Here are a few factors to consider before zeroing-in on a career in the stock market.
What’s the first thing that crosses your mind when you hear ‘stock market’? Betting, gambling or speculating to test your luck? Well, stop right there! Living in a digital world where the Internet is literally available in your pocket, you must not miss out on exploring a career in the stock market. So, if you are someone aspiring to pursue a career in the stock market, here are a few myths debunked:
Myth 1: Stock market is like a casino: While there is no guarantee that you will not face losses, it is unfair to criticise the field when people lose money due to to lack of technical knowledge. Surprisingly, many people fall for such narratives. Here is a small tip. Investing and trading are driven by multiple factors, including company details where you want to park your money, the present economic landscape, and more. There is no other way to crack the stock market than to conduct proper research based on these parameters and accordingly make accurate predictions. This will help you make informed decisions and eventually profitable investments.
Myth 2: Stock trading calls for a lot of money: Yes, people have made fortunes in the stock market,but where most of us go wrong is to look at their current net worth and believing that investing or trading needs a lot of money. You don’t need a lot of money; all you need to do is start. It is a long journey an,d to create wealth, you must begin with taking small steps.
Myth 3: The market is only meant for experts: Many assume that the stock market welcomes only experts. It is not a closed game. but an open avenue that equally welcomes everyone to invest, learn and gain from it. Investing calls for skills, which can’t be developed overnight. It takes time, patience and consistency. To understand this domain, one must start with opening a trading account with a reliable broker and initiate investing or trading.
So, how can one make a career in the stock market? Well, if you want to take trading seriously, start with understanding the basics of finance. A degree in fields like Maths, Accounting, Economics, and Finance, among others, is recommended. Even if you are a minor, you can open an account with the help of your parents or guardian, who will look after your account until you become an adult. Aspirants looking to pursue a career in the stock market can serve multiple roles such as financial analyst, market researcher, insurance advisor, stockbroker, research analyst, financial advisor and many more. However, before you finalise your decision, ensure that you keep in mind these tips to excel in this ecosystem:
Be an avid reader: To gain a deep understanding of the stock market, you must absorb a lot of information to grow. Start by reading trading books, newspapers, journals, annual reports, business magazines, blogs, and more.
Connect with experts: Interact with like-minded individuals also from this domain. Since they already have the experience, they can guide you with everything that will help you expand your existing know-how. Watch interviews and listen to the tips shared by experts.
Develop risk management skills: Never invest all your money in one stock. Instead, distribute and invest in a combination of low-risk, medium-risk and high-risk stocks. Owning a diversified portfolio of stocks is always a safer way to invest and can help you stay afloat even if the market is not performing well.