CAREER IN STOCK TRADING
“The only thing standing between you and your goal is the crap story you keep telling yourself as to why you can’t achieve it.” – Jordan Belfort (The Wolf of Wall Street). You would have heard of this famous dialogue from the famous movie ‘The Wolf of Wall Street’, a movie based on stock-broking. Have you watched it already? If not, then you can get a much better idea about having a career in stock trading, just in just 5 minutes by reading this blog.
The Indian education system has entirely overshadowed the capital markets as a topic. This is one of the reasons most students are ignorant of the career in stock trading, and also influential and elite job prospects available in the stock market reach. With the industry rising rapidly in India, it is clear that those who trade with market shares will have lucrative careers with huge growth opportunities. Indeed, a job in the capital market can be a really good choice.
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From an entry-level role such as Equity Adviser or Partnership Manager to the establishment of Entrepreneurial Company, the industry can provide employment prospects by providing services such as Qualified Investment Managers, business intermediaries, helpful forums that deliver crucial information to market participants, etc.
Trade applies to the purchasing and selling of goods for monetary gain. Trading not only raises money but also serves the purpose of providing commodities to specific customers. Trading plays a significant role in the global economy by generating financial-market liquidity. Trading is the primary cause of investment fund earnings.
Stockbrokers are interested in the buying and selling of securities in the market, mainly for their customers. They always keep in touch with their buyers, regularly reminding them about market conditions and advising them when to buy & sell and at what prices. At the same time, stockbrokers must make sure their stock trading business still makes full long-term income.
How to start this career?
Suggested subjects in 11th and 12th:
Even though no specific education requirements are needed to become a stockbroker, it’s unrealistic to make a career in stock trading without basic school education. One can learn the art of stock trading at any point of time in life, although it would be beneficial if the career in stock trading is well thought off & planned. Students can opt for any stream for class 12th, though it would be beneficial to have good knowledge of math or commerce related subjects to gain analytical skills.
Bachelor Degree Courses:
Since you can decide to pursue a career in Stock Trading anytime, therefore getting a bachelor’s degree in any subject would be fine. But for better understanding of the fundamentals of commerce, pursuing a bachelor degree in any of the following would help:
- Bachelor Degree in Finance/ Mathematics/Accounting/ Economics/ Business Management: You can pursue this degree from any good universities, such as NMIMS (nmims.edu), Christ University (www.christuniversity.in ), University of Delhi (www.du.ac.in) etc.
- Bachelor of Commerce (B.COM): You can pursue this degree from any of the good colleges, such as SRCC (srcc.edu), LSR (www.lsr.edu.in), IPU (www.ipu.ac.in), etc.
Master Courses:
Similarly, you can pursue any of the following degrees to master the concepts of commerce/finance:
- Master of Business Administration (MBA) in Finance: You can pursue this degree from any of the top B-schools such as FMS Delhi (fms.edu), IIM Ahmedabad (www.iima.ac.in ), IIM B, IIM C, SIBM Pune (www.sibm.edu ), MDI Gurgaon (www.mdi.ac.in), etc.
- Master of Commerce (Com): You can pursue this degree from any of the good universities, such as the University of Delhi (www.du.ac.in), etc.
- Master of Science in Finance
FURTHER STUDIES
A lot of financial firms are recruiting people from all backgrounds, and in this modern period, new-age financial companies are searching for the applicants’ expertise and aptitude rather than just the degrees. However, having or not getting a degree in Finance / Business is just the starting point.
Few recognized, simple, and fast short-term certificates without a necessary educational degree allow the exploration of different avenues. The certifying authority for these courses is NISM / NCFM, which is nationally recognized as compulsory certification for various professionals in the Indian capital markets. Anyone who wishes to learn the basics of corporations and has a very specific interest in Indian money can opt for these pocket-friendly courses.
NISM / NCFM (https://www.ncfm-india.com/) Certifications will introduce you to a plethora of different expertise fields within the financial markets. You can select from the different forms of derivatives, financial advice, risk management, and other broad-based topics. Individuals who aspire to enter the Indian financial services industry will have better prospects if they get those certifications first.
If you want to become an analyst, you can go to prestigious charter finance courses such as CFA (www.cfainstitute.org) or CA (www.icai.org) are perfect credentials to follow, CFA charter is considered the gold standard for the investing sector, and charter holders all around the world enjoy a mark of distinction.
Certificate Courses:
You can also go for any of the certificate course for having a good understanding of financial markets:
- NSE’s Certification in Financial Markets (https://www.nism.ac.in/certification/index.php/nism-series-xviii-financial-education-certification-examination)
- NSE’s Certified Market Professional
- Certificate Program on Capital Markets
- Post Graduate Diploma in Capital Market and Financial Services (https://www.ncfm-india.com/ORE/ORECEMAII.jsp)
- Post Graduate Diploma in Fundamentals of Capital Market Development (http://www.proschoolonline.com/pgd-investment-banking-equity-research)
ESSENTIAL SKILLS
Well! No degree or certificate could ever guarantee you success if you do not possess the skills required for any role. Similarly, to have a successful career is stock trading, you need to have the following skills:
- Analytical skills– Analytical skills are important as they help a practitioner to learn, detect, and exploit patterns to their benefit.
- Research skills–Stock market practitioners need a strong knowledge appetite and a willingness to collect all the pertinent data that impacts the stocks and industries in which they sell. Several practitioners construct economic release schedules, political campaigns, and reports which can affect financial markets.
- Patience– Patience is a must for pursuing a career in stock trading. People new to the stock market sector are always in distress as they suffer a defeat. It is said, then, the stock market is not for the weak-hearted. It is really important to train a professional for all situations and to maintain composure particularly when a loss hits.
- High level of integrity–You must handle money and a lot of it because you work with big and profitable financial market-oriented businesses and it is essentially your legal and ethical duty to be responsible for that money. The markets are heavily supervised by SEBI and routine audits exist at the business level to ensure compliance, only anyone with very high integrity standards can operate here.
TYPES OF TRADING
Trading is not limited to buying and selling of goods or stocks, there exist multiple options for you to choose from if you go for a career in Stock Trading. Given below are the various types of trading:
- MARKET TRADING: Market buying is where a trader purchases a commodity or asset from a supplier and then sells the commodity at premium rates to a seller, thereby gaining his profit in the transaction. The income benefit is referred to as market-making. Being a successful decision maker involves actively watching the demand and finishing all sides of the transaction before the asset’s price goes up or down.
- AGENCY TRADING: You sell with your client in business dealing. An agency trader has a list of customers who email him at a given number for the procurement of products and the agency trader implements the order. Trading in an organization entails certain constraints as opposed to other forms of trading.
- PROPRIETORY TRADING: Proprietary trading is the most volatile of all trading forms but it is still the most profitable trading form. Prop-traders work in line with business trends and expectations and open positions accordingly. When they’re right they make a huge deal of money or they’ll waste the capital. Most investment banks have prop-trading desks.
TYPES OF TRADERS
- EQUITIES TRADERS
- FIXED INCOME TRADERS
- FOREX TRADERS
- COMMODITY TRADERS
- DERIVATIVES TRADERS
Some of the top recruiters in India that employ stockbrokers are:
- Angel Broking limited
- Reliance Capital Ltd
- HDFC
- JP Morgan
- ICICI Direct
- India Infoline
- Indiabulls
- Sharekhan Limited
- Kotak Securities Ltd.
- Karvy Consultancy
WHERE TO LOOK FOR A CAREER IN STOCK TRADING
Now that you have significant information about the trading career, the next issue that comes up is where to look for a trading job. Through working with different organizations, such as investment banks, wealth management agencies, hedge funds, and other financial institutions, you will follow your career as a broker. As an investor in an investment bank or commercial bank, you concentrate on gaining income through the acquisition of Liquidity to the consumer. Whereas as a broker working with an asset management firm you try to consider the right investment instruments rates that is part of the portfolio of your client. On the other hand, you’ll be working as a proprietary investor in a hedge fund and gain money from the rising stock market patterns.
CONCLUSION
We have extensively outlined the job specifics of Trading that you will get in any finances as a degree holder. If you’ve been excited and inspired to read this then trading job at Wall Street will excite you even more and pursuing a career in stock trading could be the best option for your profession. There are trading positions in nearly every finance firm in the industry and you have to pick the best position for yourself depending on the opportunity you have. “Work until your bank account looks like a phone number.” – Jordan Belfort (The Wolf of the Wall Street). You should also look forward to your long-term investment so that you can settle with your bank account holding enough money in style. To find the best sort of trading profession for yourself and perform work, you would also need to study and speak to specific people.
We hope this is going to be helpful if you are planning to pursue a career in stock trading. For more guidance, feel free to connect with us and provide your feedback as well, so that we can also improve in the future.
