You to can make money buying and selling shares but without inside knowledge you'll likely loose money. Here are some tips that will help you avoid the traps.

In most cases you need an agent, called a stockbroker to buy or sell shares on your behalf. In Australia for instance there are over 90 stockbroking firms some also offer financial advice. These firms are called full service brokers. The other firms are non-advisory - they simply buy and sell shares after being given your instructions. 

Setting up an account with a broker requires completion of paperwork and the broker will often require a minimum amount of money to be placed into an account before you can buy shares. Brokerage is the fee charged by the stockbroking firm for buying and selling shares on your behalf.  

When buying or selling shares your order is entered into a computerised trading system at a stockbroking firm. The trading system finds a seller in the market that is prepared to sell shares for the price you are willing to purchase them for.

Whether you seek the assistance of a professional or choose to go it alone, you need to determine your objectives and establish an investment plan. How people invest, however, differs greatly depending on their income, their goals, their age, their personalities and other factors.

To develop a plan, you need to assess your financial situation and goals: How much money do you need for routine expenses, such as food, housing, clothing, health care, transportation and entertainment? How much have you set aside for emergencies, such as accidents, illness and unemployment? And how much do you need to save for big items such as a house, college expenses and retirement? 

Once you have made these decisions than you are in good place to know "Am I ready to invest in shares?". Now you must decide are you going to use a broker over the phone or On-line. Depending on where you live - what country you live - will infulence the method you choose. Trading On-line has advantages in that have the sense of being in control yourself rather than depending on a broker.

In Australia all share trading on ASX takes place via computer. Members of the public do not have access to the trading system but place orders by contacting their broker. You may wish to buy or sell shares 'at limit' or 'at market'. An 'at limit' order is when you instruct your broker to buy or sell a security at a given price or better.

'At market' or 'at best' is when you instruct your broker to buy or sell at the current market price, irrespective of price. 'At best' orders have priority. If there is more than one order at the same price, the order that was placed first takes precedence. Large orders have no priority over small orders. 

This may seem a lot of effort but those who "love" the challange it is all part of "the chase".

Do you want to make money on the share market without all this effort? Using a Share Trading Robot is your best answer. Find out all about it

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