The Basic Of A Career In Trading
If you desire to pursue a career in trading, then this article will provide you with some of the basic knowledge you need to have.
Trading is a generic term that refers to the process of buying and selling goods for the sole purpose of making a profit.
A trader is an individual who performs the trading process. In finance, trading involves buying and selling stocks, derivatives, commodities, bonds and other financial securities.
Because of the volatility and flexibility of financial markets, a trader can make huge profit or loss on a trade.
If you want to become a trader and work for a broker-dealer, you will need to acquire some qualifications and licences.
In most cases, you will need to pass an ApEx and Series 7 exams before you can be employed as a trader.
However, if you intend to trade for yourself, you may not need to obtain a licence, but you will be required to provide proper documentation.
One essential quality to have as a trader is self-control. Many huge losses recorded in trading are associated with greed and lack of self-control.
Careers in trading
There are several careers available in trading, and one of them is Equity Trading. Equity Traders trade majorly on stocks and shares that are publicly listed.
Equity traders are concerned with long-term profits, so it is not a great choice if you prefer short-term gains. Equity trading is considered as the least risky form of trading.
Apart from this, you can choose to become a fixed income trader where you can trade on fixed income assets and government securities.
Fixed-income assets are assets that provide fixed returns over a period of time. Unlike equity trading, fixed income trading is riskier.
Another appealing trading career is Forex trading. The Forex Market is a global decentralized market where people can trade different currencies and make profits.
It is the largest market where trading is done. Although you do not need any qualifications to become a Forex trader, you need to learn how the market operates before you can become one.
There are several resources online that you can use to learn this type of trading.
Generally, Forex trading involves trading in currency pairs, and each call a trader makes is based on a country performance and how a currency might function.
There are other careers in trading, such as Commodities trading and Derivatives trading. When you are deciding which of these trading careers to pursue, you should always take note of the buy-side and sell-side.
The buy-side involves working with organisations that buy financial tools for money management, such as insurance companies, hedge funds, pension funds and asset management.
The sell-side usually involves working with organisations that advise when to buy, hold or sell a financial tool, such as investment baking. Whatever side you choose, trading covers both the buying and selling process.
Overall, there are several careers in trading, and whichever one you choose will require you to learn how the market operates.
You can also get good trading jobs in most financial organisations, as more people keep entering into the trading market.
We suggest that you look at both your short-term and long-term goals when choosing a trading career.
Since different trading careers require different skills, you should ensure you keep learning and stay up-to-date with the skills involved in the trading career of your choice. We also encourage you to relate with other traders in your career choice.