Most trading experts will agree that success for share trading online stems from making your knowledge and timing work for you.
Before you begin to look at how to sell shares online or buying shares for that matter you have to conduct thorough research. How much time can you devote to share trading? Day trading will mean you will need to spend more time online day to day, whereas trading for the long term won’t need as much intensive attention. Make a list of widely varying companies that catch your interest and observe them for a while.
Keep up-to-date with news and current affairs, as this may be where you will spot, or even anticipate trends. Join forums where you can tune in to relevant ‘chatter’ to see what people are saying.
Seek professional advice. Good stock selection takes skill and more research. You will need some good advice along the way.
Watch the market carefully and learn when it’s best to sell, as well as buy. Research trends so you can anticipate your optimum opportunity to sell. Also, be aware, these trends may not necessarily be short-term trends either.
Learn from others. What makes them successful? Experienced online traders such as Warren Buffet will be your best educational resource. They may also help you to avoid some of the pitfalls such as big brokerage companies and mutual funds. Some have been known make huge financial losses.
There are many stock broker websites that you can sign up to for free. Again, do your research to make sure you don’t get scammed. A good website will also come with trading hints and tips. A trading account like HSBC is easy to open and you can be trading in no time. Don’t forget, you will have to pay commission. Obviously, go for a broker who charges the least commission and it’s probably wise to avoid monthly fees, or even inactivity fees.
When you feel ready, try the penny stocks market for a bit of practice. This will help you gain real trading experience, with minimal risk.
Begin with low-risk and high reward. Good risk management will ensure you get off to a good start. The stock market goes up as well as down, so look for down-markets as well as up-markets. You will learn from your mistakes, as this is part of the process, but don’t dwell on them.