Share Dealing Guide
Trading shares can seem like a terrifying prospect for the uninitiated, and the relatively introspective, elitist world of professional trading does little to encourage newcomers. While trading is no doubt a complicated subject, and one that requires hours of research time and pre-trade learning, that's not to say it's completely off-limits for 'ordinary' people, and indeed many individuals from all walks of life are turning to trading the markets as a supplement to or in place of the regular 9-5.
Share trading at a basic level is relatively straightforward - you buy shares when you think the price is going to rise, only to sell when it does and lock in your profits (and vice versa when shorting stocks). Unfortunately, the markets are seldom so simple, and indeed if they were truly as predictable as we would like, all traders would be millionaires.
But because of the dynamism and the human element to trading, not to mention the vast array of variables that factor in to calculating a share's price, moving with the markets is a seriously difficult task that carries appropriate rewards for those that manage to get it right.
Guide to Share Trading
Strategies and Analysis
As a new trader starting out, there's very little you can do to stem the tides of the markets when they move against you, and it is inevitable that you will open losing positions from time to time. However, by ensuring you invest both your time and energies in preparation for trading, including researching and learning about the markets in which you wish you trade, and take adequate steps to preserve capital and minimize your losses when they do occur, you're working towards building more stable foundations on which to base your future trading success.