Carving out a career as a share trader
There are plenty of reasons to plunge into the world of share trading. From the chance it offers to think and plan strategically to the attractive opportunities it poses to make profits if done correctly, it’s easy to see the advantages. But as with any great career, no trader, either new or experienced, should expect to be able to rise to the top of the share trading world overnight. Instead, a career in the industry has to be built before consistent profits can be made. This article will help you understand how this can be done.
Online or not?
Shares have been traded for much of recent history, of course, and there’s nothing new about that. But what has changed is the medium, and many people now choose to trade sharesonline. This has a number of advantages, and speed is one of them: gone are the days when you had to send a message via wire or telephone in order to open a position! However, if you’re looking for a good relationship with an individual at a brokerage house then you may want to consider avoiding online trading and gofor that personal touch instead.
Locate a good broker
Whether you go for an online or an in-person broker, though, it’s still wise to do your research. You can compare share trading brokers by using a number of resources, and it’s worth investing time in doing this. Just ensure you have a good idea of what you need (such aslow commissions, perhaps, or automatic dividend reinvestment options) before you start researching, though, or you’ll be wasting time.
Any legitimate broker is likely to offer you a suite of tools designed to make your trading life easier, but you have to invest time in understanding them before you can start trading in earnest. You may, for example, be able to use a “stop loss”, which allows you to specify your maximum acceptable loss and insist that your position closes as and when this is reached. There are many tools and features such asthis – but if you don’t know how to use them or what their significance is, you’ll be missing out.
This advice doesn’t just go for those who are completely new to the financial markets, either. You may, for example, have lots of experience trading foreign exchange pairs but are now looking to diversify your portfolio by trading shares as well. You’ll find that forex trading, say, is very different to share trading: in forex trading you can only speculate on the performance of one currency asset relative to another, but in share trading it’s possible to speculate on justone.
So while becoming a share trader might be something that seems appealing, it’s important to make sure it’s done correctly. You need to consider both online and in-personshare trading routes, for example, while choosing the right broker is something that for many people often becomes make or break in terms of how their share trading career works out. In sum, there’s a lot to do before you make it as a share trader – but it’s definitely possible!