What is a trader?
ONE traders is a key player in financial markets which is responsible for buying and selling assets on behalf of its customers in a financial institution.
Trading professionals can too work for one’s own and adopt different strategies to make your personal portfolio : scalpers, day trading, swing tradingetc.
THAT trader’s job is very diverse and can specialize in different areas such as trade currencies (forex)tradeactionstrading raw materialof cryptocurrenciesand many others.
What are the missions and tasks of a trader?
A trader has several assignmentsamong:
- The analysis of financial markets and Forecast of their movements
- Purchase and sales financial assets
- There Risk management and ensures that the positions taken do not expose the company or oneself to too much risk
- The follow-up of developments in the financial markets and economic news
- The development of trading strategies
What skills are required to become a trader?
To become a trader, some skills (hard skills and soft skills) are strongly recommended or even mandatory. Among these skills you must have:
- A solid one understanding of financial markets and off the economy.
- Skills in quantitative analysis And qualitative.
- The ability to take quick decisions And under pressure.
- A good mastery of IT tools and software of trade.
- The ability to handle risk and put emotions aside.
Being a trader is complex and varied. There are different types of dealers, i.a retailers (independent) and institutional traders (who work for investment banks or hedge funds).
What is the salary for traders?
THAT pay merchants are very variable and is dependent on experienceof profileof specialization and off the company for which the trader works.
At the beginning of a career, a trader’s salary is generally in between €4,000 and €6,000 per monthor in between €48,000 and €70,000 gross per year excluding bonuses.
IN Franceearns a trader average €70,000 excluding bonus. Bonuses can sometimes reach up to 8 times the basic salary.
Asgain experience and skills, a trader can specialize in managing stocks, treasuries, currencies, commodities or energy.
It can also develop intoother financial professions as Financial analyst, portfolio manager Or company treasurer.
Which course to become a trader?
Becoming a professional trader is a goal that requires a learning especially stringsa passion for the financial markets and a in-depth understanding of economics and mathematics.
There is also the possibility oflearn trade itself, but it also doesn’t allow you to run a hedge fund.
Here is an overview of the education and skills needed to become a trader:
Academic business education
there is no academic background unique to become a trader. On the other hand, some disciplines are more commonly studied of those who aspire to this profession:
- Finance : A background in finance provides an in-depth understanding of financial markets, risk management and financial analysis
- Economy : Studies in economics provide an understanding of the forces that affect markets and economies on a global scale
- Mathematics : Traders often need to analyze complex data and use mathematical models to make certain investment decisions
It is also possible to follow one legal educationespecially to UNITED STATES and in Englandto move towards one trading career.
To become an entrepreneur full-time in an institution, it is strongly recommended to have a high level of education, usually a Bac +5.
Here are some possible workouts to achieve this:
- Business school exam or of management with specialization in economics
- Diploma from the Department of Political Studies (IEP) specialize in finance
- Engineering school exam with additional training in finance
- Professional masters within the areas banking, finance, management, mathematics, statistics, law Or economy
E.g master MBFA – foreign exchange, banking, finance, insurance, finance and banking techniques
- Specialized Master (MS) in Finance (ESCP Business School) or MS expert in banking And financial engineering (Toulouse Business School)
Paris Dauphine-PSL University also offers one Masters in Finance with a specialization in financial markets which provides a comprehensive program in financial markets and risk management.
Besides that, it is also possible to learn to trade for free through many resources available online. Alone, they won’t make you one professional traderbut these resources will greatly help to get started And to improve.
Skills are required to be a trader
In these education we teach certain specific skills that are sought after by traders. From most desired skillswe find :
- Programming : Knowledge of a programming language such as Python can be a great asset. This makes it possible to program trading algorithms and perform strategy backtests
- Risk management: The ability to effectively manage risk is essential for any trader. This involves understanding how to diversify investments and how to minimize potential losses
- Technical analysis And fundamental analysis : Both of these types of analysis are essential to understanding market movements and making the best possible investment decisions.
The skills required to become a trader are therefore numerous, ranging from knowledge of the financial markets to mastery of technical and fundamental analysisthrough good management of risks and emotions.
Besides the academic educationPractical experience is essential to becoming a trader.
Internship in investment banks, i hedge funds or in other financial institutions can provide valuable experience and develop a professional network.
These internships can also lead to offers offull time job.
Additional tips for becoming a trader
Here are some tips for those who want to become traders:
- Be passionate: Hedge funds and other financial institutions are looking for traders who are passionate about their work and have a deep interest in the financial markets.
- Develop your own trading strategy: Having a unique and effective trading strategy can set you apart from other candidates.
- Never lie on your CV: It is important to be honest about your skills and experience. Financial institutions can easily verify the information you provide.
Becoming a trader requires a combination of academic educationofpractical experience and off specific skills. It is a demanding course, but with the right preparationit can lead to a rewarding and challenging career.
Build your experience and network
I’experience and network are two key elements to succeed as a trader. It makes sense to develop yours personal experiencefor example by acting on demo accountsand build its history.
That too network is significant within finance. It allows you to draw attention to yourself and discover career opportunities in investment banks and hedge funds.
Finally about business studies
Becoming a trader is one demanding course which requires one solid traininga good knowledge of financial marketsa management strings risks and a good mastery of emotions.
However, with determinationof passion and a good one preparationis it possible to succeed in this exciting profession.
If you do not want to start academic studies to become a trader, it is possible to be trained in commerce to build a good foundation.