Getting Started - Share Markets

/Getting Started - Share Markets

Getting Started in the Share Market: Lesson 5

Your First Trade The Moment of Truth!   Nothing can actually prepare you for the moment when you are about to make your first purchase. It’s rather like the first time you drove a car – pretty nerve wracking and you would probably be happy to accept a bit of help. Before you place an order to purchase your shares, you need to run through a checklist.   How many will you purchase? What is the cost? What brokerage rate will you pay? What is your risk? At what

Getting Started in the Share Market: Lesson 4

Your Trading Plan   Strange though it seems, most people will spend more time planning their annual holiday than they will large investments. The general approach promoted by the financial industry and brokers alike is the BHP plan. The BHP plan is simply “Buy, Hold, Pray” and throw in some diversification. Beating the market averages requires a more proactive approach.   A trading plan allows you to revise and improve your performance to a level where you can constantly out-perform the market averages regardless

Getting Started in the Share Market: Lesson 3

Trading Instruments I am constantly asked, “How do you trade options?” or “Do you use CFD’s or futures?” Let me make three points, very strongly, at the outset.   Exchange traded options, CFD’s, futures and warrants are all derivatives. They all offer leverage. They were designed for a portfolio manager to hedge his exposure to market risk. Used correctly, the returns can be very high. In keeping with the old market adage, “the higher the risk, the higher the return” these derivatives can

Getting Started in the Share Market: Lesson 2

You and Your Broker Your choice of brokers, and even if you use a broker can make or break you! Most beginners have a false expectation of what a broker should be or should do. If you believe that a broker’s main role is to make your fortune for you, you will more than likely fail miserably in your attempts to be a profitable investor. Your broker should not be your friend, keep your dealings at a business level. In order to

Getting Started in the Share Market: Lesson 1

What Will You Need? This lesson outlines the various items you will need to start trading on the share market. It is by no means an exhaustive list, but defines the basic requirements to trade visually using technical analysis. We have endeavoured to keep this document as generic as possible pointing out alternative sources of product or information, but where ProTrader provides a particular service we will mention it. We highly recommend all our services – especially since it is Australia’s