First: Analyse Your Lifestyle
There are different ways of engaging in Online Share Trading. If you are planning to become a trader full time, then the whole range of styles of trading are open to you. However, if you want to merely dabble in your spare time them you need to consider when and where you are going to trade. You will want to commit a certain amount of time per day/week/month to Share Trading so decide what you are going to commit to and stick to it, put it in your diary. Once you have carved out regular time you can begin to look at the different types of trading and find a model that fits.
Really it comes down to long term or short term. Have you committed to a few hours or a few full days a week when you can play with the stock market. As a rule, short term trading is very intensive as you buy and sell shares in a short period of time to try and make some profit, this type of trading is high risk. If you enjoy gambling and have a few days a week carved out then this is the strategy for you. Alternatively if you want to take your time, put your money in something more secure, then long term trading may be your answer. This style of Share Trading has your eye on the long game, as you dip in a few times a month, you will be monitoring the markets to see if your shares are rising or falling, overall.
Go Back To School
If you just want to play around with a few hundred dollars which you can afford to lose without too much heartache, then ignore this part. But if not... Make sure you read up on good share trading techniques and trends through educational books and online market analysis tools. The better informed you are about what you are doing, the greater your odds of making some money.
Time to Reflect
After you have been Online Share Trading for a few months, take a step back and look at what you have achieved. Hopefully you would have taken notes about the shares you bought and sold or your trading software may even keep logs for you. Have you made gains or losses, have you made no progress at all? Gaining some perspective by comparing your progress to how the market is doing will give you an idea about your technique and will help you decide if you need to go back to school, again.
The Big Sell
Once you have bought your first shares, what do you do? Sell, sell, sell of course. But when? Before you even log in for the first time, have an idea of what you consider a good time to sell your shares. Consult with a variety of online share traders and be honest with yourself. Win or lose, a realistic goal is more satisfying.
Candice had been 'dabbling' in online share trading for more than 5 years. She had a master in Mathematics and believes that anybody can make money share trading in their spare time. She logs her trading activities on her stock market blog.