How to Be an Energy Trader

Energy trading has become one of the fastest paced and most lucrative emerging financial professions on the market. In just a few years since the days of heavy government regulation, the field has been flooded with opportunity and, of course, money. If you want to get a job or start a career as an energy trader follow these steps.

Instructions

1. Get some background in the field. Energy trading is moving so fast and there is such a growing need for skilled traders that you only need some kind of background in energy or business to get a job. Some energy traders come to the field fresh out of business school while others get their training working on the ground for gas pipeline companies. Some others come from meteorology and classic trading. Get some kind of footing in energy or trading to start your energy trader career.

2. Get a job with a firm. All over the US, energy trading firms are shooting up in the wake of defunct energy behemoths like Enron. These newer firms, while still quite large, are nimble, smart and hungry for talent. Check out companies like Houston's Reliant Energy or Axia Energy. Starting with an energy firm is a great way to get into the business and cut a set of sharp business teeth.

3. Learn to interpret energy signs quickly. One of the most important characteristics of an energy trader is being able to quickly interpret important indicators, such as impending weather, for the energy market. Being able to make split second decisions about what a heat wave in Texas might do to energy supply and demand makes the difference in beating out your competitors to a good price.

4. Further your education. While being an energy trader is far more than just a job, if you really want to launch a career and advance to the upper echelons of the industry you should consider some specific programs. The University of Texas runs an Energy Finance program that educates students to become, among other things, energy traders. Similarly, Rice University's Executive Education program offers special course tracks in energy trading.