Getting Started in Share Trading
Getting started with share dealing is easier than it might at first appear. From a technical perspective, all you really need to get going is an account with an online broker (learn what you need to know to choose the right stockbroker) and some capital to make your first tentative steps into the fast-paced world of investing.
It's also highly recommended that you start off trading with a demo, or virtual account. This will allow you to get a better feel for the broker platform on which you’ll spend much of your trading time, and give you the chance to put your theory into practice before risking any of your real-life capital. While it’s hard to judge the best point at which to leave the virtual and enter the real trading environment, a good rule of thumb is to try and make your initial mistakes when playing with virtual money, and only to make the switch when you feel comfortable with both the interface and your trading logic.
Ahead of your first few trades, choose markets and sectors within which you can get to know the major players and how their share prices interact with each other and wider economic factors. Narrow down your trading portfolio in the first instance to allow you to become more comfortable with the way the markets move, to increase the chances of landing successful positions sooner rather than later.
First getting started as a trader marks the successful passing of your first major hurdle, but nevertheless remains some distance away from your end goals. As a trader you are consistently learning from your mistakes, and hopefully mitigating the inevitable losing positions when they arise. But with a cautious approach to maintaining your capital and an applied reason and logic behind your trading decisions, you should ultimately start to get into the swing of things and trade on a more consistent and ideally profitable footing.