Can you afford to invest? If you don’t have $20000.00 to invest, don’t bother. The costs of trading don’t work with sums less than $20000.00. Yes there are people who will tell you that you can make a trillion dollars with a $10.00 investment, but that is just rubbish.
You need to realize from the outset that the stock market is a place where trillions of dollars are traded daily, it has its rules. People, very smart people invest billions of dollars all the time, if there was a way of making millions from nothing it would have been figured out by now.
The fact is when entering the market you should be conservative. Stocks offering above the rate dividends, and massive share value increase, without supporting business or asset activity, are doomed. Remember Enron.
So now you need a stock broker right? Wrong. Avoid brokers they are not your friend. They charge too much for share trades, which directly impacts on your ability to make money through increase in share value, and they buffet you with opportunities to get into rubbish shares, options, warrants etc.
Be your own broker, Remember no one, and I mean no one, will look after your money like you will. Get an online account. Online share trading is cheaper, and they have live feeds, and offer information readily on the stocks you are trading in.
Learn about the stock market, look through the companies, and become informed about what’s happening in the market. You will find that when it’s your money at risk you can become pretty good at investing it and growing it.
In the next article I will deal with some basic share trading strategies.
