Wednesday, 2 February 2022

Psychology And Investment - Contents

Part – I: Psychology

        Chapter – 1: Independent Thinking 

1.1     Hot News and Price Quotes

1.2    Gossips and Opinions

1.3    Hot Tips

1.4    Expert’s Advice: Put A Question Mark

1.5    You Have Missed the Opportunity

1.6    Do Not Blame Others

        Chapter - 2: Influence, Prejudices, and Barriers

2.1     A Balanced Mind

2.2     Prejudices

2.3     Repeating the Same Mistake

2.4     Personal Attachment

2.5     Choose Your Investment Style

        Chapter - 3: Reluctance and Assurance

3.1     Be Reluctant

3.2     Choose Your Initial Steps Carefully

        Chapter - 4: Childish Mentality: Get Rid of it Before Investing

4.1     Large Quantity

4.2     Emotional Vicissitudes

4.3     Impulsive Behaviour

4.4     Blaming Someone Else

4.5     Unable to Face Reality

4.6     Comfort Zone

4.7     Self-Admiration    

        Chapter - 5: Contrary Opinion

5.1     Contrarian Thinker

5.2     Before Taking a Contrarian Call

5.3     When Everyone is Expecting the Same

5.4     Trend is Your Friend, but Not Always

5.5     Momentum and Demand 

Chapter - 6: Depression

6.1     A Sudden Loss of Wealth

6.2     Failure – Enrichment of Experience

6.3     Big Expectations

6.4     Unsuccessful Attempts Brings Closer to Success

Chapter - 7: Risk and Success

7.1     Financial Risk

7.2     Sensation-Seeking Traders

7.3     Risk and Alertness

7.4     Success and Alertness

7.5     Fear of Failure

7.6     Overconfidence

7.7     Feeling Safe

7.8     Take Risk but in a Limited Manner

 

Part -II: Investment

Chapter -8: How to Evaluate a Company – I: Qualitative Analysis

8.1     Sources of Revenue

8.2     Subsidiary is not Eating the Parent Company

8.3     Analyze Sales

8.4     Products and Services

8.5     Competitive Advantage

8.6     Company Culture

8.7     Training for Employees

        Chapter -9: How to Evaluate a Company – II: Quantitative Analysis

9.1     EBITDA

9.2     Expenditure

9.3     Net Income

9.4     Inventory

9.5     Reserves and Surplus

9.6     Risks and Concerns

Chapter -10: How to Evaluate a Company – III: Ratio Analysis

10.1     EPS

10.2     EBITDA and PAT Margins

10.3     Dividend and Yield

10.4     Debt/Equity Ratio

10.5     Book Value Per Share

10.6     Price/Book Value Ratio

10.7     Return on Assets

10.8     RoE and RoCE

10.9     Price/Earnings Ratio

10.10     PEG Ratio

10.11     EV/EBITDA

10.12     Market Capitalization to Sales Ratio 

Chapter -11: Investment in Growth Stocks

11.1     Collect information about Key Personnel

11.2     Understand the Business Model

11.3     Increase in Topline and Bottomline

11.4     Increase in Margins

11.5     The Health of the Balance Sheet

11.6     Research and Development

11.7     Do not Consider IPOs

11.8     Shareholding Pattern

11.9     Finally, Be Patient

        Chapter 12 - Understanding the Dividend

12.1     Declaration of Residual Profits as Dividends

12.2     Steady and Gradual Increase in Dividend Payment

12.3     A Sudden Cut in Dividend

        Chapter 13 - Important Rules for Buying and Selling

13.1     Volume Plays an Important Role

13.2     Holding of Promoters/FIIs

13.3     Cheap and Expensive Stocks

13.4     Be Careful on Valuation Matrix

13.5     Take a U-Turn

Conclusion