The Importance of Key Performance Indicators as a Trader: Showcasing Your KPIs in Job Applications

Image Source: Pexels

 

You are already a skilled trader. But when you are looking for job opportunities with a new company or client, do you know how to prove it?

Below, we will review what traders do and what qualifications are required. You can best show that you meet the requirements in a job posting by including KPIs on your resume. If you are not sure how or why, worry not! We will talk more about what KPIs are and how to leverage them effectively below.

As a trader, you perform numerous daily tasks – but how can you articulate this on your resume?

One UK job search resource summed up the field well, stating that traders “are responsible for making prices and executing trades in equities, bonds, commodities and foreign exchange, usually dealing on behalf of, or for the benefit of, investment banks.” 

A four-year degree is a vital part of your trader resume. Your bachelor’s degree can be in any subject—you can’t major in trading, after all—but degrees in finance, business, economics, or politics can truly be helpful.

Much training is done on the job, so your soft skills and technical abilities are more important than what you studied. 

You should be adept with computer technology and mathematical skills. You should also exude confidence, be a good communicator, handle interpersonal relationships and team situations well, and have keen analytical skills.

It is also important that traders understand the market at any given time, so you should take an interest in the subject, reading as much up-to-date info as possible.

The exact content of your resume will depend on the type of position you intend to apply for – that of a flow trader who buys and sells financial products on behalf of bank clients, a propriety trader who represents the bank in trades, or a sales trader who will act as brokers between clients (individuals or companies) or another type of trader.

Now, how can you pour all those qualifications into a one-page resume? KPIs are the ideal solution.

Showcase KPIs in Your Trader Job Application

Key performance indicators (KPIs) are measurable displays of evidence that you can perform – they are criteria used to assess whether or to what degree you have the ability to do the job at hand.

KPIs do not have a separate resume section all their own. Instead, they are included in the work experience section – the bulleted list below each position.

KPIs focus on the numbers. Think about ways that you can quantify your contributions and accomplishments at past jobs. This offers a sort of proof that you can use the skills displayed in your skills list.

Below, we’ll talk about four types of KPIs and how you can work them into your resume.

Growth

Look for numbers such as increases in clients or monetary growth of account assets.

Money and Time

Track your profit and loss per trade. Including a positive average in your description is advantageous.

You can also use drawdown as a KPI. For example, you might report a drawdown percentage that is less than the current average – showing that your accounts have been less likely to temporarily lose value.

Benefited Parties

Who benefits from your work will vary from position to position. It is likely that you are benefiting the financial institution or company for which you work, or individual clients. If the latter is true, you may be able to note the number of clients who benefited. Combine a mention of who benefited with one of the other KPIs to show the pay-off.

Number of Tasks or Projects

The number of trades in a given period of time—per day, week, or month, for example—is one of the best trader KPIs. 

Another is the strike price, in-the-money (ITM), or percentage of winning trades. When these values exceed the average, this paints you in a very positive light.

Examples

Consider these examples of the above.

• Average drawdown of less than 10 percent across 342 managed accounts.
• Increased average profit per trade by 9.5 percent during a 12-month period.
• Decreased drawdown by 2 percent during first six months in this position.
• Improved strike rate by an average of 4.2 percent per quarter.
• Managed 13 portfolios totaling $7.5 million in value.

Not Just for Job Seekers

Did you know? Keeping track of your KPIs is good for your career as a trader even if you’re not looking to change jobs. Trader KPIs can provide you with insight into your performance and identify areas in which you could use some improvement. In so doing, you will become a more valuable employee overall and a desirable future job candidate.

Key Takeaways

Trading is an exciting career option that combines financial expertise, market awareness, and a number of soft skills. In this field, it is important to use KPIs on your resume to highlight your abilities.

These KPIs include numeric or quantitative indicators of growth, money, time, benefited parties, and the number of tasks and projects handled. KPIs can be included in the bulleted descriptions of your Work Experience section to provide evidence that you can fulfill your role adeptly.