Monday, 22 April 2013

Book review: A Step-by-Step Guide to Buying and Selling Shares Online

I came across A Step-by-Step Guide to Buying and Selling Shares Online by Kel Butcher at my local library.  It caught my eye because it looked a bit easier to read than some of the other share trading books I’d been trawling through earlier in March.

The Introduction outlines two important prerequisites to running a profitable trading and investing organisation, namely:
  • It must be approached as a business, with all the associated planning, risk management, and performance and review measures
  • It requires maximising the technology available in order to implement business decisions as efficiently as possible
Butcher then positions the book as a user-friendly, practical manual that addresses the mechanics of online trading, from setting up an account through to trade execution.

Chapter 1 – Trading and Investment Styles covers the two primary investing styles: fundamental analysis and technical analysis.

Chapter 2 – Online vs Traditional Share Broking addresses the advantages and disadvantages of using an online broker versus a traditional full-service broker.

Chapter 3 – Setting up an Online Account covers the basics of applying for and setting up an online trading account, using NAB Online Trading as an example.