Buying and selling shares has become a really popular method to earn a second income. While the prospect of making money from trading shares sounds lucrative and easy, there is a potential to lose money. So before you even get started it is important that you take some time to learn some basic skills before your money takes a spill as you experience the thrill of the ups and downs of the stock market. Learning critical share trading skills are important to prevent the loss of your most  valuable commonities called money.

So if you are looking into investing in stocks and shares, the best way to begin learning share trading for the first time is to start at the basics foundational level. There are a number of resources you can use to help you study the basics, so there is no excuse to rush your investments.

If you learn share trading correctly, you will have attained the skill into a lucrative money making enterprise. On the other hand, if you didn't study properly, you may have just created another hole in your pocket with potential for massive losses. You do not need much money to get started in trading shares. But don't let this low barrier to entry lure you to rush your trading otherwise you may lose your money as you will not have learned the decision making skills in the business of share trading.

When you learn share trading it is important to study why you are investing. What are your goals in trading shares? Is it to make a quick profit? For long term return? How much are you willing to risk and hoe much reward? How will you know when you are ready to invest? You also need to learn how to pick shares to trade, how to buy and sell shares and the techniques to trading shares. Another topic you should cover in your studies is investment strategies and if borrowing money to invest is the right decision for you. Then you should study other trading concepts as well as other successful traders. Learn as much as you can, slowly, from books and from the internet before you make the final decision to part with your money.

Share Trading Skill: Buy Low Sell High

The basic skill you must learn when share trading is to buy low and sell high. This is one way you can make a profit in this business. How do you learn this skill? There are a number of ways to learn this technique.

The first is to read the news. Keep track of the news everyday and watch out if stocks and shares have been oversold. A related technique is fundamental analysis where you monitor and analyse the company's financial details. The second method is to learn technical analysis where you will learn how to read charts; support and resistance and techniques about Bollinger Bands. All this takes time and effort, but you are learning a lifelong skill that you can potentially make a profit from share trading.

Learning about share trading is an important skill if you want to venture into this business. You will lose money while you are learning: it is the cost of studying share trading - but remember, professional share traders also make mistakes and lose money. However be warned, if you prefer not to lose money and don't like taking risks, you are better off with term deposits or managed funds.

Stocks Investing Related Articles:

• It Pays To Be Diversified Before The Market Plummets

Many investors thought the bankruptcy of Bear Stearns would mark the end of the market turmoil.  Past market downturns often ended as a major company went bankrupt.  This time around........
 
• Get The Right Mindset To Win Millions

One of the most valuable stock market tips that you need to know is that when trading in any market or doing any sort of a business, it is of utmost important to keep a cool head and act like.......
 
• Good To Have A Trading System With Exit Strategy

Many good stocks trading systems use multiple exit strategies. In a normal shares trading system, you need to know when to exit from a gain, and when to exit from a loss. Generally you want to be........