One of the go-to markets today has got to share and it’s no surprise why! Shares today have become pretty popular due to them being lucrative, quick to trade and easy to get into. Reasons as to why this attracts various kinds of traders, especially new ones.
But no matter if you’re new or only in trading, this is still a crowd favourite for many years now. So if you’re looking for your first trader or your next trade, consider shares! Who knows it might be your niche trader.
So to help you start your career with shares, below is a step-by-step guide!
Step 1: Educate yourself about shares.
Before hopping into any kind of market, you need to know a good sum of things about them. So if you still didn’t know, how to trade shares is pretty simple. Trading with shares allows you to buy and sell shares from certain companies. How you profit from them is, when the shares you buy do well in the market.
There are two kinds of traders in shares: the short-term and the long-term. The short-term one is pretty fast-paced, where the trader watches the market intently waiting for the slightest change in the market. Once a rise is spotted, their position closes and the profit is made.
Long-term traders, they’re in it for the big money. These are also called traditional traders who invest and use long-term strategies when dealing with shares. But one thing the two have in common is their aim to buy low and sell high.
Step 2: Choose a brokerage
Once you know a hefty amount of things about trading, you can now start looking for a brokerage. When it comes to picking out a brokerage, make sure to choose one that’s reputable and credible, offers quality features and tools, has fewer fees, offers an array of market options and is beginner and user-friendly.
And depending on what you prefer, consider choosing one that’s also comfortable for you to use and is compatible with your trading needs.
Step 3: Open an account
Once you find your preferred brokerage, now you can create an account. Some brokerages offer fast and easy processes when opening an account, while others take days to process and even ask for so many requirements. So consider one that offers a more swift transaction.
And for requirements, you’re usually going to be asked to provide your full name, your bank details, your address, a copy of a valid I.D., your date of birth and so on. So expect it to just be usual things.
Step 4: Practice, practice, PRACTICE.
If it’s your first time trading with shares, consider practising. Most platforms have demo accounts you can use to practice trading. These demo accounts give you an idea of what it’ll be like to actually trade in real life, plus you’re learning so much without risking any money!
These demo accounts will have active live charts, trading tools, analytical tools and more trading features the platform offers. And you can also practice using a stop-loss order and more. Before actually risking any money, practice!
Step 5: Set a trading budget
Before you wager your hard-earned cash, make sure you do it discreetly! Set a trading budget to make sure you don’t go over budget and spend more than you planned. So a few things to keep in mind when creating a trading budget are:
- Don’t use money that’s set aside for certain things (Like tuition, bills and so on.)
- Only invest in an amount you can afford to lose.
- Reduce 10% of your planned budget if you don’t already have sizable emergency savings and 10% to 15% of your salary going for retirement.
Step 6: Start trading!
Once all the steps are done, you can now start trading! But to efficiently trade with shares, you need to follow these steps intently and carefully! And always remember, trading isn’t always a sure thing, you’ll always face highs and lows just like everyone else.
Now you know how to start your career with shares, you can now venture into this new trade fearless BUT cautiously. Follow these steps one by one to lead you to the right path when trading.