How to Become a Trader in the U.K.
Many traders in the UK work in the stock exchange in the city of London, in the area often referred to as "the square mile." Jobs in this sector can be subject to changes in the state of international finances and banking. Many traders work for merchant banks based in different parts of the UK, but may still work out of the city. It is difficult to become a trader straight from university, most people join one of the bank's departments and work up to a position of trader.
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Instructions
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Learn the basics
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Merchant banks Read papers like, the "Financial Times" and "The Economist" regularly. Improve your background knowledge of the financial world by reading books like "The Ascent of Money: a Financial History of the World," by Niall Ferguson and "The UK Traders' Bible: The Complete Guide to Trading the UK Stock Market," by Dominic Connolly.
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Apply as a graduate, directly to a bank, though not initially as a trader. Apply instead for a position in one of the bank's departments, perhaps, carrying out research for one of the traders---this gives a good grounding in the process of financial dealing. Merchant banks undertake transactions in equities, derivatives, currencies or futures. Gain a thorough knowledge of financial instruments and psychology by working in one of the bank's departments.
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Gain a relevant useful qualification; this could include a degree or equivalent in economics or accountancy. Studying for more practical degrees, for example, in engineering can be useful if you want to trade in derivatives. Develop a good knowledge of psychology, as trading involves intuition and persuasion, as you read the market, predict changes and convince other traders to buy your product.
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Tips & Warnings
Explore any possibilities of work placement with a bank in your area.
Beware of courses which offer easy ways to become a successful trader, but which carry no guarantees of employment.
References
Resources
- Photo Credit stock exchange and bank notes image by Warren Millar from Fotolia.com river, its banks and houses image by Alexander Petrari from Fotolia.com
