When you place an order to buy or sell shares, you have a choice of two ways to tell your broker what price you will accept. You can place your order 'at market', meaning you will accept a price at or about the market price of the shares at the time you place your order. Alternatively, you can place your order 'at limit', and inform your broker of the highest price you are prepared to pay or the lowest price at which you are prepared to sell.
The broker must ask you to complete a client agreement clearly setting out your personal details and investment objectives. Give your broker an order by completing a buy or sell order form. An order must clearly show the name of the security, the quantity to be bought or sold, the price and the length of time you want the order to last. Your signed buy or sell order is a legally binding contract, which makes the broker your agent and authorizes it to execute the trade and sign settlement and transfer forms on your behalf. When placing an order with your broker, make sure you are fully informed and that your order is confirmed.
Keep good record systems for all the information you receive for your investments including copies of documents that you sign and any notes from conversations you have with your stockbrokers, unit trust managers or investment advisers. This may be of some use in the future.
You should pay careful attention to market announcements, read newspapers and business magazines, stockbroker reports and company annual reports to find the latest information on your investments. You can also visit the CMDA or SPSE website for the latest market information. These websites contain comprehensive information on investing in the capital markets and you should check the websites regularly.
Ensure that the investments are performing to your satisfaction and, if they aren’t, you may need to decide whether the investments should be sold. Sometimes you will have to make an informed decision to take some losses on your investments rather than just hope that their performance will recover. Knowing when to sell an investment, even at a loss, is an important part of investing.
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