Trading is a goldmine, and many people wish to join the market operations. However, they don’t know how and require traders to operate for them. Many seek to start a career in this trading to fill this role.
There are many career options in trading, so it is important to identify them and their requirements. Lance Ippolito is a pro-trader and understands the struggle. Below, Lance Ippolito shares how to successfully start a financial career in trading.
What Are The Known Types Of Trading?
One of the popular types of trading is Agency trading. It involves trading on behalf of others. This type of trading is restrictive as you can only carry out your clients’ wishes on their assets.
Another popular type of trading is Proprietary trading. It is very profitable, although very risky.
They work with assumptions and theories of the ways of the market and open positions with that knowledge. It’s a high-risk situation as they can either make a lot of money or lose the same.
Yet another type of trading is Market Making. It involves connecting buyers and sellers as a middleman and making your profit from the deal.
What Are Some Of The Career Options In Trading?
Trading has lots of diversification to venture into. The role involves trading with other brokers and screening traders to develop optimized equity trading strategies. One of the career options in trading is as a Derivatives trader. This is considered the riskiest as it involves trading with futures, options, etc.
Another one of the career options in trading includes Equity trading. It is the least risky form of trading. However, it does not provide short-term gains, which most traders search for. To be an equity trader, you must understand the equity market. It would help if you also used research, analysis, and evaluation to determine the market sentiments.
Another career option is as a fixed-income trader. Fixed-income traders trade on bonds, government securities, and fixed-income assets. Fixed-income trading has been extended to instruments like Collateralized Debt Obligations, making it riskier than equity trading. You’re expected to have reasonable knowledge of the fixed-income market.
Forex trading is also a profitable career option. It generally involves trading on currency fluctuations and movement. The role requires you to identify hedging opportunities, monitor Forex exposure, monitor rebalance requirements, stay conversant with Macro trends, execute FX transactions, etc.
Yet another career option in trading is as a Commodities trader. It involves trading on commodities such as gold, metals, crude, etc. You are expected to always be conversant with the latest occurrences in the commodity market and form views on the commodity prices.
What Does One Require To Start A Career In Trading?
As a top trader at WealthPress, my advice in making a career in trading is to get a degree from a reputable university. Afterward, you must intern at a hedge fund or commercial bank to gain the required experience.
Getting a job in any of the career options is enough to be a graduate. But, due to the increased employment competition, an internship experience can give you an edge over others.