Trade managers watch over several traders who typically invest hundreds of thousands of dollars per day. In addition, trade managers evaluate the investment strategy of each individual trader as well as the company as a whole. There are no education requirements to become a trade manager. However, most trade managers have a stock broker license and decades of experience in addition to a college degree.
A trade manager watches over other traders on the roster of his firm or business. Although most traders have years of experience and a college degree, a trade manager still routinely evaluates all trades done under the firm. This is to ensure that traders are adapting well to a constantly changing market.
In addition, a trade manager is expected to design a trading strategy to fit the compny's investors. Implementing the trading strategy involves informing all traders under the firm or business about what the strategy entails. The manager is expected to help coach junior traders on his strategy as well as explain the strategy to investors.
The trade manager is expected to report all illegal activities to the Securities and Exchange Commission (SEC). This includes everything from tax evasion to illegal insider trading knowledge. Oftentimes, if the SEC discovers that a trader has insider knowledge of a company, the trade manager is the first one blamed. Thus, it's imperative that she maintain a watchful eye on all traders.
A trade manager is typically paid a portion of the net profits from the overall portfolio of the firm or business. In addition, many firms or trading businesses require maintenance fees for investors accounts. A portion of the maintenance fee is also paid to the trade manager.
Watching over several educated traders and thousands of dollars is very stressful. The stock market is also volatile and largely unpredictable. A bad trading day may mean a loss of millions of dollars for the average trade manager. A trade manager must also have a versatile trading philosophy to succeed in the constantly changing stock market.