Stock Investing and Share Trading On Your Own

One of the most commonly spouted myths of the bullish markets towards the end of the 90s was that the stock market was a safe bet, delivering returns far in excess of any savings product with very little risk or effort required. Just buying a copy of The Financial Times or spending a few hours watching Bloomberg throughout the day was all the legwork necessary - from there, you picked your positions, opened an account with an online broker (whether for spread betting, CFDs, or regular share trading) and sat back smoking a cigar while the cash came rolling in. Easy as pie!

Unfortunately, many inexperienced investors learned the hard way, and the devastating fallout from the bursting of the late 90s bubble cast doubt over the Midas touch they felt they possessed.

In the real world, choosing which stocks to invest in is more than just a hands-off, laid-back process - it requires effort, a disciplined and focused approach, and a dedication to learning your craft that's synonymous with learning any profession or trade. There's no secret sauce when it comes to share trading - easy, overnight success is almost impossible to come by, and those setting their sights on short-term millions will be sorely disappointed.

That said, share trading (especially for beginners) can be a great way to learn the markets, and provided you take caution in learning the most common mistakes inexperienced investors make when they start out, and treat each inevitable set back as a learning process, you can work to ensure consistent and profitable trading over time.

Bear in mind that while brokers will tempt you with seemingly cheap share dealing, financial spread betting and CFD trading fees, that doesn't necessarily make them the best option for you, nor does it do enough to guarantee trading success. Discipline, patience and a willingness to learn are the key - in this game, knowledge is power, and ignorance can be a very expensive state of mind. Finding the cheapest stock broker is meaningless if it means resigning yourself to large ongoing commissions - envisage your longer term strategy, and don't get bogged down with a share dealing platform as a beginner that you can stick to later down the line.

Your trading success is largely in your own hands. Invest time and money into your trading education, and you will be rewarded in time with more successful investing. As you become more experienced and more knowledgeable of the different markets and products, you will no doubt diversify to leveraged products like CFDs and options, now notorious for their high-risk profile but with the potential to deliver wild returns on minimal initial investments.

While public opinion is quick to turn against hedge fund managers and private equity firms for their perceived greed and lack of ethics, these traders have invested substantially in their own trading education, both in terms of effort and cash, in order to get to the stage where they can be the best.

And with a determination to learn the ropes, and an eagerness to continue to learn your trade, what's stopping you from joining their ranks?