Building Wealth in the Stock Market A Proven Investment Plan for Finding the Best Stocks and Managing Risk

by Nicholson, Colin; Elder, Alexander

• ISBN13: 9781742169309
• ISBN10: 1742169309
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-06-15
• Publisher: Wiley

Summary

Building Wealth in the Stock Market provides a complete model for investing successfully and safely in bull and bear markets. Experienced investor and teacher Colin Nicholson shares with readers his very own investment plan - one that has been honed over 40 years and that has seen him consistently beat the market and his target rate of return. Everything in Nicholson's investing method is fully disclosed simply and with a minimum of market jargon. The central idea is how to manage risk in order to grow capital and secure a stream of dividends. The various risks to be managed are explained, along with strategies for managing them. Aspects also covered include: how to improve your decision-making skills, modelled on the way the best investors think what is needed to succeed and why having an investment plan is crucial for success how to select stocks, using charting and fundamental ratios in combination to achieve a margin of safety how to manage your portfolio - when to buy, how to build a position, when to cut losses and when to take profits.The methods are brought to life through case studies based on real investments and the sharing of insights gained from years of experience and research. This book will change the way you think about the stock market forever.

Author Biography

Colin Nicholson has been investing
on the stock market since the
late 1960s. He has taught both
fundamental analysis and technical
analysis at a post-graduate level,
both as a writer and sought-after
speaker. Over the last two decades,
he has written weekly columns in
The Australian Financial Review
and BRW magazine, and written
regularly for AFR Smart Investor
magazine, Shares magazine,
the Shares Charting Guide and
the ATAA Journal. He is totally
independent and does not sell
anything other than his writing
and teaching.

Table of Contents

Acknowledgements	p. vii
About the author	p. ix
Important notice	p. xi
Foreword	p. xiii
Introduction	p. xv
Setting the scene	p. 1
Winners think differently	p. 11
What is required to succeed as an investor?	p. 29
Roadmap of my investment plan	p. 37
Asset class and performance target	p. 39
My simple big idea	p. 51
The risk to be managed	p. 55
Managing market risk	p. 61
Managing specific risk	p. 105
Managing financial and liquidity risks	p. 113
Selecting stocks to buy	p. 129
Managing investments	p. 187
Executive summary of my investment plan	p. 221
Case studies	p. 227
Conclusion	p. 309
Insight Trader chart format	p. 311
Semi-log or linear charts?	p. 313
Further reading	p. 317
Index	p. 323
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