To become an experienced trader, you must have the ability to analyze financial information, but also be able to decipher the news that is likely to affect financial market prices. The goal is to predict whether a stock market price will rise or fall in order to profit from it. In fact, financial trading boils down to the buying and selling 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 develops in accordance with the development of these underlying assets. They can also choose to position themselves in the financial markets using hedging strategies such as CPPI (“constant proportion portfolio insurance”) and OBPI (“option-based portfolio insurance”) that require solid mathematical skills.
Learn about trading techniques
This is why a good trader, in addition to finesse of mind and experience, 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 must achieve at least a BAC+5 or even more; One of the most interesting paths is to obtain an MBA in commerce offered by a business school. This type of education generally provides students with in-depth knowledge of international stock market and ﬁnancial techniques. And to top it off, it is often possible to use a virtual trading room at school, equipped with computer stations with tools identical to those in the trading rooms of the largest banks in Paris and London, where you can follow the development of various financial markets in real time. This is the case, for example, of the Master Trading – Market Finance by ESLSCA in Paris, a reference in the professional environment, which provides graduates with a trading room equipped with professional workstations.
And take advantage of the school’s network
Another advantage of this type of masters specializing in trading and market finance, its teaching staff, which consists of experienced professionals in the trading world, are able to transfer their knowledge and experience to students in areas such as the market foreign exchange, interest rates, stocks, 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. Obviously, this type of MBA is often designed from a very operational perspective to learn trading, but also the risk management that is essential in the trading professions. As a result, such training provides the most complete vision for training in trading professions in a broad sense: traders, sellers, 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 commerce is its network of former graduates, which generally grows richer over the years, allowing to promote professional meetings, develop one’s professional network and sometimes visit places emblematic of financial institutions (New York, Singapore, Frankfurt, etc.) as part of the education. For information, this type of master, available at the Bac+4 level, can sometimes be done in shifts, which makes it possible to secure part of its funding.