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Getting Started in Stock Analysis, Illustrated Edition: (Getting Started In...)

Getting Started in Stock Analysis, Illustrated Edition: (Getting Started In...)

          
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About the Book

Robust analysis shows a more complete picture of market behavior Getting Started in Stock Analysis is an exciting visual guide to both technical and fundamental analysis for the private investor. Rather than addressing the benefits of fundamental or technical analysis, author and trader Michael C. Thomsett draws upon three decades' experience in the stock market to demonstrate why traders need to employ both. Readers will learn how both methods are different aspects of the same cause and effect within the market, and how exploiting one method at the expense of the other results in an incomplete picture of the true market behavior. Coverage includes a full explanation of the range of indicators necessary to create a working system of analysis that anyone can perform on their own, helping long- and short-term investors alike improve selection and confirm investment decisions. Charts of actual listed companies demonstrate how these techniques are applied in a real trading environment. Investors and traders are constantly seeking the "magic bullet" for identifying profitable trades and timing both entry and exit. Since the 1940s, the average holding period has fallen from eight years to eight weeks – making fundamental and technical analysis more challenging. This book describes how combining these approaches can compensate for the modern market environment to produce a more accurate – and profitable – analysis. Choose better stocks and other securities Improve entry and exit while managing risk Develop more robust analysis skills Blend fundamental and technical analysis techniques The reduced cost of trading, ease of access via the Internet, and changes in the overall culture of the stock market have increased the pace and volume of trading more than ever before. In this environment, sharp analysis becomes ever more critical. Getting Started in Stock Analysis is the visual guide to more confident investing.

Table of Contents:
Acknowledgments ix Element Key xi Introduction xiii Part I Fundamental Analysis Chapter 1: Financial Statements in Overview 3 The GAAP System 5 Auditing of the Books: Purpose and Process 7 Stockholder Reliance on the Audit 11 Methods of Hiding or Distorting Data 12 The Regulatory Environment 16 Types of Financial Statements 20 Annual Reports 21 Analysis: The Importance of Trends 23 Simplifying the Financial Statement 26 Chapter 2: How Reliable Are the Financial Reports? 31 Publicly Traded Company Reporting 31 The Need for Financial Reporting 33 The Value and Purpose of Fundamental Analysis 35 Long-Term Trends and Ratios 38 Fundamental Risks 41 Contrarian Investing from a Fundamental Perspective 47 Is Buy and Hold Dead? 49 Chapter 3: Balance Sheet Ratios—Testing Working Capital 57 The Balance Sheet in Review 58 Flaws in the Balance Sheet 60 The Importance of Footnotes 63 The Key Balance Sheet Ratios 65 Chapter 4: Income Statement Ratios—Trends and Profits 73 The Income Statement in Review 74 Flaws in the Income Statement 78 The Importance of Footnotes and Management’s Commentary 82 The Key Income Statement Ratios 84 Chapter 5: Five Key Trends Every Investor Needs 93 Trend #1: The Price/Earnings Ratio (P/E) 96 Trend #2: Dividend Yield and Trend #3: Dividend History 100 Trend #4: Revenue and Earnings 106 Trend #5: Debt Ratio 111 Chapter 6: The Annual Report and What It Reveals 121 Sections of the Annual Report 124 The Annual Report as a Marketing Document 130 How to Use the Annual Report 131 Chapter 7: Fundamentals Not on the Statement 137 Dividend Yield, Payout Ratio, and History 138 Market Cap 147 Contingent Liabilities and Other Liabilities 150 Market Value of Long-Term Assets 151 Insider Trading 153 The Value of Good Management 154 Part II Technical Analysis Chapter 8: Theories and What They Mean 161 The Dow Theory 162 Efficient Market Hypothesis (EMH) 171 Random Walk Hypothesis (RWH) 176 Other Theories 178 Chapter 9: Charting and Its Value 185 Types of Charts 186 Scaling of Chart Values 191 Candlestick Basics 194 Single-Session Indicators 196 Two-Session Indicators 201 Three-Session Indicators 206 Reversal and Continuation 212 Chapter 10: Trends and How to Study Them 217 Trends as Indicators of Risk 219 Trendlines 222 Channel Lines 224 Triangles and Wedges 227 Chapter 11: Moving Averages and Their Value 237 Simple and Exponential Averages 238 Duration of the Moving Average (MA) 241 Double Crossover between MA Lines 242 Price Crossover Signals 245 Support and Resistance and MA Trends 248 Bollinger Bands for Short-Term Trend Monitoring 250 Chapter 12: Price Indicators 257 Support and Resistance 258 Double Tops and Bottoms 264 Head and Shoulders 266 Flags and Pennants 269 Chapter 13: Volume Indicators 275 Accumulation/Distribution (A/D) 275 Chaikin Money Flow (CMF) 279 Money Flow Index (MFI) 283 On-Balance Volume (OBV) 285 Chapter 14: Momentum Oscillators 293 The Nature of Momentum 294 Relative Strength Index (RSI) 298 Moving Average Convergence Divergence (MACD) 302 Stochastic Oscillator 306 Chapter 15: Confirmation, the Key to Timing 315 What Confirmation Is Not 316 Proximity and Strength of the Signal 317 Setting Rules for Yourself 321 Glossary 329 About the Author 349 Index 351


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Product Details
  • ISBN-13: 9781118937860
  • Publisher: John Wiley & Sons Inc
  • Publisher Imprint: John Wiley & Sons Inc
  • Depth: 32
  • Height: 254 mm
  • No of Pages: 256
  • Series Title: Getting Started In...
  • Weight: 653 gr
  • ISBN-10: 1118937864
  • Publisher Date: 10 Mar 2015
  • Binding: Paperback
  • Edition: ILL
  • Language: English
  • Returnable: Y
  • Spine Width: 27 mm
  • Width: 178 mm


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