Exploring Careers In Stock Markets
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- 13 Apr 2023
Do stock markets excite you? Do you want to make a living out of it? Know how to make a career in stock markets here!
If you are passionate about Nifty, Sensex, markets, and if you know how to handle finance, then a career in stock markets might be just for you. But, you must know that the stock market is a diverse, multifaceted field and people willing to enter in this field must brace themselves for a highly charged and challenging career! Read on if you wish to pursue a career in the stock market.
The stock market is an important part of the financial system and plays a vital role in economic development. It is a hub where facilities are provided to the investors to purchase and sell stocks and other securities on their behalf. There are a plethora of opportunities in the stock market, and the change in technology and increasing volumes on the exchanges has brought about a number of very low barriers-to-entry trading careers in the stock market.
Before choosing a career in the stock market, know about some of the share market-related terms here
Following positions are available if you wish to pursue a career in the stock market:
Equity Adviser
You can make a career in the stock market by pursuing the role of an equity adviser. An equity adviser guides you in selecting stocks for investment and determining the tenure for holding them. They will also guide you with respect to short-, medium-, and long-term investments of your securities. If you are looking to pursue the role of an equity adviser, then you should have strong analytical skills and an ability to build good interpersonal relationships.
How can you become an Equity Adviser?
An equity adviser typically should have a degree or a diploma in finance, business, or accounting. Additional skills required to pursue this role include good communication skills, analytical mindset, decisive thinking, and excellent research skills.
As a starting point, you can take up an internship with a financial firm to build your professional network and connect what you’ve learned in an academic setting to a real job.
Equity Relationship Manager
A relationship manager is a professional who works to improve a firm's relationship with its customers. The position of a relationship manager as a career in the stock market involves helping clients invest in various securities. The investments suggested by a relationship manager are carefully designed to suit the client’s financial needs and help the investors achieve their financial goals. Moreover, the equity relationship manager generates new business for the company he works for.
How can you become a Relationship Manager and does this position require any special course or training?
A person looking to become a relationship manager typically should have a Bachelor’s degree in business, marketing, or management. This role requires you to keep yourself up-to-date with financial services; also, you'll need to have a good understanding of banking procedures and regulations. Anyone giving financial advice to clients will be expected to have at least one of the certificates of Certificate in Financial Planning (CII) or Certificate for Financial Advisers (IFS).
Click here to know about how does stock market works
Dealer Or Stockbroker
The most-well known career in the stock market is that of a stock broker. A stock broker is a member of the stock exchange who acts as a financial service agent to help customers buy and sell securities in the financial market. He can sell securities and provide an insight on the market to his clients. Other than buying and selling securities, a dealer also underwrites securities and also provides investment services to the investors.
How can you start working as a Stockbroker/Dealer?
If you want to work as a stockbroker with a brokerage firm or investment bank, a bachelor’s degree will be required. You need to register and become a member of a stock exchange. A stockbroker must also register with the Securities and Exchange Board of India (SEBI). SEBI regulates & governs all the stock brokers, and it protects the rights of the investors. You can also take a course in stock brokering. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) offer certified courses in stock brokering.
Stock dealers or stockbrokers need to thoroughly research the market so that they can give advice to the clients and increase their client base. They should have a deep understanding of securities and commodities, depending on their specialization. It is not necessary for a dealer to always work with clients, they can work directly on a trading floor buying and selling stocks pursuant to an order placed by a trader.
Equity Analyst
An equity analyst is responsible for generating analysis and reports on investment opportunities that institutions, investment banks or their clients may be interested in. They provide investors with detailed financial analysis and recommendations on whether to buy, hold, or sell a particular investment. Banks often use equity research as a way of “supporting” their investment banking and sales & trading clients, by providing timely and high-quality information and analysis.
How can you start your career as an equity analyst?
Most individuals who choose to become equity analysts begin as entry-level research associates after completing bachelor's degree programs. They work under the direction of a senior equity research analyst creating financial models and conducting research.
Does this position require any special courses or training?
The candidate looking to pursue this career can have a Bachelor's degree in mathematics, statistics, engineering, or physics. To pave the way for career advancement, especially in a position of portfolio and fund management, a master's degree in business administration or finance can help.
Technical Analyst
A technical analyst observes the patterns of the stock market to make predictions about its future performance. This systematic approach to financial forecasting takes into account statistics of trading volume, trade rates, securities, interest rates, and stock price. The technical analysts apply this information to statistical formulas to derive the best time and price to sell stocks. Along with evaluating stock market trends, analysts may gather, file, and present data for use by their employers.
How can you start your career as a Technical Analyst?
You can obtain certifications like the CFA, which may make you stand out among other applicants in the field of financial analysts.
Also, a broad range of institutions employs technical analysts, including banks, investment firms, financial corporations, health care facilities, and insurance companies. An entry-level technical analyst job may provide the experience needed to pursue a higher-level position.
Financial Analyst
If you choose to become a financial analyst you need to advise clients when to buy and sell investments. For this, you require a strong background that involves analysis of the current economic trends, business forecasts, and the strategy of the specific company.
Tips to start your career as a Financial Analyst
You can begin your journey of working as a financial analyst by starting to work in an accounting position in a private or public accounting firm.
Does this position require any special courses or training?
If you wish to work as a professional financial analyst, you will need to have a Bachelor's degree, preferably in the finance stream. A Master’s degree in finance or business administration will give you an advantage over other candidates applying for the same job.
Algorithmic Trader
The advent of algorithmic trading caused a massive shift in the way trading took place in exchanges worldwide. Be it trading in stocks, derivatives, Forex, or commodities, trading firms worldwide adopted algorithmic trading in a big way. It is an automated facility where trading is carried out by computer-driven algorithms designed by traders.
How can you start as a Algorithmic Trader?
A candidate working as a Desk Quant implements pricing models that are directly used by traders. You can also apply for the position of Quant Developer if you are a programmer or developer from the field of finance.
Does this position require any special courses or training?
You need should be trained in computer programming and should be aware of data structures, algorithms, and C++ or Python. It is advisable to have a general understanding of these fields, if you’re interested in the trading domain within quant finance.
Conclusion
So, if you are trying your hand at pursuing a career in the stock market, educate yourself about the numerous options available before making a choice. You need to put in the necessary hours to give yourself a strong understanding of the world you're about to enter.
