Share dealing is perhaps one of the most convenient ways to invest your hard earned money. It is a driving force of both local and global economies. But in order to find success in this endeavor, you need to have a good amount of knowledge about what you're getting into. It could and has caused a lot of losses to a lot of people, so you need to tread carefully in handling all things related to share dealing and the stock market. This article will serve as guide on share dealing for beginners, and will walk you through some basic and essential information about this practice.
The good thing about share dealing is that you don't have to be a pro in order to succeed in the stock market games. The internet has made everything a lot easier, including the way you deal with the stock market.
The most basic information about share dealing is that you're actually buying a small part of a company when you acquire a share. So depending on the performance of the company on the stock market, you could get paid a dividend of your shares. But trying to earn from the stock market through this waiting game is not good, because the sums you get is very small. In order to make more money, you need to sell your shares of the company for more than the buying price. In essence, you are trading because when you've sold your shares, you now try to buy other shares of other companies at a lower price in order to make the most profit.
Investors like you normally employ a bank or a specialist company to make the trades for them. If you get a trading company, you can get three types of account to suit your trading needs. The first account is called execution only, wherein the company carries out only your instructions. This is great if you have a wide knowledge of the stock market, and you know what you're buying and selling. The next account is an advisory service, wherein the trading company will give you tips on which action to make, all for the sake of making the most of what you have and what the stock market can offer. Last is the discretionary arrangement, wherein the chosen trading company will have full control of your portfolio. This usually happens if you have a large portfolio; this also means that you won't be doing anything, and the trading company will assure you that your investments would grow.
From these basic information, hopefully you have gained important knowledge about the stock market and share dealing, so that your future decisions would lead you to success in this endeavour.