Since the internet started back in the late 1970’s (some will disagree) Countries around the world have taken it like duck to a pond, some of it good some bad and some downright evil. But what is clear is that it has changed our world as we knew it. Properly one of those institutions most affected is the postal services followed by banks. No longer do we send all our mail to the post office, 90% goes by the internet. No longer do we visit the bank and write out check, we do it on-line.
Today we do most of our trading on-line, that includes buying and selling of just about every commodity known to man. The advantages for both buyer and seller are many, you don’t have to travel, you don’t carry money you can buy or sell as little or as much as you want. Brokerage firms like it, they don’t need to employ so many people, and their cost over all is greatly reduced
Customers like it, not only does it give greater flexibility, but information is at their fingertips. The internet gives them instant information allows them to buy and sell with margins in place, they can control the price they buy at and the price they sell at. (Within reason) they can see their accounts at any time day or night, trade anywhere in the world 24 hours a day.
These days most brokers are doing on line trading and partly because they require less people, the commission and fees are often less than they used to be. Still nothing is perfect, once client had a certain relationship with their broker, but unless you’re in with the big boys your unlikely to get that special kind of service.
So how does the man in the street get into trading in the share market? The risk of going in without the proper knowledge could be detrimental to your finances.
You need to educate yourself and not rely on people with good intention but without experience to help you.
Fortunately you have a world of information at your fingertips, by way of the internet and e-book like this one to guide you along the pathway of knowledge.
Don’t rely on one source, study as many as you possibly can find time to research. It’s one way of holding on to your money for a little longer and with knowledge and know how comes success.
.When it comes to selecting a broker or brokerage firm, look for these four things. (a) Have you or your friends heard of them (b) Have they been in business longer than 10 years (c) What fees are they charging and (d) Can they provide the help and services you want.
Depending on the type of trading you would like to do, may require certain tools of the trade, such as a iPhone and computer. You also need to consider what access you have to these tools, some type of trading you may not be able to do, due to employment restrictions. That’s assuming you want the fast track, high risk type of trading, such as penny stock or trading in derivatives, such as contracts for differences, options, and foreign exchange contracts, and other investment products can carry a high level of risk and may not be suitable for you. All of these products are leveraged and it is possible for investors to lose substantially more than the initial deposit.
For all the risk involved share market trading is an exciting prospect for the new comer, but it also could loss you all your money, so careful planning and research are really important.
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