FinanceComparison.com.au

Share Trading ten golden rules

Investment Articles > Article: Share Trading ten golden rules

Share trading is widely becoming an enjoyable venture that many individuals are taking part in all over the world. It is mostly the same process, no matter what part of the world you might be in.  In Australia, however, there are Ten Golden Rules to help individuals in their quest of having a profitable online share trading experience.

These rules are very simple to understand, and they are a good guideline to help protect you as you venture into your online share trading:

 

  • The number one rule is to be sure that you have a good game plan in mind. In case you might be wondering why this is so important, it simply helps you to be able to answer the what's, the why's and the what if's. Having a good game plan in place also helps to ensure you will be able to keep track of things.
  • Rule number two is to be sure that you have thought of a good follow up plan. A follow up plan can be very beneficial to you, in the event that something were to happen to your game plan. It is always a wise thing, in anything you do, to expect the unexpected.  Having a good follow up plan in place will always ensure you are protected.
  • Rule number three is the one that deals with stop loss. The stop loss is simply more protection for you, the investor. If shares go over the amount you have set up as a stop loss amount, you will be protected.
  • Rule number four is to always diversify defensively. Dividing your funds in different classes of investments ensures you reduce the risk you could take of a major loss. Consider what would happen if all of your money was in a particular industry and something happened in that industry. You could suffer a painful loss, across the board.   
  • Rule number five is to think large and filter your trade. To do this, you should move your thinking away from smaller figures, and concentrate on the larger ones.
  • Rule number six is to always be sure to trade with the trend. Always pay close attention to the latest trends in both failures and successes.
  • Rule number seven is to not pay attention to the news figures. The news does not normally show real time figures. If you have plans of getting figures from a news source, be sure the news channel you are monitoring is reporting the figures in real time as a few seconds can make a major difference.
  • Rule number eight is to not always listen to what your broker tells you. You are probably wondering if you read this right. Yes, you did, and the reason is very simple. Brokers are the middlemen of the equation, who of course expect to be paid for their services.  By doing away with the middleman, this means more profit for you to enjoy.
  • Rule number nine is to know what you are doing with your money management skills.  Money management is the entire key that will either bring profit or loss to you.  It is important to know how to maintain your finances, if you plan to enjoy success.
  • Rule number ten is you must be able to discipline yourself. This rule is self-explanatory and to the point. You will need to learn when the time is right to shoot for it all, and you need to also know when it is time to stop. It is very important to be able to resist temptation. This one downfall alone is the very reason many individuals suffer a loss in their trading practices. Discipline is a large portion of the deciding factor in whether or not the whole process will come together successfully.

Easy-Forex is a site that is simple to manage, and will also easily navigate you through the trading world. They have several recourses that are offered for your training, right along with many tools of the trade that are so beneficial. 

If this is your first visit to forex, the informative guided tour will help you through. The guided tour will take you through a simulation of day trading, closing the deal, how to change stop losses, as well as most other aspects of making a real trade.

Return to Top

Credit Cards

Credit Cards

Compare credit cards to find low interest rates, low fees and great rewards on offer in Australia.

Personal Loans

Personal Loans

Compare a range of personal loans. Compare rates, terms, lenders and save!

Bank Accounts

Bank Accounts

Banks are offering great deals on term deposits and high interest online savings account, which one will give you a better deal?

Home Loans

Home Loans

We compare a range of home loans with low rates and great features. Get a free home loan quote today.