A Beginner’s Guide to Online Share Trading in Australia

There are many ways that you can make money online and one of the most popular is trading shares. In this short article, we offer valuable information and advice for a person who is looking to start trading shares online.

Connect with an established trading broker

A top-rated broker has everything you need to learn how to trade shares, with a lot of useful learning resources that are available to registered clients. The broker has a vested interest in you being successful, that is how he makes his money, so expect to receive all the help you need.

Benefits of using a top-rated trading broker

When you register with a top share trading platform, you receive the following benefits:

• Share diversity – You can trade shares of more than 2,200 listed Australian companies in real time on a secure trading platform.
• Bank grade cyber-security – When you register with a leading Australian broker, your data is fully protected by 2FA and bank-grade encryption.
• Fixed fees – You can trade up to $100,000 for only a few dollars; it is important that the broker has transparent pricing, so that traders can calculate their profits.
• Holder Identification Number – Traders receive a Holder Identification Number (HIN) to assure ownership.

The brokerage industry is performance based, which means the best brokers are award winners, when checking websites, look for awards, as this is the best indication of top performance. 

Demo trading accounts

Rather than trading with real money, new traders are advised to start with a demo trading account, which mimics a real account in every way, with the exception of not trading with real money. We recommend using a demo account for at least 3 months, which should give you the experience you need to fully understand the trading process. You receive full support on your journey to becoming a successful share trader and always remember, if you don’t make money, neither does your broker.

Educational resources

Every novice trader needs the right learning resources and when you register with Australia’s leading share trading broker, you have access to the best educational resources on trading shares. As you would expect, there’s a lot to learn regarding the ins and outs of trading and with livechat, you are never far from speaking with a professional trader. It’s all there in a huge library that all members can access for free. You can learn at your own pace with video tutorials, slideshows, articles and blogs; when you have queries, the panel of experts are ready to help. Like anything, the more time you put into learning about stocks and shares, the quicker you will learn.

Trading acronyms

Here are a few trading acronyms to get you started:

• HOD – High end of day. The highest point of the day.
• O/N – Overnight
• SS, S/S – Short sell
• Green – Price is above previous day’s close.
• Red – Price is below previous day’s close.
• L/F – Low float
• ADR – Average day range (over a number of days).
• SSR – Short sell restriction.
• UBB – Upper Bollinger Band.
• LBB – Lower Bollinger Band.
• DD – Due diligence.
• E/R – Earnings report.
• R/R – Risk/reward.

Of course, there are a lot more acronyms used in trading but the above are regularly used, so you should keep an eye out for them.

ASX

The Australian Securities Exchange is a great place to trade shares of blue-chip companies, which is limited to Australian traders only. This is a vibrant marketplace and you can trade using the broker’s secure platform and once you are registered, you can trade from any location, using any digital device. You might be waiting for someone at a shopping mall; you can login and see how your shares are performing, or perhaps you are on a beach and would like to place a trade. Australian companies regularly issue shares to the general public in order to raise necessary working capital and ASX is a public company and not to be confused with the Sydney Stock Exchange, which is a separate entity.

When looking at trading brokers, do some due diligence and connect with the leading broker, who has everything you need to learn all about trading shares. Of course, there is a lot to learn and when you think you have a grasp of trading, start with a demo account and keep track of your progress and after a few months, you can open a trading account and start your trading journey.

To conclude, the first thing to do is connect with a leading Australian share trading broker, a professional with an excellent track record and once you are under their wing, your journey to becoming a successful share trader can begin.

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