Education Path To Online Trading
What is an Online Trader?
A stock trader buys and sells stocks and shares to maximise profit, usually on behalf of a client company. The trader usually liaises with the company through a portfolio manager. Traders work on behalf of companies rather than individuals. Today, stock traders generally work online as the world of finance moves into the online space.Trading can be highly profitable, but it’s also extremely risky. To stay ahead in this area takes drive as well as talent. You must study the stock market daily, make predictions and have the guts to act on those predictions.
To pursuing any career, it’s necessary to first consider the qualifications needed. It’s fair to say that qualification will not equip you for this career. A good degree from a respected university is a standard qualification which any company might seek in a prospective employee. However, in stock trading, your potential and abilities matter, rather than an impressive academic record. It’s true that none can deny the benefits of a good education, but stock traders need skills which are learned on the job, rather than in the classroom.That said, a degree in something like mathematics is a great asset for a stock trader. Not to impress prospective employers, but because of the numerical skill it helps to develops. Analytical skills, multitasking and coping with pressure are essential skills for anyone considering this career.
When some traders begin as young as eighteen, where’s the time to take a university degree? Prospective stock traders may take A-Levels in subjects like accounting, commerce, economics, mathematics and even sciences. Having scientific ability indicates good analytical skills and sound logical reasoning, both essential qualities for stock trading. An educational background in business and finance is never wasted.
Becoming An Online Trader
If you’re interested in stock trading, your interest should be obvious quite early. A passionate interest in the stock market is an asset. In addition to academic subjects, you should observe the financial markets. Read financial journals and websites. If finance is available, you might consider a little personal stock trading to test the waters. Education is always good but the ability to make money on the stock market, using your own wit and skills is better.
Ready To Get Started?
Having studied financial markets and the various niches in share trading, you must start networking. Apply to financial companies for internships or entry level positions which give valuable experience in the world of finance.
Trading License Examination
To trade stocks for yourself is legal, but to trade stocks for companies, you need licensing from the relevant financial authorities. To get the license, you must pass an examination. Find a recognised company which agrees to sponsor your examination and employ you after you pass. This is where your networking comes in again. The examination is of medium difficulty with a 72% pass rate. It tests theoretical and practical knowledge. This is certainly an area in stock trading where those with an academic background can find their personal experience helpful. There are numerous courses and study guides for this examination available online.
Qualities not Qualifications
As mentioned, the stock trader must be able to analyse the market accurately and make decisions quickly, keeping cool under pressure. Again, while a good education is useful, it’s only part of what a trader requires. Actually, many successful stock traders succeeded without higher education. It’s good to remember that.
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