To become a seasoned trader, you will need to have the ability to analyze financial information but also be able to decipher the news likely to impact financial market prices. The objective is to predict whether a stock market price will rise or fall in order to profit from it. Indeed, financial trading boils down to the purchase and sale of assets, such as stocks, currencies, commodities such as gold, cocoa and oil, for example. To multiply the potential gains, some traders do not hesitate to use complex financial instruments (structured products, futures, options, swaps, etc.) whose performance evolves according to the evolution of these assets under -lyings. They can also choose to position themselves on the financial markets by using hedging strategies such as the CPPI (“constant proportion portfolio insurance”) and the OBPI “(option based portfolio insurance”) requiring solid mathematical skills.
Learn about trading techniques
This is the reason why, beyond the finesse of mind and experience, a good trader must first master the operation of all these complex financial products but also know the latest innovations in terms of trading. To do so, you will need to obtain at least a BAC+5, or even more; one of the most interesting paths being obtaining an mba trading offered by a business school. This type of training generally provides students with in-depth knowledge of international stock market and ﬁnancial techniques. And the icing on the cake, it is often possible to use a virtual trading room within the school, equipped with computer stations with tools identical to those of the trading rooms of the largest banks in Paris and London where you can follow the evolution of the various financial markets in real time. This is for example the case of the Master Trading – Market Finance of the ESLSCA in Paris, a reference in the professional environment, which provides candidates with a trading room equipped with professional workstations.
And benefit from the school network
Another advantage of this type of masters specializing in trading and market finance, its teaching staff, made up of seasoned professionals in the world of trading, are able to transmit their knowledge and experience to students, in areas such as the market foreign exchange, interest rates, equities, stock market indices, commodities, but also traditional and structured derivatives, or credit and weather derivatives, quantitative and alternative management (“hedge funds”), without forgetting actuarial financial techniques. Clearly, this type of MBA is often designed from a very operational perspective in order to learn trading but also the risk management essential in the trading professions. As a result, such training provides the most complete vision possible for training in trading professions in the broad sense: traders, salespeople, brokers, fund managers, quantitative analysts, structurers, investment fund managers and of assets and liabilities in an insurance company. Another advantage of graduating from an MBA specializing in trading is its network of former graduates, which generally grows richer over the years, which makes it possible to promote professional meetings, develop one’s professional network and sometimes visit places emblematic financial institutions (New York, Singapore, Frankfurt, etc.) as part of the training. For information, this type of master accessible at the Bac+4 level, can sometimes be carried out alternately, which makes it possible to ensure part of its financing.