A floor trader is a stock exchange member who trades for their own account rather than for the benefit of others. Registered competitive traders, liquidity providers, and locals are all terms used to describe them. Being a floor trader is a dangerous job that is not for the faint of heart. Because you are investing your own money in the stock market, it is very easy to see large gains or losses in a single day.
To work as a floor trader, you must first graduate from college with a business degree. A bachelor’s degree would suffice, but a master’s degree would be preferable. Spend some time learning about fundamental analysis and other courses that will help you advance in your career. A higher degree may provide you with a competitive advantage over other floor traders. The more you understand about how the stock exchange works, the better a floor trader you will be.
After earning a degree, the next step is to gain stock exchange experience. It is a highly competitive and fast-paced career field. To be able to do well, you must first get a feel for how it works before venturing out on your own. Working for a brokerage is one way to gain experience with the system. Look for work as a clerk after some time there. A clerk performs the same tasks as a floor trader, but for a different client. This is a fantastic way to get a feel for what you’ll be doing on a daily basis as a floor trader.
It’s time to start saving for an exchange membership while working for others. These memberships are required in order to trade on the exchange floor and are quite costly. Seats on the New York Stock Exchange (NYSE) sell for around $2 million (USD). The Chicago Stock Exchange’s annual membership costs around $7,000 USD, not including any additional fees that may apply. It is possible to lease a membership for a lower cost, but you will still need your own membership in the long run.
After purchasing a stock exchange seat, you can proceed to the trading floor to begin your career as a floor trader. It is possible to make a lot of money in your new profession if you use the knowledge and experience you’ve gained along the way. With success, you may be able to retire early and spend your time sailing around the world in your new yacht or flying to exotic locations in your private jet.