Trading is as old as humanity itself, when people traded goods they needed for survival and as civilisations developed, they found ways to simplify trading goods and then came the invention of money, which is basically a promissory note to guarantee that the bearer of the currency is owed that amount. Since the arrival of the World Wide Web, trading has become a global thing and in this short article, we offer some basic knowledge for beginners who wish to trade shares in the Australian Securities Exchange (ASX).
Start by joining forces with an established trading brokerage
Those who are serious about Australian share trading should join forces with a reputable trading broker who operates a secure trading platform that enables you to trade in real-time and with more than 2,000 Australian companies listed on the exchange, you can trade on a secure platform. One thing the broker has is a wealth of learning resources, with reports, videos, articles and case studies that help you gain the knowledge you need to become a successful trader.
Create a demo account
It is a daunting prospect for a novice trader to start trading with real money, which is why there are demo accounts that are identical to live accounts with one exception, you are not trading with real funds. Most newbies would trade with a demo account for at least 3 months and by keeping track of your progress, you can change to a live account when you are turning a profit with your demo account.
Learn about trading plans
Every trader should create a plan that identifies their trading goals, which involves developing a trading strategy that will be your guideline. Once you have registered with a leading Australian trading broker, you have unlimited access to a wealth of learning resources. You should regard the Internet as a tutor that is always ready to answer any question on trading; like most things, you will enjoy better results if you apply yourself to the learning process. Trading is a serious business and not something to approach half-heartedly; do your research and equip yourself with the necessary skills needed for successful trading.
Day trading
As the name suggests, day trading is when the transaction (opening and closing a position) is conducted in a single day. This is not a marketplace for a novice trader, so we would advise leaving day trading until you have gained some valuable experience. Day traders often open a position as soon as the exchange opens and by monitoring carefully, they choose the right time to close the position and take the profit.
To summarise, a novice trader should start by learning the basics, then open a demo account with a reputable brokerage and spend as much time trading with imaginary funds as you need.
