An Introduction to Investing, What do you need to start investing?

1) Decide on what type of investor you want to be
Active investor or passive investor (There are many types of investors - each with a different style and time frame. Investors can be long-term or short term or even active traders. On-line traders are more common now.)

2) Evaluate your capital
How much money do you have to invest? What are your net earnings? What is your net worth? It is important to know how much you have before deciding how much of it you want to invest. This will in turn affect what type of investor you become or how much risk you take.

3) Set up a Broker account
There are many types of brokers: full service, deep discount, execution only, discretionary dealers, spread betting service providers etc. with different services and prices. On-line brokers are more cost-efficient and common.

4) IT Facilities
A fast computer with high-speed internet broadband connection, preferably wifi compatible.

5) Market Analysis Tools
There is a wide range of tools available for investors depending on the type of investors they are. Long-term investors may rely more on fundamental analysis and use annual reports, economic data and news information while traders may rely more on charting packages. For shares look at free US charting web sites like http://www.advfn.com/ or http://www.bigcharts.com/ and for UK look at http://www.ft.com/ and also http://www.advfn.co.uk/ . For currency trading free packages include Metatrader, FXpro and some Brokers have good charting software incorporated with real-time live data like www.fxcm.com.

6) Set up book marks for useful websites

a) http://www.iii.co.uk/ (UK market general information)
b) http://www.ft.com/ (UK general + charting)
c) http://www.selftrade.co.uk/ (Uk fundamentals + charting)
d) http://www.digitallook.com/ (UK fundamentals + Charting)
e) http://www.bankofengland.co.uk/ (UK economic data)
f) http://www.bankrate/ (US economic data)
g) http://www.moneyam.com/ (general + charting)
h) http://www.advfn.co.uk/ (Live UK charts)
i) http://www.smartmoney.com/ (US fundamentals + Charting)
j) http://www.bigcharts.com/ (US Charting)

7) Decide your strategy and time frame
Depending on the type of trader you want to be. Do you want to be a Scalper, Day-trader, a Swing Trader (from 2/3 days to 2/3 weeks), Position trader, Momentum trader or a long-term investor, and how much time are you willing to spend in your trading every day/week.

8) Practice virtual trading
Start with paper trading or virtual trading in order to build a routine and develop a style, then progress to live trading with small capital to get a feel for the market. Keep a record of how long as it takes, to make sure that when you put real money into the floor, you already have a winning strategy. Look at it is as a business; you have to invest your time to make money.