Building Wealth in the Stock Market: A Proven Investment Plan for Finding the Best Stocks and Managing Risk - Hardcover

by Colin Nicholson (Author), Alexander Elder (Foreword by)

Building Wealth in the Stock Market provides a complete model for investing successfully and safely in bull and bear markets. Experienced investor and teacher Colin Nicholson shares with readers his very own investment plan -- one that has been honed over 40 years and that has seen him consistently beat the market and his target rate of return.

Everything in Nicholson's investing method is fully disclosed simply and with a minimum of market jargon. The central idea is how to manage risk in order to grow capital and secure a stream of dividends. The various risks to be managed are explained, along with strategies for managing them. Aspects also covered include:

• how to improve your decision-making skills, modelled on the way the best investors think
• what is needed to succeed and why having an investment plan is crucial for success
• how to select stocks, using charting and fundamental ratios in combination to achieve a margin of safety
• how to manage your portfolio -- when to buy, how to build a position, when to cut losses and when to take profits.

The methods are brought to life through case studies based on real investments and the sharing of insights gained from years of experience and research. This book will change the way you think about the stock market forever.

Front Jacket

Are you a relatively new investor looking to manage your own share investments?

Are you an experienced investor looking to improve your investing skills?

If so, this book, based on 40 years of investing through a number of bull and bear markets, has a great deal to offer.

Building Wealth in the Stock Market is written in clear, simple terms. It covers all aspects of the art of investing in stocks to build your wealth safely and successfully. Author Colin Nicholson begins by showing you how the best successful investors think, and how this differs from the way beginners often approach the same issues. The ideas contained in this book will improve your decision-making skills not only in investing, but in every area of your life.

Colin then explains the reasons for investing in stocks, and establishes a realistic target rate of return. Investing is all about the management of risk, and Colin simply and clearly describes the various types of risk, and explains how to manage them.

Unlike most other investment books, Building Wealth in the Stock Market proposes a strategy for managing the all-important swings through bull and bear markets. This strategy is central to the plan, which is to get into a bull market early, ride it and get out again before the end. This strategy has proven its value in surviving the 1987 crash and the bear market that started in 2008.

Having established that baseline, Colin proposes methods for managing the risks associated with individual stocks. He explains how to select stocks that afford a margin of safety using a combination of charting and fundamental analysis.

More important than buying stocks is the way investments are managed. Colin gives specific rules and guidelines for how much to invest in each stock, how to control the risk in each stock, how to cut losses quickly and how to take profits.

Finally, Colin provides a number of case studies for timing entry and exit from bull markets and explains how he actually managed both successful and unsuccessful investments in the last bull market. These bring the whole method to life and are as close as a book can take you to sitting at the elbow of an investment mentor who is making real investment decisions.

Back Jacket

Colin has written a serious and helpful book, kind in its attitude, broad in its scope, and practical in its advice. If you have an uncle in the trading business who is willing to put his work aside and show you the ropes, you might be able to skip this book. For the rest of us, who learn and struggle to make our way in the stock market, Colin Nicholson's new book is an invaluable resource. -- Dr Alexander Elder

Building Wealth in the Stock Market provides a complete model for investing successfully and safely in bull and bear markets. Experienced investor and teacher Colin Nicholson shares with readers his very own investment plan -- one that has been honed over 40 years and that has seen him consistently beat the market and his target rate of return.

Everything in Nicholson's investing method is fully disclosed simply and with a minimum of market jargon. The central idea is how to manage risk in order to grow capital and secure a stream of dividends. The various risks to be managed are explained, along with strategies for managing them. Aspects also covered include:

• how to improve your decision-making skills, modelled on the way the best investors think

• what is needed to succeed and why having an investment plan is crucial for success

• how to select stocks, using charting and fundamental ratios in combination to achieve a margin of safety

• how to manage your portfolio -- when to buy, how to build a position, when to cut losses and when to take profits.

The methods are brought to life through case studies based on real investments and the sharing of insights gained from years of experience and research. This book will change the way you think about the stock market forever.

Author Biography

Colin Nicholson has been investing on the stock market since the late 1960s. He has taught both fundamental analysis and technical analysis at a post-graduate level, both as a writer and sought-after speaker. Over the last two decades, he has written weekly columns in The Australian Financial Review and BRW magazine, and written regularly for AFR Smart Investor magazine, Shares magazine, the Shares Charting Guide and the ATAA Journal. He is totally independent and does not sell anything other than his writing and teaching.