Stock trader job description: Boost your hiring game

Good stock traders can make your business big money. But hiring the wrong person can lead to financial losses, missed opportunities, and reputational damage for your company. 

And that’s only the half of it. Mis-hiring for a critical role like this can also hamper your own street cred in the company. Scary, right? 

Sadly, this isn’t uncommon, and much of it boils down to a poorly written job description that attracts unsuitable candidates for the role.  Luckily, we’ve got your back. In this article, we tell you exactly how to write a solid stock trader job description and share a free job description template to help you get started.

What is a stock trader?

A stock trader is a financial professional who buys and sells stocks for their clients – typically individuals or institutions. Their key responsibilities include:

• Analyzing market trends and financial data to predict market movements and identify potential investment opportunities. 

• Executing buy and sell orders for stocks to maximize client profits and minimize losses.

• Managing investment portfolios and ensuring they align with client's financial goals, risk tolerance, and time horizons.

• Advising clients on investment strategies and market risks, helping them make informed investment decisions.

Overall, stock traders play an important role in the financial industry by helping stock move between buyers and sellers, assisting clients in maximizing their investment returns, and contributing to market liquidity. 

Key skills to look for in stock traders

Stock traders need a good balance of hard and soft skills to perform well. Consider the following capabilities when writing your skills-based job description.

Hard skills 

• Analytical skills to evaluate financial markets, economic indicators, and company fundamentals. 

• Mathematical skills help traders calculate indicators such as moving averages, ratios, and price movements, enabling them to identify potential entry and exit opportunities.

• Technical analysis allows traders to study chart patterns (such as candlestick formations), understand technical indicators, and predict future market movements.

• Risk management skills let stock traders manage and mitigate financial risk using stop-loss orders and position sizing.

• Strong understanding of financial instruments such as stocks, bonds, futures, and options can help stock traders diversify client portfolios, hedge against potential losses, and take advantage of arbitrage opportunities. 

• Regulatory knowledge so traders are up-to-date and compliant with the legal and regulatory requirements surrounding stock trading. 

• Proficiency in trading platforms like Bloomberg Terminal allows for efficient market analysis and swift trade execution.

Soft skills

• Attention to detail helps stock traders execute trades accurately, monitor market changes, and spot potential errors quickly and effectively. 

• Adaptability allows traders to adjust their strategies based on market dynamics, industry news, and economic factors, which is key to staying profitable.

• Decision-making under pressure is crucial for making quick, informed choices in high-stakes and volatile markets.

• Communication skills are essential for clearly explaining complex trading strategies and concepts to clients and colleagues, ensuring everyone’s on the same page.

• Analytical thinking aids in evaluating and relying on logical data rather than gut feelings when making trading decisions.

How to write an effective stock trader job description

Follow these best practices to write a solid stock trader job description that attracts the right candidates.

1. Highlight specific trading strategies

Include details about your company's specific trading strategies – such as day trading, swing trading, or quantitative trading – in your job description. For example, if your firm specializes in algorithmic trading, mention the need for proficiency in relevant programming languages or software. 

This information helps candidates self-assess job fit based on their expertise and experience with these approaches. 

2. Emphasize regulatory compliance knowledge

Financial regulations are always changing, so specify that candidates must be up-to-date with the regulations relevant to stock trading. 

Highlight specific regulations that apply to your trading activities, such as the Dodd-Frank Act or the Securities and Exchange Commission (SEC) regulations. This way, candidates can consider if they’re experienced in navigating the compliance landscape. 

Otherwise, you could end up with a stock trader who violates the rules, incurs financial losses, and puts you at risk of losing your licenses. 

3. Include software and technology proficiency

Stock trading today relies heavily on technology and software. Your job description should detail the specific platforms, tools, and technologies the trader will use – for instance, Bloomberg Terminal, MetaTrader, or custom in-house software.

Not mentioning these requirements could result in hiring a trader who may excel in market analysis but struggles with the technological aspects of the role. 

Stock trader job description template

Here’s a job description template to help capture the precise needs of your stock trader role.  

Company introduction

Introduce your company, its mission, and key products or services. Also, mention your company’s trading philosophies and strategies and how the stock trading team contributes to business objectives. 

Finally, highlight what sets your company apart in the trading world, mentioning any innovative trading platforms, proprietary strategies, or awards it has received.

Benefits of working with [your company]

Here, you can spotlight the unique benefits your company offers its employees – for instance, competitive salaries, performance bonuses, healthcare, gym subsidies, etc. 

Additionally, highlight additional perks like mentorship programs, networking opportunities, and wellness programs tailored to support the demanding nature of stock trading roles.

Stock trader job brief

[Company name]

Job title: [For instance, VP Trading]

Reports to: [For instance, Head of Trading]

Position type: [Full-time or part-time]

Location: [Remote, hybrid, or on-site (include address if applicable)]

[Salary and benefits details]

Responsibilities and duties

• Analyze financial markets, economic indicators, and company fundamentals to identify trading opportunities for our clients.

• Execute buy and sell orders, managing the timing and size of transactions to optimize returns.

• Use technical analysis to study chart patterns and technical indicators that inform our trading strategies.

• Implement risk management strategies (e.g., setting stop-loss orders and position sizing) to protect investment capital.

• Stay updated on regulatory changes and ensure all trading activities comply with industry standards and laws.

• Collaborate with research teams to leverage their insights and make informed trading decisions.

• Monitor and manage trading portfolios, adjusting strategies based on market conditions and client objectives.

• Supervise trading assistants in maintaining detailed records of our trades and preparing reports on performance outcomes.

Skills and qualifications

Required skills and experience

• Bachelor's degree in finance, economics, mathematics, or a related field – or equivalent experience or training.

• Proven experience in stock trading, with a track record of successful portfolio management.

• Strong analytical skills, with proficiency in technical analysis and fundamental analysis.

• Knowledge of financial instruments, including stocks, bonds, futures, and options.

• Experience with trading platforms such as Bloomberg Terminal.

• Solid understanding of risk management techniques and tools.

• Familiarity with financial regulations and compliance requirements in [location].

Preferred skills and experience

• Master's degree in finance or a related field  – equivalent training or work experience. 

• Chartered Financial Anlayst (CFA) or other certification(s) relevant to trading or financial analysis.

• Advanced proficiency in financial modeling and quantitative analysis tools, such as Python or R for finance.

Want more help writing job descriptions for trading roles? Check out our trading assistant job description guide and our day trader job description guide. 

3 mistakes to avoid when writing a job description for stock traders

Avoiding these common mistakes can help you attract candidates who are not only skilled but also meet your company’s specific needs and contribute to its culture. 

1. Forgetting the need for resilience

As Ray Dalio, Chief Investment Officer at Bridgewater Associates, writes, “What is most important isn’t knowing the future – it is knowing how to react appropriately to the information available at each point in time.”

The trading environment is notoriously fast-paced and often stressful – requiring individuals who can stay resilient, maintain composure, and make quick decisions in volatile markets. 

Be sure to highlight the need for resilience in your job description. Otherwise, you risk hiring someone who can’t meet the role’s demands and might quickly burn out.

2. Neglecting to specify your company’s work arrangements

In a post-pandemic world, candidates often assume that most companies offer remote and hybrid work arrangements. But this may not be the case when it comes to trading, which is often limited to on-site work due to regulatory and company regulations. 

Omitting details about your company’s specific flexible or remote working policies can lead to a mismatch in expectations between you and your candidates – wasting time and effort on both sides. 

3. Skimming over the need for global market awareness

Today, global events can seriously impact financial markets and trading, and the best traders are keenly aware of global market conditions and geopolitical events. 

In your job description, specify this requirement – or open yourself up to candidates who are unprepared to operate in a global context or cannot respond swiftly to changing landscapes and market conditions. 

Next steps: Assessing stock traders

A precise job description can help you attract applicants with the right skills. However, you still need to validate their skills and expertise before making an offer. 

The quickest and most reliable way to do this is through talent assessments with a platform like TestGorilla. With our tests, you can measure candidates on multiple levels – such as their hard and soft skills, personality traits, cultural contributions, and more – to get a well-rounded picture of their suitability for the job. 

Consider using the below tests for your stock trader position. 

Job-specific skills tests 

• TestGorilla’s Financial Modeling in Excel test examines applicants’ abilities to create and maintain financial models in Excel.

• Our Financial Math test checks for proficiency in key financial concepts and calculations critical to trading decisions.

• The Market Research test and Market Analysis test evaluate how candidates can conduct market research, analyze trends and economic data, and use insights to make decisions.

Soft skills and cognitive ability assessments 

• The Attention to Detail (visual) test assesses if candidates can thoroughly and accurately review visual information, such as trading charts and patterns.

• Our Communications (intermediate) test can help you see whether your stock trader candidates have strong written, verbal, and interpersonal communication skills to collaborate effectively with the research team, trading assistants, and other colleagues.

Situational judgment tests

• TestGorilla’s Business Ethics & Compliance test is a good starting point for checking whether candidates have strong work ethics and can adhere to compliance regulations and company policies. 

Personality and culture evaluations

• DISC, Enneagram, and other personality assessments help you determine if candidates’ personality traits align with role and company requirements. 

• Our Culture Add test is a great way to see how candidates can both fit into your company’s culture and contribute to building a positive environment. 

FAQs

Looking for more information? Check out the answers to these frequently asked questions. 

How many hours a day do stock traders work? 

Stock traders' working hours can vary widely. They typically work seven to eight hours daily during market hours (i.e., when the stock market is open). However, many traders spend additional hours researching, analyzing markets, and preparing for the next trading day. 

What do stock traders get paid?

According to Indeed, the average annual base salary for a stock trader in the US is $80,086. They also make an average of about $25,000 in commissions and are entitled to benefits such as healthcare, retirement plans, family leave, and more.

Hire the best stock traders with TestGorilla

The wrong stock trader can hit your company with financial losses, regulatory fines, and missed opportunities. Writing a clear, detailed job description is a solid starting point to avoid these challenges, as it helps you attract qualified applicants for the job. 

Once you have a list of potential candidates, the next step is picking the best one. TestGorilla’s online talent assessments can help you test candidates’ hard and soft skills, behavioral traits, and more so you can hire a top-notch stock trader for your company. 

Want to get going? Schedule a live demo or create a free TestGorilla account to get started today.