Trade is essentially an exchange of goods and services between two parties and the stock market is where the trade of public companies’ shares takes place. In a stock market, buyers can raise their profits without jeopardizing their own businesses, and on the other hand, the sellers can profit due to the sale of stocks and raise funds through investors; investments are a win-win for both parties. The stock market performance is a strong indicator of the economic growth of a country. In India Bombay Stock Exchange (BSE), along with the National Stock Exchange (NSE) are the two main stock exchanges where trading takes place.
With the growth and evolution of the trading industry in India, more and more people are looking for employment opportunities in this domain, hoping to make a career in the share market. Such a career could involve working with a firm, moving through a conventional career in the investment field or could be entrepreneurial in nature, with you investing and trading through the stock market to turn a profit for yourself. Let us consider the career prospects and necessary steps you need to take to build a career in the stock market.
What are the job roles in the Stock-Market?
If you’re looking for a more conventional job in the stock-market, there are plenty of types of firms to consider. Stock market participants like Stock Broking Firms, Stock Exchanges, Registrar, Clearing corporations, Custodians, Mutual fund and pension fund companies, Investment Banking Firms, Research institutes, etc. are some of the starting points for exploring stock market career options.
There are various stock market jobs, including the following roles:
- Investment Advisor
- Financial Advisor
- Online Stock Trader
- Portfolio Management Services (PMS)
- Equity Analyst (Fundamental/ Technical)
- Financial Analyst
- Research Analyst
- Market Researcher
- Insurance distributor/advisor
- MF Distributor/Advisor
Education and Qualifications
For those who are looking for jobs in the stock market for freshers, it’s crucial to examine the eligibility criteria and check if you meet it. While many traders are generally self-taught, a relevant college degree gives you a competitive edge and is almost a prerequisite these days if you wish to build a serious stock trading career. Ideally, one should start by taking the commerce or finance education stream after 12th standard in order to get a comprehensive understanding of the job roles in the trading industry. Some popular streams are CFA, Master in Finance, FRM, and NISM Certifications.
Chartered Financial Analyst (CFA)
CFAs are the most popular career option in the industry. The CFA international certification program offered by the CFA Institute, USA educates you on the verticals of financial analysis like qualitative analysis, reporting, portfolio management, ethics, and so on. It is similar to the Chartered Accountant (CA) certification course, and the exam can be given from any certified center across India. This qualification makes you eligible for positions like Research Analyst and Fund Manager. Anyone with a bachelor’s degree in any stream can apply for this certification.
Financial Risk Manager (FRM)
FRM is also an internationally recognised certification program offered by the GARP organisation, USA. Giving you a strong foundation of the concepts of the risk management aspect of the market, this certification opens up risk management roles in the stock markets as well as financial institutions like banks, insurance companies and NBFCs.You do not require a bachelor’s degree to appear for the exam, however you need to work for two years on a financial risk portfolio to get certified
Master in Finance
You can opt for MSc Finance or MBA Finance; this course educates you on nearly every aspect of the financial market and gives you an undeniable edge over your competitors.
The National Institute of Securities Market (NISM)
NISM offers several certificates in the securities market at nominal costs. SEBI has made it mandatory to have NISM certificates for different job roles in the securities market, and this certificate adds a lot of value to one’s resume. These certificates are valid only for 3 years, but are a good option for those looking for jobs in equity/commodity trading or back office management.
However, While Indian society generally pushes for more conventional career paths like medicine, engineering and law, trading has been a desirable career option for a long time in other developed countries. Trading has the potential to be a full-time professional career and more candidates are beginning to seek out stock market jobs. There is no minimum age to begin investing in the stock market; minors as well as adults can invest. A minor’s account will be managed by the guardians until the account holder reaches adulthood. Note that you will require a PAN card for opening a demat account. If you’re looking to work for yourself, and make a successful career as a Stock Market investor, then read on for some tips.
What do you need to become a successful trader?
In order to become a successful trader, keep the following in mind:
- Formulate a clear, straightforward trading plan. The trading plan’s objectives must be clearly outlined and should be of purpose to the trader.
- Familiarise yourself with the technology, platforms and various methods for employing a strategy.
- Build trust and consistency in your strategy through repeated execution and testing. Be patient and persistent; over time your experience and expertise will both grow
- Beware of behavioural pitfalls like recency bias, revenge trading and stereotyping.
- Maintain certain rules, standards and milestones for yourself as a trader.
- Invest your time and energy into your career in the stock marketas a serious full-time profession, and prepare for the risk of losses.
The Stock market is a fascinating place and has birthed a number of careers around it, some conventional and salaried, others dependent on the individual’s ability to read the market and make smart investments on their own account. Regardless of what you choose, a strong understanding of finance, economics and risk is crucial, which a number of degrees and certifications can help you obtain.