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5 Things I Learned Trading for a Big Bank

Posted by BluFX

 

5 Things I Learned Trading for a Big Bank

When you're trading for a big bank, you'll have access to many different kinds of data. You'll be able to monitor your trades, look at the market as a whole, and even get real-time insights into the performance of your colleagues. Here are five things I learned when trading for a big bank:


Read: How I Got Started Trading for a Bank ⟶


5 Things I Learned Trading for a Bank

1. Find a mentor

If you don't have anyone in your life who can help you navigate the world of trading, then it's time to start making some new friends! In order to trade successfully, you need someone who will look out for your best interests and keep an eye on what's going on in the market so that you don't make any bad decisions.

Finding a mentor is one of the most important things you can do when starting as an investor/trader. It'll be difficult for you to build up enough capital or experience to continue building wealth over time without having some sort of guidance system available at all times – whether that’s a supportive forex trading community or a dedicated mentor.

Finding a forex mentor can be tricky. Here’s how to find a forex mentor>>

2. It's essential to have good support from management when trading

If you're working for a big bank and you're interested in trading, it can be tempting to think that you'll be able to do it on your own. But in my experience, it's not so easy.

When I started working at the bank, they supported me in trading and offered me the chance to have some training. They also ensured that I had access to other traders within the company who could help me find opportunities if I ran into trouble.

Banks tend to be strict about risk management or trading styles, but they were patient with me and willing to answer any questions I had. This made me feel like I had someone at work who cared about my success.

So how exactly do big banks trade forex?

3. You have to be able to react quickly and with great flexibility

I was an analyst for my company, and one of the first things that happened when we got into a new market was that we had to start developing a strategy. We did this by looking at what other banks were doing in that market and then determining how we'd jump on the same bandwagon.

But it wasn't long before we realized that there was no way we could do this without making some big mistakes! It's hard enough to make money in the financial markets when you have some basic knowledge—but when you don't know what you're doing? That's when it gets challenging.

And so we had to learn how to adapt our strategy quickly—because sometimes, even though you have a sound system at first, something will happen that forces you to change course and switch gears completely.

Quiz: Is trading the right career for you? Take the quiz>>

4. If you're going to trade for a bank, you need to do it right

When I first started trading, I was so excited by the idea of working with big banks. They had money! And they'd help me make it big! But then reality set in. The markets are much more competitive than they seem. You'll get eaten alive if you don't have the skills or experience.

You must understand what banks are looking for in a trader and how they intend to use your services. Also, understand how much time they will give you and what they expect from you. Many different things can affect your trading results, so it's important to know what the bank is looking for so that you can make sure that your expectations match theirs.

Banks aren't just looking for people who have done well before—they're looking for people who can make money now. They don't care about how many times you've traded or what other traders have told them about you; they only care about whether or not their money will be safe in your hands!

Want to trade for JP Morgan, Goldman Sachs or HSBC? Here’s how to trade for a big bank>>

5. A lot of trading is about risk management, not just trading


Trading is a lot more than just trading. The key to success isn't necessarily knowing how to trade—it is knowing how to manage your risk and react to changing market conditions quickly. 

Keep in mind that no matter how good your game plan is or how much research you do, eventually, the market “will give you what it will give you”. The only thing that matters is whether you can manage your investment portfolio's risks and rewards.

First, banks are very strict about risk management. Banks will have an internal team responsible for managing risk and an external unit that works with their clients to manage risk. In addition to these teams, banks have regulators who oversee their operations. So much of trading is about risk management, not just trading.

See Forex Trader Salaries Across the Globe ⟶

Tags: Trading Tips

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