Preparation for Interview as a Securities Dealer

The stock market is, without doubt, one of the greatest tools ever invented for building wealth. 
 
What was once the domain of the rich or the investment professional has now turned into the vehicle of choice for everyone to grow their personal wealth. 
 
So that nearly anybody can own stocks.
 
What kind of investor are you? 
Investment Style
Active or Passive Investment.
 
Time Frame
How much time do you want to spend on investing?
How active do you want to be/how involved can you be?
When do you need your invested monies?
 
Risk Tolerance
Are you comfortable with short term decreases in investment value?
 
Reasons for becoming a trader
Results oriented traded vs ego driven trader
 
My style -> work one-on-one as a personal stock broker, offer investment ideas, analyse your portfolio, let my customers execute orders online for buy and sell to save on commission.
Risk and return have a direct relationship. Generally, the greater the level of risk, the greater the expected return. However, greater risk may also lead to greater losses, so the investor needs to determine the level of risk tolerance.
 
  1. Why are you the best candidate for us? Ans: I have strong interest in this field, I have been investing for the last 10 years and construct a portfolio of close to a million. I am determined to make this business a successful one which will be a win-win situation for both the brokerage house and myself.
  2. What are your short term career goals? Ans: I intend to grow the business till 4k per month for take home salary within 6 months.
  3. Have you worked in sales before? Ans: Yes, since graduation all my roles involve sales element. We need to prospect and close sales.
  4. How do you conduct research on companies and markets? Ans: I research on the company management, business, valuation and financial. Management is on who the top guys are, their remuneration, whether their interest with the shareholders are aligned. Business – what industry is the business in and what sort of competitive advantage does the company has over others. Valuation will be determined by DCF model. Financial is derived from financial statements.
  5. What qualities do you feel are essential to being a successful stock broker? Ans: Driven, Build rapport easily and trustworthy
  6. What do you know about our firm? Ans: 
    Lim & Tan Securities was established in 1973. Its main activity is stock broking and the main focus of the company is the retail market. Believing in providing cutting-edge technology to its clients, Lim & Tan Securities was amongst the first to introduce Internet Share Trading in Singapore in October 1998.
    In line with its belief in providing a fast and convenient way for clients to trade shares Online, multiple channels are provided for clients to access its easy-to-navigate Online trading platform to check prices and trade. This includes the Mobile trading channel using mobile phones, where clients can view streaming live prices, which was added in June 2008. Subsequently in 2011 and early 2012, it introduced iPhone, Android and iPad Apps for more convenient on-the-go trading under its Online trading brand name, limtan.com.sg.
    Currently Lim & Tan offers a trade charting application, LTS Station, where clients can trade using technical charting tools, insert trade diary comments on the charts and also view up to 10 years of their trade history with Lim & Tan Securities.
  7. Take me through a recent portfolio you have won over. Ans: I manage my mother’s portfolio.
  8. Tell me something about yourself that I wouldn’t know from reading your resume. Ans: I like to spend my personal reading books.
  9. Give me an example of a time you successfully handled a high pressure situation. Ans: I am in Vietnam and I was working to close the contract and started preparation of project procedures at the same time.
  10. Where do you predict interest rates going in the next 6 months? Ans: I believe it will be go up slowly.
  11. How do you manage working in a constantly stressful environment? Ans: I enjoy momentum and stressful environment, it helps to keep me upbeat. I will unwind after work by exercising and spending with the family.
  12. Why do you want to work for our Broker Firm? Ans: I have all my networth in this company.
  13. Are you comfortable cold calling? Tell me about any cold calling experience that you have. Ans: Throughout my career, I need to cold call potential customer and tell them about the company.
  14. Bring your resume to life. Ans: I started my career in the shipyard building and repairing vessels, after which I was handpicked by the CEO to change to marketing role. I got onto a sales manager role and was stationed in Perth for two years, doing project management and sales work in Perth. I came back to Singapore once the project was completed and changed to subsea diving sector, followed by my present role. Elaborate from there.
  15. What is your proudest career accomplishment to date? Ans: I manage to secure a USD 42m project and this project was very complex, involves a lot of stakeholders including Pertamina and main contractor in Jakarta.
  16. Would you buy stock in the market right now? Ans: I am always buying stock regardless to how the market is.
  17. Tell me where the STI closed at yesterday? Ans: 3107
  18. Our industry has a very high turn over rate. Why do you feel you will be one to make it long term in this industry? Ans: Alot of them left the industry are because they cannot make sufficient money and need to draw down from their savings. This business takes time to build like other business. I do not need to rely mainly on this source of income and I can last longer in this business than most.
  19. What is the most recent business article you have read? What were your thoughts on the story? Ans: I read on the scorecard of Singapore Q4 2016. It outperforms due to the manufacturing uptick. Personally I think Singapore is in a difficult situation and we are very vulnerable in this open economy. My take is Singapore will continue to deteriorate for the next decade.
  20. Would you consider yourself a calculated risk taker? Ans: Yes, like most entrepreneurs, I take calculated risk.
  21. What is your favorite financial market information resource? Ans: Bloomberg
  22. If given this opportunity, how would you build trust with our clients? Ans: I will go through a know your client system, understand their requirement and what is their financial goals to be achieved. Then I can start to plan accordingly with them. This is the best way to build trust. Nobody wants to be sold a product but if they know that I have their best interest, they will grow to trust me.
  23. What is the largest portfolio you have managed? Ans: I have managed close to 1m, presently standing at 950k.
  24. How would you market yourself? Why is that an important part of being a stock broker? Ans: I will engage social media and online resources such as investingnote.com to market myself. Marketing is important for client acquisition.
  25. What do you enjoy about sales? Ans: I enjoy meeting people
  26. Are you comfortable generating leads? Tell me about your experience doing so. Ans: I used to cold call client and talk to them to get potential business. I am comfortable in talking to people on the street as well which I intend to do so through road shows.
  27. Does money drive you to succeed? What other factors motivate you? Ans: Money does drive me to succeed. Other factors such as freedom and family.

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