The job of being a successful stockbroker is something that businessmen strive to be. With all the influential personalities around boasting about how trading turned the tables in their favor, its only natural for one to feel motivated.
Needless to say, in these volatile times and ever-increasing competition, it is paramount to stay up-to-date with the hot topics in vogue and adjust accordingly.
Tips and Tricks
Being a successful stockbroker is a challenging and laborious task. An individual needs to devote time, efforts, and a plethora of zeal towards his goal.
Here are some tips that every stockbroker must possess up to their sleeve in order to aim for the top –
1. Never Stop Studying
In order to step into the realm of trading, a person needs to procure a degree from a business school. If a person intends to work for any reputable investment bank or hedge fund, a great degree in hand, along with professional experience, is a much-needed criterion.
Even though it’s not absolutely a necessity to obtain proper qualifications, wall street can often be choosy. A successful stockbroker never stops studying. Proper monitoring of patterns, implementing new strategies and tactics in the market is a game-changer.
A trader must also know about the time in force orders and what type of time in force to choose while investing in securities. One can learn more about it by visiting Alpaca.
2. Seek a Position at a Brokerage Firm
Today, almost all of the successful stockbrokers start their stories with securing positions at brokerage firms. This would inevitably demand that aforementioned business degree.
While working in a brokerage firm or hedge fund, an individual will gain deeper insights about the industry, stock market regulations, numerous financial tools, and the entire modus operandi of trading.
A position at a brokerage firm would also help a person stiffen up against the physically and mentally demanding tasks of trading. Any newbie at an investment bank or hedge fund must be prepared to work for an average 60-70 hour work weeks.
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A modern stockbroker can seek free stocks from Alpaca and utilize it judiciously.
3. Obtain Important Licences
An institutional trader does the job of trading money on behalf of their bank for their clients. In order to trade for others, an individual must procure their licenses. In case an individual is found to not be in possession of a license, security laws are being violated.
Most of the professional and experienced traders would possess a Series 7 and Series 63 Brokers License.
Procuring these licenses is not merely some office document submission work, but rather a proper test is conducted for the same. One can only begin to trade for others after successfully obtaining a license.
There are many licenses to obtain and vary according to what an individual is trading and the kind of environment he/she is working in. Some tests might be tough ones to crack and would need the utmost dedication to clear.
4. Enroll With FINRA
A trader is registered with FINRA after obtaining their licenses. FINRA is a regulatory body enabling the financial markets and brokers in check while trading.
One can look up any professional trader or stockbroker on FINRA to check if they have had regulatory actions imposed on them in the past. This helps maintain clarity and absolute candidness.
5. Starting as an Analyst
Being an analyst is the first job that a trader would take up before climbing up the ranks of associate.
As an analyst, a trader would earn experience and reputation by reading thousands of pages a week, working in front of a computer screen, arriving early, and working even during late hours. An analyst works under an associate who guides them into doing what needs to be done.
After showing decent results as an analyst for a couple of years, the individual would be promoted to an associate investment banker or associate institutional trader.
After being an associate, the real ‘Wall Street’ money would begin flowing in. A trader now has full jurisdiction over his business books and decisions made.
6. Become a Member of NYSE
Being a member of NYSE is not an easy procedure, but a really fruitful one to crack. A stockbroker must ensure the following protocols to make their way into NYSE –
- Background Analysis – It is only natural to have the slate clean if an individual is dealing with finances; however, it is also an eligibility criterion to be a member. A thorough background check would be done, along with collecting fingerprints, before a trader can become a member.
- Paperwork – The NYSE membership needs loads of paperwork to be done and necessary documents to be submitted. This helps corroborate the credibility of the individual.
- Attending Orientation – After being approved for membership, the trader must attend an orientation program.
- Appear for the Exam – Before finally being admitted to the NYSE, a trader must appear for an eligibility exam, which is important to pass.
7. Utilize Social Media Advertisement
A modern stockbroker needs to build a decent client base, and to do that, he needs to let people know about his intellect and experience in the expertise.
The generation of this era is more engaged on social media platforms and reading blogs when compared to other forms of advertisement. It is regarded as one of the best methods of promotion.
This can also help attain more attention. Social media advertisements would open a door of new possibilities and help build up a wide client base.
The aforementioned points are important to be adhered to If one intends to become a successful stockbroker in the 21st century.
Being a stockbroker demands a great deal of patience and resilience. A great deal of perseverance and zeal is essential in order to endure tough times and reach the final destination.
One needs to check certain key points to stay afloat in the ever-pacing competition. Also, certain points on what to do and what to avoid while in trading hours must be kept in mind.
After getting everything right and dealing with all tests of intellect and patience, a person can attain heights in trading hours.
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