Understanding Stocks

194 INDEX
Professional traders, 10
Profit, 13–15
Prospectus, 46–47
Psychological indicators, 142–145
Psychology, 172–173
Pump and dump, 145–146
Put options, 81, 82
QQQ (see Nasdaq 100 index)
Qualcomm, 183
Quote, stock, 49–52
Ratings, 21
Ratios, stock, 100–103
Real estate investment, 26–27, 151
Real estate investment trusts (REITs),
27
Recessions, 153
REITs (real estate investment trusts),
27
Relative strength, 76
Relative strength indicator (RSI),
135–137
Reminiscences of a Stock Operator
(Edwin Lefevre), 128
Resistance, 118–119
Return on equity (ROE), 103
Reversals, trend, 115–116
Reverse head and shoulders pattern,
121–122
Reverse splits, 41
Risk, 15–16, 20–21, 178
Risk tolerance, 38
ROE (return on equity), 103
Roosevelt, Franklin Delano, 63, 66
RSI (see Relative strength indicator)
Russell 2000 index, 12
Santayana, George, 64
Savings, 154
Scams, 145–146
SEC (see U.S. Securities and Exchange
Commission)
Sectors, 11, 29–30
Securities, 4
Selling short, 41–43, 128
Sentiment analysis, 141–145
and capitulation, 144–145
and the media, 143–144
and mutual fund redemptions, 144
VIX for, 142–143
September 11, 2001 terrorist attacks,
143
Shareholders, 4
Shareholders’ equity, 93, 94
Shares, 4
float, 44
outstanding, 43–44
The Shawshank Redemption (film),
161
Short-term traders, 9, 162
Shorting stocks, 128
Shorting the rallies, 79
Sideways markets, 28
Sideways trends, 114–115
Siegel, Jeremy, 15
Sincere, Charles, 187
60 Minutes, 184
Slow investment strategy(-ies), 69–76
bottom fishing as, 71–72
buy-and-hold, 70–71
buy-on-the dip, 71
CANSLIM as, 75–76
contrarian investing as, 74
dollar-cost averaging as, 72
growth investing as, 73
momentum investing as, 73–74
value investing as, 72–73
Small Order Execution System (SOES),
57
Smith, Gary, 180
SOES (Small Order Execution System),
57
S&P 500 (SPY), 85
S&P (Standard & Poor’s Corporation),
12