Educational Articles

This page contains a selection of educational articles I have written on a wide range of investment topics and one by Dr Alexander Elder.

Additional educational articles written by Michael Kemp may be found on the Michael Kemp Articles page on the Buy Books menu.

All articles are in PDF files. Articles are listed by title  in alphabetical order.

2016: Risks and Opportunities in the Stock Market
Text of an address to the Australian Shareholders Association
Addition of Substantial Funds to a Portfolio
What to do if you have significant new capital to employ
Annual General Meetings
Thoughts on why and how you should participate
Asia - A View of the Future
Notes from a comprehensive report on the future in Asia
ASX Ticker Codes
Explanation of the structure of ASX ticker codes
Avoid the Self-Destructive Investment
How to use position sizing and stop-losses to manage risk
Backdoor Listings
Explains backdoor listings on the ASX
Bar Chart Basics
Explains the components of a bar chart and how bar charts describe the formation of prices
Become a More Confident Investor
Some thoughts on the journey from beginner to successful investor
Blind Faith - Wilful Blindness
Discusses wilful blindness, how it impacts on investment decisions and how to avoid it
Breakouts Stops and Chart Patterns
Discusses their use in investing
Bull Market Lessons
How bull markets start, develop and end. What to watch for.
Buying Stocks - Making the Buying Decision
Discussion of the strategies to be considered when buying into an established bull market
Capital Preservation Using Stops
Discusses the nature of stops and how they are used to keep capital safe in the market
Chaiman Buffett - Some Thoughts
Insights into the way Warren Buffett thinks
Charting - Can it Predict the Future?
Discussion of why this is the wrong question and what is the right question that good investors ask
Combining Share Selection Strategies
Address given at an Australian Shareholders Association Conference
Comparing Stock Markets
Explores the pitfalls in comparisons
Contracts for Difference (CFDs)
Explains what they are and outlines some of the riskd involved
Contrary Thinking
Discussion of one of the most powerful habits great investors practice
Coppock - Wisdom from Edwin Coppock
Summary of the ideas of Edwin Coppock from his paper and a description of how to calculate the Coppock indicator
Coppock Indicator - How to Catch a Bull
How to calculate and interpret the Coppock indicator
Corrections in Bull Markets
Discussion of how to deal with them
Dealing with Difficult Times
General discussion providing an historical perspective and the futility of forecasting
Dealing with Losses
How elite performers deal with losses and how to apply it to investing
Decade of Debt
How the world might recover from high debt levels
Decision-Making: The Last Fronier in Investing Skills
After we have learned analysis and money mamnagement, we need decision-making skills to become a good investor
Discipline and Investing
Discussion of how to become a better investor through a disciplined approach
Discussion of an Email from a Former Student
Covers many areas of basic wisdom about trading
Dividend Imputaion (Franking Credits)
Understanding how all tax payers benefit equally from franking credits
Dividend Reinvestment Plans
Discussion of the pros and cons involved in DRPs
Dividend Yields - Whether to Gross them Up?
Discussion of how franking credits affect dividend yields
Does the ASX Always Follow the US?
A look at how often our market follows the US market up or down
Dow Theory - The Basic Ideas
Explanation of the key iseas in Dow Theory
Evaluating Computerised Trading Systems
Discusses what they are and how to assess them
Ex-Dividend Dates
Explains Ex-Dividend, Payment and Record dates on the ASX
Exchange Traded Funds (ETFs)
What they are and some warnings/cautions
Finding Safe Stocks Likely to Outperform
Discusses some key qualities to look for when selecting stocks to buy
Forecasting and Prediction
Discusses the types of forecasters and how to treat their predictions
Four Common Errors and Biases
Discusses four cognitive biases - systematic deviations from rational judgement - that we all fall into
Full Time Trading - What is Involved?
Discusses the realities of trading and possible returns
Getting Started in Investing
Thoughts on how to pull the trigger on that first investment
Hedge Funds - Some Cautions
Discussion of hedge funds and what to be aware of
High Frequency Trading
What it is and what it means for investors
How Crazy is a No-Stock Portfolio?
Difference in returns from stocks and bonds and what it means over time
How to Win or Lose in the Stock Market
Wisdom on how to win and the best ways to lose
Ideas from John Sevior
Wisdom from one of Australia's great investors
Inconvenient Truth
Research proving that Fibonacci and Gann retracements are highly questionable
Intelligence - Does it Matter in Investing?
Discusses how important IQ is for investment success
Introduction to Indicators
Explains the general types of indicators used in technical analysis
Intuition - Good or Bad in Investing?
Looks at Daniel Kahneman's reserach
Investing - Understanding its True Nature
Discusses my early 2008 losses in the context of what investing is really about
Investing and Reality
Discusses how by aligning ourselves to reality improves our investing
Investing Guidelines
Timeless guidelines for selecting companies to invest in
Investing Successfully
Defines investing and how to increase the chances of success
Investing, Trading and Gambling
How to tell the difference
Investing: Twelve Key Lessons
The twelve most important thinks I have learned over 50 years investing
Investment I Did Not Make
Shows an example where analysis led to a decision not to buy
Investment Wisdom from The Super Analysts by Andrew Leeming
My extensive notes from this book
KISS of Death
The key questions to ask before buying a stock
Know Yourself
Wisdom from David Fisher and thoughs of mine
Knowledge - Too Little is Dangerous in Investing
Discussion of learning investment skills and overconfidence
Knowledge for Investing
What I have found is necessary and useful
Losses - Can You TakeThem?
Discussion of how to deal with losses in investing
Macro View of the Main Overseas Stock Markets
A thesis about the way stock market unfold after debt fuelled booms
Many Roads Lead to Rome
Discussion of three ways in which we do not always see all the investment options open to us
Margin Loans for Investing
Discussion of how marging loans work and the risks involved
Multitasking
Some thoughts on multitasking by a sceptic
Never Accept Information Blindly?
Why ratios and financial data can vary between sources
No Dumb Questions
Wisdom concerning how to analyse a stock
Overcoming Animal Instinct
How the way we think influences our investing performance
Overconfidence Trap
Discusses why we tend to be overconfident, what it means in investing and how to counter it
Position Size and Diversification
Discussion of two key tactics aimed at preservation of capital
Position Sizing
Understanding the role of position sizing in risk management
Prediction and an Investment Plan
Discusses the futility of prediction and what to do instead
Premature Closure - Have we done enough
Explanation of premature closure and how it can be avoided in investment decision making
Pyramiding - Commonly Misunderstood
Explanation of pyramiding and why simply phasing into a stock is not pyramiding
Randomness
Why we tend to see patterns in random data and how to counter it
Rates of Return
Discussion of Return on Equity and Return on Assets
Ratio Analysis - Know What You Are Looking At
Discussion of how and why financial ratios differ between published sources
Rights Issues and Share Purchase Plans
What they are and discussion of the pros and cons
Selecting Stocks in Difficult Markets
An explanation with case study of how I select stocks
Selling a Stock - When and Why
Discussion of how the decision to sell is far more than just having a stop-loss
Seven Deadly Sins
Why emotions make us poor investors
Sharpen Our Investment Decisions
Discussion of ways to improve investment decision-making
Shopping in the Stockmarket
Why we act differently in the stockmarket to the supermarket
Short Selling Australian Stocks
An explanation of what it is and how it may be done
Signs of Trouble - This Stock Will Self-Destruct
How to avoid corporate failures
Simple Answers to Complex Questions
Discusses a better approach than trying to predict the markets
Stages in Learning to be a Good Investor
Simple explanation of the stages we need to pass through from beginner to experienced investor
Steve Jobs - What was Special about him?
Review or an assessment of Steve Jobs
Stockbrokers - More than One?
Discussion of the need for more than one boker in case one fails
Stops - What are They?
A discussion of the logic behind stop-loss levels
Take Profits or Wait for the Stop-Loss?
Discussion of one of the most common problems in investing
Takeovers - Do Investors Profit?
Discussion of when takeovers may be beneficial for investors, and when they are not
Target Return for My Portfolio
A discussion of the need to have a target return in our investment plan
Technical Analysis
What it is and why use it
Thinking - Some Common Traps
Discusses some very common errors we all make in thinking
Thoughts Approaching the Top of a Bull Market
Conflation of two articles written near the top of the Tech and Internet boom
Timing the Market
Discussion of buy and hold versus timing the market
Trading Psychology
Why the way we think when we make decisions is more important than simple trading rules
Traps in Changing Address and Banking Details
Be very careful - also when travelling - these are the traps
Travelling - Managing a Portfolio
Discussion of the pros and cons of various ways to manage a portfolio when travelling
Turn in Crude Oil
By Dr Alexander Elder April 2015
What Bubble?
Shows how to read a chart properly to detect bubbles
Will We Ever Learn?
Discussion of the two fundamental principles of investing, such that we should never, ever forget