SHARE TRADING

Share trading is becoming a more and more attractive investment alternative for enthusiastic people with the needed knowledge. There are many ways to do it and with the online world being more real nowadays – trading shares is available through the internet and it has never been easier.

There are many companies that will trade shares for you on the market for a nominal fee. Internet is a huge source of helpful information where you may learn some trading techniques on your own and just ask a broker or a dealer to do certain moves on the stock exchange for you. Putting money in the stock market in the right moment may be a lot more lucrative income than putting them in a saving or deposit account.

You’ve got to ask yourself few questions before you decide to invade the stock market through a broker company:

1. How much does each transaction cost?
2. Is there a big difference in the price between the different trading actions – buy, sell, going long or selling short?
3. Is there a limit of the transactions per hour, day, week, month, and year?
4. What is the minimum sum limit of the account and is there a fee if the money drop under the limit or the account remains unused for a certain period?
5. How long do you have to wait for the completion of each transaction? If it’s more than 7-8 minutes, then you can’t be doing an aggressive day trading.
6. How long do you have to wait when contacting the support team?
7. And last but not the least – is this a well known company? Sometimes the conditions sound too good to be true and they are probably not as good and not as true.

Once you got the right answers to the questions above, open an account with a company of your choice. Real time information from the stock exchange is available all the time so get used to the terms used in the trading business. Predicting the right trend is what will bring you a good profit. It’s not easy and it requires researching online for news and changes in the companies’ managements or strategies.

Deciding which companies’ shares you wish to own is the most important part of the trading. Some offer good growth but are bit more risky, while others are stable with less fluctuations. Some shares offer income through dividends which are payable from the profit to the shareholders after paying the company’s tax.

One of the main rules is to determine a limit for your losses. This depends on the psychological profile of the trader. Some people are not willing to take high risk decisions and are setting the limit for “sell” to 5% under the price they got the share for. Others are a bit more adventurous and decide that they can take up to 15, even 20 % loss. Some don’t even set such limit. Decide for yourself what exactly you expect from the share trading, try to predict the trends right, listen to each advice you’ve been given and make the profit you want.