Book Description
Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner’s game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), but after the substantial costs of investing are deducted, it becomes a loser’s game. Common sense tells us—and history confirms—that the simplest and most efficient investment strategy is to buy and hold all of the nation’s publicly held businesses at very low cost. The classic index fund that owns this market portfolio is the only investment that guarantees you with your fair share of stock market returns.
To learn how to make index investing work for you, there’s no better mentor than legendary mutual fund industry veteran John C. Bogle. Over the course of his long career, Bogle—founder of the Vanguard Group and creator of the world’s first index mutual fund—has relied primarily on index investing to help Vanguard’s clients build substantial wealth. Now, with The Little Book of Common Sense Investing, he wants to help you do the same.
Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing will show you how to incorporate this proven investment strategy into your portfolio. It will also change the very way you think about investing. Successful investing is not easy. (It requires discipline and patience.) But it is simple. For it’s all about common sense.
With The Little Book of Common Sense Investing as your guide, you’ll discover how to make investing a winner’s game:
- Why business reality—dividend yields and earnings growth—is more important than market expectations
- How to overcome the powerful impact of investment costs, taxes, and inflation
- How the magic of compounding returns is overwhelmed by the tyranny of compounding costs
- What expert investors and brilliant academics—from Warren Buffett and Benjamin Graham to Paul Samuelson and Burton Malkiel—have to say about index investing
- And much more
You’ll also find warnings about investment fads and fashions, including the recent stampede into exchange traded funds and the rise of indexing gimmickry. The real formula for investment success is to own the entire market, while significantly minimizing the costs of financial intermediation. That’s what index investing is all about. And that’s what this book is all about.
JOHN C. BOGLE is founder of the Vanguard Group, Inc., and President of its Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as chairman and chief executive officer until 1996 and senior chairman until 2000. In 1999, Fortune magazine named Mr. Bogle as one of the four "Investment Giants" of the twentieth century; in 2004, Time named him one of the world’s 100 most powerful and influential people, and Institutional Investor presented him with its Lifetime Achievement Award.
Customer Reviews:
Brilliant by a financial guru.......2007-10-16
This is the most important book on retirement. if you don't buy anything else, get this one!
In the Peter Lynch mode of thinking
Beat the pros with common sense!
Outstanding Investment Book.......2007-10-15
This is the best investment book I've ever read. John Bogle's common sense approach to investing is easy to follow and very profitable. I wish I had this knowledge 25 years ago! Highly recommended!
Celebrating the 30th anniversary!.......2007-10-14
John Bogle is an investing guru.
But this entire book is him pitching his prized mutual fund that he created 30 years ago:
The Vanguard Standard and Poor's 500 Index Mutual Fund.
That's it!
So instead of reading the 214 pages, you can just read the following sentence:
"Buy the Vanguard S&P 500 Index Mutual Fund"
I already have, directly through Vanguard, so it was not new information.
Valuable Investment Advice.......2007-10-02
I have been "investing" for years without a sustainable strategy. The information provided in this book is educational, reassuring and eye-opening. Mr. Bogle showed that Investing need not be complicated and provided many examples and facts to support his assertions. If you need good, sound proven financial advice from an industry giant, this is invaluable and a must-read book. I bought 5 copies (one is audio CD) and gave them to my friends and sister.
An aptly titled book.......2007-08-14
As a professional portfolio manager since the 1960's [now retired] I most highly recommend this book. I have purchased copies for my adult children, as well as for some for-profit and non-profit boards on which I serve. I am telling all that this easy, one-day read has the potential to be a financial life-enhancing event, if they agree with the basic premise. And that there is no reason not to agree with the premise. I very much like that Bogle includes supporting data at the end of every section. A true five-star book.
Book Description
Destined to become a market classic, Dynamic Hedging is the only practical reference in exotic options hedging and arbitrage for professional traders and money managers
Watch the professionals. From central banks to brokerages to multinationals, institutional investors are flocking to a new generation of exotic and complex options contracts and derivatives. But the promise of ever larger profits also creates the potential for catastrophic trading losses. Now more than ever, the key to trading derivatives lies in implementing preventive risk management techniques that plan for and avoid these appalling downturns. Unlike other books that offer risk management for corporate treasurers, Dynamic Hedging targets the real-world needs of professional traders and money managers. Written by a leading options trader and derivatives risk advisor to global banks and exchanges, this book provides a practical, real-world methodology for monitoring and managing all the risks associated with portfolio management.
Nassim Nicholas Taleb is the founder of Empirica Capital LLC, a hedge fund operator, and a fellow at the Courant Institute of Mathematical Sciences of New York University. He has held a variety of senior derivative trading positions in New York and London and worked as an independent floor trader in Chicago. Dr. Taleb was inducted in February 2001 in the Derivatives Strategy Hall of Fame. He received an MBA from the Wharton School and a Ph.D. from University Paris-Dauphine.
Customer Reviews:
Dynamic Hedging...goo stuff.......2007-06-13
Great book, very easy read as it is written in a conversational tone. Covers all the issues associated with derivative trading in an intuitive manner.
Good Work.......2006-10-24
Definitely for pros. This book is one of the fewest which is concentrated on the hedging compared to the tons which explain pricing. The other pro of the book is you don't need to be a quant or a PhD guy to understand the book. If this seems what you are looking for, i recommend you get it.
the best book in options.......2006-03-24
This book is a really useful and practical introduction in derivatives from a guy who knows what he is talking about.
Plenty of illustrations and stories from real life. Mathematics is quite informal, and hence the book may not be used for PhD programs - it's a good master's level... good for a guy who wants to start trading options.
FOR EXPERIENCED TRADERS.......2006-02-27
VERY INFORMATIVE, WRITTEN BY AN ACTIVE TRADER, MANY USEFUL TIPS TO BE APPLIED ON THE JOB. ALL IN ALL AN EXCELLENT BOOK. PROVIDES REAL HELP AND KNOWLEDGE, MUST BE READ BY ACTIVE TRADERS.
Real book for traders.......2004-06-27
really great to figure out the intricacies of options. if you need something more conventional just get hull; this book is by someone who does it for a living and has different intuitions than what you get in the ivory tower.
some of the points are great but may need more updating
Book Description
Unlock the secrets of an ancient charting tool
The most ancient form of charting, the Japanese candlestick method has become an extremely popular analytical tool among the new generation of traders. However, because of the aura of mysticism surrounding candlesticks and the arcane terminology typically used to describe them, many traders in the West never really learn how to use them properly and exploit their full potential. Profitable Candlestick Trading demystifies candlesticks for today's traders. With the help of numerous real-world examples, Bigalow clearly explains how candlesticks work, how to read them, and how to maximize profits with them. Bigalow shares some of his original candlestick-based trading programs, the same programs which have yielded impressive results for his clients at leading financial firms in the United States and abroad.
Customer Reviews:
Great Information But..............2007-08-17
I'm very pleased with the information contained in the book. However, most of the information contained in the book can be found on the authors website for free. Just google Stephen Bigalow and check it out for yourself, lots of info in the forum at that site as well. I read some other reviews (at another site) that recommended his second book over this one as the basics can be found at his website (and several others) and you can get more into the theory in the other book. With that said I still recommend it and would say its a 5 star rating based on the information. I use it every night while doing my research for the next trading day. Anyway, just something to know. Seems most days you can find just about anything on the net if you look hard enough. May all your days be bullish kickers!
Excellent CandleStick Trading Book.......2007-05-05
I am a beginner Commodities/Futures Trader, and am in the process of learning everything I can about all the various trading tools and charting methods. My expectations after having read a lot of books now, is that the book should contain a focused look at the 'topic' followed by primary, secondary and tertiary examples of how the methodology of the subject can work effectively AND when it doesnt work well. Stephen Bigalow did an excellent job. The only weakness? The vast amount of analysis provided was for Stock Traders, even though the CandleStick methodology was invented for commodities/futures trading. There is a 3 page section that covered how effective the Candlestick charting method is for commodities trading, but in those 3 pages, he basically says that Candlesticks were invented for Commodities Trading and all the examples that are in the book apply BETTER for commodites as the underlying factors of price in Commodities are not as variant as they are with stocks. Bingo. So why all the analysis based on Stock Trading? I guess he had to play to the larger market of buyers. Anyway, he covers every kind of pattern, and his explanations are clear, succinct, and understandable. I highly recommend this book if you want to understand CandleStick's.
Good fundamentals.......2007-01-12
This book is an excellent introduction into Candlestick Trading. The author shows how to gauge market sentiment in an unusual way. Highly recommended!
Candlestick patterns work -- regardless of whether the market rises or falls !!.......2006-09-09
I attended Steve's seminar 2 years ago, and have been using candlestick patterns ever since. This is an excellent book which provides an easy-to-read introduction to candlestick charts. Steve's approach is a major element of my trading plan.
Great Reading.......2006-05-29
This is an excellant written book,simple step by step explanation of the candlestick methodology. I was impressed with the ease in which I learned the 12 Major candlestick patterns.This book has taken the mistry out of candlestick reading,
and it will place a wealth of knowledge in the hands of newbee traders like myself.Excellent book.
Book Description
In this one-of-a-kind “how-to” guide, Joseph Hooper and Aaron Zalewski provide step-by-step instructions for generating large monthly cash returns from almost any stock investment—while at the same time decreasing the risk of stock ownership. Filled with in-depth insights and proven techniques, this book is the definitive, rule-based guide to covered calls and calendar LEAPS spreads.
Customer Reviews:
Save your money.......2007-09-09
As an alum of the seminar , I can tell you most of the claims in the book are possible, but very un-probable. Markets are random and all of the technics Joe Hooper touts require you to pick a direction of the market. I have been to the covered call seminar and also the leap seminar(only because it was free with the first one).Joe Hooper is very arogant and self serving. If someone asked a question he didn't like ,he talked down to them so they would not ask again.
I have invested with covered calls for years.They are fantastic way to invest. But in my opinion, Hoopers way is just to make Hooper money with all of the subscription add-ons.My account balance does not lie. There is a much better way. Listen to someone singing Hooper's praises and you will find out they have not been using CSE methods for long, or somebody is getting paid.
Not Worth The Money, Difficult to Read, DVD is worthless.......2007-08-22
After hearing their radio program and claims that "You will never lose money with properly structured Calls," I could not resist buying the book. Having read the book, I do no see how they can make the claim that you will never lose money. It is no a brainer that in the event you buy a stock and sell a covered call just out of money and get called out, you win both ways. You gain from the sale of the stock and profit from selling the covered call. But, in the event the stock drops, you gain from the sale of the covered call but you now have a paper loss on the value of the stock. This is where the book fails to properly account for this paper loss. This is the risk that I never hear them discuss on the radio or in their book. Once the stock drops, you are now on the hook to try and recoup some of your losses with the sale of additional covered calls while at the same time being careful not to get called out at an overall loss. This is not possible 100% of the time. The author's dismissal of not accounting for at least the paper loss on a dropping stock is fraudulent from my perspective because in the end, you have less money then when you started. The 2-3% gain on the call is of little value if it is over shadowed by the dropping of the stock price. In some cases, it might take 6 months or more of painstaking trades to try and get even. However, there will be some cases where the stock drops so much that it will not be possible to recover yet this is never discussed in the book. If I buy a stock at $25 and it drops to $5, by their accounting I have not lost any money until I acutally sell the stock. This is convenient for them but in reality paper losses are real in that you do not have the same level of spending power. I guess if the stock drops from $25 to $5 and you never sell it, you never have a loss but this is totally bogus accounting.
The book is poorly written in that it often refers to techniques like a Tethered Slingshot in the early chapters but is not explained until much later in the book. The organization is confusing and hard to follow.
The DVD is of ZERO value and poorly produced. It highlights a masters session hosted by seasoned veterans discussing nuances that are far in advance of the book. The value of the DVD and quality of the presenters is not worth the time to watch.
Okay Book --- TERRIBLE DVD !!!!!.......2007-08-20
The book is divided into 2 parts. Part 1 describes covered calls (CC) and Part 2 describes Calendar Leap Calls --- a surrogate stock purchase that is not as capital intensive as doing CCs. The DVD similarly is divided into 2 sections. Poor video quality and POOR EXPLANATION.
Now, my preference is Calendar Leap Calls, but they take more work than the conventional CC, but not impossible by any means.
Compound Stock Earnings is the Fort Worth based company that wrote the book, and also pushes their $3250 2-day bootcamp. There is a yahoo newsgroup, several years old with members whom have attended the seminar, bought the book, and/or both. The overwhelmingly predominant opinion is that the seminar is A WASTE of money. Since I live in Texas, I contacted the primary owner...Joseph Hooper, also one of the authors of the book. What an egocentric, full of himself individual. The same sentiments expressed on the user group. He is elderly, a Texan with a folksy accent and sounds like a 'good ole' boy.' Well he is NOT good. He is offensive and abrasive. Could not get any questions answered. NEVER MIND !!!
The Calendar Leaps Call is NOT a new strategy, but it is explained thoroughly with easy rules to follow. Buy the book if you must, not the bootcamp.
Happy Investing !!!
If you want the stock market demystified...this is the book for you!.......2007-08-10
I am not a financial whiz kid nor do I want to be one, but I do want to be in charge of my own financial future and receive a good return on my investments.
I attended the many financial seminars and read the books and felt less adequate by the page or event. Like drinking from a fire hose, the information left me on overload even with all the bells and whistles. But for a novice trying to learn the stock market it was absolutely worthless while the cost was anything but...
Then a friend encouraged me [more times than I want to admit] to read this book. He knew my struggle with trying to grasp stock market concepts. I purchased the book and have not put it down since. I continue to use it as a roadmap to my financial freedom. My friend is a savvy trader and he utilizes the CSE rules in his trades.
This book's content is easy to understand, even for the "never bought or traded a stock before" individual, the principles are solid, and my trading results have been amazing - anticipating ending the year with a minimum of 3% per month.
I trade, I follow the rules and I make money. As my husband says, "my wife doesn't hit homeruns she just hits single after single". It has been fun learning. I love the process and just feel that these guys [Joseph Hooper and Aaron Zalewski] are dedicated to helping positively transform people's financial lives. . . The book is not designed for those looking for get rich quick schemes or complicated mumbo jumbo trading jargon with theories to debate. It is about selling covered calls and strategies to enhance your trading positions. This book teaches simply the market is the market - stocks go up, stocks go down, learn the rules that have been proven to work and have patience.
Joe and Aaron have provided many resources to assist the new and experienced traders and the book is only the beginning. If you want more support, they provide it through additional seminars, online toolbox and online coaching. As their organization grows and their clients request more and simpler tools, they have provided them.
Don't worry about any negative press you read about CSE or the book. If you want to get started trading, learn the stock market basics, be in control of your hard earned money, or you are an advanced trader and you want to learn and improve your trading results ....then buy the book and get started...like me you will be sad you didn't know about CSE years ago!
Not for the faint at heart.......2007-08-01
An excellent book, but this is not casual reading. You will have to re-read this book over and over again, and also have your Excel spreadsheet out to understand the concepts and details.
Book Description
Expert instruction on the practical applications of candlestick charting
Candlestick charting is more popular than ever before, with a legion of new traders and investors being introduced to the concept by some of today’s hottest investment gurus. Having introduced the candlestick technique to the West through two of his bestselling books, Steve Nison is regarded as a luminary in the field of candlestick charting. In his new venture, The Candlestick Course, Nison explains patterns of varying complexity and tests the reader’s knowledge with quizzes, Q&As, and intensive examples. In accessible and easy-to-understand language, this book offers expert instruction on the practical applications of candlestick charting to give every level of investor a complete understanding of this proven, profitable, and time-tested investing technique. Straightforward answers quickly clarify this easy-to-use charting method. This guide will allow readers to recognize and implement various candlestick patterns and lines in today’s real-world trading environment–giving them a noticeable edge in their trading activities
Download Description
Expert instruction on the practical applications of candlestick charting
Candlestick charting is more popular than ever before, with a legion of new traders and investors being introduced to the concept by some of today’s hottest investment gurus. Having introduced the candlestick technique to the West through two of his bestselling books, Steve Nison is regarded as a luminary in the field of candlestick charting. In his new venture, The Candlestick Course, Nison explains patterns of varying complexity and tests the reader’s knowledge with quizzes, Q&As, and intensive examples. In accessible and easy-to-understand language, this book offers expert instruction on the practical applications of candlestick charting to give every level of investor a complete understanding of this proven, profitable, and time-tested investing technique. Straightforward answers quickly clarify this easy-to-use charting method. This guide will allow readers to recognize and implement various candlestick patterns and lines in today’s real-world trading environment–giving them a noticeable edge in their trading activities
Customer Reviews:
Candlestick course.......2007-09-21
This book will improve your candlestick skills and help improve your trading success if combined with other indicators. The book is really like a textbook with questions and tests after each chapter so if you are expecting a spoonfeeding course then you might be disappointed because you have to do some homework and really practice with this book.
Candlestick Theory.......2007-09-11
Nison provides an indepth understanding of the Japanese Candlestick Theory that is easy to understand and presented in a way that you are sure to comprehend.
great start for newbies.......2007-06-27
Since I becmae interested in trading stocks in October of 2006 this was the first book that I purchased dealing with technical analysis and charts. I could not be more happy with my choice. The quizes at the end of each chapter help to cement the new information into your memory. Even though my strategies have "evolved" beyond looking through charts solely for candlestick patterns, they are still an invaluable tool and can provide great insight. I highly recommend this book.
Very Comprehensive in a Text Format.......2007-02-13
I really liked the fact that this was in a text format with questions as well as answers provided. The title says "Course" and I believe that is exactly what it is. It provides a lot of detail in such a short span of just over 200 pages. The question and answer format really helps to cement the content. As other reviewers have indicated, there was a lot of page turning back and forth to find the right chart to go with the right question but there are plenty of charts to support the material provided. I found it was just what I was looking for as a formal introduction to candlesticks from someone definitely in the know.
Happy trading!
This is a great book.......2006-10-01
This is a great book for one person - Steve Nison. :)
Amazon.com
From the school of unemotional investing comes the classic How to Make Money in Stocks, by Wall Street analyst and publisher William O'Neil. Readers new to securities will find it an excellent primer, one that relies on time-honored indicators such as quarterly earnings, market capitalization, and daily indexes. O'Neil's study of winning stocks stretches back to the 1960s, and he shares his insights here, describing what characterizes a growth stock, when to cut your losses (at 7 or 8 percent, no more), and how to spot a market top.
The techniques in How to Make Money in Stocks are hardly revolutionary, but therein lies their strength, as O'Neil claims his is "a winning system in good times or bad." Investors interested in Net stocks might be disappointed--the author's first rule is that a company must show a pattern of growing profits, which disqualifies many dot coms. (Try Rule Breakers, Rule Makers for a different take.) O'Neil's approach to stocks is, above all, rational, and he pays little heed to market hype.
Those new to investing would do well to read this book before embarking, and even more seasoned traders may find How to Make Money in Stocks a refreshing return to basics. Markets may swing bull and bear, but O'Neil promises to stand firm. --Demian McLean
Book Description
THE BUSINESSWEEK, USA TODAY, AND WALL STREET JOURNAL BUSINESS BESTSELLER!
The bestselling guide to buying stocks, from the founder of Investor's Business Dailynow completely revised and updated
When it was first published, How to Make Money in Stocks hit the investing world like a jolt, providing readers with the first in-depth explanation of William J. O'Neil's innovative CAN SLIM investing method. Five years later, O'Neil, founder for the industry icon Investor's Business Daily, revised his classic text and provided readers with a newer glimpse on how the average investor can make money in the equities market.
This third edition of How to Make Money in Stocks has been revised and updated with new chapters designed to help investors increase their performance. New discussions include:
- Greater clarification of the key CAN SLIM investment strategy
- Expanded analysis of the general market from the top of year 2000 to the market bottom of 2001
- New models of the greatest stock market winners that provide more basis for the ongoing effectiveness and superior performance of the CAN SLIM strategy
- Fresh stock charts featured in two colors for easier analysis of trends
- And an invaluable guide on how to maximize both Investor's Business Daily and www.investors.com to find winning stocks
Like his international bestselling 24 Essential Lessons for Investment Success, which stayed on international business bestseller lists for close to 6 months in 2000, How to Make Money in Stocks is the best reference for the individual investor in how to stay afloat and ahead in the rocky and volatile equities markets of the 21st century.
Customer Reviews:
Championship Stock Trading Methods Revealed.......2007-10-17
I'll heard about this book years ago, but dismissed it because of it's title. But, I learned that someone named David Ryan won three investing championships with real money using the methods revealed in this book. And I wanted to start trading in the stock market again, but this time I wanted to learn a method that will help me be successful for a change.
I think that if you are new to investing in the stock market and would like to learn a good way to get started, then this book "How To Make Money In Stocks," by William O'Neil is a good guide.
You will learn all about the CANSLIM rules for selecting stocks that are about to make the big price moves. Also included is advice on buying only when a stock is making new highs or breaking out on big volume and cutting your loses short to protect your funds if you're wrong.
It shows you the five basic chart patterns that you should look for in a stock that is about to take off. And these patterns will help you buy at the right price.
The last few chapters are devoted to the features of Investor's Business Daily, which will help you find and track stocks that match the characteristics of the CANSLIM method.
I actually order this book at a local Borders -- paying full price -- because I didn't want to wait for the mail. I was in a hurry to learn how to use Investors.com -- one of the websites of Investors' Business Daily which I have subscribed too.
Interesting but not great.......2007-09-13
I'm new to investing but have read 7 books in the last couple of months on investing and financial statement analysis. These other books (the intelligent investor etc.) are more focused on value investing and tend to dissuade from considering stocks at all time highs. So it was interesting to read a different approach and this book would certainly make me consider looking at more growth stocks. It was also good to get some basics on chart interpretation which I think will prove useful. The downside is that the book (like all his books from looking at other reviews) focuses too much on IBD his website/newspaper, also the explanations for interpreting the charts was not really thorough enough, also a lot of the charts that he advised not to buy on did not look all that dissimilar in places to charts that he advised were good buys - its easy to go back in hindsight on the ones that didn't take off in price and pick holes into why they didn't.
Also his guide to selling at 7% to 8% below your buy price seems a bit extreme - maybe this is just for high risk growth stock buys but in general given the nature of the market most stock fluctuate far more and could be down 8% over a week to recover to the same of higher level the following week. If you sold every time as he suggests you'd constantly be selling and trying to find new stocks to buy.
He seemingly derides the value investing concept which is odd as some of the best investors of all time followed this approach - Buffett & Graham and their disciples being the obvious ones. Overall an interesting read for a different perspective and introduction to chart interpretation.
Study This Book.......2007-09-08
This book is very easy and most interesting to read. The author, Wm. O'Neil is the founder of Investor Business Daily newspaper, which I have always considered the best financial newspaper.
If you are willing to "study" and learn rather than just read this book, You will make money in stocks.
I use this book and Jim Cramer's 'Real money' and 'Mad Money' books daily (almost like text books) to study, learn and apply what I learn.
Hybrid Investing 101.......2007-07-27
An excellent book on how to use both fundamental and technical analysis together to produce big profits. William J O neal is a great author.
Wish I read this 10 years ago.......2007-06-08
Great book. Sound concepts that work. Yes, I subscribe to the paper (IBD) and use his rules. I'm up over 30% in a solid bull market over the last 4 months without being fully invested. When the market pulls back, my stocks also pull back, but when the market is up, my stocks tend to go up hard.
I find that I do better when I pyramid up after a bounce off the 50-day rather than every 2% or round number like promoted by Darvas. It's a good book worth underlining and scribbling all over the margins.
Book Description
A common denominator among most new traders is that, within six months of launching their new pursuit, they are out of money and out of trading. High-Probability Trading softens the impact of this "trader's tuition," detailing a comprehensive program for weathering those perilous first months and becoming a profitable trader.
This no-nonsense book takes a uniquely blunt look at the realities of trading. Filled with real-life examples and intended for use by both short- and long-term traders, it explores each aspect of successful trading.
Customer Reviews:
One of the top five trading books you should own and read regularly.......2007-10-08
Different trading books cover different aspects of trading, like risk, execution, or psychology. This book covers all of that and more. It is one of the few complete books on trading I have read so far. I don't think you can read this one book and become a great trader, but I do think it starts you in the right direction and if you follow what Marcel is saying you will be a better trader.
I also think if you are already a successful trader there are many things in this book that can help you to become even more successful. I first read this book about two years ago. Learned some good things from it and then put it on my shelf of trading books. I pulled it back off the shelf about a week ago and started reading it again. I am glad I did. There are so many pearls of wisdom in this book that I had forgotten, or just stopped using over time. Sometimes we need to be reminded so we can continue to improve.
Marcel appears to be a real trader. That's a good thing because there are many trading books out there written by real authors, not real traders. The wisdom he lays down in this book are the bits and pieces he learned through his trials and errors over years of trading.
Here are some of the things I took away from this book.
-Trading is the hardest job you will ever have. If you think you are going to just walk over to your computer, turn it on, and then buy or sell your way to riches without any preparation, you are sadly mistaken. If someone tells you it is easy, ask to see their audited statements for the past few years.
-Be realistic about the time it will take you to become successful. It will probably be 2-5 years of diligent work before you can become a successful trader. Some people can do it in less time, others will need more time. A doctor, lawyer, or other professional cannot become an expert in their field in a couple of months. Why would you think you can do it in a field like trading? Something else to learn from doctors or lawyers, the really successful ones specialize. You cannot trade every market, so find the ones you are good at and specialize in those areas. That's the way to happiness and profits.
-Learning to trade is a timed race. You need to become successful before you run out of money. Its just like a new business, you need to make money before you go broke. Treat trading as a business and you will be more successful at it.
-In the beginning it is much more important to learn how to not lose money than it is to learn how to make money. If you keep from losing money you lengthen your learning time. No money means no trading. You have to preserve your precious capital. Plus once you learn how not to lose money, you start getting better at realizing how to make it.
-You need to have the proper capital to succeed, or you need to have realistic expectations for the capital you currently have. You should not be trading four e-mini futures contracts on a $10,000 account. It would put your risk level way too high and lower your chances to succeed. Proper risk levels are vitally important.
-Never take a trade that you cannot explain. You need to understand why you are getting into a trade. There are tons of trades every single day. This book is about taking the high probability trades. Why take a low probability trade when all you need to do is be patient and a higher probability trade is right around the corner.
-Trading against the trend is a low probability trade. Why not place the odds in your favor by trading with the trend?
-Trade the market, not your P/L. Trade what the market is showing you. Do not trade because you need to make a mortgage payment or car payment. The market is very generous and gives you many opportunities each and every day to transfer some of its money to your account. Wait patiently and be prepared to act when those opportunities arise.
-Always have a stop-loss. That means a hard stop you place the second after you put on the trade, or a mental stop that you will execute without fail if the market hits that number. A stop-loss just lets you know the trade is not what you are expecting. A small loss is part of the game. Do not let it turn into a large loss. Some of the best traders are only right about 30-40% of the time. And they make millions by only taking a small loss when they are wrong and letting their profits run when they are right.
-Risk. You need to set proper risk levels and always follow them. You will never know ahead of time which trades will make money or which trades will lose money, so you need to have proper risk levels at all times. Improper risk levels are one of the most critical reasons that new traders fail. By risking too much they never give themselves a fighting chance to be successful in the markets. New traders have not figured out their edge, they have not dealt with their own psychology, they have a dozen reasons why the trade is wrong, but with improper risk levels they get too few chances at learning the correct way to trade.
-Psychology. Whole books have been written on this subject. Marcel hits many of the important ones in his life, they will probably help you out too. This is a very important subject that you must conquer to be successful. For some it is easy, others will work on it until the day they die. I once read somewhere that "The market is an expensive place to learn about yourself". It's very true.
I can easily say that this book is in my list of the five best trading books. It deserves to be read more than once. Maybe once a year if you are actively trading. I would like to be able to give a brief description of the highlights of this book, but this is an all-encompassing book on trading. It covers everything that the majority of traders need to know and understand. If you follow what Marcel talks about in this book, you will have a high probability of succeeding in your trading career.
I just love this book!!.......2007-05-14
This book is one of my favorite trading books. It was right after I hit a pretty huge drawdown that I started reading this book, and it gave me a clear vision of high probability trading. I took back all my losses and became consistently profitable though I still do lose, but losing is part of trading anyway...
One thing, some of the strategies might be a little difficult to program for those who trade based on systems, but lots of useful ideas!! recommended!!
The only way to trade successfully.......2007-03-23
The title of this book speaks volumes about what you will find inside. What the author discusses through out this book is how to make every trade give you high probable odds to make money. Trade unemotionally, don't get greedy, and don't try to make the market pay you back for past losses. Do not become arrogant and stop using a proven system. Wait for a pullback to buy a hot stock instead of buying at an all time high. Do not over trade, wait and watch for a great set up. Give trades room to develop do not set to tight of stops. Give winning trades room to run before taking profits. This book is an all in one book for successfully trading covering all the bases, technical trades, money management, risk management, and the psychological aspects of trading. No trade is a sure thing, we deal in probabilities, increase your odds by practicing what this book teaches. I highly recommend. Also read ALL of Dr. Alexander Elder's books for more specific trading principles involving your mind, method, and money management.
Best Intraday Trading Book.......2007-03-23
I have been trading profitably for about three years. I have been at this for about five years. I trade anything from fx spot market to mini-futures. Once a month I go back over all of my trades, read Elder's, Come Into My Trading Room, and this book is the first book I grab to re-hash strategies. I estimate that only about ten actual books on trading these days will make you profitable in todays markets. This book is one of the top three. The other two are Murphy's technical trading book and Tading in the Zone for the psychological aspect of this game.
For the person who said that indicators are not profitable- How have I been making money, consistently, for several years now with indicators all over my charts? Granted, I do not use indicators like the typical "Default" hogs that get slaughtered when they use indicators without any testing etc.. I use indicators exactly like Link shows in this book. I guess it works for some traders and not for other traders?
A Must Read!.......2007-02-21
Best book on trading I've ever read. Confirmed everything I had to learn the hard way over several years. If you are new to trading, read this first. It will get you on the fast track!
Book Description
Technical Analysis of Stock Trends was the first book to produce a methodology for interpreting the predictable behavior of investors and markets. It revolutionized technical investment approaches and showed traders and investors how to make money regardless of what the market is doing. Now in its ninth edition, the book remains the benchmark by which all other investment methodologies are measured. An indispensable reference for technical traders, investors, and finance professionals, the ninth edition features:
* Expanded treatment of Magee's "basing points" procedure
* In-depth discussion and dissection of Dow Theory
* Extensive new material on commodity trading
* Much-needed perspective on short-term and futures trading
The newest incarnation of one of the true classics of market analysis, this book will be a crucial resource for both seasoned veterans and the new generation alike.
Customer Reviews:
Old classic version is much better!.......2007-09-03
Most of the information presented in this book comes from the old classic version from the original authors John Magee and Robert D Edwards. You get more "bang for your buck" if you buy the used older version 4 or version 5 (Revised) and still have some money left in your pocket.
I remember paying just $12.50 for Version 4 in the early 60's. I don't think the supplements(upgrade) to the text to bring in modern stocks is worth the extra money. Charts are always open to interpretation but a stocks value lies in the eye of the beholder. The price patterns are like road signs you should be able to visualize them on any chart regardless what time-frame. Not knowing stock patterns when they are completed is like driving through stop signs. After you have read this book you should be skillful in drawing trend lines,channel lines, and identifying trends. Even today you see the same old basic chart patterns occur as the old fashioned charts a century ago. No oscillators or momentum-based indicators are needed. Experience is your best teacher when you look at chart patterns and there are many more to identify that you don't see in this book. In the market you must look at what is happening now then predict what is going to happen, not what has already happened to make money. The market always looks through the front windshield not through the rear view mirror.
An interesting Chart pattern book I would recommend you to read after you have read this book and check his website for more books /chart patterns. "Getting Started in Chart Patterns" by Thomas N. Bulkowski.
Who was John Magee? Can read about him in this book entitled. "100 Minds That Made the Market" by Kenneth L. Fisher.
Not just updated, completely new and must have..........2007-04-29
If Edwards and Magee wrote the bible of technical analysis in 1948 when they first published "Technical Analysis of Stock Trends." then why do we need a Ninth Edition of their classic? This question was foremost in my mind as I began reading this recently released version of a book I spent many hours with as I prepared for the CMT exams. After reading all 832 pages, I realized that in many ways, the financial markets, and technical analysis, are finally maturing to the point where we can fully grasp the significance of what was first written almost sixty years ago. With a focus on pragmatic portfolio theory, editor Charles Bassetti significantly contributes to the technical analysis body of knowledge especially related to tactics, and has created a book worth a space on every technician's bookshelf.
In this edition, Bassetti delivers much more than an update - it's actually a new book. He focuses on strategies for increasing profits:
* The basics of traditional chart analysis are clearly presented, just as Robert Edwards meant for them to be. In keeping with the practice of earlier editions, Bassetti retains the original charts showing examples of patterns from the 1940s and earlier. He also includes more than two dozen new charts, demonstrating that the same old patterns still work today. The detailed discussion of the market psychology that forms these patterns may stimulate modern analysts to program the patterns.
* Adds a comprehensive explanation of Magee's "basing points" procedure for setting initial and trailing stops on any position. Bassetti adds a chapter and charts to clarify this powerful concept, which in itself is worth more than the cost of the book.
* For what may be the first time, Bassetti provides an annotated chart of the Dow, combining an in-depth discussion of Dow Theory with a visual history of the signals. We've all seen tables showing the sell signal in Oct 1929 or the buy signal in late-1990 which lasted more than seven years, but the chart erases any doubt that Dow Theory is a valuable timing tool. Creating a comprehensive source on the Dow Theory, he also includes an overview of Robert Colby's method to automate the signals.
* Provides a link to www.edwards-magee.com, which offers downloadable material that supplements the text. As one example, readers can download pdf files of the Dow Theory signals for closer examination.
* Offers new perspectives on short-term and futures trading. The extensive new material on commodity trading, including a complete trading plan, was not addressed in previous editions.
Bassetti also ensures the reader understands the similarities between Magee's Sensitivity Index and Modern Portfolio Theory's Beta; and the striking resemblance of Magee's Composite Leverage to the financial engineering concept of Value at Risk. Readers of previous editions may not have realized that Magee developed these concepts decades before Nobel Prize-winning work was undertaken in these areas. Magee wrote in the language of the trader (semi-log charts), rather than the academician and his ideas have been overlooked by economic theorists.
A classic book is one that stands the test of time. No one can argue that Technical Analysis of Stock Trends fails in this regard. Patterns that worked a hundred years ago are still found in financial markets and they still work. The forecasting ability of patterns lies in their ability to document the history of human nature, which remains unchanged over many centuries.
Another feature of classic works is a unique style. Edwards and Magee filled their work with examples - current at the time of publication. They wrote with clarity and ease of style not usually found in textbooks. Their text was a practical "how to" manual that explained the "study of the action of the market itself" in concrete terms. It appealed to those seeking the Holy Grail on Wall Street, and to those serious students of the markets seeking an edge. In this new edition, Bassetti retains all of their style and introduces his own, which in all ways is similar to the original, but with a modern edge.
Bassetti believes that Magee's concept of basing points is worth a great deal of additional study. This is one of the most significant contributions he makes to the new edition, updating this section in the tactics to ensure that all traders understand this method of stop placement. His example is clear, and the reader can instantly implement this technique, which Bassetti thinks of as one of the most valuable in the book.
Some question whether classical chart reading is still a valid discipline in an era defined by cheap data, powerful scanning and backtesting software, instantaneous execution and quantitative analysis. After reading this book, you'll be left with a deeper appreciation of the value of chart reading and will become an even stronger proponent of technical analysis in modern markets.
Get T/A info from the source!.......2007-04-13
I believe this is one of the original books to have been published on stock market technical analysis. Magee and Edwards do an excellent job explaining Dow Theory and stock chart analysis. I bought the 5th edition because it was the last edition that was actually edited by the original authors. This book is the source of most modern technical analysis theory. It covers reversal patterns, gaps, support and resistance, consolidation patterns, trendlines and channels (by Edwards); and then goes into stock selection, stop orders, how to build a chart, and the practical application of those patterns and how to use them in your trading (by Magee). I read the book from cover to cover and refer back to it all the time in my technical analysis. It's an excellent resource!
Technical Analysis of Stock Trends.......2007-03-27
Informative and a very good resource tool when I need it. Easy to read narration which is a feature when the content can be a little dull at times.
Excellent Dow Theory Explanation.......2007-03-25
Robert Edwards description and analysis of the Dow Theory is, as Professor Bassetti so astutely states on page 48, a "magisterial presentation". I am proud to have been asked to add my interpretation to the update since Dr. Edwards death. Believe it or not, the Dow Theory is alive and well in the 21st Century and this book will help you understand why.
Jack Schannep
Book Description
Stock Investing For Dummies, 2
nd Edition covers all the proven tactics and strategies for picking the right stocks. Packed with savvy tips on today’s best investment opportunities, this book provides a down-to-earth, straightforward approach to making money on the market without the fancy lingo. Soon you’ll have the power to optimize your returns by:
- Recognizing and minimizing the risks
- Gathering information about potential stocks
- Dissecting annual reports and other company documents
- Analyzing the growth and demand of industries
- Playing with the politicians
- Approaching uncertain markets
- Using corporate stock buybacks to boost earnings
- Handling the IRS and other obligations
With a different strategy for every investor—from recent college grad to married with children to recently retired—this valuable reference is a must-have. It also features tips and tricks on how to tell when a stock is on the verge of declining or increasing, how to protect yourself from fraud, and common challenges that every investor must go through, along with resources and financial ratios.
Download Description
The Dummies way to score big in the stock market Stock Investing For Dummies, Second Edition covers the basics of investing for individuals and households that want to watch their savings grow. Simple, straight-forward, and honest, this friendly guide covers all the categories of stocks, teaches readers how to analyze stocks, and offers invaluable resources for developing a portfolio. Investing consultant Paul Mladjenovic offers wise advice and proven tactics for beginners who want to get in the game without risking their shirts. Whether the market is up or down, readers will benefit from sound, practical investing strategies and insights that have helped generations of investors profit from the markets. Paul Mladjenovic (Englewood Cliffs, NJ) is the owner of PM Financial Services and a Certified Financial Planner and investing consultant with nineteen years of experience in investing.
Customer Reviews:
Not Just for Dummies.......2007-10-06
I've read about a dozen books on stock investing in the last 6 months or so and this is probably my favorite. It's detailed, interesting, and very easy to read. It's perfect for dummies, or those new to the stock market, but also so loaded with great info that even the "experts" would probably pick up a few things here and there. Since I just finished reading it, cover to cover, for the second time, I thought I ought to give the author a well-deserved good review.
A good start.......2007-09-30
Like all the "Dummies" this is great groundwork. If you can not get through this book you should not be investing.
Good beginner book.......2007-09-02
My husband loved learning more about investing. This book repeats a lot throughout it, but it is very good information.
Not too hot.......2007-07-22
Easy read and good flow, but this book spends a lot of pages stating the obvious (even obvious or me, and I'm a novice to investing). Some of the early chapters discuss whether or not you're really ready to invest... well, duh! I would not have gotten this book if I was not ready to invest! Anyway, too many pages wasted on that. The real sin with this book is that the author dodges one of the most important things that needs to be talked about with stock investing-- rating the various broker firms. Ok author, I know you can't endorse one over the other directly, but how about helping your readers to find out how they can find out for themselves instead of leaving them stranded. If you're like me and you already know what companies you want to invest in, then one of the main things you need to find out about is which brokers would be the best for you and your needs, and this book never gave any hints.
BOOK LOOKS BRAND NEW.......2007-05-21
HAVENT HAD A CHANCE TO READ THE BOOK IN DETAILS, BUT I LIKE JUST HAVING IT WHEN I HAVE A QUESTION, I KNOW HAVE A RESOURCE TO FIND THE ANSWER.
Book Description
THE NATIONAL BESTSELLING BOOK THAT EVERY INVESTOR SHOULD OWN
Peter Lynch is America's number-one money manager. His mantra: Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.
Now, in a new introduction written specifically for this edition of One Up on Wall Street, Lynch gives his take on the incredible rise of Internet stocks, as well as a list of twenty winning companies of high-tech '90s. That many of these winners are low-tech supports his thesis that amateur investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter in their daily lives.
Investment opportunities abound for the layperson, Lynch says. By simply observing business developments and taking notice of your immediate world -- from the mall to the workplace -- you can discover potentially successful companies before professional analysts do. This jump on the experts is what produces "tenbaggers," the stocks that appreciate tenfold or more and turn an average stock portfolio into a star performer.
The former star manager of Fidelity's multibillion-dollar Magellan Fund, Lynch reveals how he achieved his spectacular record. Writing with John Rothchild, Lynch offers easy-to-follow directions for sorting out the long shots from the no shots by reviewing a company's financial statements and by identifying which numbers really count. He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies.
Lynch promises that if you ignore the ups and downs of the market and the endless speculation about interest rates, in the long term (anywhere from five to fifteen years) your portfolio will reward you. This advice has proved to be timeless and has made One Up on Wall Street a number-one bestseller. And now this classic is as valuable in the new millennium as ever.
Customer Reviews:
The most famous book from the legendary investor .......2007-10-16
This was the book that catapuled individual investing. He teaches you how to beat the market just by keeping your eyes and ears open.
Unfortunately, most investors don't follow his rules.
A reread for those who have questions about their returns.
This book is the Bible for investing!
Teaching From a Master.......2007-10-12
(This is a review of the full-sized edition, not the ill-advised miniature that has garnered so much negative comment.)
Why listen to Peter Lynch? He's one of the greatest stock market investors of all time. From 1977 to 1990, Lynch managed the Magellan mutual fund for Fidelity Investments. The fund's assets increased more than 2,700%.
Is that a lot? It's like Barry Bonds hitting 200 home runs in a season. It's a staggering achievement, unlikely to ever be duplicated.
There is a small industry of financial advice out there from people with no documented success. Lucky for us, Lynch decided to share his methods.
One Up on Wall Street puts stock picking skill into the minds of everyday people. The book is written in a breezy, accessible style that non-financial types will appreciate. Lynch also gives a glimpse at his life at Fidelity during his tenure running Magellan.
Stock picking is an art. Lynch delves into the intuitive side of investing. It's not all about financial statements and balance sheets, although he gives you a quick rundown of those too (Chapter 13: Some Famous Numbers). The book has more ideas per page than any of the several stock market books that I have read.
Information overload can paralyze the mind of a stockpicker. If you're not a data type of person, stock research can make your head explode. Lynch spells out a way to find good investments without suffering brain damage.
To use a food analogy, he doesn't give you a recipe, he teaches you how to cook.
Must Read for any new Investor.......2007-08-08
I've been looking for more information on how to invest into this stock market. This book was EXACTLY what I was looking for. Not only did it help me figure out what kinds of companies to keep my eye out for, it also gave me ways and formulas to check out to verify if the stock was a good buy or not. I highly recommend this book!
THE SMALLEST BOOK EVER.......2007-07-31
This is a MINIATURE book. Literally. 3 inces x 3 inches, "95 pages" with 30 or 40 big words on each page. Ridiculous. I can't believe such a thing was manufactured.
Good start for investing basics.......2007-07-15
Excellent primer for how to consider investments from a qualitative perspective, rather than the number crunching quantitive perspective put forth by so many other writers. Peter Lynch demonstrates how amateur investors can have an edge on Wall Street professionals through our day-to-day interactions with businesses.
Books:
- The Long Tail: Why the Future of Business is Selling Less of More
- The Long Tail: Why the Future of Business is Selling Less of More
- The Long Tail: Why the Future of Business is Selling Less of More
- The New Great Game: Blood and Oil in Central Asia
- The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring
- The Offshore Nation: Strategies for Success in Global Outsourcing and Offshoring
- The Option Advisor: Wealth-Building Techniques Using Equity & Index Options (A Marketplace Book)
- The Sixty-Second Motivator
- The Speculative Strategist: High Returns from Controlled Risk Strategies in Stock and Futures Markets
- Tools and Tactics for the Master DayTrader: Battle-Tested Techniques for Day, Swing, and Position Traders
Books Index
Books Home
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General
| Popular Economics
| Business & Investing
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A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition
The Little Book of Value Investing
The Bogleheads' Guide to Investing
The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Book Big Profits)
The Little Book That Beats the Market
