How to find winning stocks and shares (even in a recession)

In the intro we will fly through the key areas of the course including:

1. The History of Shares

2. Setting Your Goals

3. The Right Mindset

4. What You Will Need to Trade

5. An Introduction To The Seven Step Strategy   

6. Bonus section (possible independent income streams)

Please ask questions throughout this course and please also complete the exercise around picking your first company to paper trade with. This will really help you compare what you know at the beginning of the course and at the end.   

This is a quick quiz on exploring how (at the beginning of the course) you hunt shares down

While I am really excited to share the strategy I have developed, it is really important that you understand that I am not a financial advisor and as such:

THIS COURSE AND THE INFORMATION WITHIN DOES NOT CONSTITUTE FINANCIAL ADVICE.

YOU MUST REMEMBER THAT ANY INVESTMENTS MADE ARE AT YOUR OWN RISK AND (AS WITH ANY INVESTMENT) THE VALUE OF YOUR MONEY COULD GO UP OR DOWN AND YOU MUST BE ABLE TO AFFORD ANY LOSES.

PLEASE CONSIDER SEEKING QUALIFIED, INDEPENDENT FINANCIAL ADVICE BEFORE YOU INVEST.

As a result, I will not be able to help with questions related to “should I buy this share or not?” as ultimately the decision to spend your money resides with you.

The course is for information only and I will provide plenty of real-life examples, talking of my own experience and portfolio.

Please don’t just jump in and buy shares I have reviewed, do your own home work and (as I will say throughout the course) please paper trade first so you understand the companies and markets.

Paper trading allows you to make mistakes without losing any of your hard-earned money.

Things I won’t be doing in this course:

· Gambling. If you like gambling and particularly chasing losses, then this course is not for you.

· Spreadbetting (predicting how much shares or markets go up or down by). Too much like gambling for me!

· Investing in Initial Public Offerings (IPOs). These are new shares with no history to investigate. This doesn’t work for my strategy.

Things I will be doing in this course:

· Giving you as much information as possible to allow you to make well informed, calculated choices.

· Answering all of your questions as quickly as possible on any subjects not related to direct financial investment.

· Hoping you the very best in your journey on this course.

Good luck

In this section I will be covering the history of the stock market and common terms we will be using on the course.

Common terms will include:

Stocks and shares

The term market

Stock market, equity market and share market

Initial Public Offering or IPO

Capital

Dividend

Recession

Economic bubble

The history of stocks and shares will cover:

The birth of the modern stock exchange

What is a 'bull' and 'bear' market and where did the terms come from?

Whether shares are still distributed on paper

Stock market crashes including:

Tulip Mania

USA Copper Crisis

The Wall Street Crash

The 1987 Crash

The 2008/2009 Subprime Loans Crash

2020 COVID Crash

If you do have any questions please let me know and enjoy the video.

Setting SMART goals is really important before approaching any investment in the stock market. In this video I will take you through a well known way of building goals, the SMART method.

I will take you through the terms Specific, Measurable, Attainable, Realistic and Timely as I used them to build my goals.

Specific: it is really important to be specific about what you want to achieve before you invest. Being too vague will make it harder (if not impossible) to reach your goals. 

Measurable: ensure your goals can be measured. Along with Specific they need to be something you can tangible measure.  This allows you to measure your success or failures as you progress.

Attainable: it is also important to evaluate whether your goals are attainable (also known as achievable). Setting goals too big often makes them too hard to achieve. Small steps are important as you grow to understand the stock market and companies you  are interested in.

Realistic: you have to be honest with yourself, do you have the equipment and knowledge you need to start investing? While having the equipment is relatively easy, you also need to ensure you have spent enough time understanding the market and companies you are interested in. Make the majority of your mistakes paper trading while you learn.

Timely: as with any good project goals have to have timings associated with them. In the same way trading has to also be timely. The most important part of trading is knowing when to buy and when to sell shares.

If you do have any questions please let me know and enjoy the video.

Having the right mindset is crucial when approaching investing in the stock market.

I have drawn some key points together from some really interesting authors that explain why I think it is so important, so you can understand the way the mind works.

Don't use System One thinking (quick and impulsive likes to jump to conclusions) and instead use System Two thinking (slower, allows us to focus, requires more energy but is much more likely to produce the correct answer)

The fictional character Mr Spock (or Mrs/Miss Spock too for our example) is calm and logical even though he has great empathy inside only making decisions when all the facts are known.

If you do have any questions please let me know and enjoy the video.

In this section I will run through everything you will need to trade online covering hardware, internet connectivity, Google Chrome Browser, Google Account and access to Google Finance.

I have also included handouts covering what to look out for when picking a trading platform and if you live in the UK information on what to consider when looking for a stocks and shares ISA. 

This step is called ideation, which is the formation of two words, idea and creation so this step is where we formulate ideas on markets and companies we want to invest in.

Remember this is only the initial research stage so don’t be tempted by system one thinking (as we have talked about previously) and jump straight into real investing.

The reason the strategy has a number of steps is to make sure we do all of the appropriate research and even paper trade before investing real money.

At this stage we are merely brainstorming, trying to find ideas of where we want to start.

As a result I want to help you get ideas flowing and show you some ways I use to generate ideas before going into further research.

In this video we are going to use the spreadsheet I've shared with you, to look at genuine historic data to understand the relationship between share price, volume and costs you may encounter.

The great thing about having all this real data is you can learn from my mistakes without ever investing a penny

In this video I'll concentrate on:

- The share price you target

- The amount you buy

- How to minimise cost and maximise profit

In this video we will jump straight into using Google Finance to investigate share price over time, as its quick, easy and best of all free.

Here you can see my full watchlist on Google Finance, with shares I own and others that I am tracking over time.

I will run through how to research a shares price history over time, what to look for and also some key features of Google Finance to help you research shares.

One of the most important steps, before considering investing into any company, is to first review their financial reports.

In this series of videos we are going to jump straight in and look at a range of company reports (from my portfolio) to see what they can tell us about that organisation.

This will help you navigate some of the language used in these reports and even pick out some key indicators on the financial and operational health of the company.

Even in a recession, company reports will give you an idea of those organisations more likely to bounce back, reflected in their share price over time.

In this video we will also delve into the annual report of Allianz Technology Trust (ATT) 

In this video we are going to jump straight in and look at the annual report for Associated British Foods (ABF).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Avast (AVST).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Aviva (AV.).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Barclays (BARC).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Barratt (BDEV).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for BP (BP.)  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Cineworld (CINE).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Diageo (DGE).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Fevertree (FEVR).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for GSK (GSK).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

In this video we are going to jump straight in and look at the annual report for Greggs (GRG).  

This will help you navigate the annual report and I will pick out some key indicators on the financial and operational health of the company as we progress.

This will then help us decide if this is a company that we could add to our paper trading list after further research.

Thanks for getting this far, the reason step 4 has so much information is to guide you through the maze of company reports.

Hopefully these have given you lots of information to start researching steps 1,2, 3 and 4.

I have also added an updated version of my trading list with updated costs

TOP TIP: I also produce a summary of the key characteristics of companies whose shares perform better in a recession and even bounce back from sharp market drops such as COVID 19

In this video we will look at other indicators I think are important when looking at a companies shares

We will look at:

What market capitalisation means and also

What a companies Earnings Per Share (EPS) means for their shares 

What a companies Price per Earnings ratio (PE ratio) means for their shares

In step 6 we will look at paper trading.

This step takes all of the research you have done in the previous steps and lets you apply that knowledge without risking any real money.

If you already have a trading platform and you are already trading, this is still relevant as you should always be researching new shares before jumping into investing real money.

The quickest way to start is to take the spreadsheet I have given you will all of my trades on and use it to build your own portfolio of shares and use google finance and manually plot over time how the share is doing which is what I first did and noted the results in a physical diary

If that sounds a bit low tech for you, the other method is to research companies that let you open paper trading or virtual accounts and start to add your chosen shares into those platforms.  I will show you how some of those work in practice.

Just remember there may be some cost implications to this and you should research what those costs might be.

As a result Ive included a handout detailing platforms that let you paper trade for free so you have somewhere to start researching.

I’m not endorsing any particular platform and you will need to make your own mind up on which platform you use for both paper trading and real trading as it will be your money at the end of the day, don’t forget for the real thing there can be tax and commission to pay each time you buy and sell shares.

Thanks so much for joining me and working through the strategy I really hope you have learnt a lot I have certainly enjoyed sharing as much information with you as possible to help you find those winning shares whether it is in a recession or not.

It’s a formula that worked for me and I certainly hope it works for you too.

The final step is to look at investing money in a portfolio for real, so I will jump into a couple of platforms to show you how they work which will give you a good starting place wherever you live in the world and I will also show those of you in the UK how it looks to trade in an ISA or individual savings account.

I will also remind you of key items from the course when trading for real for example buying enough shares to cover the costs of buying and selling and other ways to maximise returns such as having a diverse portfolio that you really understand

And remember this is the point you really want to be Mr or Mrs Spock and take all the emotion out of trading and if it looks like the shares are turning bad to sell them if they fall below your stop limit in my case 20 percent less than I paid for the share and I will show you a practical example of how to do this in one of the platforms within the lecture.

And a quick remember you will be trading for real and you will have to be able to afford any losses and the value of your investments can go up and down over time.

I will also take you through some practical examples end-to-end for the whole startegy to help pull everything together.

I will then take you through some fun, bonus material around building possible independent sources of income.

In this example I will use ATT to run through the whole strategy end-to-end and help you pull everything together.

In this example I will use Fevertree drinks to run through the whole strategy end-to-end and help you pull everything together.