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Useful Degrees For Trading Stocks

In this post I want to discuss the issue of trading degrees or really, if you need an actual degree in day trading in order to become a day trader. And if not, then are there degrees out there that are really good for becoming a successful trader?

So below we get into the most suitable degrees (in my opinion) when it comes to trading stocks. The skills you will learn when studying for and obtaining the degrees discussed in this post are skills that can help a lot in your day trading.

But before we get further into the actual helpful degrees that can help a person should they wish to have success in stocks and day trading, let’s begin with the fundamental skills in day trading and understanding market movements that make a successful day trader.

What Kind of Skills are Required for Success in Day Trading?

Day traders live in a quickly-moving world of volume data and price and spend a lot of time looking at and marking up charts. Good day traders are able to take advantage of assets’ price fluctuations in a few seconds to minutes or even identify good investments to hold for longer periods i.e weeks to months in order to profit from price action. 

The best day traders also scan the market and read the news each and every day as it is necessary in order to determine the market’s direction each day. World news and global events can all have big impacts on stocks and price action and good traders spend a lot of time each day staying up to date on the latest global financial news.

So in this post we have put together a list of some of the best degrees in investing and other areas that can transfer well into making a successful career in trading.

Recommended Read: What is SSR in Stocks?

trading degree - do you need one?
The best day traders also scan the market and read the news each and every day as it is necessary in order to determine the market’s direction each day.

Likewise, they have to determine the currencies and stocks to trade that day. If this sounds exciting, there are a few degrees in investing that are helpful for this lucrative but risky career. 

Can You Get an Actual Trading Degree?

As of today there are no real trading degrees you can earn from a recognized College or University such as Oxford or Havard.

This is probably because the world of trading is so risky and pursuing a degree in this are is not seen as a way to earn a stable financial income, even though one could make a very good living from day trading, it is still frowned upon as an actual ‘job’ for which Lecturers and Universities would devote courses and facilities to teaching in order to earn an official trading degree.

But if the world of trading does interest you just know that while you do not require any kind of formal training, degrees or diplomas in order to become a successful trader, there are still some very useful degrees that would transfer well into becoming a successful trader.

That being said, we live in a digital age and with internet access and a PC or mobile device anyone can access paid or free quality trading courses online and learn all they need to know to become a profitable trader without receiving any kind of formal degree or diploma.

Learning Trading from Experience

In the past, traders started as assistants or clerks on stock exchanges. And they were hired based on their intuition and charisma. Basically they learned from experience. And quite a few did not have a formal education beyond a high school Diploma.

But they didn’t let a lack of post-high school education stop them. And learning on the job was probably favored by trading firms and stock exchanges in the past.

But with online trading, things have gotten more competitive. Firms need people with more education. If you want to succeed in this field, then the degrees discussed below in this post will be the next best thing to getting an actual ‘trading degree.’

Overall a career as a stock investing advisor or stock trader can be very lucrative. So it could be worthwhile to consider taking out private student loans to pay for your education. Many students find it’s worthwhile because it lets them go to school right away instead of working a few years to save up. 

At the end of the day the choice is yours and it is definitely not limited to those discussed in this post of; getting a traditional degree in an area related to finance or economics, learning on the job or learning trading online via paid and free courses and videos. 

So just what are the most suitable degrees to pursue that can help in becoming a profitable day trader?

Finance degree will help in trading
Aa finance degree is definitely suitable for someone looking to pursue a career in trading and the stock market.

Finance or Business Degrees

Many recruiters like applicants to have finance degrees. Many concepts of trading are in the finance degree program at colleges and universities and these definitely be helpful setting the foundation to have success in trading. 

A person who graduates with a degree in finance will have already learned and studied derivatives, corporate finance, accounting statements, and fixed income securities.

Many universities also have high GPA standards to get into a finance program. If you’re at the top of your class, you might get experience in managing portfolios with real funds. And this can be excellent practice for the investment decisions a firm will have you make.

So all in all a finance degree is definitely suitable for someone looking to pursue a career in trading and the stock market.

Economics Degree

This degree exposes you to the business cycle, interest rates, and economic indicators. You’ll learn about important policy decisions, crises, and economic shocks. Also, you’ll learn how they affected the financial world on a global scale.

Having a background in this field allows you to better understand current events. This can help you in your analysis of data and decision-making which is a crucial skill to develop in day trading.

By studying for an economics degree you’ll also learn about statistical analysis and basic regression, which will help a lot in futures trading should you choose to pursue trading after getting an economics degree. 


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Tech or Math Degree

As we all know, day traders perform virtually all of their trading ‘work’ using a computer. Safe to say that it’s probably a good idea to understand the electronic flow of information which can only help in trading.

Many firms hire statisticians and computer scientists as part of their risk management team. These professionals also help to program the algorithms which are used in data analysis and trading as well. These algorithms and programs are essential for market making, high-frequency trading, or statistical arbitrage.

If you like the idea of computer programs. Making decisions many times a day, consider studying computer science.

You’ll apply statistical concepts to day trading. With a statistical or computer science degree, you can do graduate work in quantitative finance or financial engineering. Each one can be lucrative.

If you’re good at mathematics, consider studying physics, engineering, or applied mathematics. Trading can be a mathematical job, especially when it comes to derivatives.

Majors in a math or science-related field are in high demand. Because they can understand quantitative concepts and apply them. For example, some pricing models can be reduced to mathematical equations.

Do You Need a Trading Degree to Become a Successful Day Trader?

After reading through this post I think we have established that a trading degree is not absolutely necessary in order to become successful in day trading.

And there are no trading degrees that you can study and obtain. In fact most successful stock traders and investors got their education on the job often with only a highschool Diploma in the old days.

These days we have the advantage of online courses to learn everything needed to be a profitable trader.

But these days trading firms seek more educated recruits and actively recruit from the areas of Finance and Economics and Technology and even Maths graduates.

Degrees for trading stocks are not necessary since you can learn everything you need to become a profitable trader on the job and with online courses. 

But the traditional degrees of Finance, Economics, Technology and Maths are definitely some of the better degrees to obtain that will help a lot in the area of trading and the stock market.