Table of Contents
The Secret of Personal Wealth
How to become debt-free and develop the savings Pandora UK Sale habit that will
put you soundly on the road to financial prosperity.
Creating start-up capital and saving on taxes
Why pay more tax than you need? Setting your financial objectives
and developing Cheap Pandora Bracelets UK a strategy for getting there.
Time for some self-assessment
Getting to grips with risk and reward. How to spread your
investment risk in order to minimise the impact of financial disasters.
Types of investment and their risk/reward profiles.
Mastering the stock exchange
Understanding how the exchange operates, the costs involved, how
to choose a stockbroker.
Types of securities and how they are traded
Stocks and Shares, Gilts, Equities, Preference Shares,
Debentures, Options, Short sales, Futures, Puts and calls,
The market cycle
Why markets rise and fall in value. How to turn these cycles to
The search for enduring quality
The characteristics that distinguish a Blue Chip share. The
importance of consistent dividend payments. The value of market gossip.
Trading short-cycle shares. Dividend Yield. Splits can be
Dividend yields as an indicator of value
Seeking a means of uniformly valuing shares. Don’t confuse price
with expense. Overbought/Oversold. Price earnings Ratios. Market
Capitalisation. Be careful of declared earnings.
Observing share price bias and developing an index of value
Beginning the initial steps of mixing a cocktail of fundamental
statistics in order to derive a means of comparing the value of one
share with another and consequently determining whether it is
under-priced or over-priced.
A high daily traded volume is essential
The inherent dangers of investing in shares when only a small
proportion are in public hands.
Comparing balance sheet statistics
What you can observe by comparing historic balance sheet
How profit growth influences share prices
Over time the earnings growth rate of a company is reflected in
the price trend of its shares; and why this is best measured by the
trend of dividend payments.
Refining the share selection process
Why a very long history of rising dividends is a vital ingredient
if you looking for a secure investment_but why such shares do not always
provide the fastest price gains.
Return on capital employed
Getting to grips with how efficiently companies make use of the
money entrusted to them by their shareholders.
Evaluating debt/asset ratios
Understanding capital gearing and when it is smart for companies
to use borrowed money. The profitable relationship between mine
operating costs and share prices. The importance of economic
Don’t forget the Auditor’s and Chairman’s reports
It is an essential routine check to scan the Auditor’s report and
just as important to compare historic chairmen’s predictions with how
the company subsequently performed.
Why you should avoid being stuck in a company delisting
How companies profit from listing on the stock exchange and why
you should avoid holding their shares when they plan to
A safe company has a broad profits base
Companies with widely diversified earnings sources are the best
equipped to ride through the economic cycles, but the best share price
gains often come from single product companies.
Evaluating a gold mine
How to interpret gold mine production statistics.
Getting started on technical analysis
How to draw and understand trend lines.
Fitting the curves with moving averages
How to calculate a range of moving averages and use them for
timing your buying and selling decisions.
Measuring market cycles
An evaluation of the numerous attempts to graph and interpret
market cycles: Gann theory, Elliott Waves, Granville, Fibonacci numbers,
Fourier Transforms, Kontratieff super cycles.
Understanding the concept of price velocity and momentum
Overbought/Oversold, Relative Strength Index, the development of an
efficient Velocity Indicator.
An evaluation of numerous attempts to create an efficient
prediction system based on the relationship between share price
movements and traded volumes culminating in the development of my own
As share prices move towards extremes which with hindsight can be
identified as major turning points, there tends to be a widening spread
of daily prices which offers a useful indication of pending
Putting it all together
The initial steps towards developing a strategy which integrates
fundamental balance sheet analysis and chart-based market timing in
order to be able to buy and sell blue chip shares for optimum
How to create an index of value
Taking the Index of Value concept to a more advanced stage,
noting bias in the relationship between corporate profit trends and
share price trends. When it is an advantage to hold high bias shares and
when it is not.
Determining when a share is cheap
Low prices do not necessarily signify cheap shares and vice
versa. How to effectively value a share in order to be able to spot
Developing a personal strategy
It is important to assess your own attitude towards risk and
reward and plan your investment strategies accordingly.
Structuring a portfolio
Balancing risk with reward; how many shares should there be in an
ideal portfolio. How to create a long-term systematic buying and selling
approach that will lock in value into a portfolio.
Why Buffetology does not work for the small investor
US unit trust guru Warren Buffet is famed for his claim that by
locking into quality at the start, he never needs to be a seller. Is
this approach feasible?
Gilts and Bonds are a profitable refuge when the share market turns bearish
All about the Bond Market and how it is traded. How a gilt is
valued. Gilt options.
Using Warrants to insure your portfolio against risk
Understanding Warrants and how to trade them.
Putting it all together
Understanding that all markets are cyclic, the smart investor
knows how to switch his money from one investment to another to
safeguard and grow his capital.
The Final Word