Should you not know how to trade shares online, you’ll be happy to know that starting is as easy as one two three. You’ll get all the support you’ll need, like opening up a low-cost trading account to offering extensive research data, trading tools and financial intelligence. This is an introduction to share trading online, should you want to know more, visit Easy Equities Share Trading.
Shares were and still is the most popular choice thanks to the potential for returns, and the opportunity to invest directly in individual companies. Over a longer term, history shows the benefits of investing in shares far outweigh those of holding your money in lower-return assets such as cash savings.
If you have a pension investment, you’ll almost certainly have exposure to shares, even if it’s only via a fund that invests in an individual company’s shares. However, when it comes to choosing a company to invest in, many find themselves overwhelmed by the seemingly endless options. But, by following these few guidelines, you’ll understand your priorities and how to narrow the field to a handful of shares to research further.
A share is an investment in the company you bought the share from. Buying even one share gives you part ownership (a very small part) of that company. This entitles you to benefits including receiving and registering your votes in company activities such as annual general meetings. So, before you buy any shares, you have to know what type of investor you are. Luckily you can work out your personal financial objectives in the first section of this guide.
Once you know this, it will be easier for you to know how much and where to invest. You’ll then need a trading platform and provider through which to buy and sell your shares. When it comes to choosing your investments, you can take quite a number of different approaches, from following charts and analysis to backing a company you have personal knowledge of. Whatever system you use, narrow it down to a handful of choices so you can check whether they meet your criteria before buying.
Shares can be categorised in some different ways. Here’s what to consider so you’ll know which one suits you best.
Some shares carries more risk because of the sector, economy, location and personal circumstances they’re related to. Fortunately, with potential risk comes potential reward, so you’ll have to find the level of risk you’re comfortable with. The longer term the investment, the higher the chance are of a risk as there’s a longer period over which market fluctuations are smoothed out.
Sectors include areas like Pharmaceuticals, Property and Banking. Naturally, each carries its own level of risk, as well as positive and negative attributes. Having personal knowledge of a particular interest in a sector will be to your advantage as you’re likely to be more informed about it.
Do you want to invest in overseas companies? Are you interested in new or established markets? Just as before, the different overseas market will each have their level of risk.
Some shares will have a primary focus on providing income (paid out as dividends to investors) or capital growth through additional value as the price of your shares rise. You may have an income or growth priority already, or this might change over time. You can alter your portfolio to suit your individual requirements at any time.
Interactive investors let you buy shares and funds from international markets.
Where ever you decide to invest, it’s important to spread your risk across a variety of investments and investment criteria. This is referred to a balanced portfolio.