WINNING IN the stock
market is easy. All you have
to do is buy when the prices
are low, and sell when
they’re high. No problem,
right?

By RICK PETERS
Contributing Writer

Fair enough, but as we all know,
the real trick to this strategy is
knowing when the prices are at
their lows, and when they are high.
This is a problem facing every in-
vestor, especially as we are ail
looking at our investment
possibilities in the wake of the
1987 market crash. Whether
you’ve got $50 to invest or
$500,000, the problem is the same
for everyone: how can you avoid
getting hurt by the unexpected ups
and downs in today’s stock mar-
ket?

This problem is a tough one for
the professional traders, but it can
be a particularly daunting one for
the small investor. Most of us
simply don’t have the time or
knowledge to watch the markets
and really understand what’s going
on. And for many of us, it seems
that we always get into the market
too late and Jeave too early.

The professional traders closely
watch the trading patterns of the
smal] guy, and can often make
money doing just the opposite of
what the small, unsophisticated
investor does.

The theory that some of these

into centre
business up

USE OF the B.C. government's
business information centre has
surged more than 25 per cent, ac-
cording to Regional Development
Minister Elwood Veitch.

**The one-stop centre for
business information is now receiv-
ing more than 15,000 business ea-
quiries a month,’’ Veitch said.

Before this surge began in July,
the centre was receiving less than
12,000 enquiries a month.

‘“*The Info Business Centre is
clearly playing a major role in
stimulating business activity
throughout the province.”’

Since it opened in June, 1987,
the centre has hand’.< 1 total of
217,000 enquiries to Uctober 31
and should reach the quarter-
million milestone in January, he
predicted.

Responsibility for the centre’s
operation is shared by the
Ministries of Regional Develop-
ment and International Business
and Immigration. About 60 per
cent of enquiries concern starting
or expanding a business, and 40
per cent concern international
trade. .

The info Business Centre’s ser-
vices are available in all regions of
the province through computer fa-
cilities and printed information at
160 chambers of commerce, gov-
ernment agents and _ regional
enterprise centres,

As well as business counselling,
the centre’s services include infor-
mation about industrial and in-
vestment opportunities about in-
ternational markets. The Ottawa
office and five foreign offices of
the Ministry cf International
Business and Immigration are
coordinating their services with the
centre.

The centre also has the largest
business reference library in British
Columbia, a special office for in-
hovators and provides access to
federal and provincial government
purchasing agents.

The Info Business Centre’s ad-
dress is P.O. Box 19, Pacific Boul-
evard South, Vancouver, B.C.,
V6B 5E7. Its telephone numbers
are 660-3900 or toll-free 1-800-
972-2255.

pros subscribe to is called ‘*the odd
lot theory.’* Odd lot transactions
involve trades in less than round
lots of shares — 100 shares on the
Toronto Stock Exchange and 500
shares on the Vancouver Stock
Exchange.

The odd [otter is the small in-
vestor, and he's a follower, not a
leader. He doesn’t get into a bull,
or rising, market until its almost
over. When the odd-lotter starts
buying, the pros start selling. And
when the market has bottomed
out, the odd lotter sells out his
position, and you know who is

‘Seven Up or Pepsi] Parkay Mar

REGULAR or
DIET

Juice

OVERWAITEA
FINEST -
FROZEN
CONC.

255 mL.

CALIFORNIA
GROWN

buying up these shares at bargain
basement prices.

In other words, the small in-
vestor can be at a disadvantage,
and he can be in for a rough ride
on the road to investment riches.

But, a “shock absorber"’ exists
that can help him smooth out his
tide. Like many things that work
well, it’s based on a simple plan.
It’s called dollar cost averaging.

Here’s how it works. As a small
investor, you realize that you’d be
better off buying lottery tickets
than guessing the ups and downs
of the market. So, you begin by

KRAFT
REGULAR 4's

1.36 kg
PKG.

PRICES EFFECTIVE SUN., TO SAT. DEC. 18-24 / 88.

43 - Sunday, December 18, 1988 — North Shore News

Shock absorber helps avoid market losses

making a regular investment of the
same amount of money on a mon-
thly basis. You'll take prices as
they come, sometimes paying
higher prices, sometimes lower.

When share prices go down,
your regular payment allows you
to buy more shares at that time.
When share prices go up, the
payments buy fewer of the more
expensive shares. Over time, this
means that more shares are pur-
chased at lower values, which leads
to a reduction in the average cost
of shares.

The bottom line is this: the regu-

lar purchase of shares or, for ex-
ample, mutual fund securities, will
help smooth out your ride in the
marketplace and increase the size
of your portfolio. In this manner,
dollar cost averaging acts as a
shock absorber in the marketplace.

And the beauty of it is that you
don’t need a lot of money to start
practising this today.

It’s a savings and investment
plan that can be started for as little
as $100 a month.

Rick Peterson is a representative
with the Investors Group.

We beat
any major
competitors
advertised
prices on
Frozeit ,
Grade“A

Turkeys

WE RESERVE THE RIGHT TO

LIMIT QUANTITIES.

TRADITION

ASSORTED

GRINDS

300
PKG.

Wait Disney's

“CLASSIC
TALES OF
THE WILD
KINGDOM"
BOOK

EACH

Sour Cream

DAIRYLAND

Baby Gherkins

or SWEET ONIONS
KRAFT - BULK

18

FESTIVE HOLIDAY HOURS

DEC. 15 - 23/88 - 7 AM TO MIDNIGHT

@ 26 | 27

tan