Preface
to this Edition
Preface
to the First Edition
1.
Buy and Hold?
Gains and Compound Gains
Buy and Hold for a Long Term
Multiple Transactions Over a Long Term
Compounding Small Gains into Large Profits
From the Theoretical to the Actual
2.
The Nature of Share Price Movement
Introduction
Are Share Prices Random?
3.
Trends in Share Prices
The Shortest Possible Trend
Trends are Cyclical
The Real World
Chart Patterns and Cycles
4.
Isolating Trends from Complex Movements
Calculating a Moving Average
The Effect of Different Averages
Average Differences
Computer Methods of Trend Isolation
Graphical Methods of Analysing Complex Data:
Channel Analysis
5.
Predicting Future Movement
Determining the Current Position of the Cycles by Computation
Predicting the Future Position of the Cycles by
Computation
Determining the Current Position of the Cycles
Graphically
6.
The Cycles Present in Share Price Data
An Analysis of the Redland Share Price
Applying Channel Analysis to the Buying and
Selling of BAA Shares
The Advantage of Daily Data
7.
The Relationship between Moving Averages and Channels
Averages as Templates for Channels
Computing Channel Depths
Multiple Averages
8.
Turning Points in Share Prices
Scatter of Points Within a Channel
Gently Curved Channels
Sharp Turning Points
Probability Methods
9.
Maintaining a Pool of Shares
10.
Staying Disciplined
Capital Must be Preserved at All Costs
Never Act Solely on Advice
Never Put More Than One-Eighth of Your Capital in One Share
Do not Predict too Far Ahead
Do not Anticipate Share Price Turning Points
Protect Profits by Stop Losses
Protect Against Losses by Stop Losses
Stay With Top Shares
Ignore Dividends
Keep Track of the Market
Appendix
Index