Background
Around 6.7 million or 41% of the adult Australian population own shares or stocks based on the latest survey conducted by the ASX (Australian Stock Exchange).

Online Brokers
One of the great things about the share market is that you don't need a lot of money to get started as a trader. These days you can sign up with an online broker and buy shares directly. After your account is funded you can literally lookup your favorite companies and start trading shares in just a few minutes.

Starting Out
Starting out in the share market as a trader can be scary, if you are doing it for the first time you might not know what shares to buy and what all the terminology means. But after you have read this article you should be confident about what to look for when starting out. To become a successful trader you only need to know two things:

1. When to get in
2. When to get out

If you can get these steps right and don't let you emotions get in the way then you can be a successful trader. If you would like to find out more on trading then below is a link to a free trading DVD to get you started! It can be sent anywhere in the world for free!

Free Trading DVD

Index Funds
When you are just starting out or just don't have a lot of capital available you can invest your money into an index fund that tracks one of the index's such as the S&P/ASX 20, ASX 50, or ASX 200. These Indices represent the capitalization of the top 20, 50 and 200 companies respectively. So if you buy into a ASX 20 index you basically own shares in a managed fund that holds companies that make up the ASX 20 and the funds performance will mirror that of the index.

Investing in an index fund can allow you to diversify your portfolio and can start with as little as $1000. To grow your portfolio it would be a good idea to consider starting a regular savings plan by as adding $100 or $500 a month to your portfolio.

Index funds generally have lower management fee's than a managed fund because they are not required to be actively managed. The fund will just buy and sell shares as the companies in the index change or as money is added to or removed from the fund.

Managed Funds
A managed fund takes the hassle out of investing in the share market, instead of investing in shares in individual companies you buy "units" in a fund. A managed fund is professionally run by an investment group and they have complete control over what they wish to add to the fund. Each fund has a specific objective and are able to invest in different asset classes such as cash, fixed interest, property, and shares. The value of the units you buy fluctuate daily as the value of the assets in the fund rise and fall.

Investing in a managed fund allows you to diversify your exposure to the market and you can start with as little as $1000. To grow your portfolio it would be a good idea to consider starting a regular savings plan by as adding $100 or $500 a month to your portfolio.

Before joining a managed fund it would be a good idea to check past performance and costs associated in joining. Some funds will charge entry and exit fee's, sometimes up to 5% of what you want to invest. So shop around for something that suits you and your investment goals.

Education
If you're thinking about becoming an active trader or just trading every now and then, it is important to get the right education to greatly improve your chances of being a successful trader. This will also give you important skills on risk management, money management and trading psychology. If you would like to receive your free dvd on trading please visit the link below and it will be sent to you as soon as possible.

Free Trading DVD