how to work with shares

how to work with shares. golden Rules

1. On the exchange of good and bad times change each other (how to work with shares)
No stock-summer lasts forever, and winter on the stock exchange also lasts forever. After each fall in the rate should definitely an improvement. It seems that it is very easy. And yet this is often overlooked. This leads to the fact that speculators sometimes incur huge losses.
Courses are still always have stabilized. Since 1948 there is never more than two bad years in a row. Then a course during the year or at the most two stabilized. The average growth of the Dow Jones index (representative range of shares of leading USA companies) amounted to an average of about 12 percent a year.
Therefore You should never sell Your shares if their rate fell sharply.
how to work with shares: 2. Big profits can be achieved only if You are willing to lend money to the exchange for a period from two to five years
Do not invest in shares of the money that You will soon need. If the shares fall just when You need money and You have to sell them, You're going to loss, You need to invest money only if You have the opportunity to wait for the course to rise again. And You must do it again and again.
how to work with shares: 3. Buy always shares the minimum of five and a maximum of ten different companies
You should also invest money in at least five different securitiesæ in order to reduce the risk. Select stocks of firms operating in different sectors and in different countries.
You should notí howeverê hold shares more than ten firmsð otherwise it will be difficult to monitor the situationå of courseë if You do not stockbroker is a professional.
how to work with sharese 4. Income statement can only speak when You sell shares
If Your shares are falling sharply, You have not suffered any losses. You are losing only if at this moment sell their shares. But just do it and should not be made see rule 1 .
Similarly, profit You received only when sold. Soà if Your expectations sell at least part of the shares. For this reason, be sure to keep a record of all Your bases for purchase and sale, as well as Your’target course - the course that You want to wait.
5. Profit is the sum of appreciation and dividends
If the share price has risen, and You had sold it, then You made a profit. Until You do not sell the action, You, nevertheless, every year can receive the money if the company pays dividends.
If the company whose shares You own profits, it keeps part of the profit is to create the reserve and the balance paid in the form of dividends. If You want to get dividends, you should invest a portion of Your capital in large firms which already have substantial reserves and receive significant profit. Dividends are taxed, while the profit from growth in the market value, free from taxation, if between purchase and sale within six months.



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