Stock market investment explained

For anyone wanting to make a return on their money, stock market investment is the way forward. Despite the global economic situation, stock market trading remains incredibly popular and in many ways, now is a great time to invest as you could pick up stocks at low prices with the almost certain knowledge that their price can only increase.

Stock market investment may seem overwhelming to a beginner. Stock prices fluctuate, risk must be calculated and quick decisions need to be made on when to buy and sell. First things first, investing in the stock market is a long term investment rather than a quick way to make a profit so make sure you’re in it for the long haul. Secondly, research the market. Know which shares are likely to improve and importantly which are on their way down. Watch the markets for a while before making any decisions; you’ll quickly start to notice trends and patterns which you can take advantage of. It’s also a good idea to seek advice from a specialist stock market company who can give you impartial recommendations.

You’ll also need to think about the level of risk you want to expose your savings to. Buy low-level risk stocks if you’re feeling cautious but be aware that dividends will be on the low side. For more of a gamble choose higher risk stocks which could see your stock price rocket. Bear in mind though that a high risk investment does not always correlate to high dividends and this type of investment is not for the faint hearted.

Stock market investment in South Africa is carried out using JSE’s TradElect; an electronic means of buying and selling stocks and shares. Experts in the stock market, often called traders, know this system inside and out, but to a beginner it can be confusing. Luckily, specialist companies offer their own electronic systems which act as a go-between for you and this system, making buying, selling and monitoring easy.

Sharenet.co.za are one of these expert companies. Their easy to use online system lets you easily make investment decisions and carry out online share trading. They offer a plethora of stock market advice and information so you can make decisions which pay off.

 

 

Sharenet aims offer the best stock market investment service around. Pay a visit to sharenet.co.za for everything in the world of online share trading.