Once you decide to invest in the stock market, you need to decide how. Purchasing shares is simple thanks to the many on-line and mobile trading platforms available today. Courtesy of major banks and smaller trading companies these platforms allow you keep track of your stock portfolio. They let you buy and sell shares quickly, so you are never far from the market, able to react to news as it breaks and events as they happen.

Before deciding how to buy shares, it is important to define your investment goals. Are you buying for growth? Security? Retirement? To supplement your income? Whichever it is can impact your decision on how to buy shares, as well as which shares to buy.

For instance, some companies pay dividends, which might make them more suitable for stable growth over the long term, or meeting your regular income requirements. Other companies tend to reinvest profits into research and development and new products. This may mean the company, and its share price grow more quickly, potentially making the investor money more quickly.

Of course, these companies can also be more risky, meaning it’s possible the investment doesn’t “pay off” and investors lose money. This is why it is important to understand your investment goals. The adage “don’t put all your eggs in one basket” applies very much to stock market investment. Portfolio diversification of companies, industries and sectors helps reduce risk. As a general rule, holding three companies can be safer than two, and two companies is likely safer than one. Academic theory suggests this rule holds true up to around 30 companies in a portfolio. Whatever stance you take, Accendo Markets will support you whilst you learn how to buy shares to achieve your goals.

There are two main ways to purchase shares, which should be considered when deciding how to buy shares. The first involves a broker who can either be online, like Accendo Markets, where you are responsible for choosing what you buy and sell, or a traditional wealth manager advisory service. Different types of on-line brokers charge different fees.

It is important to research which brokers offer the best deal based on your investment style. Day traders, who trade more frequently, will want low trading commissions. A traditional wealth manager is another type of broker. An investment advisor recommends what to buy and sell based on your defined investment goals. These “brokers” are either commission based, charging you per trade, or portfolio based, charging an annual fee based on assets under management.

At Accendo Markets, we facilitate your trading by providing you with an on-line trading platform, allowing you to trade anytime, anywhere via  computer, smart phone or other portable device. We’ll also provide you with the research and assistance you need to learn how to buy shares (via CFDs) to achieve your goals.

Most important when deciding how to buy shares using CFDs is to do your homework. Research each company, fund or asset before deciding what and how to buy. What makes this company’s shares a good purchase? Does the company’s current share price reflect the value of the company? Alternatively, you might decide to learn how to buy shares based on technical analysis (charting).