Читать книгу Starting With Shares - Roger Kinsky - Страница 15

I don't want to give you the impression that because of the uncertainty involved with shares, learning about them or applying strategies in different situations is pointless. When you're operating in an uncertain environment, the trick is to swing the probabilities in your favour. That's really what this book is about — helping you to adopt strategies that will improve your chance of success in the various situations you'll encounter with the sharemarket.

Because of the uncertainty with shares a certain strategy may work well in some cases, but the opposite strategy might also work! Let's look at an example. Consider the following two strategies:

 Strategy 1: Buy shares that are at the top of their 12‐month price range. The reasoning behind this strategy could be, ‘The share price has been rising and that's a good sign. If the price rise continues, I'll make a good profit by buying the shares now’.

 Strategy 2: Buy shares that are at around the bottom of their 12‐month price range. The reasoning here could be, ‘If the share price has bottomed and starts to rise again, I'll make good profits because I’m getting in at the ground floor’.

You can see that each strategy is different but each can be justified with a logical argument. And if you apply them, you might find that each one results in good profits! For example, you may buy some shares that are at the top of their 12‐month price range and find that their price continues to rise so you make a good profit. At the same time, you could buy some shares that are around the bottom of their price range and find that they stage a turnaround and the price rises and you also make a good profit on them.

This is because with different shares in different situations one strategy might be better than another. So no single strategy is necessarily best in every situation and able to produce good results every time.