes up almost all his time: market observation. This time, he personally interprets the information, observing:
- the prices ;
- their movement;
- the liquidity of the order book…
Technical
The last part of the trader’s job is to quote the clients.
Trader’s working conditions
Pressure
The trader is constantly trading. He does this either on behalf of an employer (bank or brokerage firm), or on his own behalf.
Adequate equipment
The trader is necessarily equipped with sharp and fast IT devices:
- phone ;
- fax;
- computer ;
- special computer system…
How much does a trader earn?
The trader is subject to a so-called variable remuneration. But he generally earns a very good living: a junior earns between €2,000 and €5,800 per month, with bonuses linked to results.
What training to become a trader?
Experiences
To become a trader, you obviously have to be good at math. It is also necessary to have experience in the banking sector, and to speak at least one foreign language, in particular business English.
The diplomas
Doing a business or management school is appreciated.
The trader may also have completed a 3rd university cycle: in finance, management, law or economics. Here are some examples of possible masters:
- master’s degree in banking, finance, insurance, specializing in asset management, risk control and compliance;
- master’s degree in finance, specializing in corporate and market finance;
- master’s degree in international economic and financial strategies, specializing in banking and international finance;
- master’s degree in economics, specializing in markets and financial intermediaries.
Qualifications needed to become a trader
A stressful job
The trader must buy and then sell, taking into account price deviations. This therefore requires constant reactivity: he must decide, in real time, whether to buy or sell:
- shares;
- currencies;
- bonds;
- or options.
Moreover, the sums he commits are enormous and the losses can be substantial.
Have a sharp mind
A good trader must exercise intuition. He must also be focused, able to react very quickly and make the right decisions quickly.
To be responsible
The trader must be aware of the importance of the sums he bets. He knows how to take risks. He must also accept failures. It is possible, and even common, that he loses what he has bet… these are the rules of the game.
Content updated on 05/30/2012