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How to Start a Career in Stock Market?

Are you looking to start your career in the stock market? If you answer yes, you will like to read this. So today, we will share everything you need to know to jump-start your career in the stock market.

If you want to get into the stock market and are looking for a career in it, we have many ways. So let me first share the overview of each of them, and then we will get into the details of each.

  1. Get a Job after completing education related to finance and equities.
  2. Start as a trader or investor in the stock market.
  3. Become an entrepreneur and offer clients services related to stocks (trading and investment)

So now let’s get into the details of each of them. The article is long, so feel free to skip the section you don’t find helpful.

Job to Start a Career in Stock Market

The safest way to start your career in the stock market is to work under the guidance of a company or individual who can help you navigate the market. So if you want a job in the stock market to start your career, follow this outline.

Step 1. Complete your education

For a successful career in the stock market, you need passion, dedication, intelligence and specialized knowledge. Of course, one can always debate about degrees, but if you want to pursue a job, the criteria are often for a degree.  Indeed You can grab a background in economics, Business administration, and Commerce to enter the share market.

Here is the list of degrees and diploma courses that can help you embark on a job that can help kick start the journey in the stock market.

  • Diploma in financial and stock markets (6 months)
  • Diploma in research analysis (6 months)
  • Advanced diploma in financial markets (1 Year)
  • B.Com (Bachelor of Commerce) 3 years duration
  • B.Sc (Bachelor of Science) in Finance 3 years duration (Only B. Sc in Finance and no other streams)
  • BBA (Bachelor of Business Administration) 3 years duration
  • BMS (Bachelor of Management Studies) 3 years duration
  • BBM (Bachelor of Business Management) 3 years duration
  • BBS (Bachelor of Business Studies) 3 years Duration
  • CFA (Chartered Financial Analysis) 3-level exam, including internship
  • CA (chartered Accountancy) 3-level exam including internship
  • CFP (Certified Financial Planner)

Candidates who have pursued this degree eventually develop a better understanding of finance and the required skills that can work as a boon for making a career in the stock market.

Step 2. Specialized course in the stock market

The degree will help you get an interview, but you will need some knowledge and interest in the market to do well and crack the interview. So we recommend that you should opt for related courses. It will help you get one step ahead of others.

We have found that many broking firms prefer NISM certification for advisors. So here is the list of short-term courses that can help you:

These additional certificates can make your resume more inclined towards the stock market and help you crack the job.

Step 3. Create a resume and apply for relevant jobs

After completing your education, you must have a resume for an appropriate position. The resume should reflect your strength and skills in the market.

You can check out the article on how college students can write their resume here.

The resume is one or two pages that you must sell to your employer to pay you a stipulated amount each month. So once you view the resume in that light, you will always make a pro-looking resume.

Moreover, I will even recommend tailoring the resume specific to the employer.

Remember Aditya Sharma, who created a resume for Google, Amazon, and Netflix using the Ui of the website, respectively. Identify companies you want to work for and tailor your resume for them.

Furthermore, you can also have a general resume to apply on all relevant platforms for other companies.

Finally, do not miss out on the internships that companies offer. It is as good as you are working in the company under expert and professional guidance.

Trader or Investor in the Stock Market

Trading or investing requires a deep understanding of the market. If you jump into the market without proper knowledge, it can prove to be a risky bet. However, with appropriate planning and strategy, one can reduce the risk.

Further, one requires capital to trade or invest in the market.

  • Traders regularly buy or sell shares, bonds, gold or other market instruments for profit. So generally, traders remain invested for the short term. As a result, short-term market fluctuations and the right time of entry and exit provide good revenue to traders.
  • Investors study business and remain invested for the long term.

There is no age bar for a stock trader. We all know about Warren Buffett and Charlie Munger; both are still investors at 90+. However, they have inspired many young people to invest and make careers in the market.

However, because of a lack of capital, people prefer trading. Moreover, they even think trading doesn’t require time and effort, but it is untrue. Remember, trading is a full-time job. However, one can make investments part-time by studying about the business on weekends.

How to start trading in the market?

A stock trader can prominently analyse financial data to trade (buy or sell) market instruments. Specifically, a trader is a person who uses his analytics and research to buy shares or other market securities in such a way that their price will rise in the future.

To start trading, you need a trading and demat account, and one can start without any specific educational qualification.

However, do not start before learning technical analysis. It will help you to learn about the stock market conditions, identify investment opportunities, manage portfolios, diversify risk etc.

Moreover, the most important thing here is to learn when to enter and exit the market to reduce losses and make consistent profits. I suggest the book Technical Analysis of the Financial Markets by John J. Murphy.

How to Start a Career in Stock Market?

How to start investing in the market?

Investment is a long process where one has to understand the business and then invest at a price that gives a good value for the money. Investing in the market includes understanding the company, but when you are willing to buy the business, you should buy it at an excellent price. So one has to learn the process of valuing a business as well.

Many business valuation parameters will help investors analyze the business.

Further, there are many types and kinds of investors in the market. Some are predominantly growth investors who prefer to invest in high-growth companies. Then we have value investors always looking for better deals in the market. Then we have investors who invest in some select companies when available at cheaper valuations and offload them at higher valuations.

As an investor, you must work on the process that suits your investing style. Therefore, I will recommend you read The Intelligent Investor by Benjamin Graham. It is one of the recommended books on investing by Warren Buffett.

How to Start a Career in Stock Market?

Indian Traders/Investors

Here is a list of some successful stock market investors who have built excellent careers in the stock market. For example,

  • Late Rakesh Jhunjhunwala – Besides being known as a ” big bull” and ” India’s Warren Buffet”, Rakesh Jhunjhunwala was a renowned stock analyst. After graduating as a contractual bookkeeper, he started his journey in the stock market. With his strategy and application of that strategy, he had marked his name in the history of the Indian stock market.
  • Vijay Kishanlal Kedia – Vijay Kedia started his journey as a stock trader when he was 19. Initially, he made a lot of money, but further, he made high losses. Finally, after ten years of failure being a trader, he started his market research and investing, which helped him become a financial expert.
  • Mohnish Pabrai – Apart from Mofnish Pabrai, famous for his profitable investment portfolio and high net value, he became the talk of the town when he spent $6,50,000 to have lunch with his mentor Warren Buffett.
  • Ramesh Damani – Ramesh Damani started his career in the stock market as a stockbroker in 1990 after graduating from HR College with a bachelor’s degree and a master’s degree from California State University. After his tremendous success, he served as a member of BSE.

Stock Market-Related Services

The next option to start a career in the stocks market is to become an entrepreneur and offer clients services related to stocks (trading and investment)

To offer the client a service, you must develop specific skills and pursue several registrations and certificates that we have explained in each section below. This will lead you to earn client trust.

Here are some career options in the stock market  to work at an entrepreneurship level;

  • Stock sub-broker
  • Financial Consultant or Financial Advisor
  • Finance Influencer on Youtube / Instagram

Let’s dig into the details of each option. To save time, you can skip a topic unrelated to your answer or interest.

Stock sub-broker

According to the definition on the National Stock Exchange, a sub-broker is a person who acts on behalf of a Trading Member (a stockbroking firm) as an agent. In other words, a sub-broker is a person who functions the same as a broker but works as the middleman between two parties; the customer and the primary broker.

While a stockbroker is a middleman between an investor and the stock exchange, a sub-broker is the middleman between the stockbroker and the investor.

As per the requirements of SEBI, the person who wants to be a sub-broker should have completed higher secondary studies (10+2).  Further, the person should know about the financial markets, such as the Demat account, trading account, and the stocks’ buying and selling process. Moreover,  one should also know how to operate computers and essential software such as MS Excel.

Now, look for an option to become a sub-broker. Every broker offers an opportunity for

  • Franchisee
  • Digital Partner
  • Channel Partner
  • Sub Broker

However, they will name them differently, but it means the same thing.

First, select a few SEBI-registered stock brokers. Then, go through the pros and cons of each of the options that they are offering. Then, like a few stock broking firms, submit the required details like AADHAR card number, PAN number and other relevant information.

In some cases, you may even need to pay a registration or processing fee, whereas others require you to pay a security deposit which may be refundable. But, again, ensure you only pay them if they are SEBI-registered brokers.

Immediately after getting verification, one can start creating trading and demat accounts and earn a commission for trades generated by your customers. Of course, the more amount of people trading with you will make sure you generate more commission.

To become a successful stock sub-broker, one needs to follow these steps;

  • Prominently participating in the business development
  • The sales process of the stockbroker.
  • They maintain the quality of their client’s trades.
  • They are enabling their client base to make informed trading decisions.
  • Providing their client base investment suggestions and stock tips.

Financial Advisor or Financial consultant

A financial advisor provides financial planning that helps clients create long-term strategies to reduce risk and generate Wealth. A financial advisor works as a team that includes expert investment professionals, tax professionals, wealth managers and financial planners.

Education qualifications

  • You must finish your bachelor’s in finance, accountancy or any related field.
  • Get your postgraduate degree or anything similar to it in two years
  • Get a licence with the Financial Industry Regulatory Authority (FINRA)
  • PGDM in Finance/Data Analytics will help.
  • Expert knowledge of Microsoft Office application

Functions of financial advisors

  • Planning stock investment
  • Create and manage investments portfolio
  • Analyze the performance of stocks
  • Provide stock advisors services
  • Advising about tax planning, retirement planning etc

As a financial advisor, you can also generate extra income by reselling mutual funds and becoming a sub-broker or a reseller agent of LIC or other insurance companies.

Financial Influencers on Social Media

A financial Influencer is a person who helps people to manage their money by increasing their knowledge of money by sharing content on social media or blog posting. These influencer does not need any professional certificate.

To be a financial influencer, you can kick start your journey with a simple camera. Compared to a traditional business, this field needs less money to start.

Firstly, you need to find the right audience, understand their problems and provide solutions to their respective issues. Then, you need to promote your knowledge while ensuring you provide the correct information. With time and dedication, one can develop popularity.

To retain your followers, it is necessary to post content regularly. This will lead you to the engagement of existing followers as well as helps you to attract new followers.

Moreover, it is not possible that one can gain millions of subscribers overnight. However, your constant correct content and knowledge over the period will lead you to views and likes and finally convert them into subscribers.

Generally, the post, video or blog that a financial influencer shares are free. Financial Influencer has multiple earning streams like Google Advertisement, Affiliate marketing, Collaborations and partnerships.

Many times brand offer to advertise their products through financial influencers. These brands can be mutual funds, IPOs, or crypto platforms.

Few popular financial influencers

  • Pranjal Kamra – Pranjal Kamra has the biggest youtube channel in financial education, with over two million subscribers. Firstly, He has started his journey with zero video recording necessities. However, at present ranked 35th in the list of top 100 Digital Starts for India by Forbes India.
  • Raj Shamani – Being an entrepreneur and social media financial influence,  Raj believes in being honest than being fancy. Now he has made his place on Forbes cover and earned 1.4 billion Instagram subscribers,
  • Neha Nagar- Being a CA dropout, Neha started her journey as a content creator in lockdown. At present, she has more than 1.4 million Instagram subscribers.
  • CA Rachana Phadke Ranade – Rachana Ranade is Chartered Accountant, Bachelor in Commerce (BCom), Post Graduate Diploma in Management (PGDM) & Master in Business Studies (MBS). She has been a part of the YouTube community for the last ten years.

Frequently Asked Questions

Which career in the stock market pays the most?

The highest-paying profession in stock markets is investment banking, compliance officer, hedge fund manager, chief financial officer, and chief risk officer.

Which certification is best for finance?

There are various certificates in the field of finance. When we say the best certificate, we must assess it based on scope, expected salary, growth, etc. Here I have provided a list of certifications in ascending order of their importance;

  • Chartered Financial Analyst (CFA) certification.
  • Certified Public Accountant (CPA) certification.
  • Financial Modeling & Valuation Analyst (FMVA) certification.
  • Chartered Alternative Investment Analyst (CAIA) designation.
  • Certified Financial Planner (CFP) designation.

What job roles are for the person willing to start a career in the stock market?

You can start your self-employed agencies or work in mutual fund departments, corporate companies, investment agencies, insurance companies, investment banks, investment consultancy, broking agencies, pension funds etc. Earning capacity highly depends on your skill, knowledge, position etc.

Which non-technical skills are essential for a successful career in the share market?

Apart from the regular technical skills and educational qualifications, one also requires the following skills to start a career in the stock market.

  • Analytical reasoning
  • Decision Making
  • Communication
  • Negotiation
  • Team management
  • Problem-solving skills
  • Marketing

Why do 90% of stock traders lose their money?

The stock market is versatile and diverse. However, It has its own risk and return side. You must create a proper balance between risk and return to earn money. But a trader can lose money due to a lack of knowledge, inappropriate strategy, undefined goal, and ignorance about the market scenario.

What is the biggest mistake made by a candidate wanting to start a stock market career?

If you are not interested in the stock market and are into it only because of the money, you will have a tough time surviving. So either you should have interest or education and knowledge.

However, I see that people make the mistake of being in the stock market only to make money and then lose a lot of capital. Try to be in the market for survival for at least a few years. This is when you can understand and make money from the market.

The market has knowledgeable and highly educated people. If you think you can win against them, you may be disappointed.

Can I learn about the stock market myself?

You can pursue a certified course offered by various platforms to increase your understanding of the market and market know-how. Further, You can get expert advice and knowledge about different strategies for the stock market by following financial influencers, financial advisors, financial news etc.

Can I learn stock market for free?

You can select various free courses on YouTube to learn about the stock market for free. However, there is so much noise, and people offer so many shortcuts that often, people lose more money trying to learn it for free.

Beware of it. Follow people who make money from the market, not those who sell you courses to make money. They would have done it if they could have made money from the market. I am not saying all are bad, but it may be challenging for a newbie to find someone genuine.

Final Thoughts

In brief, the stock market provides you with abandoned opportunities. The success of your career in the stock market depends on your in-depth market knowledge,  how you use that knowledge, your communication skills, and your analytical skills.

Possessing a professional or academic degree is not sufficient. Your growth depends on how you use your talent and how much you have explored the market.

CareerByWell Team

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