Just for clarification: this book is outdated as it was published in 1991 but as it is for the Singapore market, the concepts are still applicable. It was written by Robert Chia & Doreen Soh. It is a easy read with only 150 pages for beginners.
The 1st part of the book briefly defines and describes the Singapore and Malaysian market. I considered chapters 3 & 4 as most important in this book as it teaches one how to use fundamentals and technical analysis to choose an investible company. It also went through briefly on the figures found in the annual reports.
The trading mechanics, such as settlements, odd lots, margin trading, using CPF, sotck splits, bonus & rights issues, are then described. 2 pages, titled 7 ways to lose your money, are good advices.
The later parts are about different instruments, namely unit trust, options, futures etc. Dividends are taxed. Lastly, it tells the reader that it is no use to time the market and put forth the following 3 bargain signs:
a) PE of 10-15 and below
b) Dividend yields > government bonds / treasury bills
c) Share price 33% lower than net tangible asset value.
Each chapter ends with a short summary.
I felt that the authors were trying to cover too much grounds with this book. Whether you are a newbie or a seasoned trader, this books only serves as a platform to understand how a stock market works and glimpses through the fundamentals on how to choose a stock. You would need to read more and experiment(paper trade) before putting your hard-earned money into the stock market.
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