Taking serious stock of things

A GOOD stockbroker advises his clients about short term, medium term and long-term investments in good companies taking into account the market conditions. Being a highly speculative field, the character and integrity of the stockbroker is the prime factor that most investors look for. Honesty and transparency combined with native intelligence, and thorough knowledge of technical concepts is what defines a dependable stockbroker.

The Human element

Despite the invasion of the net and stock broking becoming electronic, it can never replace the human touch. Individual and corporate investors still prefer to employ stockbrokers to do their transactions. A good broker often is almost equal to a good investment. Building a good relationship with your client is important to retain loyal clientele. Personal contact and prompt delivery of stocks are signs of professionalism, as the reputation of a broking house is usually built by word of mouth rather than by any advertisement.

An analytical bent of mind

An effective stockbroker needs to have an analytical bent of mind. He needs to spend hours going over market analyses to know the trends before investing the client's funds. He should have the knowledge to extend advisory services to his clients, especially the small investor, who does not have access to expensive information databases.

The right mindset

Seeking employment in a brokerage firm is not easy. Impressing your prospective employers with your education can be just as unconvincing. What the brokerage firm requires is someone with enough technical knowledge enhanced by practical skills and quick thinking. The enthusiasm to go that extra mile certainly adds the necessary dash of seriousness to the eager stockbroker.

Past performance

Possessing an untarnished track record is the harbinger of success and good name. It is especially important, as clients tend to investigate the broker's past performance before deciding to trust the broker with their funds. The reputation of the broker hinges on his past performance. The direct approach is the best tactic to adopt.

First impressions

Excellent salesmanship never did go waste! The stockbroker could put it to good use. Rather than glib talk, a convincing report on the performance of the promising companies to be invested in will set the investor's worries at rest. A presentable appearance is just as important. A well-dressed stockbroker would definitely create the aura of a successful practise.

Big money

The lure of the big bucks can be quite addictive. Yet stock- brokerage is one of the very few professions where making the big bucks is as easy as losing them. Pride goeth before a fall and over enthusiasm or unwise decisions quicken the decline of the ablest stockbroker. Ideally, the broker should ensure protection of investments made by his clients and should strive to get reasonable returns on the client's capital.

Playing safe

If any career can be called volatile, it is that of the stockbroker. Safe and secure investments usually never fail to generate the desired returns. The broker needs to maintain integrity while dealing with an investor's funds. Following time- tested methods of investment are preferable to risky experimentation with a client's capital.

Some more...

A good broking house should maintain transparency in dealing with all kinds of clients, maintain proper accounts and offer services on a minimum of at least two recognised stock exchanges. It should also offer excellent services at low and competitive brokerage charges. The broking house should also provide additional services in the form of financial products like fixed deposits, bonds, debentures, debt papers, government securities and other money market instruments. It should also have a market research division that compiles market information. Tracking market developments, creating a large market database and a graph and charting section would help a broking house render true professional service. The broking firm should also offer forward trading in the derivatives market segment as well as put and call options, and other trading instruments.

SAMYUKTA KODA

samyukta.hyd@careercommunity.co.in