Best Degrees for Stock Trading

<p>While most entry-level stock trading positions expect applicants to hold a bachelor's degree, more advanced positions often require a master's degree. Stock traders hoping to advance to a managerial position would do well to obtain a Master of Business Administration (MBA). There are also Ph.D. programs available, but these are most often geared toward aspiring academics. Additionally, there are <a href="https://learn.org/articles/online_stock_trading_classes_beginners.html">online stock trading classes for beginners</a>. </p> <p /> <table border="1"><tr><td><b> Degree Level</b></td><td>Bachelor's degree; master's degree for advancement</td></tr> <tr><td><b> Required Skills</b></td><td>Macroeconomics, statistics, advanced mathematics, risk management, computer programming, stock market knowledge</td></tr> <tr><td><b> Degree Focus</b></td><td>Economics, business, finance, business administration, mathematics, financial engineering, statistics</td></tr> <tr><td><b>Median Annual Salary (2020) and Projected Job Growth (2019-2029)</b></td><td>$64,770; 4% increase (for securities, commodities and financial services sales agents)*</td></tr> </table><p><i>Source: *U.S. Bureau of Labor Statistics</i> </p> <h3 id="section---WhatSkillsDoStockTradersNeed">What Skills Do Stock Traders Need?</h3> <p>An entry-level trader is usually required to manage and price certain trades, generate stock market ideas and communicate with clients. As traders become more experienced, they are expected to demonstrate a variety of skills and abilities, including: </p> <ul><li>Ability to evaluate macroeconomic trends </li><li>Statistical analysis </li><li>Mathematical abilities, including stochastic calculus </li><li>Hedging strategies and other risk management skills </li><li>Computer programming skills (such as VBA, SQL, C++, Excel, Python, C# and Javascript) </li><li>Transactional knowledge of derivatives, options, futures, currencies, interest rates and other financial instruments </li></ul><p>These skills can be obtained through on-the-job training, internships, work experience at a financial company or more advanced coursework. </p> <h3 id="section---WhatDegreeFocusIsMostRelevant">What Degree Focus Is Most Relevant?</h3> <p>Bachelor's and master's degrees that are useful to aspiring stock traders include those with a focus on: </p> <ul><li>finance </li><li>mathematics </li><li>economics </li><li>business </li><li>computer science </li><li>statistics </li></ul><p>Summer internships, which are offered by many financial companies, can greatly enhance the employability of candidates from any degree background by providing them with practical experience. </p> <p>There are some advanced degrees specifically geared toward aspiring financial professionals or those who may already be working as stock traders, such as a Master of Science in Financial Management, Master of Science in Finance &amp; Risk Management or Master of Science in Computational Finance. These programs can prepare students to understand investment management strategies; develop mathematical and computational skills; and understand the basics of debt, equity and derivatives securities. </p> <p>For managerial-level positions, employers will often look kindly on applicants who have completed an MBA. </p> <h3 id="section---WhatStockTradingJobsAreAvailable">What Stock Trading Jobs Are Available?</h3> <p>Stock traders can work for large banks, brokerages or hedge funds. Some individuals choose to become independent day traders, though this is widely considered a high-risk endeavor. Stock traders typically work long hours in high-stress environments. </p> <p>Prior to obtaining a job with a U.S. financial company, stock traders are required to become licensed as General Securities Representatives through the Financial Industry Regulatory Authority. In order to do so, candidates must already be sponsored by a member firm, and they must pass the Security Industry Essentials (SIE) and Series 7 exams to demonstrate their competency in selling various kinds of securities. </p> <p>Securities, commodities and financial services sales agents earned a median annual salary of $64,770 in 2020, according to the U.S. Bureau of Labor Statistics. The same agency projected that the occupation will experience 4% job growth from 2019 to 2029 - about the same as the average across industries.</p>