Using Sectors to Uncover Opportunities Tom Scollon 14 Apr, 2003 XAO, XZL, XYN, XIJ, XMD, XYP, XYA, XYB, XSJ, XSO, XYC. Gobligook? Not really – just takes a little understanding.
Sorry Mum, I Sold the Shares Tom Scollon 7 Apr, 2003 Well, what a run the market has had over the last two weeks and so you could be forgiven if you were caught off guard.
Billabong: Riding the Waves of Success by Dale Gilham Part 2 7 Feb, 2003 In Part One of this article we used Dow Theory of higher peaks and higher troughs to trade this stock from its initial float. Using simple analysis methods and applying these to practical examples will assist you to reinforce various trading techniques and enable you to trade more profitably in the future. What follows is a discussion on the application of Elliott Wave Theory, using it as a guide to highlight how this type of pattern analysis can help reduce risk and provide some indication of where a stock is heading. We will also discuss some interesting characteristics about the stock.
Back To Basics: Thinking Horizontally by Frederic Ruffy of Optionetics 7 Feb, 2003 Investors often experience a progression from the stock market to the world of Options Trading. In addition, as investors become savvier, the appeal of options increases, but the perceived complexity of these instruments diminishes. Sooner or later, traders realise that options hold various advantages over stocks—their ability to structure different types of risk-rewards, the ability to take relatively small amounts of capital to control a much larger amount of capital (a.k.a. leverage), and the ability to trade for profits regardless of market direction. However, although many stock market investors begin to appreciate the flexibility and advantages of options, many also take along with them a bias regarding the stock market. Specifically, there is a tendency for traders to think in terms of market direction: i.e. will this stock or market move higher or lower? But often times, a stock or index will move sideways for a prolonged period of time. In that case, strategies that depend on direction will not yield optimal results and the better approach will require some horizontal thinking.
Growth of Value, or Value of Growth by Roger Montgomery 7 Feb, 2003 Are there really two schools of investment thought and practice: one we call "value" and another we call "growth"? Or are they only one in the same? Warren Buffett and Charlie Munger have touched on this question. I would like to explore it. When asked their investment philosophy, we have all seen money managers respond that they are "Growth Investors" or "Value Investors". And as a practical matter these two investment camps do exist, or least they prefer to distinguish themselves from one another. Of course such differentiation may be no more than a marketing tool. People love labels. We think that if we can place a label on a subject that we have somehow gained knowledge of it. How would a political campaign be run without the labels of liberal or conservative? Without such handles many people would not know who they think they should vote for. What are the differences between growth and value investing?