Understanding Stocks

192 INDEX
“Identifying the leading company,”
91–92
In-and-out trading, 180–183
Income statements, 97–99
Income stocks, 30–31
Index funds, 24–25
Industry knowledge, 90–91
Industry leaders, 91–92
Inflation, 15, 152, 153–154
Initial public offerings (IPOs), 45–47
Insider trading, 146
Insiders, 92–93
Intel, 184–185
Interest rates, 21, 150–151, 152
International funds, 180
Internet, 105, 169
Intrinsic value, 31
Investment banking, 184
Investolator, 74
Investors, individual, 4, 8–9, 176–177
Investor’s Business Daily, 91, 144
IPOs (see Initial public offerings)
IRAs, 23
“Irrational exuberance,” 141, 150
Japan, 154
Junk bonds, 21
Kumar, Ashok, 184–185
“Learn everything you can about the
industry,” 90–91
Learning from mistakes, 163–164,
174–175
Lebed, Jonathon, 160
Lefevre, Edwin, 128
Level II software, 62
Leveraging, 63
Levitt, Arthur, 176
Liabilities, 93, 94
Limit order, 59–60
Line charts, 109–110
Livermore, Jesse, 128–129, 161
Load funds, 24
Losing stock, selling, 158
MA (see Moving average)
Managers, company, 92
Manipulation, 33
Margin calls, 63–64
Margins, 63–64
Market capitalization, 44–45
Market crash(es):
of 1929, 65–66, 144, 161
of 1987, 57, 144, 161
Market makers, 14–15
Market orders, 58–61
Market timing, 78–79, 180–183
Maturity date, 20
The media, 143–144
Meeker, Mary, 101, 184
The Merc (Chicago Mercantile
Exchange), 139
Minis, 139
Mistake(s), 157–169
of bad advisors, 164–165
of emotional involvement, 160–161
of following the crowd, 165–166
of lack of discipline/flexibility, 163
of lack of diversification, 162
of lack of preparation for the worst,
166–167
learning from, 174–175
of letting winning stocks lose, 159–160
of missing out/mismanaging money,
167–168
of not learning from mistakes,
163–164
of not selling losing stocks, 158
Momentum investors, 73–74
Money management, 167–168
Money market funds, 25–26
Moving average (MA), 132–133
Munis, 20
Mutual fund money market accounts,
180