It seems that every day we see an advert online which tells us how we can be stock brokers and make millions from our laptop, most of us however see through such a fraud. Stock brokers can certainly make a lot of money, but as my friend and trader Michelle Marquez knows only too well, studying for it is an absolute necessity. Michelle knew what she wanted to do from an early age, and she is currently doing very well trading in securities. To further reinforce the need to avoid the adverts which you see online, here is what Michelle says about why you absolutely have to study prior to getting started with trading.
Strict Rules
There are some very tight rules around trading and one must know exactly what they are doing before they even get started with trading. Sticking to the letter of the law within the trading world is absolutely vital, failure to do so could see you get into a lot of trouble indeed. It is not just about keeping yourself safe Michelle says, but also making sure that your clients are making smart moves too, and helping them to avoid winding up in front of an arbitration commission. The rules are so vital in this industry.
Understanding the Markets
Something which Michelle says is most important when it comes to studying to be a stock broker is to understand how the markets can move. Just about anyone can head online and make a trade, but it takes experience and knowledge to be able to study the markets in order to make a prediction as to whether they will move or not, and in which way. Michelle cites experience as the one thing that has taught her the most about the markets and how they can move, but she still reiterates the fact that without studying with a mentor in those early years, she wouldn’t have amassed the knowledge that she has.
Big Losses
As Michelle repeats time and again, losing in this industry can be catastrophic and she has seen many an investor and trader be swallowed up by making a single bad trade. She also sees this very often in day trading circles, where traders will spread bet on the amount of points that a certain stock will move by, when they win, they win big but when they lose, they also lose big time! Once again this is where Michelle speaks openly about the damage that can be done by an uneducated trader, either with their own money or that of someone else.
Confidence
Finally Michelle speaks about the level of confidence which you need to have as a trader, and that this confidence will come from the knowledge which you are given during your early years. Without this education you may never realize the level of confidence which is required, and this can have a huge impact on a trader’s success.
