What is Share Trading?
Many companies choose to sell part ownership of them to generate revenue for further investment; this is known as being a publicly listed company and one single unit of ownership is referred to as a share. Buying and selling shares to make a profit is what share trading is all about and trading takes place via the stock exchange as well as in ‘over-the-counter’ markets.
Who Can Trade Shares?
There are several different ways to become a share trader; however, a lot depends on your level of financial support, the amount of time you have available and whether you want to trade independently or for a major institution.
If you wish to trade independently, simply sign up for an account at one of the many share trading platforms online, deposit your money, and get started. There will often be brokerage fees and commissions you need to pay and the minimum amount required to open an account can vary widely; however, you won’t need any formal training to make trades.
To work at the Sydney or Melbourne Stock Exchange you will need to be employed by a large investment firm and a number of specialised licences are required, such as the Australian Financial Services License (AFSL). In this role, you will essentially be making trades on behalf of the firm and will be paid a regular salary, for example, the average salary for stockbrokers in Australia right now is $65,000 per year. Traders also often earn commissions on each trade in accordance with their level of experience.
The majority of professional share trading jobs in Australia are located in New South Wales (52.3%), followed by Victoria (28.3%), and the average working week is 44.7 hours long.
What You Need to Know
To be a successful share trader you’ll need to know a great deal about how the financial markets work; therefore, having a background in business, economics or finance can certainly help. Understanding the latest software, algorithms and market analysis techniques is also vital.
Whether you want to learn about the stock market, study investment courses on day trading or lay the foundation for a career as a stockbroker through taking a diploma, TAFE advertises a broad range of in-class and online share trading courses that cover all you need to know.
You can learn to trade the market effectively by taking a short course in online investment, as these popular programs look at understanding market trends, conducting technical analysis, and trading in different markets. You will also learn how to develop a solid trading plan, which is particularly important for those looking to trade independently. These are a great method to determine if this industry is right for you, as it provides enough information and training to get a handle of the often turbulent world of trading.
If you’d like to make share trading your full-time profession, either working for yourself or for a large investment firm, diploma level courses advertised through TAFE are a fantastic option. Here you’ll learn how to conduct market analysis using various charts and techniques, become an expert in recognising market phases, and gain an in-depth understanding of successful trading strategies.
Every course advertised through TAFE is designed and taught by experts with experience in the industry, ensuring that you graduate with the skills you need to succeed in the fast-paced world of share and stock trading. Better yet, many courses are eligible for financial assistance and your credentials will be recognised Australia-wide.
Is Share Trading Right for You?
Share trading is certainly not for the faint of heart, as this high-pressure industry requires a great deal of commitment, knowledge and discipline. Attention to detail is vital, clear communication is essential and you’ll need to stay up to date on the latest developments in a broad range of industries.
To be successful, a share trader must also be level headed and resilient, because getting caught up in the excitement or disappointment of a trade will interfere with your ability to make money over the long term.
Think you can handle the rollercoaster ride of trading shares in the world’s financial markets? Let’s get you started then, shall we? Simply find a course to suit your goals, fill out an Enquiry Form and get started today!