| Share dealing is complex and requires confidence and | | | | investment trusts because these mechanisms "pool" |
| patience. But it needn't be the exclusive domain of | | | | your savings with other savers in many companies, |
| professional traders. With a little practice and a lot of | | | | spreading the reward but equally spreading the risk. |
| research, anyone can deal in an arena that potentially | | | | Share dealing for yourself means you're the one |
| delivers a greater return on investment than bricks | | | | making the decisions and you must have the |
| and mortar right now. Before you start though, you | | | | confidence and judgment to invest your own money. |
| should consider how stable your financial position is. | | | | If you feel confident about making the decisions, |
| The returns are potentially large, but for every | | | | then look at execution-only dealing, where a broker |
| winner there has to be a loser so you've got to | | | | carries out your instructions without giving advice. |
| figure out how you would cope with possible losses. | | | | This is the cheapest type of dealing and you know |
| You can limit your risks, especially if you choose | | | | the price you're getting when you do the deal, but |
| online share dealing services, in a number of ways. | | | | costs vary among brokers. Other broker services will |
| You can set a limit on the price at which you buy or | | | | offer advice or take decisions for you, but they tend |
| sell shares. These limit orders are free to set up with | | | | to be more expensive. Online dealing is proving |
| many brokers and some run for up to 90-days or | | | | popular and is the most common channel for |
| you can instigate a stop loss order which triggers an | | | | execution-only dealing and most brokers offering this |
| automatic sale if the share price drops below a | | | | online service also provide research tools so you can |
| specified level and your shares are then sold at the | | | | make informed decisions and supply online services |
| next available price. | | | | that allow you check your portfolio whenever you |
| Share dealing could be for you if you are free of | | | | like. |
| debt (aside from a mortgage), you have life | | | | The other common method of electronic dealing is |
| insurance to protect any dependants, you are in your | | | | through nominee accounts, where you have an |
| employer's pension scheme or have your own | | | | account with a broker who is listed as the legal |
| pension plan and are covered by an income | | | | owner when shares are bought for you, but holds |
| protection policy should you suffer from a long-term | | | | the shares in trust for you. An alternative, more |
| illness. Ideally, you should also have between three | | | | suited to experienced investors, is to become a |
| and six months' savings available to cover in the | | | | sponsored member of Crest (an electronic |
| event of redundancy or job loss. | | | | share-settlement system that charges £10 per |
| Even if you do have all these in place, you still need | | | | year membership) that allows you to hold shares in |
| to be aware that share dealing on your own is riskier | | | | your own name in electronic form. |
| than buying shares through unit trusts and | | | | |