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HomeSHARE MARKETShould You Take Trading As A Career?

Should You Take Trading As A Career?

Trading As A Career

A stock trader can be a good career for people with trading and risk management skills. Stock traders can analyze financial data to effectively buy and sell stocks.

Knowing the basic responsibilities and skills of a stock trader can help you decide if this is the right career for you.

If you wish to learn the financial market and want to pursue trading as a career, there are a few things you should know.

In this article, we will explain how to become a stock trader, what are their responsibilities and discuss in detail how much a stock trader can earn.

Career Opportunities In Trading

If you want to make your career in the stock market, there are many types of companies for that.

Such as – stock broking firms, stock exchanges, registrars, clearing corporations, custodians, mutual pension and fund companies, investment banking firms, research institutes and many more.

These are some of the possible options when you are looking for opportunities in the stock market.

There are various types of job opportunities in the stock market such as:

  • stock broker
  • Investment Advisor / Financial Advisor
  • Insurance Advisor
  • Online stock trader
  • Portfolio Management Services (PMS)
  • Financial Analyst
  • Equity Research Analyst
  • MF Distributor/ Consultant
  • Market Researcher
  • Education and Qualifications

If you are new to this career and thinking of working in the share market, then first you need to know what qualifications are required to become a trader.

Although many traders learn to trade on their own, having a proper college education can help you advance and grow in this career.

A trader needs to have good knowledge about the financial and technical aspects of the stock market. By using this knowledge, making a proper investment plan and trading strategy will help you get more returns with less risk.

Whether you are a new trader or an experienced trader, proper training can help you succeed in this career. Many new traders take hands-on training from trade school programs before starting trading.

To become a good trader you must have a bachelor’s degree, after 12th class it is better to do finance or commerce courses. However, if you want to further your career, it is better to do a master’s degree.

In this course you’ll be able to understand and master diverse subjects like finance and business administration, investment management, economics as well as statistics, computer science along with data analysis.

There are other good courses that you can do like Master in Finance, FRM, CFA and NISM certificate.

Some traders work as internships or assistants to gain additional work experience. As a result you will get extra benefit while applying for any good trading position because now most of the companies prefer experienced candidates.

Work Environment

Trading is a profession where financial material is bought and sold for profit. Traders often use economic data and market trends to determine when to buy and sell stocks.

Bond, equity, commodity, foreign exchange market traders are accountable for the creation of market prices and trading.

They work in the office during market hours, although many companies now offer remote services. How traders work depends on different companies. Some work part-time, while others are self-employed or freelance.

Trading profession can be tough, but it is also very rewarding. The primary reason for this is that you can earn a large amount of cash in a relatively short period of time.

Salary

A stock trader’s average annual salary can range from ₹0.3 lakh to ₹26.8 lakh, but it depends on the firm he works for. This salary may vary depending on his education level and work experience.

Many companies offer high-salary to stock traders based on their well-experience and knowledge. Also the salary of stock traders can also depend on their job location.

What do you need to be a successful trader?

To be a successful trader keep the following points in mind:

  1. Create a clear, straightforward trading plan.
  2. Familiarize yourself with different approaches including technologies, platforms and the right strategy.
  3. Be patient and persistent; Both your experience and skills will grow over time.
  4. Beware of behavioral issues like recency bias, revenge trading and stereotyping.
  5. Adhere to specific rules, standards and milestones for yourself as a trader.
  6. If you want to take up stock market trading as a full-time profession, be aware of your work and invest enough time and energy.
  7. Since you are thinking of trading, be prepared for loss or risk as well.

Is it risky to choose stocks trading as a career?

There will be risks in the stock market, such as liquidity, interest rates, trading, regulators etc. You may lose due to various reasons, such as adverse price movement, trading on stock tips from unreliable sources, investing in wrong places influenced by emotions.

Therefore, if you want to avoid risk, it is very important to have adequate knowledge about the market and use the most appropriate strategy while trading.

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