What Is an Equity Trader and How to Become One
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What Does an Equity Trader Do?
An equity trader performs research and analysis to decide when to buy or sell shares of a company on an equities market. In addition to common stocks, your duties can include trading options, futures, exchange-traded funds, and other derivatives. Equity traders analyze data, look at charts, and ensure that the trade meets the requirements of their employer and government regulations. An equities trader can work for an investment bank, a private equity firm, or other financial institution. Some traders work independently. Your trading responsibilities can focus on one specific industry or type of equity.
How to Become an Equity Trader
The qualifications needed to become an equity trader include a degree and trading skills. You also need strong analytical abilities and the capacity to think clearly under pressure. Most investment banks and trading firms require a bachelor’s degree in finance, economics, or a related field, with some preferring master's degree holders. Other employers seek traders who can write computer programs in languages such as Python to analyze data for financial purposes. Depending on your employer’s operations, you may need to register with the Financial Industry Regulatory Authority (FINRA).
