Preface

Introduction

Chapter 1: The Principles of Investment

Safety of Investment
Liquidity
Income Yield
Investor Categories
Kinds of Investments

Chapter 2: Shares for Investment

What is a Share?
Types of Shares

Chapter 3: Classification of Shares

Blue Chips
Widows Shares
Wishful Shares
In-Style Shares
Optimistic Shares
Low High Shares
Trading Shares
Sensitivity Shares

Chapter 4: Shares Are for Everyone

Chapter 5: Why Invest in Shares

Chapter 6: Personal Considerations for Investing in Shares

Chapter 7: Share Selection

Diversify Your Portfolio
Prefer Diversified Companies
Choose Blue Chips
The Bigger the Better
Buy Low Price Shares
History Repeats Itself
Acting against the Tide
Watch for Volumes
Volume and Price
Reverse Trend
Be Cautious of Smaller Companies
Be Wary of Closely Held or Family Controlled Companies
Do Not Invest in Unlisted Shares
Avoid Inactive Shares
Do Not Invest in Companies with a Poor Industrial
Relations Track Record
Avoid Vulnerable Companies
Cut Your Losses
Buy Low, Sell High
Investing in Sick Companies
Do Not React on Sudden Rises or Falls
Investing in Laggards

Chapter 8: How Shares are Bought and Sold

Chapter 9: Futures and Options

Futures
Options
Index
Index Futures
Index Options
Stock Futures
Stock Options
Monthly and Weekly Options

Chapter 10: Public Issues of Shares

Book Building
Difference between Book Building Issue and Fixed Price Issue
Factors to be Considered

Chapter 11: Other Ways of Acquiring Shares

Bonus Issues
Preferential Offers
Rights Offers
Private Placement
Others

Chapter 12: The Importance of Information

Media
Insiders
Stock Brokers
Tips from Colleagues, Friends and Acquaintances
Professional Investment Consultants
Internet
Company Annual Reports

Chapter 13: The Importance of a Companys Management

Chapter 14: Investing on Hot Tips

Chapter 15: Spotting Market Leaders

Great Product
Superior Performance
Capable and Honest Management
Monopoly
Cyclicality

Chapter 16: Evaluating Industry Risks

Chapter 17: Country Analysis

Chapter 18: The Best Time to Buy Shares

Chapter 19: The Right Time to Sell

Chapter 20: Long Term Investment

Chapter 21: Speculation

You Should Have Enough Money
Use Spare Cash for Speculation
Have Patience
Determine the Big Picture
Test Before Going All-Out
Dont Be in a Hurry
Follow Your Own Hunch, Not the Crowds
Dont Add to a Loss
Accept Losses
Take Prompt Action
Professionalise Deals
Taking Time off
Bulls Die, Too
Buying Shares at Historic Lows
Believing in Oneself
Learn from Errors
Dont Think About Tops and Bottoms
Reversing Positions
History Repeats Itself
Triangle Trading
Follow the Leader

Chapter 22: Prices and the Price Earnings (P/E) Ratio

Chapter 23: Random Theory

Chapter 24: The Value of Contrary Opinion

Chapter 25: Evergreen or Buy and Hold Strategy

Chapter 26: Fundamental Approach

Chapter 27: The Technical Approach

Chapter 28: Dow Theory: The Foundation of Technical Analysis

Chapter 29: Elliot Wave Theory

Chapter 30: Trend Analysis

Price Patterns

Chapter 31: Portfolio Management

Portfolio Size
Investment / Share Review
Set Targets
Shun Sentimentality
Stay Well Informed
Diversify Your Portfolio
Dont Fall in Love with Your Shares
Control Your Avarice
Cut Your Losses Fast
Book Your Profits

Chapter 32: Taxation

Bonus Shares
Stock Splits
Share Buybacks

Chapter 33: Annual Report

The Directors Report
The Auditors Report
Financial Statements
Schedules and Notes to the Accounts

Chapter 34: Ratio Analysis for Investment

Market Value Ratios
Earnings Ratio
Leverage or Gearing Ratios
Debt Service Capacity Ratios
Profitability Ratios
Liquidity Ratios
Asset Management and Efficiency Ratios
Limitations of Ratio Analysis

Conclusion
Quiz 1: What Kind of an Investor Are You?
Quiz 2: Have You Got the Right Shares
Stock Market Glossary