"To be honest, I fell into this profession," says Alexandra Chou, a stockbroker
in New York City.
"I initially started out as a CPA (certified public accountant) and worked
for large accounting firms," Chou says. "Then I eventually started working
for a large investment bank, which required me to get the Series 7 licensing.
As I started talking to more brokers there, I found out how lucrative the
profession can be, and I decided to change course to become a securities broker."
Chou specializes in providing financial planning, tax and education services
to female entrepreneurs. She says her work is largely about connecting with
people.
"I think the best part is really talking with people and building relationships,"
says Chou. "The truth is that you hear more about their hopes and dreams than
even some of their closest family members. That, I think, makes it all worthwhile."
Of course, connecting isn't always easy. But it's by reaching out to the
people you know, as well as strangers, that you build the client base to support
your career.
"I think the challenge is getting out of your comfort zone and being able
to constantly find ways to engage people with your services," says Chou.
Donald Dony worked as a stockbroker before earning a master's in finance
and becoming a financial market analyst. His career path shows that a stockbroker
career can provide you with a foundation for related work down the road.
"I... moved more toward the research side, and I find that fascinating,
absolutely fascinating," says Dony. "Now I publish research on a monthly basis.
That research goes to clients right around the world. I was in Australia talking
at an analyst and traders conference back in November, and I'm heading off
to France in about a month from now for another conference, so I think, for
me, this is a far, far better fit."
Chou says it helps to be outgoing if you're considering becoming a stockbroker.
It also helps to have others in your corner. "I think it's best to first
build a large network of friends and family that are willing to support you
in this profession," says Chou. "If you find that you're the introverted type,
this profession might not be for you."
For Brian Paragamian, there were signs from an early age that the world
of stock trading was the right one for him. "When I was younger I always
saw on my parents' TV... the ticker tapes going by and that kind of piqued
my interest," says Paragamian. "And then I had a class on having to pick a
stock [in] the stock market and I was quite successful in picking it, so that
continued to pique my interest."
When Paragamian was in college he started to invest for real in the stock
market. "And that's kind of how things took off," he says. Paragamian graduated
with a degree in finance. He was an independent stockbroker for
15 years and has been a professional trader for 26 years. He has a website,
ProfessionalStockTraderLive.com, on which he teaches people how to trade stocks.
"You have to be patient," says Paragamian. "You have to be disciplined.
You have to understand risk/reward parameters. You have to understand you've
got to use 'stops' -- so if you buy a stock at, say, $100, and based on the
technicals, the fundamentals, if the stock drops below 90, you say to yourself,
'Hey, I'm wrong, I've got to get out of the stock.' So that's all part of
being disciplined."
Markets go up and markets go down. Investors and the stockbrokers who advise
them, need to stay calm and rational. That means controlling their greed when
the market is soaring, and controlling their fear when it's sinking.
That kind of rollercoaster ride isn't for everyone. It can lead to burnout
among some stockbrokers. Discipline is what helps you avoid burnout, says
Paragamian.
"You have to be willing to accept losses -- that's a huge thing," says
Paragamian. "Most people aren't willing to accept losses. They just say, 'Well,
I'll just sit on it as an investment, and I'll just sit and sit and sit,'
and all that does is play with your psychology, and then you just find yourself
sitting on something that you shouldn't have, for maybe years."
There are certainly big rewards to be found in a career as a stockbroker.
But it takes a lot of drive and discipline to succeed in this highly competitive
field. "Certainly, you've got to be a self-starter," says Dony. "You've got
to be driven, I can tell you that. I mean, people who are a slight bit lazy
are gone in the first six months or year. So you've got to really be pushing
hard, and lots of people have done very, very well (financially). Very well
indeed."