The Wall Street trader has always been one of the most dreamed model. To reach the top, however, some basic rules are needed
Wall Street has always been associated with rich young men who have made big money for themselves and their investors. It is also known for success. Indeed, Wall Street is so important that without it, the most successful companies of our time would not be in existence. For example, companies like Facebook, Apple, and Google are what they are today because of the money Wall Street has provided to them. Wall Street is also known for everything it makes money on; for example, if you wanted to trade orange juice, weather, corn, and cotton, you can do it!
Here are a few rules for you to follow if you want to make money like a Wall Street Trader Manager.
Be a Risk Taker
Wall Street is known for having the biggest risk takers in the world. For example, in the venture capital side of things, many investors have invested in unproven companies. For example, think about the early money managers who invested in small companies like Uber and Facebook. When these companies went public, these investors saw their money grow to millions or billions of dollars. Similarly, every trading day, Wall Street traders are known to place large wagers on companies and other assets. Therefore, as a trader, you should always be a risk taker. It is difficult to make a lot of money in this industry if you can’t take a lot of risks.
Be Ahead of the Herd
The most successful money managers are those who stay ahead of the herd. These people spend a lot of money to ensure that they get new information as fast as it happens. This is why many money managers pay more than $20,000 every month for the Bloomberg Terminal. They also pay a lot of money for independent research. As a trader, you don’t need to spend all that money on Terminal and research. Instead, you should find useful resources like Reddit and Twitter where you can get information as it is published.
Do Your Homework
A major characteristic of Wall Street traders is that they always do their homework before they start trading. This means that they take time to study and assess all the risks before they invest. As a trader, you too should spend a lot of time doing your homework (these are the ones we do). Before you open a trade, you should ensure that you have done all the technical and fundamental analysis that you can. Doing this will help you avoid making many mistakes.
Have a Strategy
All Wall Street traders have developed their strategies for years. Among the large traders, there are those who specialize on macro and others who specialize on events. Others are activist managers while others are opportunistic traders. There are many strategies that you can use to trade the financial market. Indeed, you can also create your own strategy.
» Related: Some good risk management strategies you should know.
Interact With Other Traders
Wall Street traders operate in a very competitive industry where each is trying to win. However, they also set aside their differences and interact with one another. In Wall Street, there are many events where these people meet to interact, network, and share ideas. As a trader, you too should attend these events and interact with the peer traders.
Other useful resources to trade like a Wall Street trader
A job description by Chron