| If you are new to share trading, putting the pieces | | | | interest bank account. |
| together can be quite challenging in determining | | | | However, if you are keen to really test out high |
| where to start and how the whole share trading | | | | return investment possibilities, investing in a least |
| system works. The following steps may point | | | | known companies may do the trick. In the current |
| beginners in a right direction. However, bear to mind | | | | economic environment there are many companies |
| that this is not legal advice. Use this information at | | | | with share price below 1 cent. If the share price goes |
| your own risk. | | | | up to 1 or 2 cents, it means that you'll get 100-200% |
| Where to start in share trading? | | | | return on your investment. And if often happens in |
| To start trading on Australian stock market (ASX), | | | | one day. |
| you need an online trading account with a broker | | | | What to look out for? |
| (e.g., ComSec or eTrade), a cash management | | | | Your online share trading account will provide you |
| account that is linked to this account, a minimum | | | | with real time share prices and historical data for |
| $500 for the initial purchase, and some common | | | | listed companies. Before investing in a specific |
| sense. | | | | company it is suggested to collect sufficient amount |
| If you happen to be already with Commonwealth | | | | of data suggesting immediate price growth or at |
| bank, it make sense to setup a trading account with | | | | least, price growth in the near future. There are |
| ComSec. This can be done online, but requires printing | | | | some indicators that normally suggest that. |
| out the forms and sending them to the bank | | | | First, it is suggested to review historical graphs. It is |
| manually, in order to verify your signature and other | | | | absolutely paramount to establish a high probability |
| details. The bank will then email you your login details | | | | that the company is able to deliver better results in |
| and post the share trading account terms and | | | | the near future. It is important to check what level |
| conditions. | | | | the share price got to in the past and then research |
| Once you are able to login, you will need to transfer | | | | what company actually did during that time. |
| some funds to the cash management account | | | | Second, it is suggested to review the company's |
| connected to ComSec. You will need to check what | | | | past and recent stock market announcement. ASX |
| is the minimum trading amount and brokerage fee - | | | | listed companies are obliged to disclose all information |
| this information is available on their website. | | | | that affects the share price. These include various |
| What share stock to buy? | | | | financial statement, annual reports and operational |
| There are two ways to invest. Invest long into blue | | | | and exploration plans and results. Compare the graphs |
| chip companies (large stable corporations) or invest | | | | to the stock market announcements. Once you |
| short into start-ups or smaller companies. If you are | | | | determine a pattern, all you'll need to do is to wait |
| prepared to wait and prefer to avoid risk, investing in | | | | for a similar announcement, invest right away and |
| blue chip companies may be a better option. Your | | | | they see if the company behaves the same way it |
| stock will not grow fast, but it will grow. The goal | | | | did in the past. |
| here is to get a better return than you would | | | | Share trading can be fun and it can be very exciting. |
| normally get from keeping your cash in a high | | | | Start small, be quick to learn and good luck! |