Changing career can be a worrying time, especially if you’ve been in the same job for the last 20 years. That doesn’t mean you can’t change and new horizons might create a better working feel and environment for you. If you’re bored with your current job then there are plenty of options you can look into to try and spice things up.
If you’re fresh out of school and you aren’t sure of what you’d like to do then you should try out a few different jobs, you might find one you really enjoy and want to pursue. When looking at new jobs it’s important to imagine yourself doing it, is it something you’d like to do for a while? Can you handle the job? Here we look at stock trading as a career, how do you know if it’s going to be right for you?
Self Assessment is Important
First things first, you have to look at yourself and perform a self-assessment to see if you are ready to take on the job. Successful trading requires knowledge, skills, certain traits and a complete commitment to the lifestyle. You might want to ask yourself a few questions before jumping in at the deep end. It requires mathematical analysis skills, financial knowledge, and an awareness of behavioural psychology.
You’ll be required to work long hours with very little leave from work. Can you learn by your own devices without guidance and grow into a better trader? Do you have the ability to take big money risks? These are all important questions. Sitting down and working through them will be key to your decision.
Most importantly is the right attitude, the right mindset. If you aren’t prepared to devote your time and effort into creating a hugely successful career for yourself in this industry then it might not be for you.
Do You Possess Sales Skills?
To become a trader you’re going to need to have the gift of the gab. You need to be able to talk to anyone at any time and be able to connect and resonate with them. The key part of selling is knowing the right techniques to use on the right people. You can’t be shy and get away with being in a sales role.
Trading requires impeccable sales skills as you’ll be on the phone all day every day. Talking to people wanting to buy shares and trying to sell them to others. Talking and selling are skills you 100% will need and value within this role.
Do You Understand The Markets?
This isn’t a job that you can walk in and expect training to be given every day for the next year, it isn’t a grow into job. You have to hit the ground running. Traders need a solid foundation and a vast knowledge of how the markets work. Understanding news events, margin requirements and allowed tradable instruments make a difference is essential. A wide knowledge base is key.
Do You Understand Securities?
Everything trades differently. Stocks, options, ETFs, futures, mutual funds, they’re all different. Without the knowledge of securities characteristics and trading requirements, a trader is going to seriously struggle. Initiating trading strategies with no basis of how it’s going to work is a guaranteed failure. The point of trading is to make money. Lack of knowledge in any of these areas is going to lead to a loss. Loss isn’t something that bodes well in a trading firm.
Have You Ever Studied Finance?
Whilst it’s not essential to study finance it’s a good idea to do so. Getting your foot in the door to any trading firm, let alone Wall Street, is going to be very difficult without a degree. To be completely honest, it’s near enough impossible. Most people that work in these respected investment funds have degrees from any one of the top 20 business schools in America. Some of the smartest people on the planet don’t have degrees but it’s an unfortunate box you have to tick in order to get the green light on the trading floor.
Trading isn’t for everyone. In fact, it isn’t for most people. It’s a difficult and demanding job that requires huge amounts of effort and dedication. That being said. If you can put the time in then the rewards will come your way. The draw to being a trader is the money. It’s well known that traders make good money, but they only make good money if they’re good at the job. Look at this list and decide from there if you believe you can make it in industry. If you can then trade well, best of luck.