How to Become a Trader
A century ago, you would have found many traditional traders throughout the country. The profession of trader, that is, one who buys or swaps goods in one place and swaps or sells them in another, is one of the oldest professions known to humanity. And while a few still exist, the trader of the past that carries his own inventory has largely been supplanted today by modern stock, bond, currency market and commodity traders who trade everything from contracts for physical commodities to stocks and bonds electronically, never seeing or touching the goods they are trading.
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Instructions
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Earn a college degree, preferably in finance, business, economics, accounting or a technical field. Almost all stock, bond and commodity traders today have at least an undergraduate degree, and traders with MBAs and other advanced degrees are common today.
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Apply for an entry-level position in the investment or trading department of a brokerage or other large financial institution. Once you have been hired you can take the Series 7 exam offered by the Financial Industry Regulatory Authority (FINRA) so you can become licensed as a stockbroker (you must be sponsored by a FINRA-registered firm just to take the Series 7 exam). Some states also require brokers to pass the Uniform Securities Agents State Law Examination.
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Request a transfer to the trading desk or another trading-strategy-related position. Choose an area like stocks, bonds, currencies, precious metals or agricultural commodities (based on your education and experience) and work with experienced traders to develop successful trading strategies.
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Tips & Warnings
Become an active personal investor with your own funds. You can start a stock trading account at most brokerages for $500 or less and, even if you are just trading a few shares at a time, you will be getting hands-on experience in the process (and pitfalls) of trading.
