How To Make Career In The Stock Market?

A stock market is a place where shares and various other securities are bought and sold. The Indian Stock Market is the fifth-largest stock market in the world. Most of the trading in the Indian stock market occurs in National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). How the stock market of a country performs indicates that the economic growth of the country is strong.

The coming generations are learning more and more to invest their money in the capital market. A person can explore many opportunities for a career in the stock market in different roles.

Educational Requirements for a Career in the Stock Market in India

To venture into any career in the stock market the most important question that any interviewer asks is about your educational qualifications. To get an entry-level job in the stock market you need to have at least a 10+2 degree.

In the field of the share market, most of the traders are self-taught or have on-the-job training. But any degree whether graduate or post-graduate or a diploma gives you an edge over the other competitors. Some of the degrees that you may pursue are:

Masters in Finance

One of the degrees you can pursue is MBA or MSc in Finance and other similar courses where you can learn all about the financial market. This will give you an edge against others when you start your career in the stock market.

Chartered Financial Analyst (CFA)

The certificate of Chartered Financial Analyst is becoming popular these days. It is an international program offered by the CFA institute, USA. Through this program, you can learn financial analysis and various parts of it. This certificate makes you eligible for the Research Analyst position in the stock market.

NISM Certificate

The NISM certificates have been made mandatory by SEBI (Securities Exchange Board of India) for a career in the stock market. There are several different certificates for various jobs in the share market. If you own these certificates, it will add value to your Resume. The validity of these is for 3 years and is an excellent option for people looking for trading or back-office management jobs.

Financial Risk Manager (FRM)

Much like CFA Financial Risk Manager is also an internationally recognized certificate offered by the GARP organization, USA. This program helps you learn the concept of risk management and it opens up jobs for these roles in not just stock markets but also in other financial instruments like banks, NBFSs, etc.

Some Other Needs For a Successful Career in the Stock Market.

Along with the theoretical knowledge of the stock market, some other points that should be kept in mind to help succeed in a professional career in the stock market are:

• One of the significant needs for anyone entering the stock market is that he should be interested in this industry and have the passion to learn all about it.
• In any field there is more to learn and one of the ways to do this is to read more. You can read newspapers, books, blogs, etc. on any topic which will keep you updated in the field of the stock market.
• The field of the stock market is very large. Pick out the one field in which you have the most interest and try to learn everything about it.

Types of Careers in the Stock Market –

Many different roles can kick-start your career in the stock market. It is a very vast field and there are various positions for which you can apply. Some of these are:

1. Stock Broker

To trade in the stock market a trading and Demat account is necessary which is provided by the broker. A broker buys and sells securities on the behalf of the trader or investor. They are also referred to as financial market representatives and they work as advisors, dealers, etc., for their clients. Another way of building a career in the stock market is by becoming a sub-broker.

Lakshmishree investments provide sub-brokership with ease to anyone interested.

2. Research Analyst

Research is a key part of the share market. Before investing in a stock thorough research on the company’s fundamentals and financials. The job of a research analyst is very critical as he recommends stocks to the clients after analyzing and interpreting the data of any company.

There are 2 types of research analysts: Equity Research Analyst and Technical Analyst. The former recommends stocks based on financial statements while the latter recommends after studying charts.

3. Portfolio Management Services

Another way of investment is through Mutual Funds. If your money is invested in the mutual fund be assured that there is a team of skilled portfolio managers. These managers also create investment strategies for their clients based on their savings and the amount of risk they are willing to take.

4. Relationship Manager

The job of a relationship manager is to improve the relations between the client and the firm. They also work on acquiring new clients by presenting the firm’s product and increasing customer satisfaction for their existing clients. To be a portfolio manager a strong understanding of financial markets is necessary.

5. Advisor

Whatever you are doing in life if you have advice from an expert, it makes it all the better. An advisor provides the current market knowledge to the clients which may help them book a profit.

6. Investment Bankers

Investment bankers help private companies who want to go public and get listed on the stock exchanges through Initial Public Offer (IPO). Investment bankers are involved in fresh issue underwriting, mergers, and financial advising. To be an expert in investment banking very extensive training and experience are required.

7. Professional Investors or Traders

One of the significant jobs in the share market is of the traders and investors especially if they are professionally into it. Investors look for long-term investments while traders want to book profits in a short term.

Summing Up

The stock market has a wide range of opportunities for many people. The probability of you succeeding in building a career in the stock market is dependent on the understanding you have of the subject. Earlier the finance field was limited to just accounts but now we have trading, portfolio management, and many more fields.

In this blog, I have described some of how you can enter this wonderful world of the share market. A few blogs on some of the concepts of the share market are on the website of Lakshmishree Investments. Contact me if you have any queries:

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