Thursday, November 16, 2006

Trade Your Way To Financial Freedom - Book Review

Trade Your Way to Financial Freedom

What Is It About?

This book is about finding and a trading system that works for an individual investor and then utilizing that system to successfully trade stocks. Rather than suggest one way of trading, the author convincingly details many different methods of trading and leaves it to the reader to decide which style (or mixture of styles) suits them best. In discussing trading systems the author does not simply discuss when to buy, but more importantly how much to buy and when to sell.

What Did I Get Out Of It As A New Investor?

This book is an excellent book for both traders and investors. This is because buying a stock in the hope of one day selling for more than you paid is stock trading, not stock investing, be it based on “value” or “technical” methods. Whether you buy and sell a stock in the next minute or buy and sell many years later, you are still a trader. Time frame is irrelevant. Therefore, because most people purchase stocks in the hopes that one day they can sell for a price greater than that at purchase, a book such as this has great utility.

The lessons taught in this book are applicable across all time frames. If you are curious on how to enter or exit a trade this book will provide answers to your questions. If you have wondered how to establish a position in a stock without taking a disproportionate risk based on the size of your account, this book will provide answers your questions. If preservation of capital is paramount, this book will provide answers to your questions. In short, this book is one that any new investor or trader should read.

The Good News

Whether you are a new trader or new investor this book has something for everyone and will make you better at both styles of investing.

The Bad News

If you have a bias against books that deal specifically with trading you may not find this book useful. That would be a mistake. While not everything in this book fits within the framework of long-term investing there is enough to make it worthwhile to any investor.

The Bottom Line

This is book belongs on the bookshelf of trader and investor alike.

Note: My review is of the first edition. Amazon shows that a second edition is due this month. The image above is a link to the still unavailable second edition. A link to first edition is found here .

Other Related Reading:



Anonymous said...

I am amazed at the speed of your reading. You are a machine. Takes me 2-3 weeks to finish a book. The stuff you are reading is not easy material either. Do you know speed reading?

Steven said...

Thanks for the kind words. I do not know speed reading, I get the whole concept but always felt like it was cheating.

I just really enjoy reading, have been doing a long time (since I was 8-9 or about 27 years), and do a lot of reading for work. So just like anything else, I read and grasp what I am reading pretty quickly because of practice.

But here is my secret: I usually read two or three books at a time.

I keep one by my exercise bike in the garage. So in order to read it I have to exercise. I end up reading that book about 4-5 times a week for about 30 minutes.

I keep another book around the house and read it when my wife watches a program on television I do not care for or when I am just sitting around.

Finally, I keep a book in my car. When my wife goes shopping and I tag along I either wait in the car and read or find a bench in the mall and read while she shops. The book in the car also comes in handy when she wants to visit my mother in law or other in-laws. I just bring the book or business magazine in with me and start reading.

So that's about it...just think about all the "down" time you have and fill it with reading a book...LOL.


Anonymous said...

Can’t state enough how important the sacrifices that go into wealth creation are.

Curious if anyone has caught this book yet? “The Richest Man in Town” by W Randall Jones. I’ve read half of it so far and let me tell you it is well worth it. Would like to hear what everyone else thought of it?


One very very interesting book.