What Does The Life of a Stockbroker Look Like?
by Mashum Mollah Small Business 25 March 2017
Movies like The Wolf of Wall Street, Wall Street, and even Rogue Trader have painted a picture of a stockbroker that they are high rolling megastars who make millions of dollars per month and live a rock star lifestyle. Whilst for an exclusive few this may be the life, there is, in fact, an entirely different way of life for the large majority of stockbrokers out there. Some businesses flourish without stockbrokers but we believe they are helpful.
Despite the belief, many stockbrokers are not living lavish lifestyles nor making mega-money trades and unless you are a successful broker like JP Morgan’s Michael Briese, your reality may appear somewhat different. Let’s take a look then at what the life of the average stockbroker looks like in this career which has the potential to make you a millionaire.
What Does The Life of a Stockbroker Look Like?
From the outside world, the world of a stockbroker looks totally different. And here are the basic differences. You need to know the differences well to make your decisions in the right way at the right time.
In reality, unless you are a maverick with an outstanding natural ability to understand the stock market, your first 5-10 years are going to be very tough and will see you making a very average salary.
During this time most stockbrokers get to the office a couple of hours before trading in order to put in their research. They will spend the morning contacting existing clients or recent leads which they have had in order to get some trades off the ground. After lunch, most brokers will be doing much of the same. They call existing clients trying to push for them to invest more and to make more trades until the markets close.
Once the markets have closed you may think that is the end of the day, time to head to the bar right? Wrong, for the next 2-4 hours, a rookie stockbroker will be cold calling to try and attract new clients, home to bed, and then the cycle starts once again. These first years are about marketing yourself and building up a solid customer base.
If a broker makes it through the first 5-10 years of their career then they are likely to have quite a portfolio of clients put together. And as such have plenty to keep them occupied whilst the market is open. The time that they have previously spent on cold calling will now be used for meetings to maintain relationships with clients.
Thanks to the added pressure which more clients bring, the research needs to be even better and so these first few hours before the markets open will look very much the same.
Real success comes from having your own firm, or traders beneath you who will manage your client’s trades. This will leave you to spend your days meeting with clients on the golf course or the bar and simply working on building and maintaining relationships as you count the dollars.
This is not a position that everyone can rise to. But if you have what it takes then this is the most comfortable and lucrative position that a stockbroker can rise to. Not quite Gordon Gecko, but not far away. A stockbroker’s day is all about trading, they start off researching and heating up the contacts they have.
If required, they make new contacts. They meet their clients to discuss their portfolio and also about the work they wish to do. A stockbroker always finds his own capability and work scope in the work. They plan all their plans and make decisions about their business. A stockbroker is handsomely paid in the USA and all over the world.
The Hurdles That A Stockbroker Needs To face
From the above discussion, it is now clear that the life of a stockbroker is not at all everyone’s cup of tea. In order to become a successful stockbroker, anyone needs to experience a lot of hurdles and overcome them. So, here are some false imaginations that we have in our minds.
1. It Is A Get Rich Quick Scheme.
As I have told you earlier, the life of a stockbroker is not at all easy. Most lazy people think that stockbrokers are crazy rich and there are plenty of opportunities for young blood. But in actual it is not a shortcut to be rich. You need to invest your time, hard work, and effort to become successful. Only then you will be able to become the wolfy rich just like the stockbrokers of big movies.
2.All Suited Booted.
It is quite common that whenever we heard the word ‘stockbroker,’ we imagine a well-groomed person wearing a pinstripe suit and a fancy tie. We left the Gordon Gekko look was in the 1980s. Those days are gone now. Fashion has evolved in the last 30 years. The modern technical up gradation allows people to buy and sell stocks remotely. So, more casual wear is introduced in the profession of a stockbroker.
3.There’s An Exact Science Behind Trading Stocks.
Now come to another myth about the stock market or stockbrokers. People believe that experienced stockbrokers can accurately predict the shifts and changes in the market. Yes, there are certain education and training programs available for being a broker. But no one can predict the future. Even the most experienced stockbrokers are accurate only half of the time. The unpredictable and complex nature of the stockmarket only allows you to make an educated guess and finger crossed, hope for the best.
One more thing all stockbrokers do not belong to wall street.
The picture or life of a stockbroker that we have often seen in big movies are far different from the journey they have to go through along with the experiences that they gather. However, the reality is totally different from that. We mostly watch movies that portray successful stockbrokers but we hardly know the real story behind their success.
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