Footsteps To Fortune

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Footsteps To Fortune

Table of Contents

The Secret of Personal Wealth

How to become debt-free and develop the savings habit that willput 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 objectivesand developing a strategy for getting there.

Time for some self-assessment

Getting to grips with risk and reward. How to spread yourinvestment 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, howto 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,warrants.

The market cycle

Why markets rise and fall in value. How to turn these cycles toyour advantage.

The search for enduring quality

The characteristics that distinguish a Blue Chip share. Theimportance of consistent dividend payments. The value of market gossip.Trading short-cycle shares. Dividend Yield. Splits can beprofitable.

Dividend yields as an indicator of value

Seeking a means of uniformly valuing shares. Don’t confuse pricewith expense. Overbought/Oversold. Price earnings Ratios. MarketCapitalisation. Be careful of declared earnings.

Observing share price bias and developing an index of value

Beginning the initial steps of mixing a cocktail of fundamentalstatistics in order to derive a means of comparing the value of oneshare with another and consequently determining whether it isunder-priced or over-priced.

A high daily traded volume is essential

The inherent dangers of investing in shares when only a smallproportion are in public hands.

Comparing balance sheet statistics

What you can observe by comparing historic balance sheetdata.

How profit growth influences share prices

Over time the earnings growth rate of a company is reflected inthe price trend of its shares; and why this is best measured by thetrend of dividend payments.

Refining the share selection process

Why a very long history of rising dividends is a vital ingredientif you looking for a secure investment_but why such shares do not alwaysprovide the fastest price gains.

Return on capital employed

Getting to grips with how efficiently companies make use of themoney entrusted to them by their shareholders.

Evaluating debt/asset ratios

Understanding capital gearing and when it is smart for companiesto use borrowed money. The profitable relationship between mineoperating costs and share prices. The importance of economiccycles.

Don’t forget the Auditor’s and Chairman’s reports

It is an essential routine check to scan the Auditor’s report andjust as important to compare historic chairmen’s predictions with howthe company subsequently performed.

Why you should avoid being stuck in a company delisting

How companies profit from listing on the stock exchange and whyyou should avoid holding their shares when they plan tode-list.

A safe company has a broad profits base

Companies with widely diversified earnings sources are the bestequipped to ride through the economic cycles, but the best share pricegains 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 fortiming your buying and selling decisions.

Measuring market cycles

An evaluation of the numerous attempts to graph and interpretmarket cycles: Gann theory, Elliott Waves, Granville, Fibonacci numbers,Fourier Transforms, Kontratieff super cycles.

Momentum-based analysis

Understanding the concept of price velocity and momentumOverbought/Oversold, Relative Strength Index, the development of anefficient Velocity Indicator.

Volume-based analysis

An evaluation of numerous attempts to create an efficientprediction system based on the relationship between share pricemovements and traded volumes culminating in the development of my ownMass Indicator.

Price volatility

As share prices move towards extremes which with hindsight can beidentified as major turning points, there tends to be a widening spreadof daily prices which offers a useful indication of pendingchange.

Putting it all together

The initial steps towards developing a strategy which integratesfundamental balance sheet analysis and chart-based market timing inorder to be able to buy and sell blue chip shares for optimumgains.

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 andshare price trends. When it is an advantage to hold high bias shares andwhen it is not.

Determining when a share is cheap

Low prices do not necessarily signify cheap shares and viceversa. How to effectively value a share in order to be able to spotunderpriced opportunities.

Developing a personal strategy

It is important to assess your own attitude towards risk andreward and plan your investment strategies accordingly.

Structuring a portfolio

Balancing risk with reward; how many shares should there be in anideal portfolio. How to create a long-term systematic buying and sellingapproach 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 bylocking into quality at the start, he never needs to be a seller. Isthis 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 isvalued. 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 investorknows how to switch his money from one investment to another tosafeguard and grow his capital.

The Final Word

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