If the recent financial industry news has brought one thing, it's the sea of opinions on stock brokers and traders. They're all millionaires, walking around New York in their fancy suits, happily guessing where stocks will go as they rake in the big bucks, right?
Here are some Wall Street secrets that go against all these popular beliefs. They Don't All Make Millions If you watch the news, you've heard of the big bonuses some traders make.
The secret is that the average stock broker doesn't make anything near the millions we imagine - some actually lose money.
Stock Broker Salaries in the United States | wugadukucevu.web.fc2.com
They Don't All Wear Suits If you picture a stock broker, do you think of a white shirt, tie and a fancy suit? These financial professionals often wear casual clothes. Who sees what you're wearing when you're on the phone? Many work from home, far from any trading floor. They Don't Always Beat The Market Is a stock going up or down? Sometimes it's easy to tell which direction a market is going; but very often, it's not.
If the recent turbulence in the stock market has taught us anything, it's that even the pros are scratching their heads sometimes. The elements controlling stock values are complex; many mutual funds with highly experienced managers have been beat by the market.
The big secret on Wall Street is that trading is not a science. As much as we would all like to predict where the market is going, sometimes even the experts are wrong. They Aren't All In New York The hub of the financial industry may seem to be on Wall Street, but the truth is that stock trading is done from around the country - even around the world.
Traders and brokers work from any location, not just from Wall Street. Chances are, there's a trading office right in your home town. Their Money Doesn't Buy Happiness Those guys who do get the bonuses - they must be happy as clams, drinking champagne, right?
Markets are up and down, trading is hectic, and a dip or loss in numbers can feel like the end of the world. Market turbulence often translates into turbulence in life, making a broker's or trader's life a tough one, even for those who have comfortable salaries.
They Don't All Have Privileged Backgrounds You might think that brokers all come from rich families, or got in with Ivy League educations. The secret is that many traders worked their way up from jobs as clerks and paid their dues before making it on the trading floor. Many brokers working all over the country don't even have college degrees.
Just a sharp sense of the market and experience can make you a good broker.
Stock Broker Salary
An Ivy League education certainly doesn't hurt to make it on Wall Street; but in the end, it's the work that makes or breaks a broker or trader. For related reading, see Profitable Investing, Ivy League Style. They're Not Just Guessing It's easy to think that it's all just guesswork on Wall Street - Las Vegas in disguise, with brokers and traders making random bets on the direction of the market.
Glossary - Aviva plc
The truth is that it takes a great deal of experience and knowledge, of economics both domestic and international, to be able to navigate the financial markets.
For brokers and traders, you're only as good as your bottom line , and it's knowledge and experience that makes or breaks your career, plain and simple. The Bottom Line Think you have what it takes to be a broker or trader?
The stock market is complex to navigate, with many hopefuls walking away with lighter pockets and crushed spirits. To be a broker for a firm, you need to pass FINRA's Financial Industry Regulatory Authority Series 7 exam, which is said to be one of the toughest licensing exams given.
To be successful on Wall Street, knowledge and experience are the name of the game. With these secrets revealed, you certainly have a good place to start. At the very least, you'll know better than to be fooled by those Wall Street stereotypes. Find out how to decide between these two financial professions.
Read Broker Or Trader: Which Career Is Right For You? All salary data is from PayScale. The salaries listed are median, annual salaries for full-time workers with years of experience and include any bonuses, commissions or profit sharing. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin?
This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.
If you're a rookie investor, your first big investment decision should be an informed one. Read about how to choose your first broker here. Learn the clues you'll need to determine whether you've chosen a reputable professional. A day in the life of a broker or Wall Street trader is an exciting and varied one. How do you find the right broker for your investment needs? Start by reading our broker tutorial. Make sure you're getting the best service by staying informed and involved.
While discount brokers are the perfect choice for some investors, their business model could be detrimental to others. Both brokers and traders buy and sell securities, but there are some subtle differences between the two careers.
We go over the factors that determine different investing personalities, and the services that best suit them. If you decide that you have the knowledge and experience to take on stock investing, or if you feel you would like to give Your broker's actions are not legal unless he or she sold the securities under certain conditions.
Let's look at the two An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. A period of time in which all factors of production and costs are variable.
In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other.
A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation.
A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over No thanks, I prefer not making money. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers.