What does a Wall Street trader do?

I've heard a lot about Wall Street trading and I'm fascinated by this career path. Can someone explain what a typical day for a Wall Street trader looks like and what I would need to study to become one?

A Wall Street trader primarily focuses on buying and selling securities, which can include stocks, bonds, futures, and other financial instruments. Their day typically starts very early with pre-market research to analyze market trends, forecasting data, economic indicators, and global events that could impact the markets. They then spend the majority of the trading day monitoring fluctuations in the market, executing trades, and adjusting their strategies as necessary. At the end of the day, they review their transactions, measure their success, and start preparing for the next trading day.

To become a successful trader, you would typically need a bachelor's degree in a related field such as finance, economics, mathematics, or even computer science due to the increasing importance of algorithmic trading. Knowledge in subjects like statistics and probability theory could also play a vital role in making informed decisions. Additionally, many Wall Street traders go on to pursue an MBA or enroll in other graduate programs to specialize their knowledge, although this is not obligatory.

Beyond academic qualifications, successful traders usually have excellent analytical skills, are able to take in a lot of information and make quick decisions under pressure, and have a high tolerance for risk. They also need strong interpersonal and communication skills, as they may need to manage client relationships, work as part of a team, or explain complex financial concepts to others.

Practical experience, for example, through internships, can offer an extremely valuable understanding of the real-life pressures and decision-making processes involved. Networking and building relationships within the industry can also open doors to opportunities on Wall Street. Traders also need to obtain licenses to trade, which involve passing exams like the Series 7 and Series 63, conducted by the Financial Industry Regulatory Authority (FINRA).

Keep in mind that being a Wall Street trader can be a high-stress job with long hours, especially early in the career - but it also comes with the potential for high rewards. Ultimately, it involves being comfortable with risk and uncertainty, having the capacity to make swift decisions based on complex information, and being passionate about financial markets.