Jonbulls STOCK GUIDE
How To Invest Profitably In A Volatile Stock Market
JP OBIENUGH
Copyright 2010 JP Obienugh
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the written prior permission of the author.
The information, ideas, and suggestions in this book are not intended to render professional advice. Before following any suggestions contained in this book, you should consult your personal accountant or other financial advisor. Neither the author nor the publisher shall be liable or responsible for any loss or damage allegedly arising as a consequence of your use or application of any information or suggestions in this book.
Printed in Victoria, BC, Canada.
ISBN: 978-1-4269-2664-8 (sc)
ISBN: 978-1-4269-2737-9 (dj)
Library of Congress Control Number: 2010901723
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To my late mother, Catherine Chinyelu Obienugh
.. The race is not to the swift or the battle to the strong, nor does food
come to the wise or wealth to the brilliant or favour to the learned; but
time and chance happen to them all
Ecclesiastes 9:11 (NIV)
PREFACE
You are required to read this guidebook as if the author was writing to you, his protg. Feel free to accentuate any sentence that strikes you the most and underline words or phrases related to your peculiar circumstance as a beginner investor. Do not forget to memorise the selected quotations because they are wise sayings of those that have been in the stock market since the abolishment of the barter system of trade and they are still relevant up till this present time.
As you read, keep in mind that the authors personal encounters as an active investor in the stock market inspired this guidebook. Its instructions and guidelines are apt and timeless and were carefully researched and compiled in order to inspire and motivate you to take calculated actions devoid of the usual investment mistakes of amateurs.
This guidebook more than tells you how to invest profitably in a volatile stock marketwhich is any stock market operating in any sovereign geographic corner of our global villageit also serves as an invaluable reference material for all categories of investors who are exposed to the same risk factors worldwide. When confronted with reoccurring market dynamics which will always come and go, do not hesitate to refer to it from time to time. You will be surprised that the stock market really does repeat itself! Focus on the teachings that are most applicable to you and question or adapt them for your own profit!
Do not shoot through this guidebook in a matter of days but study it diligently as you would a sacred scroll and apply its teachings to your investment portfolio with the guidance of a certified and trusted investment professional. No matter what your investment goal is in the stock market, something in this book will surely be of service you. Guard it jealously.
To end with, those who were late to the last stock market boomwho still do not believe that real money moves and can easily be made out of thin air, well the after party is yet to come, holding in the stock market near you.
JP OBIENUGH
ACKNOWLEDGEMENTS
I would like to first of all, thank the Almighty God for his abundant grace and mercies in my life and then the following people:
Jules Merem, thank you for prompting this book. Nancy, I would not have completed the manuscript without your encouraging offline messages all the way from the Netherlands to Ohio. My kind gratitude also goes out to Oge Kalunta (MD) for providing me with a second opinion and Tochukwu Obidozie (Teekay) for always believingwithout an iota of doubt, in my innate abilities.
My warm appreciation goes further to my father, Chief C.C Obienugh Oyiri Gedegwum of Oduge and the Okputolokpu of Nnewi and I cannot end this without acknowledging my furry buddy and mans best friendToby, for keeping me company night after night, as I punched away on my Toshiba L300 laptop.
Special appreciation to my publishing consultant Cathy Babcock, my PSA Ashley Gooch and Greg Salazar, my marketing consultant Derek Flook and the rest of the Juniper Design Team for their flattering one-on-one author support. They truly made it possible for you to have this invaluable book in your very hands in good time.
John Paul Obienugh
MODULE STARTED
Chapter
Investment Planning
A Beginners Rules of Market Engagement
My Humble Beginning
Keys to Successful Investment Planning
Knowing Your Personal Finance
Benefits of Budgeting
Creating a Personal Budget
Strategising your Personal Budget
Investment Planning Checklist
Chapter vs. Investing
Should You Invest or Save?
Questions You Should First Ask Your Broker
Chapter Stock Market
What Drives the Stock Market?
Why do Companies List on the Exchange?
What is a Prospectus?
Other Methods of listing on the Stock Exchange
Different Types of Shares
Chapter the Stock Market Works
Understanding Stock Market Scenarios
Psychology of Investing
Stock Market Theories
Ben Grahams Mr. Market
The Investor or the Speculator
You are probably an investor if:
You are probably a speculator if:
Par Value Investing
Value Investing
Growth Investing
Income Investing
Chapter Market Bubble
How to Recognise a Market Bubble
Stock Market Crash
The Nigerian Experience
How to Identify a Recession
Chapter Stock Market Index
Weighting the Indices
Market Indices of the World
AEX
All Ordinaries Index
BSE
CAC
CASE
DAX
DJIA
FTSE
HSI
JSE
KOSPI
KSE Index
Kuala Lumpur Composite Index
NASDAQ Composite
Nikkei
NSE ASI
NYSE Composite Index
OMX Iceland
Russell 2000 Index
SMI
S&P/ASX
S&P
Reasons for Market Indices
Can a Market Index Drop to Zero?
Chapter Invest in Stocks?
Market Gains for Staying Invested in Stocks
Remember the Seven Easy Steps
Chapter in Investing
Risk Tolerance
Overcoming Your Fears of Investing in Shares
Chapter Myths
A Smart Investors Profile
Warren Buffetts Investing Style
Frequent Mistakes of Amateur Investors
Chapter Perception & Investor Confidence
Stock Moving Events (SMEs)
MODULE METRICS
Chapter Research
Stock Valuation Methods
What is the Price of the Entire Company?
