Share market trading is the practice of buying and selling shares of a company. Share prices are determined by supply and demand for the shares and the company’s performance. When a company is performing well, its shares will increase in value. However, when the company is underperforming, shareholders will sell their shares. Profitable traders use day trading to buy and sell their shares in a single day.
There are several advantages to share market trading, including tax benefits. If done correctly, share trading can make you money both in the short-term and long-term. It is also a highly liquid investment, meaning that you can sell your shares within two days. Also, if you hold your shares for more than 12 months, you may qualify for a capital gains tax discount.
The process of share trading is simple. Each online account has a customer password and a user ID. A registered broker will use professional-grade IT security to safeguard their customers’ personal information. Once you have your ID and password, you can use the platform to trade shares. The process is also very safe. Once you have your user ID and password, all you have to do is access the platform during market hours.
The key to share market trading is to know your limits. Start out with small amounts of money until you feel comfortable with the process. You don’t want to lose all your hard-earned money in a single trade. A good stock broker will have experience in share trading and can guide you.