Top Traits to Successfully Run a Profitable Trading Office

Top Traits to Successfully Run a Profitable Trading Office – Introduction

Running a profitable trading office is not easy. As you already know, we have been in this business for almost two decades during which, we have seen many trading office prosper and others fail. In the media too, we have seen many large hedge funds close shop. Large hedge funds are simply large trading office  which manage billions of dollars of outside money. So, what are the traits that successful trading floor managers use?

  • Resist Pride

Over the years, we have observed many hedge fund managers close shop or experience mounting losses. A key trait we regularly see is where a manager makes it and starts flaunting his success. A good example of this is hedge fund manager, Bill Ackman. For more than a decade, he ran one of the most successful hedge funds in the world. He grew his Assets Under Management (AUM) to almost $20 billion.

In 2015, he appeared on TV and investing events regularly. He also appeared on many covers, including those of Fortune and Forbes. In those magazine features, he talked about his successes and what he was looking to invest in. While doing this, he somehow forgot that he was a money manager.

Today, his Assets Under Management are below $8 billion and my estimation is that he will close his fund within the next two years.

As a trading office owner, focus on trading. Focus on making trading decisions and not flaunting your wealth.

  • Listening

As a trading office manager, you should learn to listen more than you talk. By doing this, you will open your mind to more learning.

Doing this will create an opportunity for you to learn from your trading office traders. You simply want to keep learning and building better relationships with the traders who dedicate their lives to making profitable business decisions.

  • Decisive

As a trading office manager, you need to be able to take tough decisions. As such, you need to be a good place to make decisions even when it doesn’t make sense to other people. For example, if you have a very good trader who is not performing as expected, you need to take disciplinary measures. By taking these measures, you will be taking strong stances and instilling discipline on all your traders. Failure to do this can cause significant damages to your organization.

  • Strict

It is very important for your trading office traders to view you as their boss. One way you can achieve this is by creating an environment where ‘law and order’ is followed. For example, you need to set and implement strict working hours. Traders who don’t come to work as required should be disciplined. The same should apply to other issues such as silence and etiquette.

  • Understanding

While strictness is key, you should also be understanding. In other words, you should always be slow to anger. As such, when a trader gets late doing something, you should not be in a hurry to punish them. When they make a mistake, remember that we are all human and as is common, humans make mistakes. Therefore, you should be understanding at all time.

  • Appreciative

Finally, you should do your best to be appreciative to your employees. This includes both proper monetary compensation, respect, and bonus pegged on their performance. Your staff will always go an extra mile when you treat them with utmost respect. Failure to do this will expose your firm to losses as the staff won’t be motivated to work hard.

Top Traits to Successfully Run a Profitable Trading Office – Useful Tips:


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