| For a newcomer who steps into the complex world | | | | start-ups companies (smaller companies), meant for |
| of share trading, things can look difficult to grasp in | | | | short term investments. |
| the first instant. Putting together all pieces of this | | | | For beginners, it is better to avoid risk and remain |
| complex puzzle can be a daunting task. However, this | | | | patient; thus, you should think of investing in blue chip |
| article will help beginners initiate towards the right | | | | companies for long term investments. These |
| path. However, let me warn you this is not a legal | | | | companies mostly prove to be a better option as |
| advice or a professional sure shot method that will | | | | they leave you with better results. The share values |
| earn you a fortune out of shares. However, these | | | | might not go up fast but they will grow overtime. In |
| are just simple, practical and effective steps you can | | | | the beginning, your initial goal should be a safe |
| make use of. | | | | investment with better and not quicker returns. |
| How to Buy and sell shares | | | | Factors to look out for |
| To start ASX share trading (also known as the | | | | Your online share trading account comes with current |
| Australian Share Market), you first need to open a | | | | share prices and listed companies' historical data. |
| personal online trading account with a broker. This | | | | Before investing in a company, you need to do your |
| account is also called a Demat account or a cash | | | | home work, which is a hell lot of research about the |
| management account. You can open this account | | | | company. This you can do by collecting sufficient |
| with a reliable bank with just $500 for the initial | | | | data suggesting price growth in the near future. For |
| purchase. | | | | this, you should look out for the following indicators: |
| To open this account with your already existing bank, | | | | Review historical graphs. If the data indicates |
| you simply need to go online and take a print out of | | | | towards a probability of better results in the near |
| the required forms. Fill and send them in person (read | | | | future, then invest in that company's shares. |
| manually) to the bank. Your physical presence will be | | | | Review the company's recent stock market |
| needed to verify identity and signature. After you | | | | declarations. For any company listed with ASX, it is |
| get your login details from the bank, you are ready | | | | mandatory to announce any such activity that can |
| to share trade! | | | | affect their share prices by means of financial |
| What shares to purchase in the beginning | | | | statement, annual reports, etc. Try to determine a |
| This is probably the most daunting question for every | | | | pattern, and invest accordingly. |
| newbie. You have two options to invest in: one are | | | | The above mentioned information, if followed |
| the blue chip companies (large stable corporations), | | | | properly, will surely help new beginners set a firm |
| which are meant for long term investment and | | | | foot in the industry. |