Very few of us are blessed with a lot of spare time at the moment. The pandemic has hit us all extremely hard, and if we’re not worrying about our health or our jobs, we’re looking for ways that we can shore up our finances with some good investments in case there are more rainy days to come. Now, you might think that the only way to make any real money on the stock market is to treat it essentially as a full-time job. But buying and selling stocks and shares has never been easier, and if you know what you’re doing, it is a great way to improve your investment portfolio.
If you want to get started trading quickly, then there are a few simple steps that you need to take. Some are about making you more confident and capable to make the kinds of moves that you need to be making to actually see a return on your investment. Some are about keeping you safe in both in terms of potential losses and from cybersecurity threats. Let’s break down the most important things that you need to know before you dive in.
Research Which Trading Platform You Want to Be Using
The easiest way to get trading quickly and to make sure that you’re comfortable doing so is by finding the right trading platform. There are many different platforms out there and most of them are aimed at different kinds of traders with different kinds of needs. For example, people in high finance who have been trading for years would not be using the kind of platform aimed at a nervous first timer who wants to keep things as low-stakes as possible.
One of the most common things that both veterans and rookies look for is an ETF platform. ETF stands for exchange-traded funds, which means that you can make one investment which translates into investing in hundreds of different funds. You can create a diversified portfolio with a single click. There are several different platforms that provide this, but you will need to be keeping an eye out for fees, the range of assets, markets and economies you can invest in, customer support and the regulation it is subject to. Instead of scrolling results for best ETF trading platform UK, read this guide to the pros and cons of each of the major platforms. BuyShares offers detailed breakdowns to trading and investing for every experience level.
Know How Much You Have to Spend
If you want to get started trading as soon as possible, then you need to make sure that you have the funds to do so. Most platforms will offer you a few different payment options, whether that’s through your credit or debit card, PayPal and so on, but the important thing is that you absolutely must know how much you have to work with.
Having a crystal-clear idea will allow you to sell and buy with confidence, and it will also help you to avoid spending more than you can afford. It is important to remember that there are no guarantees on the stock market, and that even a “sure thing” is vulnerable to fluctuations. Do your budgeting before you get started so you don’t make any mistakes you can’t fix.
Keep Your Finger on the Pulse
Some investors are what’s known as “passive.” That means that they are perfectly happy to buy their shares and leave them to (hopefully) appreciate in value with as little involvement from them as possible. Everyone else is described as “active”, meaning that they are constantly checking on their stock performance to see if now is the time to check out or double down on their investment.
If you’re going to be the latter and you want to get started right away, then you should make sure that you have the tools and the time. Choosing the right trading platform will give you a great head start, and many will have a mobile app to help you keep tabs on your investments wherever you are. Online trading has seen a real boom during the pandemic so you won’t be short on options.
Get Your Security In Place Now
It probably won’t have escaped your notice that online scams and cybercrime rose to deeply worrying levels over the course of the pandemic. These scams aren’t just about people getting text messages about missed deliveries, vaccine appointments or people lying about their COVID status. We’ve seen everyone from major corporations to small businesses face issues with their finances and data. If you’re looking at getting into trading, then security is not a step that you can afford to miss, no matter how much of a hurry you’re in. Check out your platform’s security measures and don’t be afraid to ask questions if you have any particular causes for concern. Set up a different email address for trading, take greater care with your passwords and be as careful as you can.