| So you are going to start your investment portfolio | | | | longer term proposition. As a share traders, your |
| and begin to invest in some shares. Here are some | | | | trades could be daily and as a result you will be |
| steps to start you in the right direction. | | | | subject to different amounts of payable tax. Speak |
| Get On Line. | | | | to your tax consultant about this. Setup as a |
| Today the best way to stay in contact with the | | | | company may not be valid at early stages in trading |
| market is to go online. Get yourself a computer, | | | | or investing. The amounts traded and the frequency |
| preferably a laptop, and an internet connection. A | | | | of trading becomes the main issues. |
| laptop is preferable because you can bring it with you | | | | Technical vs. Fundamental |
| when you move around on holidays or just when | | | | Looking at your trading style you may wish to |
| you travel away from home. Most areas these days | | | | investigate the methods by which you choose which |
| have wireless connections at fast food restaurants. | | | | shares to buy and sell. There are two types of |
| This comes in handy for checking prices and moving | | | | analysis you can use, and each is a valid way to pick |
| money into or out of accounts. At home you need | | | | your shares. Some investors use fundamental |
| to have a broadband connection and some charting | | | | analysis, while some traders use technical analysis. |
| software. Investigate the various types and costs | | | | Others use both. Learning the difference between |
| associated with this. Some packages you can use for | | | | the two is important but out of the scope of this |
| free during an introduction period. So now your on | | | | article. |
| line, you need to setup a brokerage account. | | | | Share Types |
| Account Setup. | | | | The types of shares you should start out buying |
| There are many offerings given by various brokers | | | | would most likely be in the ASX 100 share listings. It |
| that you can setup an account with. Look at the | | | | would be prudent to start, by choosing from these |
| cost of trading fees and read the fine print behind | | | | shares as they tend not to fluctuate wildly in price |
| the contracts. Most trading accounts are linked to a | | | | and have demonstrated consistent gains and |
| cash holding bank account. Some brokers allow you | | | | dividends over the longer term. When you become |
| to link to your existing cash bank accounts while | | | | more familiar with the mechanisms of entering and |
| others ask you to set up and apply for new | | | | exiting a trade to buy and sell shares, you can then |
| accounts. You will have to download a series of | | | | investigate a trading strategy that suits your risk |
| application forms, sign them and post them back to | | | | tolerance and lifestyle. |
| the broker. This approval period can be more than a | | | | Lifestyle Choices. |
| week. You will also need to deposit some funds into | | | | Be aware that trading shares can become a daily |
| the account to get it started. Most brokers will | | | | activity and as such can tie up all your time. If you |
| accept minimum amounts of $500 dollars or less. | | | | enjoy this style of trading then allow for rest breaks |
| Company or Sole Trader. | | | | and exercise. Most traders and investors prefer to |
| There are tax considerations when buying and selling | | | | spend their time relaxing and not in front of the |
| shares. As an investor, buying shares is usually a | | | | trading screens. This does become a lifestyle choice. |