Getting Started in Stock Analysis

Illustrated Edition
1. Auflage 2015
ISBN: 978-1-118-93786-0
Verlag: John Wiley & Sons

Buch, Englisch, 384 Seiten, Format (B × H): 177 mm x 253 mm, Gewicht: 718 g

Reihe: The Getting Started In Series

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.

Autoren/Hrsg.

Thomsett, Michael C.

Inhaltsverzeichnis

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

Über Autor(innen)

MICHAEL C. THOMSETT has written more than 70 books on investing, real estate, business, and management. He is the author of the eight editions of the bestselling Getting Started in Options, as well as Getting Started in Fundamental Analysis, Getting Started in Real Estate Investing, and Getting Started in Swing Trading all from Wiley.