investing = long term trading = short term warren buffett – world’s greatest investor

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