How To Acheive High Performance With Shares

by David Jenyns on March 4, 2012

A share investment means buying part ownership of a company. You can attend annual general meetings and vote and also share in any profits by way of dividends. Achieve a handsome return by investing in shares.

Australian Stock Exchange recently claimed 55% of Australian adults own shares.

A share investment has a liquid flexibility which means you can usually turn your shares into cash.

Achieve a Great Performance With Your Share Investment?

It is important to regularly check the price of your shares. Read the business section of your local newspaper and keep an eye on the company you bought shares from, setting up watch lists to monitor the shares you hold.

Evidence shows stocks and shares aren’t for everyone. Investing in shares, like most things come with different levels of risk. However, you must be prepared to leave your money invested in shares for long term. “You need to be able to leave your money for at least five years, ideally longer,” says Ben Yearsley, investment manager at Hargreaves Lansdown. “It’s value will fluctuate over time, so you also need to feel comfortable that you are able to leave it to recover.”

Construct a strong and reliable portfolio to build your wealth at your own pace. A portfolio is commonly known as a group of stocks owned by an individual or company. It allows you to monitor your shares, warrants, cash, property and assets through a stockbroker.

It takes great skill and a keen eye to achieve wealth in share investment. Newcomers to the share market are often advised to never invest money that you cannot afford to lose. Investing in shares could be risky because you never know when the market might fall.

Once you are ready to buy shares, a stockbroker can only buy or sell shares. They may offered three types of account:

  • Discretionary: the stockbroker makes investment decisions on your behalf- though this is rare
  • Advisory: the stockbroker advises you on what shares are available to buy or sell
  • Execution: the stockbroker buys or sells shares that you have chosen without offering any advice

A share investment is a big decision and you must be aware of your current financial situation before you invest in the stock market.

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