7 things I wished someone had told me before!
Below is a comprehensive list of 7 things I hope someone has told me before for those considering or working as a Financial Dealer, Financial Trader, Quantitative Trader, Funds Manager, Portfolio Manager, or Proprietary Trader. These insights touch on the practical and psychological aspects of trading, managing funds, and the complexities of the financial industry.
P.S - I have 7 years of experience dealing, trading, and Proprietary Trading for OTC Spot FX, Bullion & CFDs, and over 20 years of experience in the Capital market in various roles.
1. Trading is a Marathon, Not a Sprint
Why it matters: The financial markets can be volatile, and the rush for quick profits is tempting, but it often leads to burnout or significant losses. If someone had told me that trading isn’t about making fast money but rather about managing risk, consistency, and long-term success, it would have saved me a lot of emotional stress and helped me build better habits from the start.
Elaboration: In every facet of trading, whether it's dealing, managing funds, or trading on a proprietary desk, patience and discipline are key. As a Quantitative Trader or Proprietary Trader, you might feel the pressure to produce quick returns, but the true value is in building robust strategies that evolve with the market. Portfolio Managers especially need to adopt a long-term mindset to ensure they’re optimising for risk-adjusted returns rather than short-term gains, understanding that market cycles can span years, not weeks.
The takeaway: Focus on developing your strategy over time, remain disciplined, and don’t chase every fleeting market movement. Think of your trading career as a slow, compounding process. Overnight millionnaire comes to 1 out of 1,000,000 chances and involves with tremendous risk.
2. Risk Management is Everything
Why it matters: A lack of focus on risk management is one of the primary reasons traders and fund managers fail. No matter how great your trading strategy is, risk management will make or break your career. If someone had stressed the importance of defining clear risk parameters and implementing them consistently, I would have saved a lot of capital and mental energy.
Elaboration: Risk management applies across all roles in finance, from Financial Dealers to Funds Managers. As a Portfolio Manager, your job isn't just to generate returns but also to minimise downside risk. This includes diversifying your portfolio, setting stop-losses, and always being aware of position sizing. As a Quantitative Trader, it's essential to backtest your models rigorously with different data sets and stress-test them for extreme market conditions. Similarly, Proprietary Traders need to balance their risk exposure with the potential returns from their positions.
The takeaway: Always calculate and manage your risk before entering a trade. Know how much you're willing to lose and use risk-adjusted performance metrics (e.g., Sharpe ratio) to evaluate your success. For those arbitrageur strategies, the risk management will be focusing on the cash flow & capital utilisation during volatile market situations.
3. Emotional Control is Your Biggest Asset
Why it matters: Emotions can cloud judgment and lead to impulsive decisions. In the heat of the moment, it's easy to get swayed by fear or greed, both of which can be devastating. Having someone tell me early on to focus on emotional resilience would have helped me avoid costly mistakes caused by acting on impulse.
Elaboration: Whether you’re a Financial Trader or a Funds Manager, your emotional state can have a direct impact on your decision-making. A Quantitative Trader, for example, relies on logic and algorithms, but even they can fall victim to overtrading during moments of stress or overconfidence. Emotional control becomes even more critical when managing a portfolio or trading on behalf of others, as fear and overconfidence can easily translate into poor decisions with lasting consequences.
The takeaway: Cultivate mindfulness and emotional regulation techniques. Practice self-awareness and develop mechanisms to avoid knee-jerk reactions in moments of market volatility.
4. It's Not Just About the Tools, But How You Use Them
Why it matters: The financial world is filled with cutting-edge technology, from sophisticated trading platforms to complex quantitative models. But just because you have the best tools doesn’t mean they’ll guarantee success. If someone had told me that knowing how to apply the tools effectively and adapting to the evolving market environment was just as important, I would have saved myself from overcomplicating things early on.
I used Currenex, MT4, FXALL, and 360T during my active period and now working closely with Trading Technology & CQG Inc. providing for the Professional Traders.
Elaboration: For Quantitative Traders, mastering the technical aspects of machine learning, statistical modelling, and algorithmic design is crucial. But it's also important to adapt and remain flexible. Portfolio Managers use financial tools to analyse risk, but applying these models correctly requires judgment and understanding of the market context. Proprietary Traders often rely on cutting-edge trading systems, but intuition, market sentiment, and adaptability play just as much of a role in success. The market environment is constantly changing, and relying solely on backtested data or predefined rules can blind you to new opportunities.
The takeaway: Master the fundamentals of your trading platform or strategy, but don't let the tools overshadow your understanding of the market and your judgment.
5. You Will Lose, and That’s Okay
Why it matters: In a high-risk, high-reward environment, losses are inevitable. The sooner you accept them, the better you can manage them. If I had internalised this earlier, I would have dealt with losses more rationally rather than emotionally, and I could have better managed my portfolio during down periods.
Elaboration: As a Funds Manager or Portfolio Manager, you must accept that losses are a natural part of the investment process. Some of your positions will lose money, and some will win. The key is to ensure that your losses don’t outweigh your gains, which ties back into effective risk management. Proprietary Traders and Financial Dealers especially can experience large fluctuations in their portfolios, and the ability to take a loss and move on without it affecting your confidence or strategy is crucial. Accepting losses as a natural part of the process enables you to learn from mistakes and improve your trading approach.
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The takeaway: Embrace losses as opportunities to learn and refine your strategies. Build resilience and avoid letting individual failures shape your overall perspective.
6. Networking is Key, But Reputation is Everything
Why it matters: In the world of finance, trust and reputation are often the most valuable currencies. While networking with peers and mentors is essential for growth, maintaining your reputation for integrity, reliability, and consistency is paramount. Someone telling me this early on would have helped me build more meaningful and long-lasting relationships in the industry.
Elaboration: In fields like Financial Trading and Funds Management, the networks you build can open doors to new opportunities, information, and collaboration. But it’s important to remember that a reputation for trustworthiness and ethical behaviour is what will keep those doors open. Whether you’re a Quantitative Trader running algorithms, a Portfolio Manager overseeing billions, or a Proprietary Trader taking risks for your firm, your reputation will impact your career trajectory. A good reputation attracts clients, investors, and potential employers, while a bad reputation can derail your career.
The takeaway: Always prioritise honesty, transparency, and ethical practices in your work. Invest time in building a strong professional network based on mutual respect.
Where my community and I will be your bridge to support you in enhancing your reporting and your integrity [Of course, you need to pass my smell test.] Speak to me to find out more.
7. Stay Curious and Never Stop Learning
Why it matters: The financial industry is constantly evolving. New technologies, regulatory changes, and emerging markets can significantly affect your strategies. If someone had told me how critical continuous learning is, I would have avoided getting stuck in outdated methods or mindsets.
Elaboration: In roles like Quantitative Trading, Proprietary Trading, and Funds Management, the landscape is always changing. New financial instruments, trading algorithms, and data sources are continually emerging. Staying ahead of the curve requires a commitment to lifelong learning. Whether it’s reading industry research, pursuing certifications, or experimenting with new techniques, never stop evolving your skillset. The most successful professionals are those who adapt to new tools and approaches while continuing to learn from both successes and failures.
The takeaway: Be proactive in your learning. Whether through formal education, books, podcasts, or peer discussions, always seek to improve and adapt your strategies.
There is no such thing as "Old Dog can never learn a new trick, it is all about your planning and goal in life that motivates you to learn and grow."
These 7 insights reflect the realities of a career in finance, emphasising both the technical and psychological aspects of trading and managing investments. They aim to provide practical wisdom and mental frameworks that can lead to long-term success in highly competitive environments like Financial Trading, Portfolio Management, and Proprietary Trading.
My Reader:
You are welcome to join me in building the community.
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