“Risk comes from not knowing what you’re doing.” – Warren Buffett
The stock market has intrigued the Indian population since its inception. But, even though it has intrigued the population, it has seen lower participation in comparison to other developed or developing countries. However, people have slowly started taking active interest and participation in the stock market. Hence, in this article, we will cover what you have to do if you are a beginner in the stock market starting from educational qualifications, available stock market courses to enhance your knowledge, future prospects, and much more.
If you are just beginning with the capital markets, you might be a little intimidated on how to proceed. And, that is very natural. For generations, people have been scared of stock markets due to the risks involved. But, with time, people have been educating themselves and taking active participation. Therefore, learning is the golden trick. A course on stock market will be the right move to step into the financial world.
You can easily get hold of study materials and stock market courses over the internet. These courses are certified and will add credibility. Hence, these will help you to ace in the capital markets, just right away. So, scroll down and enlighten yourself on how to begin in the stock market and make a lucrative career out of it.
What is a stock market?
Let’s start from the beginning. If you are planning your future in the stock market, you must know what it is.
So, the stock market is where different financial instruments like stocks, commodities, bonds, and others are traded. The primary stock markets in India include the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The NSE has over 90 percent cash trades, making it the largest.
Now, all activities in the stock market are monitored by SEBI. These activities include instruments trading, day-to-day trades, exchanges enabling financial instruments trading, and participants in the stock market.
The stock markets also maintain an index, a stock basket representing an industry, theme, or size. This also allows the investors to keep a track of the common trends in the market. The two popular indices are SENSEX, maintained by BSE, and NIFTY, maintained by NSE. NIFTY baskets top 50 stocks by market specialization.
How to get started?
“An investment in knowledge pays the best interest.”- Benjamin Franklin. The stock market is an area where continuous learning is required. Whether you see Warren Buffet or Rakesh Jhunjhunwala, they constantly learn and upgrade. You can get a myriad of stock market courses that are NISM and NSE Academy certified at Elearnmarkets. You can strengthen your knowledge backbone by learning continuously through these courses. But, if you have a finance educational qualification, like CFA or FRA, then you can hold a sturdy position in the stock market.
Well, most traders are self-taught, and they educate themselves through the online advisory course or fundamental analysis course, and ace in the market. The right finance course will provide you with a comprehensive understanding of the capital market. Visit Elearnmarkets and explore their courses and start learning.
Nevertheless, you must have a passion for learning to grow and excel. If you are planning to enter the stock market, full-fledged, then you have to keep learning and increase your knowledge base. Learn and get certified and you will be ready to step into the stock market world.
What can you invest in the capital markets?
The chief financial instruments in the stock market include:
- Equity Shares: These are issued by organizations or companies. These allow you to claim profits in the form of dividends, paid by the company.
- Bonds: Bonds are issued by governments or companies. These are basically loans from the investor to the issuer. These are issued for a fixed tenure or at fixed interest rates.
- Mutual Funds: Mutual funds are basically wheels to pool money. It is then invested in diverse financial instruments. The profits gained are distributed in proportion to the investments or units, the investors hold.
- Derivatives: Derivatives acquire value from underlying assets’ performance. The derivatives can include currencies, stocks, commodities, bonds, and market indices.
How to invest in the stock market?
First things first, you will need your identity proof documents. You will need your pan card, aadhar card, a cancelled cheque of your active bank account, proof of residency, your income proof and status, and passport-sized photographs.
Next, a Demat Account. A Demat account is where you will hold your shares. It is your shares’ electronic house. With the help of a depository participant, you can easily open your Demat account online.
Then, a Trading Account. This is where you will buy and sell your financial instruments in the stock market. If you are a beginner, then you must have both a Demat and trading account. Both these accounts will be provided by your broker.
Finally, you will need an active linked bank account. This is because you will be continuously buying and selling shares. A linked bank account will ensure seamless money flow.
Now you are ready to invest in both primary and secondary share markets.
Career Opportunities in the Stock Market
You have come to know by now what to invest in and how to proceed in the stock market. Let’s check out the career opportunities in the stock market below:
- Stockbroker: Your stockbroker will ensure that you have both demat and trading accounts for trading in the capital markets. So, you must have understood by now that how flourishing a career as a stockbroker can be. With growing interest in the stock market, the stockbroking career is growth-oriented.
You can easily begin by taking a small sub-broker ship from an existing broker. In a such case, you have to sell the broking account to the customer. You will earn a great revenue out of it.
- Financial Advisor: You can start your consultancy services and pave your way to financial freedom by becoming a financial advisor. If you are planning to be a financial planner, then you have to get certified by Financial Planning Standards Board. You have to compulsorily clear the NISM Investment Advisory Certification Examination for applying for SEBI registered financial advisor.
You can then easily offer your services to organizations and individuals.
- Equity Research Analyst: This is a very remunerative career option. Both the buy-side research and sell-side research need equity research analysts. For becoming an Equity Research Analyst, you can go for CA or CFA or enroll in “Certification in Online Equity Research Analysis” at Elearnmarkets. You will have NSE certification and this will add more credibility to your work.
- Portfolio Management: As a beginner, if you are planning to invest in mutual funds, then you must be knowing that these are handled and experienced and skilled portfolio managers. If you have a strong understanding of the capital markets, then portfolio management can be a lucrative career. Educational qualifications like CFA, CA, and MBA are required in this field. Start with Research and Marketing, and with experience, you can be an expert portfolio manager.
How Elearnmarkets is paving the way to your financial freedom?
Elearnmarkets, a pioneer in stock market learning, is an online learning portal housing stock market courses for beginners as well as experts. You can enroll in courses, webinars, live market sessions by stock market stalwarts. Courses at Elearnmarkets also provide stock market training, preparing you for the future. You can also learn share market essentials, tips, and tricks from experts like P R Sundar, Shubhadip Nandy, N S Fidai, to name a few.
Elearnmarkets cover the entire spectrum of financial markets including stocks, currencies, commodities, insurance, mutual funds, financial planning, and wealth management. A thorough share market study is going to be very rewarding for your capital markets future.
After you have gained knowledge and certification from Elearnmarkets, you can download India’s most popular stock analytics app, StockEdge for hands-on practical experience. StockEdge is a stock analytic platform for active market participants. You can get winning stock ideas by using 300+ Algo-based scans. StockEdge Club is a unique platform for traders and investors to learn from live discussions, technical and fundamental case studies, and more.
A stock market is a captivating place with a myriad of career opportunities as per your qualifications and interest. If you are looking to make a profitable career out of it, then you must have bona fide qualifications and certifications. You can be a self-taught trader by availing stock market courses. So, set your goals and get ready to enter the most fascinating place in the world.