1. 1 Press Ctrl-A ©G Dear2010 – Not to be sold/Free to use Share Market Stage 6 - Year 11 Applied Mathematic (Preliminary General 1)

2. 2 Graphs can show what is happening in the Share Market QAN 2010 Closing Share Price Simple Moving Average Simple Moving Average

3. 3 Shares are important to workers today especially if they are running a Self Managed Super Fund When to Buy or Sell? Buy – when the price is low. Sell – when the price is high.

4. 4 Use the MACD graph [Moving Average Convergence-Divergence] To find the top and bottom of market. Top Bottom This is helpful but not perfect QAN

5. 5 Important Shares are a ‘long time’ investment for the young looking for ‘growth’ in value. ‘Buy’ near the ‘52 week low’ and ‘Sell’ near the ‘52 week high’. Learn as much as you can about the companies you are buying. Buy ‘Blue Chip’ shares in the ASX 200.

6. 6 Stop Loss or Risk Management It is necessary to have an exit plan if the share price falls and protect your capital. Sell the shares if their price drops by 5% to 10% below the buying price. Example: If the share price is $4.50 and the stop loss is 5% then when must we sell? Stop Loss =0.95 x$4.50 =$4.28

7. 7 Profit Taking or Making Money It is necessary to have an exit plan to make money if the share price rises. Sell the shares if their price rises by 5% to 10% above the buying price. Example: If the share price is $4.50 and the profit is to be 5%, then when to sell? Profit=1.05 x$4.50 =$4.73

8. 8 Join www.stockwatch.com.au Buy and sell shares from the ASX 200 from companies like … Caltex Qantas Harvey NormanDavid Jones Investing Basics Fundamental Analysis Technical Analysis 10 Golden Rules