What factors might affect my investment?

Be aware of trends

While past performance is no indicator of future performance, it is possible to identify trends which can suggest where a price might go.

The trend most investors are interested in is the share price. And one of the easiest trends to spot is the movement of a share price within a certain range - the price never falls below a certain level and never rises above a certain value.

Should this apply to one of your shareholdings, a good time to sell might be when it is moving close to its traditional high.

Seasonal consumption, shifts in technology, changing consumer habits can also influence trends in share dealing, so give some thought to these too. Additionally, cross-referencing the volume of shares traded with share price movement in a given period, may also indicate a trend that you may wish to take advantage of.

A useful way of identifying trends is by studying charts that highlight the 3 month and 6 month day moving average.

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