Guidelines on share dealing

Below are some of the most important guidelines when buying and selling shares and stocks.

10:59 23 January 2013

Just like in any other endeavour, there are do’s and don’ts that you need to know about share dealing. Following the guidelines will help you increase your chances of getting exactly what you want from this.

1.    Choose a reliable broker. Not all people who sink their teeth into share dealing are experts in this field. Because of this, traders, especially novice investors are encouraged to hire a reliable broker who knows the ins and outs of this industry. This broker will not only give you much-needed advice, support, and guide, but they can also trade shares and stocks on your behalf.

2.    Know what you’re doing. The worst thing that you can here is to guess when buying and selling shares. In order to grow your funds, it’s crucial that you know what you’re doing. Research and understand the market even if you have already hired a reliable broker. Remember, it’s your money on the line. Ensure that it’s invested where it’ll grow exponentially.

3.    Assess risks and rewards. When choosing which stocks to buy, ensure that you know how much risk you’re taking. If the risks outweigh possible return of investment or rewards, do not proceed. Otherwise, you’ll most likely to lose your money in the long run.

4.    Trial and error. It’s important that you do not put everything you have on shares when you’re just starting out and unsure on what you have to do. I suggest that you put small amount and invest them on companies that are performing really well. You can increase your investment as you familiarize yourself with the stock market.