Empowered Investor: Manage Your Investments the Way the Professionals Do

by Harrison, Mark

• ISBN13: 9780273659433
• ISBN10: 027365943X
• Format: Paperback
• Copyright: 2002-12-01
• Publisher: Trans-Atlantic Pubns

Table of Contents

Preface	ix
Acknowledgements	xii
The information wheel	1	(26)
Jump onto the information wheel	4	(1)
The information chase	5	(2)
New information on the wheel	7	(2)
How can the individual private investor beat the professionals?	9	(1)
Individual private investors can beat the market	9	(2)
Buy companies forecasting growth	11	(2)
Buy small firms	13	(1)
Watch your ratios	14	(3)
Watch the pros	17	(3)
Timing effects	20	(1)
Buy on investment announcements	21	(1)
Beat the index trackers at their own game	21	(6)
The noise trading revolution	27	(18)
What is noise trading?	29	(2)
Internet bulletin boards: the noise trading revolution	31	(2)
Professionals vs. individual investors	33	(1)
Who gets the information first?	34	(1)
Know thyself	35	(3)
Frames -- it's the way you tell 'em	38	(1)
The way we find things out	39	(1)
The information wheel can turn	40	(2)
The individual investor advantage	42	(3)
Fundamental analysis	45	(26)
Picking a good stock	47	(1)
A qualitative decision	47	(1)
How can we detect a company's growth?	48	(2)
Yikes, numbers: ratio analysis	50	(3)
Hidden assets	53	(1)
Selecting stocks using P/E models	53	(1)
Shells and penny shares	54	(1)
Picking a good management	55	(1)
Big ideas: behavioural finance and mean reversion	56	(1)
Market timing	57	(3)
Picking a good industry	58	(2)
Looking at different industries	60	(3)
Detecting earnings quality	63	(2)
Corporate events: mergers, takeovers and IPOs	65	(6)
Technical analysis	71	(24)
What is technical analysis?	73	(2)
Let's start with the basics	75	(1)
Volume and the Dow Theory	76	(1)
Support and resistance levels	77	(1)
Breakouts and moving averages	78	(2)
Candlesticks	80	(1)
Point and figure charts	80	(1)
Easy patterns to detect	81	(1)
Triangles	82	(1)
Rectangles	83	(1)
Flags	83	(1)
Reversal trends: double tops and head and shoulders	83	(2)
Mathematical indicators	85	(1)
Relative strength indicators (RSI)	85	(1)
Rate of change (ROC) indicators of velocity	86	(1)
MACD	87	(1)
Bollinger bands	88	(1)
Fibonacci retracements	89	(1)
Elliott waves	90	(1)
Market indicators	91	(1)
Contrarian technical analysis rules	91	(1)
Breadth of market indicators	91	(1)
Kondratieff and Coppock	92	(1)
Buy and sell signals	92	(2)
Indicator tips	94	(1)
A more professional portfolio	95	(22)
Step 1: Your portfolio and your needs	97	(3)
Step 2: Pick a benchmark	100	(1)
Step 3: Understand risk vs. return	101	(1)
Step 4: Designing the portfolio universe	102	(4)
Step 5: Bonds vs. equities	106	(1)
Step 6: Combining shares	107	(10)
Winning online portfolios	117	(26)
Portfolio case studies	119	(1)
Case 1: A UK growth portfolio	119	(10)
Case 2: A UK value portfolio	129	(6)
Case 3: A UK income portfolio	135	(8)
Mastering your age	143	(24)
Samuel Jones Lloyd: a Victorian multimillionaire	145	(3)
John Maynard Keynes: playing the world markets after the crash	148	(4)
Jim Slater: figuring out the best stocks	152	(2)
Nils Taube: getting the big picture right	154	(3)
Warren Buffett	157	(6)
Peter Lynch	163	(4)
Crashes and bubbles	167	(24)
What is a bubble?	169	(1)
Tulipmania	170	(1)
The Mississippi bubble 1720	171	(2)
South Sea Company joint stock bubble 1720	173	(1)
Wall Street crash 1929	174	(4)
Monday 19 October 1987	178	(2)
The Japanese catastrophe	180	(2)
The internet bubble	182	(1)
The UK internet bubble	183	(3)
Anatomies of a price bubble	186	(5)
Doing your research	191	(24)
The information problem	193	(1)
Primary sources	194	(1)
Secondary sources	194	(2)
How to do research	196	(1)
Research case study 1: the housebuilding industry	196	(12)
Research case study 2: The Berkeley Group plc	208	(7)
Online resources survey	215	(14)
Selecting stocks	217	(1)
Broker research reports	217	(1)
UK broker rankings	218	(1)
Independent analysis	218	(1)
Other research sites	218	(1)
Stock screening tools	218	(1)
Helpful broker and fund manager sites	219	(1)
IPOs	220	(1)
Economic angle	220	(1)
Official resources	221	(1)
Technical analysis	222	(1)
Sectoral research resources	222	(1)
Pharmaceuticals and biotechnology	223	(1)
Property	223	(1)
Media	224	(1)
Chemicals, industrials and oils	224	(1)
Banks and financial services	224	(1)
Technology	225	(1)
Selecting other assets	225	(1)
Portfolio monitoring	226	(1)
Financial news	227	(1)
Newswires	228	(1)
UK data and market prices	228	(1)
Appendix: Voices from the bulletin boards	229	(11)
Tipsters	231	(2)
The bubble	233	(3)
Risk	236	(1)
Technical analysis	237	(1)
Shareholder democracy	238	(1)
At the height of the UK bubble: February 2000	238	(2)
Index	240