Active Investing E-Book

Alan Hull

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 267

Veröffentlichungsjahr: 2012

Beschreibung

Why pay a financial adviser to manage your portfolio when you can do it yourself -- all in less than one hour a week? The first edition of Active Investing was an Australian bestseller and a must-have for all DIY share investors and traders. In this book, sharemarket expert Alan Hull provides all types of investors with simple but effective methods for keeping one step ahead of the market using low-risk, tried-and-tested techniques. Fully revised and updated due to popular demand, this new edition will show you how to profit in all sharemarket conditions. You'll discover: * when to buy shares, when to hold them and when to keep your money in the bank * how to survive volatility and even profit in a falling market * how to sensibly use CFDs and protect your portfolio from market risk. Manage your portfolio like a professional -- become an active investor!

Leseprobe

Contents

Acknowledgements

About the author

Preface

Chapter 1: The Marketplace

The players

Initial public offering

Raising working capital

Raising capital again and again

Advisers, experts and critics

Managed funds

Armed with information

Enter Big Brother

Chapter 2: The evolution of the marketplace

In the beginning

The history of investment advisers

Do-it-yourself

Technology for investors

The appeal of advice

Meeting our needs

The stockbroker’s responsibilities

Chapter 3: Trader or investor?

Our options

Active investing defined

Chapter 4: The investment business

Lifestyle freedom

The time factor

Prove it then leverage it

Market psychology

Following the herd

Role play

The company we keep

Chapter 5: Fools, facts and factions

Fundamental analysis

Technical analysis

Cyclical analysis

Factors that affect opinion

Crowd behaviour

There is no single solution

Chapter 6: Introducing dynamic analysis

Buy low, sell high

Chapter 7: Let the hunt begin

Blue-chip companies with good fundamentals

Rate of return

Ready-made market: liquidity

Chapter 8: Separating the wheat from the chaff

Chapter 9: Buy, hold or sell? That is the question

When to buy

When to sell

When to hold and when to take profits

Price volatility

The range indicator

Chapter 10: Managing the losses makes you profitable

Frame of reference

The law of averages

Using stop losses

Sector risk

Portfolio and specific equity risk

Risk management and gearing

Using CFDs with the active investing strategy

Conduct regular performance reviews

Asset allocation

Chapter 11: Factors that affect opinion

Fundamentals

Global factors

Macro economics

Market cycles

News and rumours

Gambling and speculation

Keep it simple

Chapter 12: How does it all work?

Chapter 13: The downside—short selling using CFDs

Short selling

Dynamic analysis

Don’t tell anyone

Chapter 14: The big picture

House cleaning

Taking an income

Constant vigilance

Test and measure

Organisation

Acquire knowledge as your need dictates

Appendix A: MetaStock indicator formulas

Further reading

Index

First published 2009 by Wrightbooks

an imprint of John Wiley & Sons Australia, Ltd

42 McDougall Street, Milton Qld 4064

Office also in Melbourne

Typeset in Berkeley LT 11pt/14pt

© Alan Hull 2009

The moral rights of the author have been asserted

Reprinted in 2010 and 2011

National Library of Australia Cataloguing-in-Publication data:

Author: Hull, Alan, 1962-

Title: Active investing: how to manage your portfolio like a professional in less than one hour a week / Alan Hull.

Edition: Rev ed.

ISBN: 9781742168630 (pbk.)

Notes: Includes index.

Subjects: Investments—Handbooks, manuals, etc. Stock exchanges.

Dewey Number: 332.678

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.

Cover design by Brad Maxwell

Cover image of clock © Shutterstock/iDesign

Microsoft Excel screen shots reprinted with permission from Microsoft Corporation.

Charts on pages 166, 167 and 174 by MetaStock.

All other charts created by TradeStation. © TradeStation Technologies, Inc. All rights reserved.

Disclaimer

The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based upon the information in this publication.

In memory of Shani Hull and Leigh Burkitt Life is a fragile thing that should never be taken for granted

Acknowledgements

Simon Sherwood, finance author and all-round nice guy

This revised edition is only possible because of your help and encouragement.

Matt Livingston, personal assistant and sounding-board

I have never met anyone with your ability to spend so much time with me and not go mad (or at least get very frustrated).

Jeffrey Shaw, stockbroker

A man who makes his living by putting his clients first.

Braden Gardiner, stockbroker

Another adviser who doesn’t put his own interests before those of his clients.

Debra Hull, my wife and best friend Without you in my life I would achieve little.

Kathryn and Matthew Hull, my little mates

Watching you grow up keeps me from growing old.

About the author

A second generation share trader, Alan Hull owned his first share at the age of eight. As a result of this early introduction to the stock market, most of the lessons the average investor learns in their adult life were second nature to Alan by the time he was 21.

With a keen interest in mathematics, Alan was an IT expert from the early days of personal computing. Employing this combination of skills, as well as market experience over the past two decades, Alan is now one of Australia’s leading stock market professionals. He is highly respected within the Australian investment industry, regularly writing articles and presenting for the Australian Securities Exchange, the Australian Technical Analysts Association, the Australian Investors Association, and the Traders and Investors Expo. Furthermore, in addition to writing his own best-selling books, he has contributed to other publications such as the best-selling Top Stocks series by Martin Roth, and Daryl Guppy’s Better Stock Trading.

Not content with being a private trader, author and educator, Alan is also a licensed financial adviser with his own managed fund. Over the past few years, he has successfully managed millions of dollars of other people’s money, consistently beating all the major ASX market averages. One of Alan’s most notable decisions as a funds manager was to move his entire fund to cash at the start of August 2007, preserving his client’s capital throughout one of the worst global financial crises of the past century.

With a focus on the practical, Alan has distilled much of his market wisdom into this revised edition of his best-seller, Active Investing.

Preface

I owned my first share at the age of eight. It was a birthday present from my father and it cost $5. I can’t recall the name of it, but I remember that I chose it and it doubled in price during the next six months. As my birthday is in June, it was a good Christmas that year! In 1970, $10 was a lot of money to an eight year old. I spent my fortune on lollies for myself and presents for my siblings.

When I turned nine, my father gave me another $5 to buy a share, but this time he advised me on what to buy. The share price fell steadily in the following months and eventually I went to my father for more advice. I have never forgotten his words: ‘If the share price is going up you’ll make money, but if it’s going down you’ll lose money’. With the reflex thinking of a nine year old, I asked him to sell the share. I then asked him if he was going to give me back my original $5. He took a deep breath, looked at me and paused—a sure sign of bad news. He gently told me that I could only get back the current value of the share, and that if I didn’t want to rely on advice from others then I should learn about shares for myself. As history shows, I took his advice.

When I look around me today it is of little surprise that the average ‘mum and dad’ investor is often paralysed by confusion. There are too many choices, too many opinions, too many financial products and numerous specific and non-specific books on investment.