Shares Made Simple E-Book

Roger Kinsky

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

Seitenzahl: 237

Veröffentlichungsjahr: 2010

Beschreibung

Are you thinking of joining the thousands of Australians profiting from our stock market, but intimidated by the jargon and unsure of where to start? Let Australia's foremost share-investing educator guide you through the simplest ways to make money from shares -- and how to ensure you protect your hard-earned dollars in the process!

Shares Made Simple is the essential ground-up investing guide for stock market beginners. Unlike most sharemarket guides, this book explains in simple language all the relevant stock market terms and definitions; includes practical, uncomplicated tips after each succinct section to ensure readers have grasped concepts clearly; and then provides straightforward strategies for profiting on the market -- no expensive financial advisor required!

Kinsky covers everything you'll need to get started and get ahead: buying and selling shares, building a portfolio, managing risk, dealing with dividends and how to pick the best stocks.

Leseprobe

SHARES MADE SIMPLE: THE BEGINNER'S GUIDE TO SUCCESS

Table of Contents

Introduction

Acknowledgements

Chapter 1: Introduction to shares

The scope of this book

Going your own way

Time and effort

Can you beat the market?

How share prices are determined

Profiting from shares

Contradictory strategies

Some definitions

My disclaimer

Chapter summary

Chapter 2: Profiting from shares

Profiting from capital gains

Profiting from dividends

Tax minimisation

Obtaining the data

Chapter summary

Chapter 3: The power of compounding

Compounding returns

The effect of inflation

What happens if I make a loss?

Compounding capital gains

Compounding dividends

Compounding is reliable

Rule of 72

Target returns

Chapter summary

Chapter 4: Investing in Australian shares

Why invest in Australian shares?

Difficulties with global shares

Positives for the Australian economy and for Australian shares

Track record of Australian shares

What of the future?

Chapter summary

Chapter 5: Six principles of share investing

The six principles

Chapter summary

Chapter 6: Building your share portfolio

Percentage returns from shares

The effect of taxation

Building your portfolio with compounding

Financial targets

Chapter summary

Chapter 7: Diversifying your share investment

Reducing risk

How many stocks should you hold?

Effective diversification

Sector diversification

The downside of diversification

Chapter summary

Chapter 8: Investing in shares with good fundamentals

Good-quality shares

Case study

Chapter summary

Chapter 9: Trading shares at the right price

Relationship between share price and earnings

Using PEG to determine value

Chapter summary

Chapter 10: Trading shares at the right time

Why consider timing?

The right time to buy

Trading with the trend

Support and resistance levels

Identifying trends

Early trend identification

Price fluctuations

Charting time periods

Trading decisions in real time

Multiple moving averages

Improving your technical analysis skills

Technical analysis tools and filters

Chapter summary

Chapter 11: Setting up to trade

Trading shares outside the ASX trading facility

Trading shares using the ASX trading facility

Should you trade offline or online?

Setting up with an offline broker

Choosing an online broker

CHESS

Stock codes

Chapter summary

Chapter 12: Putting the plan into action

Investing criteria list

Applying the criteria

Preliminary screening

DE criteria

Chart criteria

Eliminated stocks

Final shortlist

Final selection

Additional criteria

Divergences

The Top Stocks approach

If you have an existing portfolio

Chapter summary

Chapter 13: Keeping up to date

Keeping stock files

Share issues

Takeovers

Splits and consolidations

Share buybacks

Chapter summary

Chapter 14: Into the future

Monitoring your portfolio

Reviewing your portfolio

When should you sell?

The bottom drawer approach

Chapter summary

First published 2010 by Wrightbooksan imprint of John Wiley & Sons Australia, Ltd 42 McDougall Street, Milton Qld 4064

Office also in Melbourne

Typeset in 11.5/13.4 pt Berkeley

© Roger Kinsky 2010 The moral rights of the author have been asserted

National Library of Australia Cataloguing-in-Publication data:

Author: Kinsky, Roger.

Title: Shares made simple: a beginner’s guide to sharemarket success / Roger Kinsky.

ISBN: 9781742469799 (pbk.)

Notes: Includes index.

Subjects: Stocks.

Stock exchanges.

Investment analysis.

Dewey Number: 332.642

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.

Printed in Australia by McPherson’s Printing Group

10 9 8 7 6 5 4 3 2 1

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 and the owner of any material referred to or sourced in the material 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.

Preface

My first book about shares, Online Investing on the Australian Sharemarket, was well received by readers and is now in its third edition. After writing it, I felt there was a need for another book about shares that would allow readers to self-learn by including many worked examples and self-test exercises with solutions provided, so I wrote Teach Yourself About Shares. This book was also well received and has been reprinted a number of times. Encouraged by these successes, I decided to write another book that outlined the basic principles of share investing in a way that every reader would understand by making the explanations as simple as possible and by including only the amount of information needed for readers to be successful. In a nutshell, this book was written for readers who have the following preferences:

• You’d like to invest successfully in shares for the long term and increase your wealth to the level you require for a comfortable life.

• You want a low-stress approach to shares, where you avoid disasters and where you won’t lose sleep worrying about your shares.

• You don’t want to pay a financial adviser or manager a fee for advice or to manage your share investments for you — you want to take control of your own financial destiny with confidence.

• You don’t want to spend a huge amount of time and effort learning all the ins and outs of the sharemarket in an attempt to become an expert.

• You don’t want to spend all day glued to a computer screen trading and following market trends.

In other words, if you want sole control of your financial destiny with shares and you want to use a simple, proven system based on sound investing principles that will maximise the probability of success, then this book is for you.

Every effort has been made to ensure the book is free of errors but in the real world perfection is difficult to achieve. I welcome feedback from readers who may have any constructive comments or suggestions for improvement. Please email me at [email protected] or [email protected], or contact John Wiley & Sons, who will forward any correspondence to me. I will promptly reply to any emails or letters I receive.

Finally, I’d like to wish you every success in your share investing, and I trust that this book will guide you in this direction.

Roger Kinsky

Woollamia, NSW

May 2010

Acknowledgements

I would like to thank CommSec for giving permission to reproduce charts and web pages included in this book.

Chapter 1: Introduction to shares

In this chapter I’ll outline the basic purpose of this book and also discuss some fundamental share investing principles and factors affecting the sharemarket, to lay the groundwork for the chapters that follow.

The scope of this book

If you’d like to invest successfully in shares without relying on the expertise of others and you don’t want to spend lots of time on research or management of a share portfolio, then this book is for you. My aim is to show you how you can make a success of share investing in the simplest and least time-consuming way possible.

In this book I’ll discuss investing in Australian shares only. I won’t consider exchange-traded options, CFDs, forex, futures and suchlike, as they’re strictly for high-risk investors who are prepared to spend a great deal of time and effort on trading and research. I won’t discuss managed funds because they’re controlled by others and there are management fees involved. Global shares require a high level of expertise and involve additional risk, so they’re also excluded.