Anyone can buy shares from the ASX (Australian Securities Exchange)… the Australian share market. Making a sensible investment in the share market, i.e. buying good shares, can grow your wealth. However, in order to buy shares sensibly and create a good, diversified portfolio, it is vital to understand how the stock market works, research various companies, assess the risk and team with a good broker. Of course, a good Australian share market advice from the pros is also helpful.
Starting a portfolio
A piece of advice before starting with the share market: it is a double-edged sword where you can gain money as well as lose some. All right now, here is a trick on how to get started in the Australian share market with info on what you need in order to buy shares and build a rock-solid portfolio. Do not pick stocks at random; instead find a reputable broker that can also provide some Australian share market advice, do some research and then proceed to buy the shares.
The first thing you will need is some capital. To get started with the share market, you will need some money–not much, but some. You can invest any amount of money in the share market, but the more money you have, the cheaper the brokerage fees will be.
Find a good broker. Once you have some money to set aside for investing in the share market, the next step is to find a broker. A broker works for an agency that simply takes your order (buy or sell the shares). Typically, agencies consider you as a client, and they often provide Australian share market advice to help you with your investments.
Decide whether you want to be an investor or a trader. Investors are the long-term buyers, and they often rely on fundamentals. They in most cases are in a safer position for their investment and are more likely to succeed. Traders, on the other hand, are those who buy and sell shares on a daily basis. They predominantly rely on technical analysis and often make quick money or lose money.
Now it is time to choose the stocks. For an investor, choosing 10 to 12 fundamentally strong stocks will give a nice portfolio with less risk than just choosing 3 or 4 shares for a portfolio. What you need to buy should depend upon the levels of return you are hoping, the levels of risk you are prepared to take, and the time frame you are willing to invest. Of course, research about the companies whose shares you are willing to buy is also necessary. Stock market advice too can be helpful in choosing the shares.
Do not look for shortcuts because there aren’t any. Share market, whether it is the Australian Securities Exchange, New York Stock Exchange or any other, is always volatile. No one can predict which shares will rise or fall. Always have a disaster plan, an exit strategy. If you do not know how to create such a plan, then take the assistance of your broker or stock market adviser in Australia.