Big stockbroking firms like CMC Markets might enjoy significant popularity among traders, but they manage to do so after handling a series of difficulties. Each stock broker representing these firms remains under immense pressure all through the day. In this article, we’ll be discussing about the disadvantages of being a stockbroker and common procedures adopted by these professionals for getting around them.
- The process of getting started is often extremely tough- If you want to see yourself reach great heights as a stockbroker, you’ll have to be ready to have some tough times, particularly when starting out. The best thing about this is once you establish yourself in this field you will see every bit of your effort paying off.
These days, brokers need to follow much stricter rules than the brokers of yesteryears. Restrictions have been imposed on almost every step of the broking process. For instance, the country’s law requires the brokers to call potential clients during a particular time of the day. Such restrictions have automatically increased the pressure on the beginners.
The best way to deal with the situation is trying to be slow and steady. If you don’t try to achieve too much within too little time, the pressure on you would be much less and you’ll be giving yourself enough time to learn about the business of stockbroking.
- This job would often need you to spend long hours working, that too under extreme stress- This is probably the biggest disadvantage of stockbroking. You might be the most experienced broker in town, but even your experience will not be able to eliminate the stress factor from your job. The situation turns even worse as the stress factor comes coupled with the need of working for extended period of time. It has been found that the majority of these people work for at least 14 hours per day (the number is usually more for more successful stock brokers).
It’s difficult to avoid the long hours; but, you can surely do something to ensure that the long working hours don’t affect your health; examples include going for a stroll after every 30 to 40 minutes, taking your meals on time, sleeping for at least 6 to 7 hours etc.
- The market would be affecting your finances- If you are a stock broker, you should be ready to see the market having a strong impact on your finances. If there’s a recession or the economy suddenly taken a downturn, you will see the number of customers coming to you decreasing rapidly; the number of profitable trades will also reduce and you’ll start incurring losses more frequently. All these changes will automatically have a noticeable impact on your personal financial well being.
You cannot stop the market affecting your finances; what you can do is be ready to handle such situations gracefully. Always have backup plans ready that can keep you financially sound in difficult times.
- You will have to try out cold-calling to become a successful stock broker- Stock brokers are expected to bring in new business constantly. For that, they need to use the worst marketing strategy ever i.e. cold-calling. You must be wondering why such a widely used method is called “worst”. The strategy is worst from the broker’s point of view; that’s because cold-calling often ends up making people upset and callers become victims of severe verbal abuse.
As a stock broker, the best way of beating this problem is by getting yourself accustomed to the situation. Tell yourself there’s no harm in making a few people angry and getting abused a few times if the process allows you to get a few profitable leads.
- Stock brokers often have problematic personal life- A stock broker needs to perform constantly to be called a successful professional. In other words, a stockbroker can’t afford to allow his or her performance metrics drop below the competition. As a result, often people associated with this field fail to have a regular personal life. It has been found that the frequency of divorces is significantly high among these professionals.
The only way to get rid of this problem is realising that a few losses and failures actually don’t count. A stock broker shouldn’t allow his or her profession to become an addiction.