Required Features To Get Hedge Fund Jobs
Are you also looking for a hedge fund career ? A number of proprietary departments these days are in search of novice as well as experienced traders who wish to take their trading to an upper level. It is due to the fact that there has been tremendous increase in the demand for alternative investments. Moreover, proprietary trading is all about trading someone else’s money to earn profits. Even you can even opt for some proprietary trading program.
Proprietary trading program basically puts emphasize on two concepts; hedge fund incubation and capital introduction. It is important to know that just by trading your own forex account, you become qualified to get appointed in hedge funds in the financial industry. A good track record in your trading account will be significant in determining your success. The second concept about the capital introduction aims at managers who are successful in incubation process. After completing the program you can come across various opportunities to trade hedge fund capital in the forex capital.
There are certain eligibilities that you are expected to have if you wish to join some proprietary program. These programs are open for both novice as well as experienced traders. However, these programs look for certain characteristics in a hedge fund career-minded trader, these are:
· Proprietary trading experience with stock/future firm · Forex Day/futures day/Stock day Traders · Senior Traders · Trade Desk Traders
Under mentioned characteristics are preferred in those who wish to trade professionally for a hedge fund:
· Ability to make difference between key entry and exit points · Capability to apply appropriate risk management techniques · Discipline as well as emotional detachment from trading · Ability to opt for a trading style which is capable of generating profit even if applied with a very large order volume
So, if you find that you possess these above stated characteristics, the next step is to know to which category of traders you belong whether you are a system trader or a discretionary trader.
Let’s first know about system traders. Efficient developers of profitable forex trading systems are persistently valued by hedge funds in marketplace these days. Generally, two attributes are prominently sought after in a trading system by hedge funds. First, there must not be any need of manual intervention in executing automated day trades. Secondly, it must be capable of dealing in large volumes of trade successfully in a case when the cost of execution might be10 points or more than that.
However, if you are not able to automate your trading strategies; but you are successful in trading; you are still eligible for hedge fund jobs or to get designation of forex money managers. If it is so, you belong to ‘discretionary traders’ category. Usually, the eligibility criteria are same:
· You must have capability to apply a solid logic for making trading decisions following strict rules.
· Similar to "System Trading", you must be able to trade large volumes efficiently and successfully.
· You must know how to ‘scalp’ or get in and out of a trading quickly.
To conclude, it is not at all tough to get jobs in hedge funds, you just need to be familiar with the basics of the field and judge your position as trader as per above written characteristics.