Get the 12 rules you need to follow to be a successful investor right here. This basic presentation gets you started in the right direction. You can now view the presentation here, order the Family Financial Freedom book from any of the ebook sites for iPhone, iPad, Kindle, Nook, Kobo reader etc. contact me at floyd.saunders@yahoo.com for a copy of the presentation or more information on how to get seminar materials.

1. The Beginning Investor Series.
Investing Basics
12 rules for successful stock
investing
Saunders Learning Group, LLC May 2012

2. Training from Saunders Learning Group
Saunders Learning Group provides a variety
of training programs, workshops and
seminars targeted to the financial services
industry.
Programs are available in a wide range of
topics, and we are specialists in developing
custom programs that are targeted to your
needs.
Contact the founder, Floyd Saunders at
316-680-6482 or at
floyd@floydsaunders.com for more
information.
Saunders Learning Group, LLC, Andover, KS
2

3. Economic Analysis
Involves assessing economic conditions that can affect a firm’s stock price
Economic growth Interest rates
A measure of growth in a country’s  Stocks perform better when interest
economy over a particular period rates are low
Gross domestic product (GDP):  Some stocks are more sensitive to
the total market value of all products interest rates than others
and services produced in a country  The Federal Reserve uses monetary
policy to influence interest rates
Weak economic conditions Inflation
 Lowers demand and stock prices The increase in the general level of prices of
products and services over a specified period
 Consumers spend less, further
lowering demand Consumer price index (CPI): a measure of
Fiscal policy inflation that represents prices of various
The means by which the U.S. government consumer products
imposes taxes on individuals and Producer price index (PPI): a measure of
corporations and by which it spends its inflation that represents prices of products
money used to produce other products
Saunders Learning Group, LLC, Andover, KS 14-3

4. Sources for Economic Analysis
Saunders Learning Group, LLC, Andover, KS 14-4

5. Evaluating Stocks
Saunders Learning Group, LLC, Andover, KS

6. Analysis of the Firm
Firm-specific characteristics - Analysis of a firm’s income statement and balance sheet can reveal the following characteristics:
Saunders Learning Group, LLC, Andover, KS 14-6

7. Financial Ratios Used to Evaluate a Business
Saunders Learning Group, LLC, Andover, KS 14-7

8. Evaluating Stocks
To find out about the health of a corporation, you can use numerical measures such as:
Industry Norms, Go to: http://biz.yahoo.com/research/indgrp
Provides information on various industry groups and financial information on firms you specify in any
industry.
Saunders Learning Group, LLC, Andover, KS

9. Analysis of the Firm
Saunders Learning Group, LLC, Andover, KS 14-9

10. 12 Rules for Investing in Stocks
1. Start with an emergency fund
2. Open a “cash” only account with a stock broker – Online, Discount, Full-Service
1. Save the margin account for later, after you know more about what you are doing
1. New investor, need advise – Use a full service brokerage for guidance, check for a good track
record
2. More experienced – Use a discount brokerage with good service and quality products
3. Start with $1,000 in mutual funds
1. $5,000 buy just two to three stocks
2. $10,000 add one or two additional stocks
3. $25,000 allows you have five or six stocks
4. $100,000 Not more than 20 stocks, unless you want to spend 100% of your time
investing
4. Buy the very best companies, concentrate on a limited number of stocks with
growing dividends, and watch them closely using stock alerts.
Saunders Learning Group, LLC, Andover, KS 10

11. 12 Rules for Investing in Stocks
1. Cut loses on stocks @ 8% with Stop Lost orders
 This takes out the hope and fear of investing, makes for rational decision making
 Be persistent about cutting loses, so you have money to invest in the next best option
2. Sell your best stocks with 25 to 30% gains
 Always sell you worst-performing stocks first, not your best, but don’t hang on for the last
ounce of gains
3. Pick Market leaders in areas you have some knowledge
 Profits drive the price of stocks: improving earnings (EPS), growing profits, increasing sales
and earnings growth
 #1 in their category with strong Return on Equity (ROE)
4. Invest dollars, not number of shares. Pick stocks with a price between $15 and
$150 per share
 70% of trades are with institutional investors, who drive the market and shun low priced
stocks
Saunders Learning Group, LLC, Andover, KS 11

12. 12 Rules for Investing in Stocks
1. Use fundamental analysis for picking stocks to own and technical analysis to
know the buy and sell signals
 Technical analysis is reading a stock’s prices and trading volume to time the buying and
selling of stocks. Look for price corrections and base building in charts.
2. Earnings Per Share of 30% or more
 Over time 3 of 4 of the biggest winners are growth stocks with EPS of 30% or more
3. Buy leaders
 Sales up 25%
 Look for stocks with gains of 25% in the same quarter from a year earlier
 #1 in their field for recent sales, earning growth, profit margins and ROE (20% or more)
 Also look for strong management team and management ownership with strong
institutional ownership
4. Look for stocks with a strong record of annually increasing dividends
Saunders Learning Group, LLC, Andover, KS 12

13. Questions
Saunders Learning Group, LLC, Andover, KS

14. Post Workshop Action Plan
 Complete the Post Workshop Action Plan
Saunders Learning Group, LLC, Andover, KS
14

15. Reference Material
Figuring Out Wall Street Consumer’s Guide To
Financial Markets
By Floyd Saunders
Publisher: Saunders Learning Group
ISBN: 978-0-9824019-0-3
available from Amazon, B&N, and
http://www.figuringout wallstreet.com
or www.floydsaunders.com
Book summary: From bank failures to home foreclosures and panic
around the world, Figuring Out Wall Street, is the concise guide to help
everyone understand how this latest crisis happened, who was responsible and
what to do now to restore our financial systems. Written in an easy to
understand manner, even the most complex financial concepts are easy to
digest. This book provides help to monitor investments with a review of
investment products, financial regulators and economic indicators. Learn how
the stock market exchanges work and the world of investment banking, hedge
funds, venture capital and private equity. Every chapter includes action plans
for investing.
Saunders Learning Group, LLC, Andover, KS

16. About the Author
 Floyd Saunders has worked on Wall Street
with both Bank of America and JPMorgan,
where is was a vice president in global
financial systems. He has worked across
the industry in retail, commercial, and
investment banking.
 He has taught courses in Money and
Banking and extensively for the American
Institute of Banking and various colleges.
 As a consultant, he developed and taught
a wide range of banking and investing
courses.
 He authored three programs for the
American Bankers Association: Banking on
Mutual Funds and Annuities, Introduction
to Securities Markets and Investing in
Securities.
Saunders Learning Group, LLC, Andover, KS date