Sunday, 5 April 2015

How Do I Start Trading Stocks?

If I had a dollar every time I heard someone ask "How do I start investing?" or "How do I start trading stocks?" I wouldn't need to trade equities any more! Jokes aside, this is a valid question because before I started, I had the same exact questions. Let me break it down for you and I hope this will help all those soon-to-be traders and investors.

1) Capital

I've mentioned this in one of my previous posts. Ensuring that you have enough capital to begin with is vital to your success. Click here for more information on how much capital you should start out with. If you don't have enough, you should start planning on how much you need to save before you can consider starting an account.

2) Register for a Brokerage Account

When I tell people that they need to sign up for a brokerage account, they usually stare at me like I've asked them to do the impossible.

It is actually very simple!

A brokerage account is basically a trading account, which allows you to buy and sell shares. There are many brokers to choose from and they all have their own pros and cons. They vary in terms of commissions, financial products (Stocks, ETFs, FX, Indices, etc.), the platforms they use (Web based, software, iOS & Android Applications) and many others.

Here are some brokers that you can easily open an account in Singapore.

DBS Vickers
Lim & Tan Securities
City Index
OCBC Securities

These are just a handful of the many brokers that are available out there. I personally use City Index to trade for various reasons. But one of the main reasons is because of leverage, which I will explain in another post.

Opening an account is usually free and you can sign up any time. Simply follow their online instructions and you should be good to go! Do note that they might have certain policies that like "minimum deposit amount" which can differ from broker to broker. Remember to read up!

3) Never Stop Learning

After registering for a brokerage account, you simply deposit money in and you are good to go. But remember, the journey does not stop there. I'm still learning every day, from people who comment, reading books/articles and learning from mistakes.

Here are some of the resources I use to further my financial literacy.

There are even free seminars out there that you can apply for to help you get a better understanding of the stock market in Singapore. Click here to view some of the programs that the SGX provides.

I hope that this has helped you to understand how to go about starting your journey in trading stocks in Singapore. If you have more questions, feel free to leave them in the comments.

I wish you all the best in your journey in trading stocks and achieving financial freedom.

As always, happy trading.


1 comment:

  1. actually some brokers allow paper-trading. So if you are unsure of how the platform works or you want to try some strategies, demo / virtual accounts are the best way to start.