06/10/2008

Shares

Millions are won and lost over the stock market and the internet has meant that its available to more people than ever. There are three ways in which you can buy shares. Each have their advantages and disadvantages.

First there is the Execution only which means a stock broker will buy or sell the shares you want without any advice taking place, this leaves the risk solely with you. If you have enough time to study the stock market in detail and are sure you will make money with a certain share then this is the best option for you.

Advisory dealing is another way to buy shares where the Stock Broker advises you on where and when to buy/sell the shares. The advice is valuable as Stock Brokers experience can make the whole process safer. However Advisory dealing is just that, advisory at the end of the day if you don't like the information the stock broker is giving you then you don't have to invest.

Finally there is discretionary dealing where the stock broker takes full control of your money and it is them who decide exactly what to do with it. This way the stock broker is able to manage your shares in the quickly changing environment of stock broking.

Shares and stocks are risky business but with great risk you can get great rewards. Each of the three options carry a risk factor and obviously the more the stock broker is involved the more money will be spent on them.

The best advice I can give you for investing money in Shares is

  1. Keep an eye on the ever changing market.
  2. Only invest in what you know you can afford to lose.
  3. When using a stock broker make sure they have the correct experience.
  4. Shares can be a long term and a short term investment so keep that in mind.
  5. Experience is important when it comes to the stock exchange

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