Stock market investor good career?

Question

I want to play the stock market as my career, is this a good idea or should i just be a stock broker?

Answer 1

there are MANY different types of jobs out there, and the term 'stock market investor' is pretty generic.  Stockbrokers are really just salespeople, trying to get clients to open accounts with their firms, and then they help 'manage' the account - the degree to which they make any actual investment decisions varies greatly.  

if you have a brokerage account w/a few mutual funds in there, how much input can a broker have?  but i've seen brokers take more active roles as well.

Actual investing sounds more like a job as a trader, hedge fund analyst/manager, or asset manager, or any sort of buy side analyst job.  in these positions, you help make decisions that result in actual investments being made.

Sell side analysts perform stock research, but the actual investing is done by clients.   Investmetn bankers are involved in all kinds of deals.   But anyway, if you're really determined to be an investor, you can invest your own funds of course, but i wouldn't be a broker.  although the atmosphere in a brokerage firm's office makes you feel close to the market, but nothing like a trader, for example

Answer 2

You want to "play" the stock market? This is not a career. A career involves "work," not "play". You will need a substantial starting position (i.e., a lot of money) to "play" the market, and be able to weather substantial downturns. The naivete of your question suggests this is not the best path for you.

Answer 3

What you probably mean is that you want to trade the markets for a living. A lot of people are doing that, but not every one is good at it, and has to get a second job to help cover for day to day expenses.

IMO, it will be best to be a stockbroker, manage other people's money, plus your own. This way, your cash flow is leveraged with the income you will generate from the commissions you will earn trading your client's account.

If you focus on keeping your losses small, profits will take care of themselves. A person who makes 25% profit annually is king of Wall street. Many top flight money managers would give away their first born child to be able to do this. A trader who consistently doubles his money each year is a star in this business.

If you set modest goals for yourself and achieve them, you can go very far. If you can make 25% annually (you only need to make 2% each month), people will beg you to manage their money.

If you manage $10million, not an outlandish amount in today's markets, your management fee alone can run to 6% of that, or $600,000 a year. If you make a 30% profit, you will keep 15% of it as an incentive fee, another $450,000. You will earn over a million dollars a year trading, without taking big risks. Keep these numbers in mind when you plan your next trade.

Good luck with your efforts!

http://jsforex.blogspot.com

- Jim Syyap, Managed Forex Accounts