Stock broking is a career of great ups and downs. You need to have a triangular personality to handle people as well as moods of the stock index. A broker job means handling and advising clients on investment and risk strategy. You would need to buy and sell stocks on their behalf and manage their portfolio.
Managing a portfolio calls for interview with the clients to assess their requirements about income levels, capital growth and client hidden expectations. You may also need to make presentations to large or corporate clients. Nevertheless, even if your client is an individual you would need to present your knowledge and capabilities to convince him to invest in stocks. If you are looking at a broker profession, you would also need to possess some presentation styles. After all, everyone is your customer, isn`t it?
You need to learn how to study and consult share prices on computer terminal and obtain the best prices for your clients? Do I sound like being a travel agent and get the best and the cheapest deals for your client?
Believe me, it is tougher than that. In air fare deals, at least market does not change in a span of thirty minutes. A strict vigilance and ability to predict market movements helps in the long run in a stock brokerage.
Key skills required for stockbroker career are strong communication skills and an ability of quick and accurate thinking. This is what trading is? Secondly, you should have great ability to absorb data and analyze it enough to give the correct information to your client.
A keen eye on every detail of the stock market as well as your client helps a lot in this financially rewarding industry. Stock broker career means dealing with uncertain markets as well as clients. You need to bond and attract clients and markets together.
No one can predict movements of neither client nor the market. So keep a watch! In the end, you should have enough stamina, judgment and confidence level to manage the portfolios and turn them into profit making profiles.
There are fine prospects for stockbrokers all around the world. If you are a qualified professional then stock index is the limit. You can reach full financial freedom sooner than you realise as a stockbroker.
More than an education and a paper qualification you need flair and a personality to handle your career and profile of being a stock broker. You can find many openings in a stock market with both domestic as well as foreign firms. All you need to do is to come to terms with real competition and ensure appropriate standards in your profile.
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With the availability of internet facilities, an investor can trade through any exchange in any part of the world. With thousands of shares listed in the various stock exchanges, a regular investor can not afford to keep track of the market trends, fluctuating exchange rates, the political changes that affect trade and commerce etc. One needs the guidance of an experienced broker, to be sure about trading on correct lines. A broker has opportunities of dealing with a number of his clients and remains exposed to many scenes, depending on the requirements of the investors. He is in a position to guide and advice.
Right information has the important role that will lead to right decisions. With the online facility you get convenient, quick, reliable and latest updates that provide information on different aspects of trading and make the investments a profitable venture. A stock broker helps to discuss the share market related information that a regular investor needs well in time.
A new investor, the first-timer, arrives at the exchange with certain ambitions. He has come with the hope that, in the present conditions, he can reap more returns than in any other form of investment. He has initially decided what portion of his liquidity he will invest in shares. He has limited knowledge of building a portfolio and he wishes that his capital remains secure. With such a mental frame-up, the stock broker is like the torch bearer to him. He wishes to have initial briefing about every phenomenon related to the exchange, like the shares that currently find favor in the market, general market trends, share indexes, the brokerage payable etc. After making assessment and comparison, the investor will take a decision. It is in the interest of the investor that he interacts with some brokers, before taking the final decision about associating with one or two.
The share market trends beat the best of the brains. An overenthusiastic investor is likely to fall into the trap of temptation, if in the initial stages he succeeds in making a couple of profitable trades. The mercurial nature of the volatile market, wherein the share prices change every second, a new investor stands baffled. His possible wrong moves needs to be checked by the broker.
Even before deciding to engage a particular broker, an investor needs to have some preliminary knowledge as to the types of stock broking services, normally available in the market. The important services are as under:
Execution-only, which means that the broker will only carry out the client's instructions to buy or sell.
Advisory dealing, where the broker advises the client on which shares to buy and sell, but leaves the final decision to the investor.
Discretionary dealing, where the stock broker ascertains the client's investment objectives and then makes all dealing decisions on the client's behalf.
By and by, as in investor gains experience and confidence in share dealings, he will avail one or more facilities offered by the broker. With preliminary knowledge that the investor acquires through interaction with the broker, he will as well go for the specialized knowledge that is available in abundance through websites, online journals, magazines that specialize in share trade, by sharing experience with his new friends and acquaintances in the exchange, etc. The actual situation is not the lack of information, but the intimidating volume of information and the process of selecting the right tips from it. This is a tough task for an individual investor, from the point of view of both the risk and time factors. The share broker, your trusted friend, will again guide you to enable you to take appropriate decisions.
In a competitive market, over the past decade, the rates of brokerage stand considerably reduced and they are affordable for a common investor. The higher the scale of investment, the unit cost of brokerage will be less. When you are tied up to a good broker, you can trade with peace of mind.
Both Ayna Miah & Micheal James are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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