The key with investing in a share market or in fact investing in anything is being crystal clear on what your goals are, what you are actually trying to achieve by investing. 

Here's how to blow up your trading account: Buy up on as many different stocks as you can until you run out of funds. Only impatient desperate greedy little investors will put their money in jeopardy with such a gamble.

It's impossible to watch and manage multiple stocks at the same time. One stock in your portfolio goes up and you don't worry about it. But that successful stock may distract you from taking corrective action on another stock you should disown because the lost from it neutralized all your winning stocks' profits.

Trading too many stocks at the same time is a sign you are bored with the progress of your account. You feel you need to give your account a stimulus by doing something which is to buy more stocks you think will go up.

Maybe your account is down and by doubling the number of shares of the stock, prices only have to go back up 50% of where they where at to break even. But how do you know for sure you purchased these additional shares at the bottom?

You could have a profit in your account and think it's time to make even more money by buying more stock. With a big cushion you think you can afford to be a little sloppy in your stock selection. But what's the likelihood of having a string of consecutive winning trades?

Juggling too many stocks at the same time isn't easy. Acquiring more stocks doesn't mean you make more money. Avoid the more is better greed trap that will destroy all your hard earned profits.

So the first and most important step if you going to get started with investing in the share market is to make sure that you are properly educated; make sure that you know exactly what it is to that you want to do before you get started.

Then put together a trading plan. The trading plan will cover things like, the criteria for when you exit from a trade, the criteria for when you enter into a trade, how much you are going to invest, how you work out the risk you are going to put into it, how you diversify and so on. So it's a complete set of rules for exactly how you are going to invest in the share market.

Before you invest with any real money start paper trading. So keep your risks to the minimum and use paper trading as an opportunity to practice and prove that your trading plan actually works. And then when you start real trading with real money start with a small amount of money. Again you are not only proving that your trading plan works. It's psychologically different when you are investing with real money and therefore if you can make that transition as easy as possible by starting with small amounts of money that helps an awful lot.

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