In essence, trade is an exchange of goods and services between two individuals. Stock market is a place where shares of public listed companies are traded.

It offers buyers the ability to raise their profits without a high cost of entering their own businesses which includes high overheads and start-up costs. On the other hand, the sale of stocks allows the firms to grow rapidly by raising funds from investors. When the stock of a company is bought, it is usually correlated with a rise in the value of the company and suggests a growth in economic activities. Consequently, investing in the bond or equity markets may be a win-win for both the trader and the owner.

It is always said that performance of the stock market is a leading indicator which shows the performance of economic activities of the country. For example, this year, markets touched record high and subsequently when GDP numbers were announced, it was better than expected. Hence, most of the time, stock market activity will incorporate future events.

In older days, stock exchanges used to trade with paper-based physical share certificates, however, in the modern-era, almost 100% of the trading happens through use of technology and through the use of cutting-edge software in electronic form only.

Bombay Stock Exchange (BSE), along with the National Stock Exchange (NSE) are the two main stock exchanges of India where the stock trading takes place.

What are the career prospects of choosing trading as a career option?

We have observed that the stock market has been growing day by day. With the expansion of the trading industry, employment opportunities have also increased in this area. Candidates from various backgrounds are now showing interest in stock market trading. To become a full-time trader, one must have a basic knowledge of financial statements, fundamental analysis, and technical analysis.

If anyone is choosing trading as a full-time career option, then there are multiple benefits to it as follows:

· One can enjoy higher degree of flexibility as compared to a job

· One can plan and build a career at his own pace

· You can be your own boss

· With correct knowledge and strategy, you can earn decent money from the markets

· One can grow from cash market to derivative market and make leverage their friend

· One can also become a researcher or a trainer

· One can become a SEBI registered Investment Advisor or SEBI registered Research Analyst and do consulting.

The most interesting fact here is that; if we compare the list of most desired jobs and job profile in India with that of few developed nations, we will see a clear demarcation there. Indian society and education system has always presented jobs like a doctor or an engineer to be the most prestigious ones, whereas, students in developed countries have always considered trading as one of the most preferred space and becoming a ‘Bond Trader’ leads the chart and aspirational value amongst the B-School students.

We as an organization have tried educating people at large about trading as a full-time profession and we have also been fairly successful in breaking this myth that ‘trading is similar to betting’. People have started taking this as a serious profession and make a living out of it.

What are the job roles for students passing out with degree in finance, accounts, and commerce?

It is always good to have an education background in finance/accountancy/commerce before starting a career in the financial industry. It always gives a boost to the chances of getting hired as a fresher and helps in a better understanding of the job role.

There are many job roles which are available, some of which are:

· Stockbroker

· Financial Advisor

· Investment Advisor

· Portfolio Management Services (PMS)

· Research Analyst

· Online Stock Trading

· Financial Analyst

· Equity Analyst (Fundamental/ Technical)

· Market Researcher

· MF Distributor/Advisor

· Insurance distributor/advisor

What is the importance of trading in the economic system?

Entire stock market ecosystem gives a platform to the general public to participate in the economic activities of the country. This helps in channelizing the idle cash from bank accounts etc. to the more sensible use which is participating in investments for future growth. The money generated is used by companies in their growth plans which eventually help them prosper and it contributes back to the economy by creating employment and passing the profit earned, as a dividend back to the investor. When bank financing is limited, and costly trading provides a source of private finance.

This way trading channelizes household savings into more fruitful economic activity. Hence, stock trading can be considered a very important economic activity which generates a lot of direct and indirect employment and helps in brining the idle capital from household to the private/public sector for them to use it for growth activities of future.

What is the Course component of the subject?

To become a successful trader, one needs to have following things in mind:

· Formulating a clear trading plan. The trading plan's goal must be clear and meaningful to the user.

· The trader must be familiar with the technology and methods for implementing a strategy.

· For a plan to achieve its desired outcomes, the trader must trust the plan. This ensures consistent execution of the strategy over time. Constant market gains are a product of perseverance, dedication, and expertise.

· One should, always be aware of behavioural biases like revenge trading, recency bias, stereotyping etc. to be able to achieve consistent success

· Always have some rules and always follow them

· Consider trading as a full-time profession/business in which the cost of doing business is losses that you incur. Never shy away from booking losses and always follow a strict stop-loss

What are the Eligibility criteria for Trading?

Traders mostly are self-taught breed.

However, a professional trader needs to understand the basics of finance to start with. A college degree is a prerequisite nowadays—at least if you want to take trading seriously or want to pursue a trading-related career in a respectable financial institution or corporation.

Most traders have degrees in mathematics, finance, accounting, economics, or industry.

In terms of defined criteria, one does not need to be 18 to get started. There is no minimum age to invest in the stock market. Both a minor and an adult can invest in stocks.

An account can be opened in a minor’s name by the parents or the appointed guardian after submitting their respective documents. The parents or the guardian/s will oversee the account until the minor attains adulthood.

Post the minor turning 18, the depository participant will send an advisory to the individual to obtain certain KYC (Know Your Client) documents to open and transfer details to a new account.

A PAN card is necessary to get your demat account opened. You will need to submit a copy of your PAN card along with the KYC documents while opening the same.

On the other hand, for somebody to work in this industry as professional, say; in ‘Investment advisory and consulting’ company like ours, he/she has to be NISM certified and a master’s or Bachelor’s in Economics/Business Management/Finance or similar discipline.

Stock Market Trading As A Career Option