How to conduct an interview for the trader vacancy?

Let's dive into the trading world and what are the most suitable topics and aspects every trader should know and how you can manage to find out if a trader is professional and trustworthy.

Indicators every trader must know

Try to ask them about some widely-accepted market performance measure tools like the CPI indicator, which measures the changes in the average prices of goods and services consumed by households over time. Central banks and governments often use CPI as a tool to monitor price stability and make monetary policy decisions and traders often have to know what governments and central banks are going to do in certain conditions.

It is critical that traders know about this indicator and use it to analyze markets. Other critical indicators that have the potential to overturn price trends include NFP or Nonfarm payrolls, GDP, and central bank interest rates. GDP measures the health of the economy of entire countries, while nonfarm is an important US indicator that has a history of shaking Forex markets constantly. Central bank interest rates like the US Fed have a direct impact on the US currency as they can lower and increase inflation and directly affect the strength of the currency.

Now let's switch to an interview and make a list of steps you will need to take as an interviewer to make sure the selected candidate is the best trader possible.

Before conducting the interview

It is not an easy task to conduct an interview as there are certain steps you should take to make sure you find the best candidate for the job.

Reviewing the candidate's CV

First things first, you will need to review the candidate's resume. Take your time and review the candidate's CV and cover letter if you requested one. This will give you a basic understanding of candidates' experience, and qualifications. This will also help you prepare relevant questions for the interview. If you do not have a CV and need a trader who will trade on your behalf then try to see their career highlights on their page or find their performance statistics on the Myfxbook website that tracks and records the trading performance of financial traders.

Prepare the list of questions

Make sure to assemble a list of questions that will help you assess the candidate's trading skills, market knowledge, risk management abilities, and other relevant skills that are essential for successful trading. It is important to list questions that will help you evaluate the candidate's motivation, work ethic, and personality. If you are trying to hire a professional trader to trade on your behalf make sure you have questions that address the trader's track record of successful and consistent trading results.

Conduct the interview

After you get the list and know what questions to ask, proceed to interview the candidate. First of all, start introducing yourself and your company if you are interviewing the trader on a firm's behalf. Then ask candidates to introduce themselves this is a standard procedure and will manage to create a more friendly environment with the interviewee. Then ask the candidate prepared questions and listen carefully to their responses. Do not hesitate to ask follow-up questions if you need more information. At any rate, make sure you have a basic understanding of what traders' experience is and what drives them, what are their main goals and how they see themselves in the near future as well.

Test their trading skills

Depending on the nature of the trading job you may want to test the candidate's trading skills by asking them to analyze a hypothetical trading scenario or certain market which you already know, you could also give the trader a trading simulation exercise. This has the main aim to give you a better idea of their ability to make sound and wise decisions under pressure. Since trading involves the emotional side with stress, testing traders' ability to analyze markets under pressure will give you invaluable insight into their trading abilities. Also, do not hesitate to ask them about which indicators or methods they use for trading to know the extent of their knowledge.

Ask behavioral questions

Elon Musk always asks his interviewees about difficult challenges they have solved in the past. There is a reason why this method is very useful. It lets you assess candidates' motivations, work ethics, and personality, as well as expertise in their field. Providing examples of how candidates have handled challenging situations in the past will help you understand what the main drives of the candidate are and if they are suited to your requirements.

Discuss compensation and benefits

If you are satisfied with the candidate's responses, discuss compensation and benefits and make sure they fully understand the position's requirements and expectations.

Follow up

After the interview, follow up with the candidate to let them know whether they have been selected for the next phase of the hiring process or not. It is better to let them know the feedback as it will help them in the future to find suitable work or to improve their skills.