Junior Trader Career Path

Are you thinking of becoming a Junior Trader or already started your career and planning the next step? Learn how to become a Junior Trader, what skills you need to succeed, how to advance your career and get promoted, and what levels of pay to expect at each step on your career path. Explore new Junior Trader job openings and options for career transitions into related roles.
"Trader" was the nearest match for you query "Junior Trader".

How To Become a Trader

Does the excitement of the stock market thrill you? If you live to buy and sell securities, become a trader with these steps:
Contents

1

Conduct an honest self-assessment.

The right mindset is the most important requirement before you dive into this career. A successful trader has a combination of knowledge, skills, and personal traits that help you thrive in this hectic role. Contrary to popular belief that a trader job is the best way to cash in on some easy money, trading is actually a rather challenging field. You must be:

  • Adept with mathematical analysis.
  • Aware of behavioral psychology.
  • Able to stomach risk-taking.
  • An entrepreneur who's willing to put in long hours with very little leave.
  • A lifelong learner.
  • Committed to daily interaction with clients.

2

Learn the market.

Traders must have a solid knowledge base about how the markets function and how the various securities trade. From stocks and futures to options and mutual funds, it's all different. Simple details like trading hours to details like the impact of news events, this knowledge is necessary, and without it, you and your clients could experience losses.

3

Develop your trading strategies.

The market is dynamic, and a proven strategy may suddenly fail. That's why experts recommend that novice traders select a couple of established trade strategies, such as:

  • Start small.
  • Watch your timing.
  • Avoid stocks under $5 a share.
  • Stick to limited orders.
  • Stay realistic about profits.
  • Make decisions with logic, not emotion.

Once you've formulated your plan, test it with your broker's virtual money account or if you're investment-savvy, back-test your strategy with the market's vast stores of historical data. Don't forget to factor in costs like brokerage and utility subscription fees to accurately assess your projected profits.

4

Raise sufficient capital.

Even top traders don't generate profits every day. Occasional losses are all part of the game. To manage these financial risks, a trader must have sufficient capital to back your deals. The amount varies, depending on your volume and risk aversion. However, maintaining a minimum balance of $25,000 in your trading account will satisfy the SEC's equity requirements.

5

Start small and then expand.

Even if you have sufficient capital and plenty of market experience, don't play big on your first few trades. Instead, start small and put your new strategies to work. Only increase your stakes after you realize consistent success with your modest transactions.

Once you've gotten the hang of working as a trader, take a look at your brokerage house. This is one area where you can expand wisely. Trading involves frequent daily transactions, which can lead to exorbitant costs. Do your research, and select a brokerage plan that's consistent with your volume, whether it's a staggering plan that's most cost-effective or a fixed option.

Seniority Levels

L1

Junior Trader

0 - 1Years of Experience
$83,502 /yrTotal Pay
Learn More
80% advanced to

L2

Trader

8+Years of Experience
$101,033 /yrTotal Pay
Learn More

L3

Senior Trader

2 - 4Years of Experience
$120,356 /yrTotal Pay
Learn More

Total Pay Trajectory

Junior Trader Career Path

$300K
$243K
$185K
$128K
$70K
L1
L3
L5
L7
L9
Seniority Levels

Related Careers in the Finance & Accounting Industry

Interested in other Finance & Accounting careers? Below are occupations that have high affinity with Junior Trader skills. Discover some of the most common Junior Trader career transitions, along with skills overlap.