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[I489]Investment In Share Market

by Jason Ng, Jas

1. Don't know how to choose the right share to buy
2. Don't know when to bail out of a losing share
3. Don't know when to take profit on a winning share
4. Don't Know how to construct a proper portfolio

1. Don't know how to choose the right share to buy...

How does beginners choose what shares to buy amongst thousands of shares? You might choose to listen to your share broker, or listen to your "experienced" relative, or listen to free "share pick" on the internet...etc... and you will end up losing money.

Because individual share behavior is very complex, only the most professional full time traders have the right technology to make proper share pick decisions. Such experience and technology is simply not available especially to the beginner trader.

2. Don't know when to bail out of a losing share...

The deadliest killer of beginner traders is not knowing when to get out of a losing share. Too many traders hold on to their shares until it is worth nothing. Most beginners will hold on hoping that the share will stage a rebound because you simply do not have the technology to tell if a share will ever rebound! The only way for a beginner to prevent losing everything is for an expert to tell them when to get out of a trade.

3. Don't know when to take profit on a winning share...

How many times have you heard stories around you of people who hold on to shares which made them a lot of money until one day, the share turned around on them into a severe loss?

Too many people keep thinking that their winning shares will keep on winning forever and never knew when to take profit... until the shares crashed on them! The problem is again that telling when a share is losing upward momentum is extremely difficult.

4. Don't know how to construct a proper portfolio...

Do you know that many shares actually move up and down together no matter what? Do you know that there are shares that totally move opposite to each other? Do you know that many shares actually move exactly opposite to the way the market is moving? Do you know that there are shares that do not ever move? Do you know that there are shares that are on the verge of getting delisted?

If you do not know the above, how would you ever be able to intelligently put different shares together so that you can make money? What if you put a share together with a share that moves exactly opposite to it? Would you ever make money?

That is why a lot of people are turning to trading a much more reliable and much more stable instrument; Market Index or Market Index ETF.

Read about how trading an index based strategy can help you overcome all these problems at http://www.mastersoequity.com/MOE_ridetheflow.htm

The compact share of the total new vehicle market rose from 27.9% in 2005 to 31.2% in 2006. During that time, the share of the midsize vehicles dropped from 42.8% to 40.4% while the share of the large vehicles plummets from 29.3% to 28.5%. It should be noted that six years ago specifically in the year 2000, compact vehicles accounted for just 23.8% of the market.

According to Tom Libby, Senior Director of Industry Analysis at PIN, "Growth in the compact vehicle segments is being driven, in part, by an increase in the number of models and the popularity of small crossover vehicles."

Aside from the increase in the number of available compact models, price, styling and functionality are additional factors that contribute to the compact vehicle share growth. Libby also stressed that the prices of gas in 2006 may have caused some consumers to shy away from purchasing larger cars and trucks. Not to mention the high maintenance and repair cost of auto body parts of larger cars and trucks.

Libby further stated, "It will be interesting to see if prices stabilize at or below $2.00 a gallon, whether we see a return to larger vehicles'I don't think we will.?

Due to the popularity of compact vehicles they are moving off dealer lots more quickly than they used to and are sold quicker than the typical new vehicle. Last December 2006, five out of the seven segments with the fastest turn rates were compact vehicle segments, with the compact premium CUV (28 days) ranking 1st and the compact basic car (35 days) segments ranking second.

Segment loyalty of compact vehicle owners specifically in the non-luxury sector is also increasing. Likewise, percentage of owners of both midsize and large non-luxury vehicles trading to a compact vehicle increased as well from 20.8% to 25.8%. There is also an increase from 7% to 9.1% among large non-luxury vehicle drivers.

And for this year, 2007, seven compact models have made their debut at the North American International Auto Show in Detroit. The seven compact models that were introduced focused on new smaller crossovers and more conventional small cars---and that's according to Jeff Schuster, Executive Director of J.D. Power and Associates Automotive Forecasting.

Among the vehicles introduced during the 2007 NAIAS includes Ford Focus, Nissan Rogue, Volvo XC60 and some small crossover entries from Infiniti, Lexus, Cadillac and Audi. Volume in this segment is also expected to quadruple from 40,000 units in 2006 to 160,000 units by 2008, according to Schuster.

Article Source : Pg. 174

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Both Jason Ng & Joe Thompson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jason Ng has sinced written about articles on various topics from Finances, Investments and Trading Strategy. Jason Ng is the Founder of Masters 'O' Equity Asset Management. He is a fund manager specialising in options trading and his Star Trading System has helped thousands. Please visit. Jason Ng's top article generates over 301000 views. to your Favourites.

Joe Thompson has sinced written about articles on various topics from Motorola Cell Phone, Cars and Honda. Joe Thompson is the owner of a successful auto body shop in Ferndale, California. This 38 year old is also a prolific writer, contributing automotive related articles to various publications. You can visit. Joe Thompson's top article generates over 49500 views. to your Favourites.