Saturday, September 18, 2010

Start Investing

Start your first investment with a small amount. As a newbie you may loose or gain. Be prepared to accept any. While being prepared to accept any losses keep this in mind. We are not investing to loose our money. We need to grow the amount we invest. So, be careful on selecting a company to invest.

First of all, you have to start an account at CDS (Central Depository System) with any amount you like. CDS is where all the shareholder accounts were opened. To open this CDS account you have to go to a stock broker company. You can go to CSE web site and find the stock broker companies registered at CSE. Some of this Stock Broker companies will create you a CDAX account. CDAX is a software facilitate to access the real time stock market. If you wish to buy and sell shares by tour own, it's better to choose a Stock Broker which gives you access to CDAX.

Once you open a CDS account, the stock broker company will assign you a broker. You can always contact your broker and get recent trends and updates of the market. That will be help full for you as a beginner. If both CDS and CDAX accounts were created, you are ready to start trading at CSE.

After  you create an CDS and CDAX accounts, you are ready for your first investment. Talk to your broker agent. He will help you to find the best matching shares for you based on your requirement.

If you wish to invest for a longer time period (more than 1 year) you have to select a company with a steady growth of share value over the past few years. But if you expect to make some quick cash, you better go for shares with rapid hikes in share value.

After selecting few companies based on your requirement, collect relevant information as much as you can. You have to study the market behavior of the sector and the performance of the company. These information will help you to minimize the risk involved.

Since you are new to the business, go ahead with the broker's choice. But, do not forget to ask him why he select that company. With the time you will be able to deal without others help if you closely monitor the market. Read the business news and be alerted about government influence on the different market sectors. If you are more vigilant, you might be able grab some money since Sri Lankan stock market is little slow reacting market.

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