It’s a career with unlimited opportunities
By Anish Singh Thakur
In the past few years, India has witnessed an uptick in the participation of individuals in the stock market. The fiscal year through March 2021 has recorded 14 million new first-time electronic accounts and market players are expecting the numbers to rise—led by increasing smartphone penetration and affordable internet. However, India remains an underpenetrated market with less than 5% of the population having access to equities. India will take many years to reach the levels of China and the US, where penetration is over 11% and 32%, respectively.
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The country doesn’t have educational institutes to train young professionals for building a career in the stock market. Considering the risks in the market, a career in the stock market is seldom encouraged. But opportunities in the stock market are not limited to being an investor or a trader—instead one can be an entry-level equity advisor, relationship manager, stockbroker, research analyst, algorithm-based trader or start an entrepreneurial venture. All one needs is the right attitude and training in finance.
Technical analysis: A successful investor or trader is the one who knows how to conduct technical analysis of stock charts. It implies the trader can predict future price movements on the basis of past movements in stock charts. Technical analysis enables investors to make sound decisions on buying, selling or holding stocks. A course in technical analysis enables you to study the patterns for future implementation, work with the trends, understand when to enter or exit the market, and how to avoid risks.
Mentor: Like in any other profession, here also one can end up making mistakes, and so it’s a good idea to have a mentor. Cities often have local investing groups where you can find people who have been in stock trading for a long time. Their deep knowledge about the market can help new investors. In smaller cities, if there are no groups, you can join online communities. Since trading mentorship is like any other relationship, it will take time to solidify. You will have to be patient and communicate effectively. Listen to what they say and clear your doubts by asking questions. If you can’t find somebody organically, there are always online paid services.
Age: One can start building a career in stock market trading as early as the age of 21 years. With relevant experience and degrees, your prospects for the future become better. The thing about the stock market is that you have to use your brain actively, read into the available information and make difficult decisions without letting your emotional biases get in the way. The way Indian stock market participation is growing, it is the right time to start looking for career opportunities in the field.
The author is CEO, Booming Bulls Academy