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Analysis written in a straightforward way so that everyone understands.
only a small few who get it consistantly correct and you are certainly
for putting this all together and sharing! BHW
Stuff! Kenny has shown time and time again the ability to show us direction in
these markets. Khalsa
Kenny, I appreciate your insight and analysis. You make sense of what I can rarely see.
Thanks for sharing. Gene
Took a gold short at 1240
just closed at 1203 :-)))))))))))))))))) ........ top call!! Gekko
Hobson: Shares Made Simple
A beginner's guide to the
stock market - Part 1
Rodney Hobson: Shares Made Simple
Rodney Hobson, author of Shares
Made Simple: A beginner's guide to the
stock market, talks to Kenny of www.tradersdaytrading.com.
Simple is one in a series of Rodneys books
which sets out to give
the beginner small investor a helping hand by taking the reader, step
by step through some of the most basic concepts of stock market
Rodney, who is also registered with the FSA, is a highly
respected financial journalist and author who has held many senior
editorial positions in his time, positions held include
- News Editor for the Business section of
- Business Editor of the Singapore Monitor
- Head of News at Citywire
- Editor of Shares magazine
- Deputy Business Editor of the Far Eastern
The Rodney Hobson Interview
Kenny: Hello Rodney and thank you
for taking the time to talk to Tradersdaytrading.com as it looks as
though you have been extremely busy. A new book out each year, one out
this year already and another on its way....as well as the financial
columns that you write for, how do you find the time?
I enjoy my work and much of what I write flows naturally. The stock
market is so exciting that there is always plenty to write about so I
am never struggling for ideas.
Kenny: Shares Made Simple
is described as a beginners guide to the stock markets. Who do you
write for, who
is your typical reader?
I write first and foremost for beginners and unsophisticated investors.
I realised from the phone calls I received when I worked on on the City
desks of The Times and the Daily Mail that many people who acquired
shares through privatisations and the conversion of building societies
to banks simply did not understand what shares were or what rights they
conferred. Thousands, perhaps millions, of investors in this country
just need some basic help and guidance.
Kenny: How much appetite is there
these days for individuals to take control of their own finances and to
become a private investor?
I'm sorry to say that most people are just too scared. That is a pity
because it is possible for anyone who is literate and numerate to
invest in their own right. The playing field is not entirely level but
it is not difficult to compete with the professionals if you have a
little basic knowledge.
Kenny: Is it as popular a choice
as it once was, has the number of people becoming private investors
increased or decreased in recent years, and why do you think this is?
I think that the number of private investors has grown over the years
for several reasons, most notably the arrival of cheap online investing
and the spread of well presented information in newspapers such as The
Daily Telegraph, The Times, The Independent and The Daily Mail.
Kenny: What effect, if any, has
the events affecting the markets over the last few years had on the
mindset of small private investors?
Unfortunately, every time there is a dramatic fall in share prices a
lot of investors are scared off and we take a huge step backwards. Yet
this is the time to be looking to buy in, while shares are cheap. I
have been trying over the past four years to persuade private investors
to buy on the dips and go for solid companies paying a solid dividend.
I believe that this message is getting across.
Kenny: Why do you think that
people want to become self investors, what are their motivations?
Wouldn't it be much easier just to let a trained financial advisor make
the tough decisions?
It is much easier to hand over your cash to an adviser than to make
your own decisions but you lose out on all the fun and the sense of
achievement and satisfaction.
Kenny: What are the main benefits
to be enjoyed from making our own investment choices?
Only you know what you want from your investments, how actively
you want to invest and what level of risk you want to take. Even if you
don't do quite as well as the expert you are saving on the fees the
adviser charges, so you can end up better off.
An adviser may put you
into investments that pay him or her an introduction fee, which is
great for the adviser but is not necessarily best for the investor.
Kenny: What about the main
pitfalls, what are the most common mistakes
that individuals make?
Buying at the top of the market and selling at the bottom is
the most common mistake. There is a great temptation to hold back for
too long then to pile in too late. Have the courage of your
Failing to do a bit of basic research leaves you vulnerable although I
think that taking it all too seriously, poring over facts, figures and
charts for half the night, is counterproductive.
The other big mistake is to think that rises and falls in the stock
market are the be all and end all of investing. Dividends are far more
important as they give you bigger gains in a rising market and offset
your losses when shares fall.
Kenny: OK, I have no real
knowledge of the markets other that what I
see on the news and have read in the newspapers, but I have heard that
is a lot of money to be made from trading in the stock market - where
Made Simple: The
Rodney Hobson Interview Part 2
Simple by Rodney Hobson