BOOK REVIEW – ACTIVE INVESTING

How to manage your portfolio like a professional in less than one hour a week

By Alan Hull

In today’s wired world there are an over abundance of products for the average investor; ranging from stock selection services through to software programs promising to pick the next hot stock.

It’s no wonder that the average investor is often paralysed, like a possum in the headlights, by the sheer overload of information.  

This book is Alan Hull’s response to this confusion. In it, he demystifies some of the beliefs of investing and empowers you to make your own investing decisions, without risking the family home of your hard earned savings.  Hull encourages you to be an active investor.  [Read more...]

By Frank Newman

RRP:  $149.95

Let loose your inner investment tycoon.  Here’s a new, fun way to increase your investment IQ without risking your own cash! 

The NZ Investment Game is a ‘new generation’ of board games that include an interactive on-screen component.  So yes, you will need access to a computer to play this game. 

But this is the appeal of this product. Because of the software, each game is different and will no doubt appeal to younger generation who are familiar with data being available at their fingertips.  

Each two hour game roughly represents a five year cycle in the financial markets, although you can lengthen or shorten the time allocated for playing.     [Read more...]

In Diaz’s latest book, she tracks the progress of a top group of traders who competed in a CFD trading competition with $100,000 in prize money up for grabs. 

The book starts with an explanation on CFD’s (Contracts for Difference) and covers the basic information about leverage, short selling and some of the other techniques the traders might use during the two month competition. 

The competition took place back in April and May 2007 when the ASX200 was trading at 5995 and it continued to climb over the two months reaching 6313.  So I guess the period was pretty much still in a bull market cycle.  [Read more...]

Your Money and Your Brain

By Jason Zweig

$49.99

Become a smarter more successful investor, the neuroscience way 

Your Money and Your Brain explores the neuroscience of financial decision-making – what goes on in your brain when you think about money. 

Zweig explains why smart people can be stupid about money – and how they can do better.  Combining the latest research in psychology, neuroscience, economics and animal behaviour, this book examines the ‘why’ behind our decisions relating to financial matters.

Interestingly, it brings up radical insights into how our minds estimate risk and anticipate gains. For example anticipating a financial gain puts the reflexive part of your investing brain on red alert, focusing your attention keenly on the task at hand. After you buy a share, the thrill of it going up is only limited by your imagination.  But by the time it does go up, it is less exciting, especially when you expected it the whole time.  The thrill has faded into something that resembles a neurological yawn. Making money feels good, but it doesn’t feel as good as expecting to make money.    [Read more...]