Beginner books for one aspiring to be a Stock Broker?

Question

Hiya,

I am only 16 and I am aspiring to be a Stock Broker. I asked a question yesterday where I was given a lot of information that made me even more interested in the Stock Market. Are there any books that you guy's can recommend for a beginner? Something that goes over the basics so that I can get into the more advance books?

Also, what do you think about these three books?

One up on Wall Sreet - Peter Lynch

Mastering the trade - John Caster

How to make money - William O'Neil

Thanks for your help!

Answer 1

Here's my standard response to those that are thinking about being a stock broker.

In the US - You need to be an employee of a Broker/Dealer so they can sponsor you in order to become a licensed stock broker.  

Firms usually want college graduates, but it is not really necessary nor really a requirement but many firms like it and make it their requirement.

Bank broker/dealers usually want all the sales reps to be college graduates.

Your college major is not important, (No courses in the Academic world prepares you to be a broker).  But since your coming into the world of Finance, some of the more helpful majors would be Finance, Accounting, Economics or Statistics,

You should be good at math and have a decent idea about the stock market.

You should be good at selling, and it would help if you have an outgoing personality.

So if you‘re good at sales, or have a good sales background in place of a college degree, you’re part way there.

Try to get with any major brokerage firm they will put you through an in-house training program, which is primarily getting you ready to take the necessary test for licenses. You will need a Series 7 which is a General Securities Brokers test, and a Series 6 which is just for state approvals.

Most brokerage firms, except bank B/Ds, will put you on salary and once you have passed the test, they will slowly take you off salary and put you on commission basis pay out. Banks will usually keep you on salary.

If you have your choice, you’re always better going to work for a regular B/D rather than a bank - You will learn, faster, better and the proper way of how the industry works. As a broker for a B/D you can always find another B/D that will hire you or at the worse, you can always work for a bank.

But if you’re Bank B/D trained and licensed, it’s very difficult to go work for a regular B/D

Great choice of books here are some others

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

Trading For a Living by Alexander Elder

24 Essential Lessons for Investment Success by  William O’Neil

The Disciplined Trader by Mark Douglas

Good luck

Answer 2

You should approach any reputed leading stock broker who conduct classes and award diplomas.  Mere reading books will not help you. You better join who conducts training programmes.  You are just16 yrs, you cannot make it out anything by mere book knowledge. You must have exposure to day to day trading. if you are a student I advise you to join any leading stockbroker firm  on part tiime basis during your vacations to gain practical knowledge of stock broking.

Answer 3

A "stock broker" is basically a salesman. Stock Brokers make a living by selling stocks to investors for a commission. Is that what you want to do? Or do you want to be a stock "trader"? Traders (whether stock traders, forex traders, commodity traders, etc.) make money by opening buy and sell positions in the market in a specific period of time - daytrade, short-term, mid-term and long-term.

Answer 4

If you want to be a stock broker read books on sales, marketing and motivational books.  Like, How to Win Friends and Influence People.  Anyone can become a stock broker, former army officers, football players, homeless people (see the movie The Pursuit of Happyness)  If you want to be an analyst or dealer those books you listed may help you get a feel for what thats like.