How do traders get hired?

Question

Hi,

What kinds of qualifications / relevant experience do firms look for when hiring traders? (Equities, options, oil, chemicals, etc)

Thanks

Answer 1

I think "A Nobody" summed it up a good critieria for traders and what firms expect.

Your experience as a trader must be what you have done for other firms or institutions, trading for yourself or for a club is not trading experience.

If you have traded commodities and want to get into equities and equity options, you will have to sell yourself as being quick with math, good at knowing the markets and the products that are traded in them

Traders, unless they have been doing for registered broker/dealer you will have to work into by either working in a trading department or clerking it on the floor

Becareful of some of the advIce you get here on YA, states or other municipalities DO NOT set criteria for licenses in the securities industry, it is set by either the exchanges or FINRA.

Answer 2

All traders, except fixed income, have the same basic make up.   They are all above average intelligence, good at math, outgoing personalities, and not wrapped too tight.

Many have college educations, but it is not a requirement, unless you want to work for a bank and/or mutual fund company who do require degrees even though there are no academic courses that can prepare one for trading..

You should have some basic understanding of finance, accounting, and economics.  It would help if you know the various markets, what products are traded in those makets and how trading is done.   This will require some of your own education and willingness to study hard on the path to becoming a trader.

There is no such thing as a trader trainee or trainee programs.   Those that end up in trading have taken jobs in the trading departments and have worked themselves into trading.   You don't worry about salaries, or what jobs they have you doing, you just do it since it's a way of learning or getting the shot at being a trader.

Traders work as long as the markets are open, they don't stop and unless it's to get a drink, they just keep going so you never complain about the hours or the working conditions.

Go for it, if you want it bad enough you can get it.

Answer 3

If you have a track record of successful trading, you might use that as a basis to apply to just about any of the big houses.

Answer 4

Experience helps but you won't be able to place stock trades unless you are a licensed broker. Check Google for your State's   requirement for a stock broker license, in my State one requirement is that you have a Bachelors degree to be able to apply for the license. My friend had an Insurance license that was as good as having a broker's license that gave him some leverage to place stocks in revolving funds in a bank. So you really need to check the guidelines for your state.