President – Alan Riddoch
Trading vs. Investing
Investing = LONG TERM
Trading = SHORT TERM
Famous Investor – Warren Buffet Warren Buffett – World’s Greatest
Investor
Famous Trader – George Soros
George Soros – “The Run on the Pound 1992”
Approaches to Investing
Fundamental Analysis of Companies
Buying either cheap companies (low P/E)
Buying companies that will grow (low PEG)
What can you trade?
Currencies Stocks Futures Bonds
Approaches to Trading
Macroeconomic events to influence decisions
Technical Analysis to find entry and exit points
Global events to influence decision making
Key Approaches to Trading
1. Constantly monitor the news2. Make a list of all the
macroeconomic events for the month
3. Trading Ideas4. Read up on the subject before you
even begin to start.
Constantly monitor the news
Events can influence share/commodity/forex prices.
Example? Tsunami and the Nikkei 225
Macroeconomic Events
3 Economic Powerhouses to influence your trading:1. USA2. China3. Eurozone
Macroeconomic Events
1. GDP2. Unemployment3. Interest Rates/QE4. PMI5. ISM (US)6. Non-farm Payrolls (US)
Economic Calendar http://www.dailyfx.com/calendar/
Trading Ideas
Create your own ideas. How will a hurricane in Florida affect
the price of oranges? How will a war between Israel and
Iran affect oil prices?
Trading Ideas
Effects of QE on Gold
Reading on Trading
Beginner Advanced
Analyst – Terry Mc Grenaghan
Investment Decisions
Retail Drive for good Christmas performance
▪ Halfords Group – Profits Up▪ M&S – profits fall 10%, missing key fashion trends
Oil & Gas Production With Colder weather more demand for oil and gas
▪ BP▪ Shell
Take care with sector quite risky ensure a good portfolio spread when investing.
Penny Stocks
Three example industries
Investment Decisions
Beverages Incoming party season expect a more demand for wines, spirits and
beer▪ SABMiller: Brands Include Bulmer’s, Coors Light▪ Diageo: Guinness, Smirnoff
Ensure to look at their brands and market share, take into account seasons i.e cider brewers generally do better in the summer time.
Impact the US presidential elections will have on the US and global capital markets. Obamacare 3.8 per cent tax will kick in
▪ What does this mean for medicine/private healthcare companies?
Tax's will need to be raised along with over a thousand spending cuts will likely be implemented additional taxes ▪ This should hit consumer spending. How will this effect companies trading in the US
market?
How To Trade – The Basics
Information Gathering
Many sites available to obtain information on stocks/sectors.
www.londonstockexchange.com
Follow link for PRICES & MARKETS, then Stocks.
Sector Information
Sector Information
Sector Information
Indicates daily rise and fall, pence and % change.
Digital Look
Useful website for information and charts.
www.digitallook.com
Bull Bearings Fantasy Account
www.bullbearings.co.uk
Set up your account
Join LSU Trading Competition
Password: trading
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