by Allan J Johnson

Created on: March 24, 2009   Last Updated: April 22, 2009

How do you become a successful share trader?

If we all knew the answer to that then I imagine many of us would be relaxing on a sun soaked Island somewhere rather than reading this or surfing the net looking for tips on how to achieve such a goal!

The first thing to consider is what is your definition of success, is it to stay in the black, make sufficient to pay for college fees, or retire to an exotic location?

The reason I ask is that one can only make reccomendations and suggest tips when the individual fully understands what his goals or objectives are.

When you have decided on the definition of success, on YOUR definition, then the next thing to consider is risk, what is the ideal risk profile for you.

Successful investors often take a long term view of the markets, whilst many of us dip in and out so regularly that we often find ourselves buying near the top and bailing out at the bottom.

This takes no account of the power of compounding, simply put retaining and re-investing dividends in you portfolio is probably the most effective way to accumulate capital.

If you consider a game of golf and we bet $1-00 on the first hole, and double it on each subsequent hole, what will the final hole be worth, work that out and you will understand the power of compounding.

Research is a key element to consider, do you go with penny shares that provide the opportunity for spectacular growth or do you stick with the blue chips, it all depends on your GOAL and more importanlty your risk profile.

So initially take time out to seriously consider you goals and risk profile before considering the next key element of the process, time!

Time is the one commodity that many of us struggle to manage and it is the one area we need to consider before attempting to become a successful investment strategy.

Most of us if we are holding down a full time job do not really have the opportunity to manage our portfolio properly, a friend of mine recently explained how TIME to monitor and make judgements on market movements had always proven to be his downfall, however he had recently subscribed to a service that he personally had found to be effective.

I believe therefore that key tips for a successful share dealing strategy should be as follows, consider your goals, consider your risk and consider your time, this I believe will provide you with a solid foundation with which to work, and then if time is an issue maybe consider my friend Tim's methodology as it has worked well for him

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