Point & Figure Charting - Book Review

Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices (Wiley Trading)




What Is It About?


This book covers the Point and Figure method of stock charting. Based on the theory that stock prices are simply a reflection of supply and demand the book explains to the reader what Point and Figure charting is and how to utilize Point and Figure Charts. Easy to understand explanations and the included CD with tutorial provide the reader with an easy to grasp understanding of the subject.


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

The subject of stock charting is anathema to many investors. I am of the opinion that stock charting, like every mode of investing, has its place and value to each individual. Point and Figure charting may be the best example of stock charting for the new investor. Straight forward without many complicated patterns to learn and study, Point and Figure charting simply seeks to divine supply and demand with respect to the stock, ETF, or mutual fund studied. Coupled with fundamental analysis, Point and Figure charting may provide the investor with an additional tool in making investing and trading decisions. This book does a fine job of explaining how.


The Good News

For the new investor and trader looking to explore stock charting this book and the method it covers provides a simple straight forward explanation on how to do so.


The Bad News

Those who reject the idea of stock charts as a useful process will not find much value here.


The Bottom Line

Stock charting exists. New investors and traders are a curious lot. This book helps such individuals determine whether stock charting appeals to them as a useful tool or is nothing more than a distraction.


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Warren Buffett Speaks - Book Review

Warren Buffett Speaks: Wit and Wisdom from the World's Greatest Investor





What Is It About?

This book collected and arranged selected quotes from Warren Buffett, Chairman of Berkshire Hathaway. Covering a variety of topics the quotes set forth Warren Buffett’s approach to business, market, and life in general. Until Mr. Buffett’s own book is published next year, this collection of quotes taken from his various speeches and writings is the next best thing.


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

What can’t I learn from Warren Buffett? This book provides a handy reference to Warren Buffett quotes culled from his shareholder letters, speeches, and other writings. Good quick read, the book is excellent reading.


The Good News

It is Warren Buffett’s own words in a book.


The Bad News

Not much downside here.


The Bottom Line

Nothing teaches like success and any way you measure it Warren Buffett is successful. Consequently, a book comprised of his quotes should be read by all.


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SuperCash: The New Hedge Fund Capitalism - Book Review

SuperCash: The New Hedge Fund Capitalism (Wiley Trading)





What Is It About?

This book examines alternative approaches to success in the market. Looking at various techniques such as closed-end fund arbitrage, short-selling, and activism, the author explains to the reader how various strategies work and how an individual can mimic those strategies on a smaller scale. Well-written, the book is a quick read at just over 200 pages.


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

The book introduces a new investor or trader to the allocation of assets using alternative investments. Using examples of 13D filings the author demonstrates how the new investor can profitably ride the coattails of professional activist investors. The author also takes the reader through a step by step explanation on how to implement a closed-end fund arbitrage strategy. Several other chapters walk the reader through various other strategies employed by hedge funds. Overall, the book did a good job helping me understand that there are many alternative avenues to investing success.

The Good News

A helpful book for a new investor or trader hoping to understand alternative classes of investing.


The Bad News

The author says don’t read his books.


The Bottom Line

An informative book that provides the new investor or trader with a basic understanding on how to implement alternative investing strategies.


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My Review

SFO: Technical Analysis - Book Review

SFO Personal Investor Series: Technical Analysis

What Is It About?

This book collects several articles on online trading from Stocks, Futures, and Options magazine. This anthology contains articles from such trading luminaries as John Murphy, Brian Shannon, Thomas Bulkowski, and Lawrence McMillan. The topics covered include the history of technical analysis, chart construction, patter recognition, and application of technical analysis.


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

A solid overview on the study and application of technical analysis. The editor of the book assembles the best articles appearing in Stocks, Futures, and Options magazine in order to walk the new trader through the process of understanding what technical analysis is all about. This book helps one understand the various factors that go into following a technical analysis style of trading.

From chart construction to trend and pattern recognition to using technical indicators the book provides an introductory overview to many of the common questions a new trader may have about technical analysis. All the articles provide answers to those common questions new traders have about technical analysis. In short, the book presents material most helpful to new traders wanting to learn technical analysis.


The Good News

A helpful book for a new trader with a basic introduction to issues regarding technical analysis.


The Bad News

While the book does assemble many great articles into book form which may appeal to the experienced trader, this may not be the best book for those who have moved beyond the introductory stage of technical analysis.


The Bottom Line

A solid informative book for the new trader looking for a comprehensive overview on technical analysis.


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My Review

Secrets of the Trading Pros - Book Review

Secrets of the Trading Pros: Techniques & Tips that Pros Use to Beat the Markets (Wiley Trading)





What Is It About?

The book is an insiders look at how professionals trade the markets. Told in narrative fashion, the book covers such topics as trading psychology, economic releases, and risk management. Overall, an interesting tale from a market insider.


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

Interesting read from the perspective of a professional market participant. Two important points I took from the book: know your market and the market will always do that which hurts the most people. Engaging read that does not bore the reader.


The Good News

Thought provoking in that the book helps one think about the markets.


The Bad News

Those looking for a specific plan on how to trade may want to look elsewhere.


The Bottom Line

A worthwhile read for those interested in understanding how to mentally approach the markets.


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Income Investing Today - Book Review

Income Investing Today: Safety & High Income Through Diversification

What Is It About?

The book discusses the benefits of income investing. Looking at different income securities such as bonds, REITs, preferreds, and convertibles, the author covers various ways to invest for income. The book also does a good job of introducing the new investor to how income securities are priced and how they trade. Overall, a solid text on fixed income investing.


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

Income investing is a lot like riding a moped. It can be a lot of fun, you just don’t want your friends to see you doing it.

Using fixed income securities as investments often finds stereotyping as something for those entering the twilight of their years. But like all stereotypes there are exceptions to the rule. This book argues that properly done, income investing can be just as rewarding as common stock investing with a lot less risk. Well written the book convinces the reader that consideration of fixed income securities must form a part of portfolio construction. It does so in a manner which demystifies and explains how fixed income securities work.


The Good News

A good book which explains in an understandable manner to the new investor the various types of fixed income securities and how they operate.


The Bad News

The book states at the outset it does not endeavor to provide a comprehensive review of all things related to fixed income securities. Therefore, while this is a good book for the beginning investor in fixed income securities, at some point investors will need to seek out additional materials to further their education.


The Bottom Line

I came away more knowledgeable about fixed income securities and believe it is a good book for those looking to gain knowledge on fixed income securities.


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 My Review    My Review

Competition Demystified - Book Review

Competition Demystified: A Radically Simplified Approach to Business Strategy





What Is It About?

The book devotes itself to understanding and explaining how to analyze the competitive advantage a business may or may not posses. The book simplifies the analysis, arguing that a competitive advantage analysis simply determines whether there exits barriers of entry that protect the incumbent firm.


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

A straight forward book which explains competitive advantage in a manner easy for the new investor to understand. Using discussion and case study, the authors explains how an investor should determine whether a competitive advantage exists in the firm under review. The best part of the book is a simple decision tree that repeats throughout the book, showing how too quickly asses any competitive advantage that may exist. One of the better books I have read that added to my development as a new investor.


The Good News

Understandable without sacrificing depth, this book does a great job demonstrating to a new investor the required analysis for finding competitive advantages.


The Bad News

Written by a college professor the book reads as a textbook. The reader would be better off digesting the material over several weeks to allow for consideration of each chapter.


The Bottom Line

Great book for those looking to gain knowledge on the subject of competitive advantage.


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 My Review     My Review

30 Days To Market Mastery: A Step By Step Guide To Trading - Book Review

30 Days to Market Mastery: A Step-by-Step Guide to Profitable Trading (Wiley Trading)






What Is It About?

This book provides a step by step guide on how to trade. The book divides into 30 different chapters, each one teaching a new lesson. The book is structured for reading over a thirty day period in order to fully digest each lesson. To that end, each lesson concludes with a short quiz asking multiple choice questions on the material covered or presenting charts which the reader must interpret.


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

A complete book for a new trader. Offering both theory and practical application the book excels in helping new traders understand what it takes to develop a trading system. The book does this by providing a comprehensive overview on how to trade.

Starting with the basic understanding that all trading systems require a setup, trigger, and follow-through, the book does a good job showing the new trader what it takes to develop and implement a trading system. Using specific examples, with detailed charts and explanations, the book provides several different trading systems which a new trader can study. Demonstrating its commitment to teaching the new trader, the book provides a short quiz at the end of each chapter. These quizzes are not just a retread of material described, but actually challenge the reader to demonstrate competence as the read the book. Overall, this is one of the few books that covers all one might need to read in order to grasp how to trade.


The Good News

The most complete book for the new trader I have read.


The Bad News

Not well suited for those who have a distaste for charts or technical indicators.


The Bottom Line

A great book for the new trader looking for a step by step guide on how to trade successfully.


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The Dhandho Investor - Book Review

The Dhandho Investor: The Low - Risk Value Method to High Returns





What Is It About?

The book describes fundamental investing as followed by the Graham-Buffett style of value investing. The book covers topics such as business analysis, developing a focused portfolio, and understanding the value of finding low risk-high probability of success investments. Overall, the book helps new investors achieve success in the stock market following a disciplined investing approach.


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

Straight forward book on value investing. Using examples from his own work as a private fund manager the author helps the new investor understand how to use a focused fundamental style of investing in order to achieve success. Touching on such important topics as discounted cash flow analysis, competitive advantage, and margin of safety, the book educates the new investor on the basic principles that Warren Buffett and others encourage all investors to follow. Short and to the point, the book delivers a lot of value to the new investor.


The Good News

For those who are looking for a solid introduction to focused value investing this book does the job.


The Bad News

Great book for the new value investor, less so for the more experienced investor already adept at using the techniques of fundamental investing.


The Bottom Line

If you want a book to help you understand value investing, this book can help you accomplish your goal.


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Trade With Passion And Purpose - Book Review

Trade With Passion and Purpose: Spiritual, Psychological and Philosophical Keys to Becoming a Top Trader (Wiley Trading)





What Is It About?

This book explores looking within oneself to achieve greater trading success. Examining emotions such as fear, self-honesty, self-esteem, anxiety, and others, the author details how a trader must clarify their internal purpose before finding external market success. The book also discusses confronting external forces such as stress, relaxation, and self destructive behavior. The book concludes with a section on developing a trading plan.


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

I enjoy reading trading books that focus on understanding and harnessing ones internal emotions. I say that because without an internal compass to guide the use of a trading system, that system becomes worthless. To that end, this book does a good job of providing tools to help an investor or trader understand that in the end we are the most important part of the equation when it comes to trading and investing.

To accomplish this goal the author in a comprehensive, but not boring, manner discusses those stresses, both internal and external, that market participants often face. Using interviews with other traders, sports professionals, and others, the author details how one can best harness and control those factors to a positive result. The concluding chapters also do a good job of explaining why every trading plan must have integrity to succeed.


The Good News

The book delivers a very powerful message on how trading with purposeful integrity drives success.


The Bad News

While engaging, the book does read like a college text. One may find it easier to read the book over several weeks, digesting pausing after each chapter for consideration of the material rather than reading straight through.


The Bottom Line

Solid text on not just controlling ones emotions but understanding why ones trading must have purpose and integrity.


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My Review

Anatomy of the Bear: Lessons From Wall Street's Four Great Bottoms - Book Review

Anatomy of the Bear: Lessons From Wall Street's Four Great Bottoms





What Is It About?

This book explores the nature of a bear market at its apex (although I suppose nadir more aptly describes). The book inspects four distinct bear market bottoms: August 1921, July 1932, June 1949, and August 1982. This book does not try to time when a bear market begins or ends; rather the book focuses on understanding when all excess in the market has been rung out, or in others words, trying to understand when the bear becomes satiated.

By examining events leading up to each bottom, the structure of the market during that time, and the state of the market and economy at the bottom of each bear, the author presents a balanced examination of similar factors present during all four periods. To do so the author makes the case that while each period has its uniqueness, certain characteristics present during each period examined such that one may develop an analytic process which may assist during a future bear period. Written well, the book presents the material in an interesting manner.


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

Bear markets happen. Absent non-participation in the market, all are touched by the bear to some degree. While it is futile to predict when a bear may begin or end, enough similarity exists in the past among the great bear markets to signal opportunities to purchase stocks. This book helps a new investor or trader recognize when unwarranted and continued fear of the bear lacks justification. In short, if one cannot avoid the bear, one can at least hope to co-exist in a manner which does the least damage.

Whether one chooses to describe a market as fundamentally undervalued or technically oversold makes no difference. While it may be difficult to predict when a bear market will end, looking to past bear markets can be useful to discern when the continuing damage caused by the bear will abate. It is at this point when the purchase of equities must be considered. On this point the book is helpful in teaching an investor and trader what factors to examine.


The Good News

An accessible yet through examination of bear markets for the investor or trader which provides valuable information on the history of market bottoms.


The Bad News

Those seeking a simple buy or sell indicator to avoid bear markets may find disappointment with this book; rather, the book excels in helping the reader develop a thoughtful and broad understanding of market bottoms to aid in future analysis.


The Bottom Line

Written in a clear manner and to the point, this book covers the subject in a manner uncommon to the subject. Most works on bear markets focus on the damage a bear does, this book instead focuses on knowing when to take advantage of the positive buying opportunities a bear provides.


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My Review