How to be a trader for a company?

[randyhulk]

Does anyone know how to be a junior trader for a company? I mean I know there’s a lot of positions for senior traders who earn a lot...but require so much experience.

I guess I m asking how do traders who want to make trading their job get started? what position do they take up when u have no experience...a stockbroker?

[notouch]

They mostly recruit university graduates into their graduate training programmes. It's VERY competitive to get in (do you have a first class degree in maths from Oxford or Harvard?). Alternatively you could get some lower level admin position and work your way up.

[Soultrader]

Not sure how it works out in the US. But having a solid track record in combination with a good sound knowledge of the markets and trading will help. If they interview you and you can not impress them with your knowledge you wont have a chance. In Market Wizards, I read somewhere that a trader had remembered all the stock symbols on the NYSE and landed a job. I agree it is a very competitive position. BUT... I think an intraday trader with a few years of experience has a significant edge over other applicants. This is because intraday traders are able to process and understand market information on an extremely short term basis. In other words, they are able to grasp a clear map and language of the markets. Anyone else applying for a junior trader position will most likely not hold such knowledge. He/she may have a solid educational background but what does he/she know about trading? In this field, educational background means almost nothing. Whether you graduated Harvard or straight out of high school, the bottom line is going to be can you generate money for the firm? If you are consistent with trading and profitable you will have a shot. If not, what advantage will you have over other applicants?

Also, with securities firm there is the back office, middle office, and front office. Trading and brokering is in the front office. Once you are stuck in mid or back office, you are not likely going to move into front office. So my advise is to apply to a trading position from the start. Good luck

[Nick1984]

Here in Australia a lot of people start in back office positions such as being a dealers assistant. Most places require you to be licenced to give advise on financial products however. Your role generally revolves around placing ordres, making sure they are executed, and reconciling client accounts at the end of the day. Some roles require you to delve into the business development side of things as well so be prepared to bullsh*t on the phone a lot to clients.

After 1-2 years of this if you have shown aptitude and a solid understnading of the markets they may move you to a front office position as a trader however you will still be junior and will not be allowed to trade any of the company's own funds. You'll be in a "broker" role for a while and your job will revolve around alaysing the markets or particular stocks for the senior broker who then makes the sales.

If you have been successfull as a private trader with a proven track record or 3+ years you can bypass a lot of that and land a job as a trader straight away but you need to be pretty good and like I said, have a proven track record.

[calamitychris]

Here is a list of prop firms. Most require a 7 series license, but others will hire based off your track record

http://www.traderslog.com/proprietarytradingfirms.htm

[james_gsx]

I called the company, talked to the manager for about an hour. He invited me to the office, now I'm studying to get my series 7 and work for them

Anybody could have done it, I just like to think I'm special.

[Cogniato]

randy,
I worked for one of world's largest prop trading houses until I had neck surgery a few months ago. Prior to that , I worked for another house at the CME in Chicago, with a lower profit split - since the 90's . No advanced degree's necessary. 150 traders, 6 countries, all walks of life. They care about potential and results, that is spelled RESULTS - period. You could be a street bum and come in with a system that shows potential and I as well as they will take a shot on you - no different than entering a large position trade - it may work, it may not work, then they cut their loss. They will usually contract a trial period of three months, nominal draw/salary of $3000/month or so, annual or semi-annual payout of 30-40% of profits, once you hit a predetermined level, say $100,000 or $200,000. Hope this helps.
BTW, my real name is Randall, and I used to be a hulk, LOL.

[Reaver]

I'd focus on trading profitably and mastering your craft....then work for yourself. The freedom (and the money) you will gain is far far more than anyone could give you as an employee;senior trader or not. But hey I hear prop firms are the way to go when starting up, since you can use their capital....but I am talking out of my butt mostly since I have no experience-simply hearsay. Best of luck.