The finance industry is famous for the wealthy people it has helped create
Updated June 25, 2019 7:35 am ET
Think of Warren Buffett who has been investing for more than 60 years and has a net worth of more than $85 billion.
Think of James Simmons, the mathematician who started Renaissance Technologies and who is worth more than $20 billion.
Or think of Carl Icahn, the activist investor and corporate raider who is worth more than $17 billion.
The list goes on and on.
These people have made a fortune despite the fact that they have never started or run independent companies. Warren’s Berkshire Hathaway is in the business of investing in other companies.
You too, in your small way, can be a successful manager by starting your own trading office!
This article will highlight the steps you need to follow to start such an Office .
What is a Trading Office?
In the past, before the internet and the latest technologies, hedge funds and traders used to gather in an exchange to buy and sell stocks. In these pits, they used to shout and use banners to conduct the transactions.
Today, most of the traditional exchanges have been closed and instead, money managers are using computers to buy and sell financial assets. Large investment banks, hedge funds like Citadel, and other money managers have large rooms filled with the fastest computers to research and execute trades.
Essentially, a good trading office should have three things:
- knowledgeable people who are passionate about the market
- the fastest internet connection
- the fastest computers
And finally, it needs quality data sources.
In the past, all these components were highly expensive and unaffordable to many people. For example, a Bloomberg Terminal, which is used for data usually costs more than $20k a month. The most advanced computers used in these transactions cost more than $10k.
However, these days, things have changed.
Cheap computers have become fast enough. In fact, to run our Training Platform and Trading Software, you need:
- Third-Generation Intel Core i5 or i7 series processor, with 3 GB RAM and 60 GB hard drive
- Operating System: Windows 7 (SP1), Windows 8, or Windows 10
- Wired LAN (not wifi) Internet connection with minimum 4MBps bandwidth (business service)
- One (or more) network switch for sufficient ports to connect all your workstations
How to Start a Trading Office
To start a trading Office, you first need to be highly passionate about the financial market. You need to love reading financial news and analysis. You also need to love watching and reading news about the markets. You must spend a lot of your time following the happenings around the world.
If you are not all this passionate, you can develop it by being a consistent follower of the happenings.
Second, you need to take time to learn more about the market. Today, there are so many free resources that can teach you about the market.
Ideally, you should learn the following:
- How the financial market works
- The different types of assets you can trade in the market. These include stocks, indices, commodities, cryptocurrencies, and currencies
- The many terminologies used in the financial market
- Why financial assets move up and down
- Risk management
- Market psychology
You can learn by yourself or by following our certified Training Program for Day Traders.
1. Find a Good Trading Office Partner
After learning more about the markets, you need to find a trading office partner. While you can be a successful independent trader, you are better-off with a trading office.
The benefit of having your own team is that it can help you identify multiple market opportunities. You can also trade for 24 hours a day if you decide to use shifts.
Day Trade the World (DTTW) is the biggest trading office operator in the world with more than 20 years in the industry. It has Trading Office and partners in over 90 countries. The company offers liquidity, software, hardware, and the necessary education to our traders. As such, as a trading office owner, you don’t need to have a lot of money to start with.
2. Setup your Computers and Network
First, our Implementation Team is going to help you setup the network, to configure the computers and the Training Platform and the Trading Software in your office. The trading software used by DTTW traders is the PPro8, which is a proprietary software used by more than 3,500 traders from around the world.
You will also receive the CubeX hardware.
3. Build a Team of Passionate Traders
As mentioned above, recruiting passionate people is essential for the success of your Trading Office business. As you start, you should ensure that you hire people who share your enthusiasm about trading and the markets. We suggest to build a team of at least five traders who will be researching and executing trades and make money for you. The team that you hire will follow our Training Program for Day Traders and practice on the Training Platform until they are consistently profitable.
Also, you should set out the rules for working on your office. For example:
- The assets to trade.
- The need for stop loss and trailing stop loss orders for all trades.
- Noise in the office.
- The penalty for not coming to work.
- Their remuneration (we suggest a percentage of the profits).
After building your team, the Trading Floor Development team at DTTW will help you train and manage your traders.
When you feel ready, and when your team is making consistent profits on the Training Platform, it is your time to get started practicing and then go live and make money.
Unlike the traditional large trading offices that required millions of dollars to trade, you can start your trading office with less than $10k and start the training with just $500.
At DTTW, we have the best technology that powers trades of more than 3,500 traders from around the world.
We are a different type of company. Unlike brokers and other trading companies, our revenue model does not depend on commissions. This model allows us to make a profit only when our partners make a profit.