If you are looking for an alternative career and wondering how to become a stock trader, you need to have an understanding of the market and how it works. It is a high-risk but also a highly rewarding career. In this article, we will take you through what you should expect when you embark upon your journey of learning how to become a stock trader.
What you need to know about stock trading
Here are some important questions you should learn about before you begin:
1. Study risks properly and learn how to cover those
If you don't have a good understanding of the risks, you may end up losing your entire investment. With correct risk assessment, you could see yourself earning a healthy return on investment.
2. Dedicate time in research
Successful franchise in stock market requires every day researching and analyzing the markets. They might even be glued to their screens all night long.
3. Be thorough with the dynamics of the stock market
Understanding how the stock market works can help you choose to make your career as a professional stock trader.
Career as a stock broking franchise: A few questions answered
What is a sub-broker?
A sub-broker acts as an intermediary between a client and a stockbroking firm, or in simpler terms, as a franchise in share market. Although it doesn't require any special education to become a sub-broker, it does take a few years of experience to start the journey.
How can I become a sub-broker?
To become a sub-broker, you first need to get a broking license from the SEBI. Once you have completed this step, you will need to apply for a franchise in share market to a large brokerage firm.
What are the challenges of being a sub-broker?
Stockbroking is a competitive industry. You face stiff competition from other brokers, and need to constantly update your skills if you want to stand out from the crowd. Also, you need to keep abreast of the latest news and trends to ensure that you can provide the best service possible to your clients.
What are the benefits of being a sub-broker?
The most obvious advantage of being a sub-broker or a franchise in share market is that you don't need to pay any hefty amount. The only upfront costs are for the necessary equipment, such as computers and phones. Also, it allows you to become self-dependent financially.
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