Stock trader jobs in South Africa can be one of the most lucrative careers available. As they are paid commissions, their income is only limited by the number of clients they engage and the volume of sales they complete. At the top of stock trader earning are fund managers. |
The Role of a Stock Trader
Corporate Stock Traders - Corporate stock traders are fund managers. They are employed by hedge funds, mutual funds, and pension funds. Their role is to adjust the investments within the fund to maximize returns.
The stock market is cyclical, that is there are distinct cycles within the economy and this shows up in the stock market. For example, as the economy slows down and possibly moves into recessionary period, certain types of stocks will lose value more quickly than others. Likewise, when the economy moves into a growth phase, certain types of stocks will appreciate more quickly.
Fund managers take advantage of these discrepancies by buying and selling stocks at key times. Because of the huge volumes of stocks being traded, and the large cost of sales, fund managers are extremely well-compensated. Only the elite stock traders jobs become fund managers, they are the best qualified and most experienced.
Retail Stock Trader - Retail stock traders are investment advisors for individuals. They assist in developing personal portfolios that contain a number of investments based on goals of the individual. A typical portfolio is divided into three sections - growth, income, and cash.
A younger person may focus on growth because they have a twenty or thirty year investment horizon. Certain stocks are expected to appreciate more will make up the majority of the investments in the portfolio. These are typically more risky, and subject to price swings during the short term.
A person nearing retirement is more risk averse. Their focus may be on income for their retirement years. So the majority of their investments will be stocks that provide dividends. They may not appreciate as quickly as other stocks, but nor are they susceptible to price swings.
It is the stock trader's role as an investment advisor to plan and develop a portfolio based on each individual's investing goals is to become a trader.
A fund manager will be highly educated and have the highest qualifications. They often have Master's degrees and Ph.D.'s in finance. Other qualifications include CA (Chartered Accountant), CFA (Chartered Financial Analyst) as well as many years of experience in financial markets.
Stock traders working as investment advisors need to a member of the SAIS (South Africa Institute of Stockbrokers). Most have a university degree and have completed the Programme in Investment Analysis and Portfolio Management (PIA and PM) course offered by the SAIS.
Fund managers are well compensated. The average pay for fund managers is over R400000 (South African Rand) and over 30% of fund managers earns in excess of R700000.
Investment advisors have the opportunity to earn large commissions. The average salary is over R70000 with the top 25% earning more than R300000.
For more information about business opportunities uk and trader jobs Please visit : be-a.co.uk
Related Articles -
Stockbroker Training, Become a Stockbroker, Become a Driving Instructor, beauty therapist training.,