info@ifc.ir   021-66724545
  پارسی   English   العربیه

Getting Started in Stock Investing and Trading, Illustrated Edition

توضیحات

While the stock market has had its fair share of ups and downs in recent years, investors and traders have still continued to find profitable opportunities. Getting Started in Stock Investing & Trading, Illustrated Edition will prepare you to do the same. Filled with a wide array of ideas, strategies, and market realities, this reliable resource will help you determine which investing and trading ideas may work best for you and put you in a better position to honestly identify your appropriate risk tolerance level.

Engaging and informative, Getting Started in Stock Investing & Trading, Illustrated Edition truly lives up to its name by bringing the key concepts of this topic to life through attractive illustrations, charts, and graphs. Along the way, it carefully weaves these visual components with definitions, examples, key points, and links to websites that will further expand your knowledge base. Divided into two comprehensive parts, Getting Started in Stock Investing & Trading, Illustrated Edition:

  • Discusses how to develop an investing program to build your portfolio based on the principles of Fundamental Analysis in Part I and focuses on specific trading skills and techniques based on the principles of Technical Analysis in Part II
  • Includes new chapters that describe the nature of stock investing and trading, discusses dividend strategies, and explores signals and confirmation of price movement
  • Features illustrated comic strip panels at the conclusion of each chapter, which highlight major points and provide an entertaining, but informative running narrative throughout the book
  • Reveals how investors and traders can earn profits regardless of the current state of the market by building a flexible and defensive portfolio.

There is no "quick fix" to becoming a better investor or "secret formula" to gaining a trading edge. Paid services, the Internet, and financial planners may all offer you an abundance of market insights, but in the end, it comes down to each individual learning for themselves what works and what doesn't. Getting Started in Stock Investing & Trading, Illustrated Edition can help you achieve this goal.


MICHAEL C. THOMSETT has written more than seventy books on investing, real estate, business, and management. He is the author of several Wiley books, including the bestselling Getting Started in Options, as well as Getting Started in Fundamental Analysis, Getting Started in Real Estate Investing, and Getting Started in Swing Trading. He contributes articles to many websites, including Minyanville Media and TradingMarkets.com as well as investor-oriented magazines such as BetterInvesting and the AAII Journal.

Acknowledgments viii

Element Key ix

Introduction xi

PART 1 INVESTING

CHAPTER 1 THE NATURE OF STOCK INVESTING 3

Favorable Conditions for Owning Stocks 4

Relationships between Price and Fundamental Value 5

CHAPTER 2 INVESTMENT RISKS 17

Market Risk 18

Leverage Risk 20

Knowledge and Experience Risk 22

Sector Risk 25

Political and Economic Risk 26

Inflation Risk and Tax Risk 27

Fundamental Risk 30

Lost Opportunity Risk 32

CHAPTER 3 VALUE INVESTMENT AND GROWTH INVESTMENT 37

Value Investing and Control 41

Value Investing Myths and Facts 43

CHAPTER 4 MARKET STRATEGIES 53

A Basic Strategy: Buy and Hold 54

A Strategic Requirement: Diversifi cation 55

Other Market Strategies 63

Ex-Dividend Date Buying 66

CHAPTER 5 FUNDAMENTAL ANALYSIS 71

The Balance Sheet 75

The Income Statement 77

The P/E Ratio: Finding a Bargain-Priced Stock 78

Revenue and Earnings: Fundamentals Based on the Operating Statement 83

Working Capital: Fundamentals as a Form of Money Management 86

CHAPTER 6 DIVIDEND STRATEGIES 93

Dividend Yield as a Means for Stock Selection 93

Calculating Dividend Yield 94

Reinvesting Dividends 97

When Dividends Are Earned and Paid 98

Picking Stocks for Dividends 101

CHAPTER 7 ALTERNATIVES: STOCKS OR MUTUAL FUNDS 107

Investment Clubs 108

Types of Mutual Funds 110

Mutual Fund Fees 112

Classification by Features 115

Other Conduit Investments 117

Variable Annuities 119

PART 2 TRADING

CHAPTER 8 THE NATURE OF STOCK TRADING 127

Favorable Conditions for Trading Stocks 132

Relationships between Technical and Fundamental Value 137

CHAPTER 9 TRADING RISKS 143

Market Risk and Volatility Risk 145

Leverage Risk 149

Short Position Risk 152

Extreme Reaction Risk 153

Technical Knowledge and Experience Risk 156

Technical Risk and Market Culture 157

CHAPTER 10 TRADING METHODS: DAY AND SWING TRADING 165

Day Trading 166

Swing Trading 172

Exit and Entry Signals 175

CHAPTER 11 CHARTING TOOLS AND INTERPRETATION 185

Traditional Types of Charts 186

Candlestick Charts: The Basics 189

Combining Candlesticks with Western Technical Analysis 198

CHAPTER 12 ESSENTIAL TECHNICAL INDICATORS 203

Support and Resistance: The Trading Range as a Defining Attribute of Price 204

Popular Price Patterns and Their Meaning 212

Trend Lines for Spotting Reversals 217

Breakouts and Gaps 219

Moving Averages, Oscillators, and Volume Tests 222

CHAPTER 13 SIGNALS AND CONFIRMATION 229

Swing Trade Reversals 231

Candlestick Reversals 234

Signal Failure 241

CHAPTER 14 TECHNICAL ANALYSIS, DOW THEORY, AND PRACTICE 247

The Efficient Market 248

The Random Walk 251

Charles Dow and His Market Theory 257

Glossary 265

Recommended Reading 289

About the Author 291

Index 293