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REVIEW of Money 05
Investing in the Share Market - EVERYONE'S option

Share trading sounds like a game for high-fliers, members of an exclusive society that ordinary folk have no chance of joining. Well, in effect, if you have some spare cash to wager, it can be a lot safer than trying to pick the winning horses from a lineup of maybes. The main advantage of investing in the share market is by reason of choice - being able to select the best options at the start, then cashing in when your filly is in front without having to wait for the race to finish. The same as any form of gambling, it requires a fair amount of courage and patience; however, those who believe they might have the right stuff and wouldn't mind giving it a go can do just that without losing a single penny. Here's your invitation to have a play; but don't get the wrong impression: although this is just a trial using pretend money, it will seem very much like the real thing; and if you are prepared to see it through, you'll discover if you have what it takes to join the club.

All games have to be set up, and this one's no different. Research is essential to check out past performances of individual shares and market trends. Looking back a week or two is no good - months, even years, tell stories of rises and falls not only of specific listings, but also of local, national and global influences that dictate prices. They fluctuate for a number of reasons, not the least being greed and fear. A large number of shares sold at any one time will cause a share price to dip, sometimes plummet. The main seller could be an individual who needs the cash for another purchase, is taking profit over and above what their shares cost in the first place, or sometimes simply to force the price down. And that will happen. Smaller investors noticing the drop become nervous and sell their shares before the price falls too low. As a consequence, it drops even further. This could be exactly what the major shareholder wanted - in this case, he or she will be watching like a hawk, ready to buy in again at the lower price and maybe acquire a greater holding than they had before. Why doesn't really matter to you - only that it did; and it is likely to be repeated with every company you buy into. Knowing how to predict these ups and downs is the only real secret to successful share trading.

If you fancy testing your skill and endurance in this game of big bucks, follow the guidelines detailed in Money Matters MM05. It takes you through step by step with advice on how to make up a portfolio of shares that you can buy and sell, hopefully for profit. The PDF has a couple of charts for you to record and track purchases and sales, enabling you to see at a glance when is the time to buy, sell, or hold. As already mentioned, this trial won't cost you a bean, but it will give you a pretty good idea if you are ready to step out into the big arena.

To read the complete article or download the PDF of Money 05 click here

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