Investing in stocks and shares has been one of the most fun, exhilarating and profitable invest opportunities that I have ever taken on. For many years I was unsure where to put my money in terms of investment and whilst I knew that I wanted to use my money to make more, I was always on the fence in terms of where to invest it, and how. After watching an interview with the incredibly wealthy Warren Buffet, who almost played down the difficulty of making money through stocks and shares, I knew that this would be the path for me.
I have done well over the last 2 years with my investments and whilst I have lost from time to time, I am most definitely in profit. If you too would like to get started in share dealing, here are some tips on helping you to prepare to make that initial investment.
Knowledge is Power
Regardless of what any analyst or newspaper is telling you about the next hot stock, I would urge you to completely ignore it all for at least 6 months, and not buy any stocks within this time frame either. The reason behind this is that I think that you should spend at least 6 months, learning about the industry, the way in which the market moves, and why. This is education that you are unlikely to have had before, and it is vital that you grow your knowledge, in order to make more money when you begin. There are some great online resources which can teach you about the markets, check out the Online Trading Academy reviews, you may find great value there.
Mock Trading
One activity which is absolutely worthwhile is the mock trading platforms which exist online. These sites allow you to create an account, and then give you a cash pot such as $100,000 to play with, you will then buy and sell shares using real time prices, albeit without real money. The reason why this works so well is that you can get the mistakes out of the way early, and it helps you to get accustomed to the market itself. Of course it can be frustrating if you make millions, as the money is not real, lose it all however and you will learn a great deal and at the end of the day, you’ll have lost nothing at all.
Investing in Brokers
Buying stocks and shares using a broker is not obligatory but it is recommended. A broker wants you to succeed as they make more money via commission, and within that they can give you a great deal of advice, support and ideas, on how to make as much money as possible. My broker will regularly send me emails with a stock that he likes, and very often his tips turn out to be real money spinners. If you want to make money, invest in the professionals.