Panellists agreed that well-rounded traders are the future, however extensive experience should not be underestimated they warned, pointing to the effects of an increasingly volatile environment.
One speaker explained that the ideal situation would combine experience over the long-term and a knowledge of different market conditions with the technical skills which have become increasingly prevalent across emerging traders.
Another added that the ability to react and scale the market was an essential aspect, the ability to make informed decisions, quickly, in a variety of situations.
A popular take suggested that the narrative surrounding talent on trading desks and the impact of technological advancement could be explained through the analogy of landing an aircraft, whereby despite the fact the plane is flying thanks to machines, there remains an important degree of human intervention (‘pilots’) in order to supervise and control this.
Another expanded on this analogy, highlighting the fact that many trading desks have undergone a reduction in size in recent times, meaning the tolerance for ‘passengers’ is very low.
“Covid proved the value of an experienced trader and brought it back into focus. You don’t need a pilot to fly a plane, you need the pilot to land it [and in times of turbulence],” said a speaker.
One panellist delved into the importance of bringing together the two worlds, of technical knowledge and the people skills traders have traditionally relied on, in the current market.
Panellists agreed that the conversation has moved on from automation being the turnkey solution as market volatility continues to prove the importance of experience and adaptation on the desk, with the focus now being on enlisting the most well-rounded traders.
“The human element of trading will always remain, but it’s getting the right people to do what’s left having relied on automation so much,” said one panellist.
This remains true of individuals who have spent years in the job, the speakers went on to agree. Those who are open to changing, learning and developing at any stage are the most successful in this changing environment.
It is in times of stress in particular when the well-rounded trader thrives, asserted one panellist, explaining that pre-emptive training and development should be a focus for firms – traders must be sufficiently equipped to react in these situations.
One speaker stated: “In the end if you are not able to have people there to react to the right moment when there’s a crisis coming […] you will lose a lot of money.”
Another take on the relevance of experience, highlighted by one panellist, linked to the importance of diversity in terms of experience. Aside from a diverse background, the need to pull from different skills and knowledge cleaned from different corners of the market was underscored.
“The key is to leverage this diversity,” said a panellist, adding: “Sometimes it’s harder to manage a diverse team, but it’s always worth it”.
Another panellist added: “You need everything covered across the desk but it’s a case-by-case issue. When it’s a diverse team it’s a very different conversation for every single person on the team.”