Stock Trader 101: Starting your journey in the stock market

Do you find the stock market to be a bit of an enigma? How is it that within minutes a trader can make a profit of lakhs of rupees, whereas in the same amount of time - so much money can be lost? The stock market is a collective marketplace where regular transactions such as the buying, selling, and issuing of securities by publicly-owned firms take place. To put it simply, companies put out stocks - or stakes in the company. As the value of a company goes up or down, the value of its stocks also fluctuates. And this is where the job of a stock broker or stock trader comes into play. Stock brokers buy or sell shares in such a way that they end up making a profit, or preventing a loss. The stock market has been around for a long time, and individuals have been trading to earn large gains.

There are various reasons for choosing a career in stock trading. Some prefer taking risks and seeing them pay off, while others prefer working in a fast-paced setting where the job is always challenging. Whatever your reasons, if there is one thing about stock trading, it is that it can be incredibly interesting and rewarding.

Becoming A Stock Trader

Being a stock trader might be the ideal career choice for you if you love working with financial transactions and are skilled at raising capital. It's crucial to understand that becoming a stock trader will require time and effort, regardless of whether you're a student exploring career options or an existing financial expert looking for new prospects.

Here’s a basic roadmap as you start your journey to the stock market:

• Getting a degree

When it comes to stock trading, people who have a good understanding of finances and a keen eye for business trends will be able to teach themselves the rest. However, for most people, a degree in finance or accounting may be the best way to acquire the basic skills required. However, you may still pursue a profession as a stock trader even if you are majoring in a different subject, like humanities or science, as long as you think you have a good understanding of it.

• Interning at the right place

Before graduating, students often apply for internships. Large brokerage businesses and investment banks tend to employ summer interns and then give the most successful ones full-time positions after graduation. The experience gained in an internship is invaluable and will only help an aspiring stock trader become successful in the profession.

• Finding Professional Employment

In contrast to many other professions, stock traders must first get work before applying for a licence. Joining a professional organisation is something that both students and recent graduates should definitely consider doing. These are accessible to people at all professional levels on a state, national, and worldwide scale.

• Taking an examination to get a trading license

To become licenced to purchase and sell financial goods, you must first pass a series of exams. The 4 most important exams are as follows: Series 7 General Security Sales License, Series 3 Exam, Series 63 License and Series 8 License.

Role of A Stock Trader

Stock traders make a profit by taking advantage of the price fluctuations in the stock market. Financial advisers are another term for stock traders, who also serve as their customers' money managers. Stock traders can run their own businesses, work for banks, or devote most of their time to the trading desk.

Here are some of the major job responsibilities of a stock trader.

• Perform timely and effective execution of the buying and selling of investment items.
• Identify and fix problems in the trade sector.
• Establish trusted connections with business partners.
• Develop fresh market-making techniques for things that are exchanged online.
• Keep track of and record activities that affect the stock market.
• Provide advice on buying and selling securities.
• Do a financial analysis of businesses and make suggestions for IPOs, mergers, and acquisitions

If you find the stock market interesting and you are committed to putting in the effort and learning the trade, then this is a good option for you. After all, there will always be a demand for skilled, insightful, and reliable stock traders in today’s world.