Index

abandoning strategy, emotions, 41

American Association of Professional Technical Analysts (AAPTA), The, 110

annual reports, 71

antivirus programme, 67–68

attitude, mental, 77–78

averages, moving, 112

backup system, 68

bond cycle, 20, 21–22

bonds, 54

bulls and growth sectors, 4–5

Business Consultants International (BCI), 148

business cycle, 17–18

business plan, trading, 81–83

“BUY Equities,” 18

capital flows, 88–89

cash cycle, 19, 21

cash flow per share, 33

“cash phase,” 17

cash reserves, 41, 54

charting, 110

charts, 13, 72

China, 7

coincident economic indicators, 27

competition, 94

complexity, 95

computer, trading, 65–67

information database, 69–71

system protection, 67–68

consensus, 91–92

consolidation/correction, 16

consumer confidence index, 27

consumer price index (CPI), 26

corporate forecasts, 91

cost averaging, 41

cyclical trough, 17

day trading, 118. See also trading; specific trading

basics, 126–128

insights, 130–137

knowledge and expertise, 123

profitability, 122

regions, 121–122

risk, 119–120

rooms, 124–125

savings, 120–121

taxes, 125–126

deceit, 28

decision-making process

diversify, 53–55

getting expert, 49–50

long-term objectives, 52

risk tolerance, 52

setting goals, 47–49

timeframe, 50–51

declining population, 4

directors, interviews of, 73

disaster, technical analysis, 104

discipline and work ethic, 130–131

discounts, 148–149

diversification, 41–42, 53–54

earnings, 16

earnings driven, equity cycle, 21

earnings growth (EPS), 38

earnings per share, 3, 93

economic data, technical analysis, 104

economic forecasts, 91

economic growth, 87–88

economics and trading strategies, 92–93

economic statistics, 24–27

economy, 151

electronic communication networks (ECNs), 118

emerging markets, 23, 24

environmental factors, 3–4

environmental variables, 7–9

equity cycle, 19, 20–21

eurozone and its aging population, 4

experience and skill, 132–133

exporting goods, 90

fair and realistic price earnings, 149

firewall, 68

fiscal policy, 91

floor-based trading, 59

flow of funds, 88

flows and balances, 90

forex market, 28

free cash flow, 33

fundamental analysis, 97–98

advantages, 108–109

technical analysis vs., 102–104

fundamental variables

capital flows, 88–89

consensus, 91–92

economic growth, 87–88

flows and balances, 90

interest rates, 89–90

monetary and fiscal policies, 91

global indices, 6–7

goals, 132

graphs, 72

gross domestic product (GDP), 26

gross value, 147–148

discounting, 149–150

hesitate, 136

higher risk, 42

historical data, 72

human error, 27–28

ignorance, 95

imperfection, 94

importing goods, 90

index of leading indicators, 26

industry cash flow, 149–150

inequality, 94

interest rate driven, equity cycle, 20–21

interest rates, 5, 16, 28–29, 89–90

International Federation of Technical Analysts (IFTA), The, 110

internet access, 67

Internet Service Provider (ISP), 124

intraday, 110, 118

investment, 38

investment cycle, 15–17, 18–20

investment, emotions, 41

investment process, 43

IPO valuation methodology, 147–150

knowledge and expertise, 123

lagging and coincident economic indicators, 27

leading indicator, 12, 21, 27, 98

length, economic cycle, 18

limit order, 45

liquidity and tradability, 150

long-term objectives, 52

MACD, 12

macro-economics, 87

macro research, 57–58

market fever, emotions, 41

market order, 45

markets

emerging, 23, 24

trend, 29, 72–73

Market Technicians Association (MTA), The, 110

media websites, 59–60

mental attitude, 77–78

micro-economics, 87

micro research, 57, 58

misery index, 26

monetary policy, 91

money, shifting, 5–6

moving averages, 11, 84, 112

MSCI, 6

net asset/book value, 34–35

novice traders, 111, 112–114

online magazines, 60

online trading, 63–65

overtrading, 78–79

panic, emotions, 40

paper trading, 120

part time, 118–119

patient, being, 42

peak, 17

PEG ratio, 32

personal trading behavior, 139

PESTEL analysis, 146–147

political events, technical analysis, 104

political interference, 6

population, declining, 4

Porter’s five forces model, 146

portfolios, 41, 43, 44

price-to-book ratio (P:B), 31

price to earnings (P:E) ratio, 32, 34

PricewaterhouseCoopers analysis, 6

prime rate, 89

profitability, trading, 122

ratio analysis, 145–146

real gross domestic product, 26

realistic expectations, 42

regions, trading, 121–122

reinvestment, emotions, 42

relative performance, 113

Relative Strength Index (RSI), 12

research methodology, 57–58

resistance lines, 99

risk-reward relationship, 53

risk tolerance, 52

routine, 83–84

sampling error, 27

scarcity, 94

search engine, 58

sentiments, 135–136

share price, 3

shares, 54

software, trading, 125

speculators, 139

Standard & Poor’s 500, 25

statistics, 24–30

stockbroking, 137

stock correction, equity cycle, 21

stock market indices, 25

stock markets, 135

interest rates, 28–29

variables affecting, 3–4

stocks

buying, 45

money, 119

monitoring shares, 46

researching, 44–45

selling, 46

stock strategies

identifying, 44

investment process, 43

selection, 43–44

stock value

cash flow per share, 33

dividend yield, 33–34

free cash flow, 33

P:B ratio, 31

PEG ratio, 32

P:E ratio, 32

stop order, 45

strategic plan, 118

subjectivity, 94

support and resistance, 112

support lines, 99

swing trading, 119

taxes, trading, 125–126

technical analysis, 98–99, 101–105

advantages, 109–110

vs. fundamental analysis, 102–104

terrorism, technical analysis, 105

third-world markets, 6

time horizon, 51

trade balance, 90

trader, 131–132

trading. See also trading; specific trading

charting, 13

diversification, 45–55

emotions, 40–43

environmental variables, 7–9

equipment, 65–67

global markets, 12, 13

intelligence vs. success, 13–14

mandate, 64–65

mental attitude, 77–78

online, 63–65

overtrading, 78–79

principles and rules, 38

researching stocks, 44–45

rules, 38–39, 139–140

stock strategies, 43–44

tests, 152–155

truths of investing, 40

trading business plan, 81–83

trading plan, 84–86

trading rooms, 124–125

trading websites, 60

trend line, 112

triggers, technical, 12, 98–99, 101–105, 109–111

unemployment rate, 25

uninterruptible power supply (UPS), 68

U.S. dollar, 5

U.S. Patriot Act, 121–122

valuation, 31–35, 147–150

volume and momentum, 112–113

war, technical analysis, 105

web address, 58