The Neatest Little Guide to Stock Market Investing

Why Stocks Are Good Investments
	Stocks Allow You to Own Successful Companies
	Stocks Have Been the Best Investments over Time
How Stocks Trade
Preferred Stock vs. Common Stock
How You Make Money Owning Stocks
	Through Capital Appreciation
	Through Dividends
	Total Return
	All About Stock Splits
Why and How a Company Sells Stock
	Selling Stock Is a Great Way to Raise Money
	Going Public Raises Even More Money
		New York Stock Exchange (NYSE)
		National Association of Securities Dealers Automated Quotations System (NASDAQ or OTC)
		NYSE Alternext US
	Working with an Investment Banker
	Making a Secondary Offering
What People Mean by “The Market”
How to Choose a Broker to Buy Stocks
	Two Types of Brokerage Firms
		Full-Service Brokerage Firms
		Discount Brokerage Firms
	The Case for Discounters
		Technology Has Made Full-Service Brokers Obsolete
		You Need to Double-Check Full-Service Information
		You Should Monitor Your Own Investments
How to Evaluate Stocks
	Growth Investing vs. Value Investing
		Growth Investing
		Value Investing
		Combining Growth and Value
	Fundamental Analysis vs. Technical Analysis
		Fundamental Analysis
		Technical Analysis
	Some Fundamental Stock Measurements
		Cash Flow per Share
		Current Ratio
		Dividend Yield
		Earnings per Share (EPS)
		Net Profit Margin
		Price/Book Ratio
		Price/Earnings Ratio (P/E or Multiple)
		Price/Sales Ratio (P/S or PSR)
		Quick Ratio
		Return on Equity (ROE)
	Some Technical Stock Measurements
		SMA
		MACD
		Relative Strength Index
		Relative Price Strength
		Volume
	How to Read the Stock Pages
Three Stock Classifications You Should Know
	Company Size
	Industry Classification
	Growth or Value
Meet the Masters
Benjamin Graham
	Market Fluctuation and Emotion
	Stock Valuations
	Margin of Safety
	What You Should Retain from Graham
Philip Fisher
	Characteristics of Superior Companies
	Characteristics of Superior Investors
	What You Should Retain from Fisher
Warren Buffett
	The Stock Market
	Buying Quality Companies at Bargain Prices
		Attributes of a Quality Company
		Determining a Bargain Price
	Managing Investments
	What You Should Retain from Buffett
Peter Lynch
	Use What You Already Know
	Know Your Companies
		Categorize Your Companies
		Components of a Perfect Company
	Know Why to Buy
	What You Should Retain from Lynch
William O’Neil
	Use the CAN SLIM System to Find Growth Stocks
		C: Current quarterly earnings per share should be accelerating
		A: Annual earnings per share should be accelerating
		N: New something or other should be driving the stock to new highs
		S: Supply of stock should be small and demand should be high
		L: Leaders in an industry should be your target
		I: Institutional sponsorship should be moderate
		M: Market direction should be upward
	Ignore Valuation
	Managing a Portfolio
		Automate Buying and Selling
		Focus, Make Gradual Moves, and Track Your Winners
	What You Should Retain from O’Neil
Bill Miller
	Redefine Value by Looking Ahead
	Future Free Cash Flow on Sale
	Do What Is Unpopular
		A True Contrarian
		Behavioral Finance
	Money Management
	Thoughts on the 2008 Recession
	What You Should Retain from Miller
Where the Masters Agree
	Automate Your Strategy with Proven Criteria
		Look for Strong Income Statements and Balance Sheets
		Look for Insider Stock Ownership and Company Buybacks
		Compare Stocks to a Proven Profile
	Conduct Thorough Research
	Know Why to Buy
	Buy at a Price Below the Company’s Potential
	Keep or Buy More of What’s Working
	Take Advantage of Price Dips
	What You Should Retain from This Section
Testing Popular Measurements
	The Best Value Measures
		Price/Sales
		Dividend Yield
	The Best Growth Measure—Relative Price Strength
Combining the Measurements
	Ideal Value Strategy
	Ideal Growth Strategy
	Combining the Strategies
What You Should Retain from History’s Lessons
Value Averaging for Steady Growth
A Short, Sweet Look at the Dow
The Dow Dividend Strategies
	Using Dividend Yield to Find Bargains
	How to Invest in High-Yield Dow Stocks
	Performance
Doubling the Dow
	Pros and Cons of Leverage
	Three Ways to Leverage the Dow
Maximum Midcap
The Downside
Limiting the Downside with Charts
	Simple Moving Average
	MACD
	RSI
	Using Them Together
	Stay Put Most of the Time
What to Expect
Choose a Discount Broker
	E*Trade
	Fidelity
	Firstrade
	Schwab
	Scottrade
	TD Ameritrade
	TradeKing
	Super Discounters
Place Orders
	Bid, Ask, and Spread
	Orders
		Market
		Limit
		Stop
		Trailing Stop
Personal Experience
The Investment Grapevine
Publications
	Magazines
		SmartMoney
		Kiplinger’s
		The Week
	Newspapers
		The Wall Street Journal
		Investor’s Business Daily
		SmartSelect Composite Rating
		Earnings per Share Rating
		Relative Price Strength Rating
		Industry Group Relative Price Strength Rating
		Sales + Profit + ROE Rating
		Accumulation/Distribution Rating
		Volume Percent Change
	Newsletters
		Dick Davis Digest
		Grant’s Interest Rate Observer
		The Kelly Letter
		Morningstar StockInvestor
		The Outlook Online
		Outstanding Investor Digest
	Value Line
		The Parts of a Value Line Page
			1. The Rankings
			2. Price Projections and Insider Decisions
			3. P/E Ratio and Dividend Yield
			4. Price History Chart
			5. Historical Financial Measurements
			6. Capital Structure
			7. Current Position
			8. Annual Rates
			9. Quarterly Financials
			10. Business
			11. Analysis
		The January 2009 Value Line Profile
		Where to Find Value Line
		Limited Coverage in Value Line
Companies Themselves
	Request an Investor Packet
	Read the Investor Packet
		Annual Report
		Balance Sheet
		Assets
		Liabilities
		Stockholders’ Equity
		Income Statement
		10-K and 10-Q
Stock Screeners
	Yahoo! Finance Stock Screener
	Morningstar Stock Screener
	MSN Money Screener and StockScouter
The Internet
	Investment Sites
		Barron’s Online
		Bigcharts
		Briefing.com
		BusinessWeek
		ClearStation
		Google Finance
		Jason Kelly
		MarketWatch
		Morningstar
		Motley Fool
		RGE Monitor
		Seeking Alpha
		SmartMoney
		StockCharts.com
		TheStreet.com
		Yahoo! Finance
	Other Sites
Build a Core Portfolio
Maintain Your Stocks to Watch Worksheet
Gather the Worksheet Criteria
	Track Your List
		Compare Competitors
		Ask Why
		Store Company Information in Folders
		Keep the Information Current
Use Your Reasons and Limits Worksheet
	Discerning Growth from Value
	How to Use the Reasons and Limits Worksheet
		Growth or Value
		Company Strengths
		Company Challenges
		Why to Buy
		Why to Sell
Buy Your Stocks
	Choose a Market or Limit Order
	Make Gradual Purchases
	Buy That Baby!
When the Market’s Up, Down, and All Around
	Be Skeptical of Gurus
	You Knew This Was Coming, So Why Worry?
	Review Your Reasons and Limits
	Reverse Your Emotions
	After the Crash of 2008
Sell Your Stocks
	Ignore Rumors and Popular Opinion
	Rely on Your Reasons and Limits
	Review Your Stocks to Watch
	Watch the Chart
	Choose an Order Type
	Make Gradual Sells
	Sell That Baby!
Track Your Performance
	Portfolio Profits, Losses, and Commissions
	The Fearsome Foursome
		Good Buy Points
		Good Sell Points
		How to Improve Your Buy and Sell Points
Chapter 1: Speak the Language of Stocks
Chapter 2: How the Masters Tell Us to Invest
Chapter 3: How History Tells Us to Invest
Chapter 4: Permanent Portfolios
Chapter 5: Get Ready to Invest
Chapter 6: Research to Riches
Chapter 7: This Book’s Strategy
Chapter 8: Bon Voyage