I have just started to trade what I believe is the best alternative to trading shares-CFDS.
They are geared, so be careful what you buy and sell.
I have made many mistakes, however, I have made 46 percent profit, after commissions, interest and dividends paid, in the last four weeks.
Some tips on mistakes I have made.
1. Do not panic.
2. Do not use emotion when buying shares
3. They are a tool to make money, not lose money.
4. If you buy a stock and it starts to drop right after you buy it-pause go back to why you bought it in first place. Do not
5. Always stick with shares that pay dividends. Unless you want to spectate.
6. Remember, there are thousands of traders who look for short selling profits,
causing shares to peak and trough.
7. Do not follow the crowd and pump your hard earned money into shares like Telstra and BHP. Telstra is going nowhere, it has been around for along time and it does not explode in prices, except on bad news generally. BHP is alright for very, very conservative investors, do not expect great massive returns.
8. Buy stocks that are underpriced, pay dividends, and have exceptional management behind them. Example MQG coughing up a dividend soon, these shares have gone from $15.80 five weeks ago to trading today at $26.45. BEN is another sound share, underpriced, not a major bank, so alot of the market noise is filtered out. Five weeks ago,trading at $6.80 now $7.85. Recently paid dividend a couple of days ago.
9. If you see a profit to be made- MAKE IT! Regardless of how much more you think you can make, everyone else is out there to make money, not hold shares for twenty years and see them rise and fall, take BHP for example, some people have held them for years, they could have sold them back in MARCH and made profits, like CBA, you hear stories trading at $63.00. Do not get emotionally attached to shares, they are shares, not pets.
That is about all I can think of.