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Some of the problems with prop trading are the same as in any area of interest, but some are unique to this ever-growing segment. When I look at the structure, staff and technology from 12 months ago, my company is almost unrecognizable.
Without the right attitude, controlling your growth could be like juggling chainsaws.
The key role of technology
Technology is the driving force of the retail industry. By definition, our business exists exclusively on the Internet. The rapid evolution of tools and platforms can dramatically change the landscape overnight. We saw it with our own eyes.
Leaders in this sector must show an exceptional degree of technological knowledge and “anticipatory” vision to anticipate and adapt to these changes. Adopting latest technologies forces a culture of continuous learning and innovation inside the team. There is no such thing as the established order!
Team members who slowly proceed to learn, experiment with latest tools, and take the time to think strategically don’t last long. The willingness to adapt is crucial for growth and competitive advantage.
Taking advantage of diversity
The global nature of today’s commerce signifies that teams come from a number of cultural and skilled backgrounds. Our current team is distributed across five different countries. This diversity, while a tremendous asset, also presents unique leadership challenges.
Effective leaders must promote a cohesive team environment where every member feels valued and understood, no matter background or location. Solutions are needed to reduce the “artificial isolation” that team members from other parts of the world may experience. This includes using technology to facilitate communication across time zones, supporting an inclusive culture and seeing it as a strength slightly than a hindrance.
One example is occasional non-industry related video conferences. They give team members time to talk freely about their lives, creating a bond that business video calls don’t allow. You’d be surprised what personal information was obtained from these conversations. Everyone likes these moments. (And yes, everyone’s camera should be on!)
We proceed to see innovation and closer collaboration as the desired final result.
Balancing the dynamics of contractors and full-time employees
Prop trading is no different from any other company on the market. Our team is struggling with the “contractors and salaried employees” problem. We all know corporations that did not handle this properly and paid dearly for it.
This mix can add flexibility and specialized skills to the team. However, it also requires careful management to make sure that everyone is on the same level and consistently working towards achieving the company’s goals.
During the growth phase, when some roles are expanding and others are fading, it is important to consistently ask ourselves, “Is this best handled internally, or will we outgrow this need in 6 months?”
Leaders must integrate these authors, provide clear communication, and set firm expectations. Verbalizing clear expectations can prevent a lot of trouble. This issue reflects the geographical challenge just mentioned. Promoting an environment where contracts feel “given” to the company’s vision.
There’s a different concept at play here. The “shoot fast, hire slow” rule. I do not mean this in a purely absolute sense. However, the willingness to make difficult decisions is the spark of growth.
Make sure each member’s presence is not only legitimate but also helpful to the common goal. Once again, this philosophy is not rooted in a lack of compassion, but in the pursuit of excellence and the long-term success of the team.
Defending honesty as core values
The temptation to make a quick profit in the prop industry can lead to ethical dilemmas with each clients and business entities. Honesty is non-negotiable.
There are bad actors in every area of interest. Unfortunately, prop trading is not immune to this. This makes it much more vital that leaders themselves hold themselves to the highest ethical standards and instill these values in their teams.
This involves creating a culture where ethical behavior is recognized and rewarded and team members feel comfortable expressing their concerns. Customer service sees different customer behavior than the back-office tech team.
As a rule, every time money or profits are involved, someone will find a way to get around the rules. By prioritizing integrity, leaders create a team that not only achieves success, but also does so respectfully and legally. And in line with the company’s long-term vision.
Adapting the team composition to future challenges
The skill sets and mindsets that contributed to initial success may not predict future success. Leaders must remain vigilant in assessing team capabilities and be willing to make crucial changes.
This may include searching for latest talent with specific expertise or redefining roles inside the team to higher align them with strategic goals. The same talent pool that gives a company with $0 to $1 million in annual revenue is unlikely to be $10 to $50 million in annual revenue. Spotting talent bottlenecks is an acquired skill. But it is very crucial.
The art of leading a trading team to success
Leading any team to success is an art that requires a combination of strategic foresight, technological proficiency and developing interpersonal skills.
The short version: If I had to select a trait that indicates someone who is likely to be there for you throughout your growth and challenges, I’d probably select a willingness to consistently learn.
By following these principles, leaders can build resilient, flexible teams able to lasting growth and even friendship. This journey is difficult, but the advantages of making a high-performing and ethical team are immeasurable.