Furthermore, it must understand the risks it is taking, for businesses such as derivatives involve a firm's own balance sheet in a complex way. The tools of risk management, which are still evolving, are taught in several advanced courses. Many consulting firms specialize in risk management tools and systems, a field that is changing rapidly. Trading Traders buy and sell stocks, bonds or foreign exchange for a firm's own account. A great deal of money can be made or lost based on a single trader's decisions.
Good traders sense the market's direction and quickly get in front of the momentum.
They keep a lot of quantitative information in their heads at all times, and their time horizon is very short. Trading somewhat resembles a gambling game, but it is not random. It takes steady nerves, concentration and good intuition, plus a comprehensive knowledge of markets. In contrast to traders, salespeople need to be people oriented. They meet the needs of institutional investors, including corporate treasurers, by finding the right securities at the right prices.