Shopping for Shares E-Book

Tracey Edwards

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

Seitenzahl: 266

Veröffentlichungsjahr: 2011

Beschreibung

Have you ever thought about investing in the stock market but weren't sure where to start or what to buy? Share investing is easier than you think! Women are becoming increasingly financially savvy. They want to improve their financial future and are looking to the stock market to help them achieve their goals. Tracey Edwards is one of these savvy investors. In this completely revised edition of the best-selling Shopping for Shares, she let you in on her investing secrets and step-by-step plan for researching and selecting the right companies at the right time so that you too can profit from the stock market. Written in a no-nonsense, conversational style Shopping for Shares will show you: * how much money you need to start investing--it's less than you think * the psychology of making your first trade--it doesn't have to be scary * 'rules' for trading in the short term or investing for the long term * the best times to buy and sell * what you should do when the market takes a downward turn * how you can still invest if you don't have a lot of time--a.k.a. the 'lazy girl's guide to investing'.

Leseprobe

SHOPPING FOR SHARES: THE EVERYDAY WOMAN'S GUIDE TO PROFITING FROM THE STOCK MARKET, SECOND EDITION

Table of Contents

Chapter 1: Why the Stock Market?

So what’s new in this updated edition?

Is it easy to start investing?

Can anyone invest in the market?

It’s not as risky as you think

Living with market crashes

Now for the good news

Why is this book just for women?

Women make better investors than men!

Women are ready to invest

Chapter 2: How do I start?

How much money do I need?

Budgeting can be easy and pain-free

Relationship budgeting

Budget worksheet

Saving for your first parcel of shares

It’s going to take me too long to save up — I can’t be bothered

Tips for earning extra income

Benefits of buying shares over time — cost price averaging

Example 1: shares bought after saving the full $5000

Example 2: shares bought using dollar cost averaging

Example 1: shares bought after saving the full $5000

Example 2: shares bought using dollar cost averaging

Finding a broker

Types of broker

Full-service brokers

Discount brokers

Online brokers

Which broker is right for you?

What equipment do I need?

Do I have to be online to invest?

Chapter 3: Are you a long-term or short-term girl?

Finding your investment style

The main differences between long- and short-term investing

Long-term investment style

Short-term investment style

Long-term versus short-term investing

Which method will make more money?

Chapter 4: Investing for the long term

Invest like the best

Time for some fundamental analysis

The rules of long-term investment

Rule 1: choose the market leaders

Rule 2: keep debt down

Rule 3: return on equity of at least 15 per cent

Rule 4: five-year share return of at least 15 per cent per annum

Rule 5: nice and stable wins the race

Rule 6: the price you pay

Dividends

Franked / fully franked

Share-price behaviour for dividends

Buying for income — listed property trusts and other high-yield companies

Chapter 5: Investing for the short term

Trading can be fun

What is technical analysis?

Reading charts and following trends

Drawing a trendline — where is the share going?

Moving averages — simple or exponential?

The rules of short-term investment

Example

Rule 1: look at the outperforming sectors

Rule 2: top stocks in that sector

Rule 3: look for an uptrend

Rule 4: choose the most consistent companies

Rule 5: set your sell price

Example

Example

Dividend strategies

Example

Example

Takeovers

Strategy for takeover bids

Chapter 6: Taking the first step

Should I paper trade first?

How it feels — the joy of making your first investment

What to expect when you place your first trade

Example

What’s a realistic profit?

Chapter 7: Yay! My shares went up!

Choosing when to take a profit

If you bought using long-term investment rules

Selling because you need the money

Example 1 — holding for the entire five years

Example 2 — withdrawing $500 at the end of years 1 and 2

Selling because the company’s financials have changed

If you bought using short-term rules

Selling because your share hit your profit sell price

Selling because even though the price has increased you don’t think it will hit your profit sell price

Example

Selling because the chart is looking bearish or the company has released a negative announcement

Reasons to continue holding short-term investments

The stock hasn’t reached the profit sell price and the time limit isn’t up

The stock reaches my profit sell price within a fortnight of purchase

Greed versus panic — waiting too long or selling too early

Chapter 8: Help! My shares went down!

Don’t-panic strategies

Strategy 1: look at the bigger picture

Strategy 2a: setting a stop loss

Strategy 2b: setting a trailing stop loss

Example

Strategy 3: cashing out in a bear market

Strategy 4: diversification

Strategy 5: investing in managed funds

Chapter 9: Borrowing to invest

Should I take out a margin loan?

The difference it could make to your bottom line

Example

How do I get a margin loan?

How much should I borrow?

Using the equity in your home

Example

Chapter 10: Options, warrants and futures

Keeping your options open

Call option

Example: purchasing one contract of BHPZ88

Example: profit if you exercise the option

Example: profit if you close out the option

Put option

Writing options

Writing call options

Writing put options

Multiply your results with warrants and futures

Chapter 11: Further study

Investment books

Classes and courses

The internet

Investment clubs

Chapter 12: FAQs

Example

Example

First published in 2006 by Wrightbooksan imprint of John Wiley & Sons Australia, Ltd 42 McDougall St, Milton Qld 4064

Office also in Melbourne

Typeset in Bembo Regular 11.5/15.5

© Tracey Edwards 2006, 2011

The moral rights of the author have been asserted

National Library of Australia Cataloguing-in-Publication data:

Author: Edwards, Tracey.

Title: Shopping for shares: the everyday woman’s guide to profiting from the Australian stock market / Tracey Edwards.

Edition: 2nd ed.

ISBN: 9780730375043 (pbk.)

Notes: Includes index.

Subjects: Women--Australia--Finance, Personal.

Stocks--Australia.

Investments--Australia.

Stock exchanges--Australia.

Dewey Number: 332.6322082

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 and images by saso content & design

Figures 10.1, 10.2 and 10.3 on pages 179, 182 and 186: ©ASX Limited ABN 98 008 624 691 (ASX) 2011. All rights reserved. This material is reproduced with the permission of ASX. This material should not be reproduced, stored in a retrieval system or transmitted in any form whether in whole or in part without the prior written permission of ASX.

Printed in China by Printplus Limited

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Disclaimer

The material in this publication is of the nature of general comment only, and neither purports nor intends to be advice. Readers should not act on the basis of any matter in this publication without considering (and if appropriate, taking) professional advice with due regard to their own particular circumstances. The author and publisher expressly disclaim all and any liability to any person, whether a purchaser of this publication or not, in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance, whether whole or partial, upon the whole or any part of the contents of this publication.

About the author

Tracey Edwards is your everyday Australian woman with a passion for the stock market. In just five years she went from having zero savings to having enough money to give up her boring 9-to-5 office job. She lives with her partner, Rodney, and two children in Sydney’s northern suburbs in their second home.

Tracey created a set of ‘investing rules’ that proved extremely profitable and successful for her — easy, step-by-step rules for investing in both the long- and short-term markets that anyone can follow. A holder of an arts/journalism degree, Tracey has written articles for high-profile magazines such as Bride to Be, and many articles on finance and budgeting for couples. She has used her writing and investing skills to write two bestselling books and many articles to help teach other Australian women how to confidently invest in the stock market.

When I first started thinking about changing my financial future for the better, the stock market wasn’t the first thing I thought about — after all, I’d heard all the horror stories of people losing their entire life savings, and all that number crunching seemed a bit overwhelming. Even though I was pretty good at maths in high school, I remember very little of what I was taught then (has anyone ever needed to use an obtuse angle in their everyday lives since?). Anyway, wasn’t it only rich old men with Porsches who invested in shares?

This was also about the time when numerous home-renovating shows started appearing on television, and it seemed that a bit of a paint job and a few strategically placed plants was making some people a lot of money. I seriously considered this as the money-making venture I wanted to pursue. In reality, though, I didn’t have $50 to spend on a tin of paint, let alone a few thousand dollars (plus) for a deposit on a run-down shack that needed fixing up, so I abandoned my idea of becoming the home-reno queen and started looking around at other ideas. Saving and putting my money in term deposits and high-interest accounts sounded safe enough but — yawn — how boring does that sound! I was sure there had to be an easier way of investing for someone who didn’t have a ton of money to start with.