When it comes to investing money, there are many choices open to you. One of the most enduringly popular financial markets still is the stock market. From the massive New York Stock Exchange to the equally huge London Stock Exchange and beyond, they offer the chance of superb returns on your initial outlay. However, if you are new to the stock market, then it can all seem a bit daunting and scary. With real money at stake, it can lead many to worry about taking the plunge.
The good news is that with the right preparation and knowledge, this does not need to be the case.
Top advice on how to start trading the stock market
If you are a new trader wondering how to get started on your trading journey, then the below advice should help:
- Get your capital together – the very first thing to do when starting out is to get some spare money together to use as your investment capital. The key term here is “spare money” – do not use any essential cash that you need for bills or food. Modern online trading means that you can begin trading with very little, so just use what you can afford to lose.
- Choose a broker – to trade successfully on the stock market, you will need to use a professional broker to place orders via and manage your portfolio. For many people now, doing this online is the simplest way. There are many online brokers now, so check out reviews and recommendations on the internet to find the perfect one for you.
- Learn how the market works – of course, to start trading, you have to know what you are doing and how the market works. Head online to speak to other traders on forums and read the many handy online articles about it. You need to feel confident about knowing how the stock market works before risking any money.
- Formulate a plan – there is an old saying: “Fail to prepare, prepare to fail.” This is why coming up with and writing down a trading plan to follow is so key. Having this written plan with you to follow when you trade will stop you opening up trades that you should not and wasting precious money. There are many examples of trading plans online now if you need a starting point.
- Subscribe to a news feed – another great tip when starting out is to use a news feed that keeps you up to date with the latest market stories and breaking reports. Many professional traders will use feed data from The Hammerstone to find out what is happening with their shares and about any upcoming events.
Getting started trading is easy
If you are new to trading online, then getting started out is not too hard. The real secret lies in being able to do it in the right way and following a process in how you will find opportunities to take. As long as you have the basics covered and work according to your plan, you should be fine.