In order to make a career in trading, the most essential step is to get an academic degree in this field. Once you have gained significant information about than various techniques, you can then go ahead and look for opportunities. Here is a list of careers that you can take up if you are just starting out as a trader.
1. Equities Trader
Equities trader trade on publicly listed stocks and shares. They typically do not rely on large short-term gains, as equities do not provide such opportunities. Although equity trading is the least popular among all other forms of trading, equities trader the least risky of all trading areas. They generally work for asset management firms, where they mostly engage in executing trading orders given by portfolio managers. They are expected to have a good understanding of the equity markets and are capable of determining market sentiments by employing their research, valuations and analysis.
2. Fixed Income Trader
Fixed income traders trade on bonds, government securities and fixed income assets. Fixed income asset refers to any asset that provides fixed returns over a period of time, which can be sub-divided into the following types:
- Government;
- Mortgage;
- Municipal;
- Corporate.
This form of trading is riskier than Equities as it includes trading instruments such as collateralised debt obligations (CDOs). To work in this field, you must have a basic income of the fixed income market, constantly keeping up-to-date with the latest market developments.
3. Forex Trader
Forex traders spend time trading on currency movements and fluctuations within the marketplace. They typically deal with a specific currency pair at aa time, wherein the trading calls depend on the depreciation or appreciation of the countries:
- Economic performances;
- Value of its current gross domestic product (GDP);
- Macroeconomic outlook;
- Future performance of the currency.
Besides executing FX transactions, their job role may also involve monitoring of Total Forex exposure, identifying hedging opportunities, short-term funding and rebalancing requirements.
4. Commodities Trader
Commodities trader trade on crude, gold, metals tangible, as well as natural assets like oil, copper, wheat, corn and more. These professionals usually trade in futures, which implies that they can exit before the maturity date. These traders keep themselves abreast with the latest in the commodities market and are proficient in tracking the commodities and form views on the commodity pricing forecasts.
5. Derivatives Trader
Derivatives trader basically engage in leveraged bets that they can make as well as lower capital requirements. This tends to be the riskiest of the trading style, which includes trading with both Options and Futures. Besides taking trading calls they also work to manage risk.
Obtain knowledge by opting to trading courses for beginners and establish yourself in the trading industry.