In normal words a stock broker can be defined as someone who buys and sells stocks on others behalf. In reality, this term has a lot more to do apart from buying and selling. Becoming a stock broker is no child’s play. Before jumping into the field of stock brokerage, you need years of education, research and experience. A successful stock trader has a great commitment and enthusiasm towards the success of their clients or the organization they are working for.
You should have a great understanding of how NIFTY and SENSEX work. Good financial knowledge is mandatory.
Let’s get straight to the point and discuss what are the skills required to become a stock trader.
- Skills
Pressure handling
Stock trading requires immense research and very close analysis of the going on of world stock market.
Interpersonal skills
This job requires communication with your clients. There will be several occasions when you have to take initiave and turn the course of events in your favor.
Knowledge
You need to construct cash flow and credit analysis for portfolio managers and a lot more. So, you must possess good knowledge of what you are doing.
Numerical ability
A stock trader plays with numbers. There whole world is full of numbers. Good knowledge of arithmetic and satatistics would be highly beneficial for your growth.
- Eligibility
In order to become a stock broker, minimum qualification is a graduation degree with at least two years of experience in a broking organization. Minimum qualification to be a sub-broker is 12th standard. Age should be at least 21 years.
There are no particular courses available for stock broking. But additional degrees in financial market, commerce and economics will help you lend a job somehow easily.
Stock broking is not the only option. You can opt for a financial manager, an economist, a financial advisor, analyst etc.
- Job opportunities
Bombay Stock Exchange (BSE), Calcutta Stock Exchange (CSE), United Stock Exchange (USE), MCX Stock Exchange Ltd. (MCX-EX) and National Stock Exchange (NSE) are the only five functional stock exchange firms in India currently. The number of stock exchange firms used to be 20 back in 2014.
Various jobs are available in stock trading. Bombay Stock Exchange ranked 10th and National Stock Exchange ranked 11th among world stock exchanges in November 2014.
It would not be wrong to say that Indian stock market has a lot to offer.
- Pay Scale
Pay scale varies hugely depending on several factors like qualification, knowledge and experience.
But all in all the remuneration in stock trading is pretty good.
- Cons Of Becoming Stock Broker
As we all know that every good thing comes with a price tag. Same applies in this field. As a stock broker you have to be constantly in touch with market fluctuations and at the same time keep your clients updated with the corresponding information. All this work can be quite tedious. That’s not the end of story, not only it is high pressure responsibility but also it demands you to sacrifice your social life as you are left with no time to pursue your social life.
Otherwise, it’s a great career option if you are determined to follow the path.