Easy To Start Share Trading
It is easy to start share trading either using Spread Betting or CFDs or indeed both.
It is very easy to start share trading using an Ipad, iPhone, Tablet, Android Phone. Lap Top or a Desk Top computer. All you need to start is an Internet account with sufficient data to watch the markets.
Some initial working capital in your spread betting account combined with some research, a trading plan and away you go. Only trade with capital that you are prepared to lose. Remember losses can exceed deposits as Stops can in certain cases be ineffective.
Markets can and do move very quickly. In the time it takes to place a trade, a few seconds, the market can move wiping your initial trade position out. This highlights that Trading can be risky and perhaps be avoided in highly volatile markets,
In some countries, one can have a limited internet connection even from a hard-wired broadband connection. In the UK we have mainline trains which are known to travel through cuttings and tunnels sometimes cutting the WiFi off if you are trading on the go. But of course, this is one of the reasons why you research the trade before you make it.
That way it doesn’t matter if you are out of touch with the Market for a short while. Of course, you will have placed a stop so your loss, if any, is manageable.
Undoubtedly you would have set it to that sensible figure you calculated BEFORE you made the trade. You will have looked briefly at the financial news so you have an idea as to which way the markets may be going. Very often going nowhere but you need to know of any major developments that may affect markets both nationally and globally.
The Japanese Tsunami in 2011 would be one such event. An election or say a Referendum on staying or leaving the European Union or even an American Presidential Election could be others. That kind of events can and do create surprises, something the market is not expecting, resulting in strong movements that can catch traders out.
Do not simply trade because you like the sound of the company or the ticker as many do – let’s buy ABC as my pal Harry the Hat is going too. Well great, Harry may be a great friend, but I doubt if he has done proper research.
Simply do your own research (DYOR) first. That is the key to making money DYOR but also a key to minimise losses. Shares rise in steps or one might say on an escalator. Unfortunately or fortunately if you are shorting a stock is that they come down in elevators often with quite a bang. Often with hardly any warning.
- It is easy to start share trading
- Only trade with money you are prepared to lose
- Do your own research
- Always place a stop loss
Here is a great article on why you need a stop loss
Ideas on Easy Share Trading