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 stock 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.
Key Takeaways
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There are multiple career options ranging from investment banker and financial analyst to market researcher and online stock trader.
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Educational qualifications such as CFA, NISM certifications and Master in Finance play a critical role in this career path.
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With a comprehensive knowledge of the market, you can thrive and learn to manage losses effectively.
What are Careers in the Stock Market in India?
There are multiple careers in the stock market that you can choose from such as equity research, portfolio management, investment banking and stockbroking, to name a few. Professionals choosing this career path help companies and individuals:
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Manage assets
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Make informed investment choices
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Navigate the capital markets effortlessly
To build a career in the stock market, you need to pursue various certifications and degrees related to finance. Some of them include the CFA program, BBA in Financial Markets, MBA in Finance, etc.
As a stockbroker, you have the authority to buy and sell shares on the behalf of your clients and act as a crucial link between the stock exchange and investors. On the other hand, if you choose to become an equity and research analyst, you need to analyse and interpret financial data to recommend stocks to clients.
As an investment banker, you need to guide organisations and corporations with raising capital by handling their mergers and acquisitions and initial public offerings. If you plan to become a portfolio manager, you will oversee investment portfolios of clients, helping them meet their financial goals.
What Are the Job Roles in the Stock Market?
If you’re thinking how to get a job in stock market, there are plenty of types of firms to consider and start your career. 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:
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Stockbroker: Acts as an intermediary between investors and the stock market, buying and selling stocks on behalf of their client for a commission.
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Investment Advisor: A professional who provides personalised financial guidance on stocks, mutual funds, bonds, etc., helping clients meet their financial goals.
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Financial Advisor: Offers financial services and advice to clients, helping them manage their money.
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Online Stock Trader: An individual who buys and sells bonds, stocks or any other financial assets on online platforms.
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Portfolio Management Services (PMS): They are a team of professional and skilled portfolio managers who help clients manage their investments effortlessly.
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Equity Analyst (Fundamental/Technical): A fundamental analyst uses economic factors and financial data to estimate the intrinsic value of a company while a technical equity analyst studies price charts and market trends to determine short-term trading opportunities.
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Financial Analyst: A person who evaluates financial data, company fundamentals and current events to offer insights into business decisions.
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Research Analyst: Someone who collects, interprets and analyses data to provide insights or suggest recommendations in business strategy or finance.
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Market Researcher: An individual gathers and analyses information about competitors and consumers, helping businesses make strategic decisions about their services and products.
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Insurance distributor/advisor: A professional who helps businesses and individuals choose the right policy by recommending suitable plans and explaining different products that align with their financial needs.
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MF Distributor/Advisor: A certified professional serving as a critical link between asset management companies and investors, helping investors make accurate decisions.
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.
Is It Risky to Choose Stock Trading as a Career in India?
There are always two sides to every coin. Stock market trading is volatile because stock markets are volatile. If you have a strong understanding of the stock market and are able to control your emotions well, follow a disciplined approach to risk management, this career could generate sufficient wealth over time. For this, you have to gain a deep understanding of the market fundamentals and technical analysis by completing certifications offered by renowned financial institutions like NISM. Make sure to start small by taking one step at a time. This helps you mitigate losses while gaining insights and learning more about the stock market.
However, if you make emotional decisions, don’t research enough, and trade on tips, this could result in severe losses.
What Do You Need to Become a Successful Trader?
If you're looking to work for yourself, and make a successful career as a stock market investor, then read on for some tips.
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Formulate a clear, straightforward trading plan. The trading plan's objectives must be clearly outlined and should be of purpose to the trader.
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Familiarise yourself with the technology, platforms and various methods for employing a strategy.
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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.
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Beware of behavioural pitfalls like recency bias, revenge trading and stereotyping.
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Maintain certain rules, standards and milestones for yourself as a trader.
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Invest your time and energy into your career in the stock market as a serious full-time profession, and prepare for the risk of losses.
Conclusion
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.
Stock market 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.
Understanding your skillset better will help you choose a suitable career. From being a portfolio manager, broker, or advisor to becoming an investment banker, the options are many. With qualifications such as MBA, CFA, CFP, etc., you can add credibility to your candidature.
While this career path has its own risks due to volatile market climate, it requires you to have a strong understanding of the market and disciplined approach as that helps you manage losses.
