3 comments about The Book of Investing Wisdom: Classic Writings by Great Stock-Pickers and Legends of Wall Street (Book of Business Wisdom).

1. Well conceived and organized with keen insight into how some of the best investors attained their success through intelligent financial investments.



2. Krass' style creates an easy to follow, easy to understand narrative of some of the best business minds and their approach to financial investing.



3. An exceptional collection of essays by 46 great names business such as Pickens, Baruch, Moody, Buffet, Lynch, Forbes, Soros, and Trump. Key themes include: basic of analysis; attitude and philosophy; strategy; cycles; views from the inside; and more. Each essay includes a biographical sketch of the writer.

   This collection of essays proves to be interesting, entertaining, and filled with informative thoughts. This is not a 'how to get-rich-quick in the stock market book'; it is more of a solid, conservative investment for your reading portfolio. Reviewed by Gerry Stern, founder, Stern & Associates, author of Stern's Sourcefinder The Master Directory to HR and Business Management Information & Resources, Stern's CyberSpace SourceFinder, and the Compensation and Benefits SourceFinder.

1 comments about R.N. Elliott's Market Letters: 1938-1946.

1. I'm an avid trader using Elliott Wave as my primary basis of market forecasting possibilities and trade off a specific Wave setup. This book is compilation of Elliott's old subscription based newsletters that teach and predict the market in his time. Commentary is by Prechter who adds some comments and clarifications at the end of each news letter. While Elliott is nearly a godlike status in my mind , I found this book is pointless for trading and learning purposes. Among the many letters and Prechter's annoying hindsight commentaries , you will find bits and pieces of the Wave based principles. I have found most of the useful information to be very basic Elliott wave, which can be found in Chapter 1 of most any modern Elliott Wave book. I also did not follow on many of the wave counts, which break many of the well known modern rules. This is understandable as EW was still in its infancy at the time of writing. Overall, this book has little or no value to a trader.

5 comments about Yes, You Can Time the Market!.

1. Ben Stein is a "celebrity" of sorts, and his name is associated with money, hosting the TV game show Win Ben Stein's Money. It is only natural for him to write an investment book. I don't know why Stein and his co-author decided to promote this particular investment strategy. Nevertheless, I think this book would familiarize novice investors with some essential terms and concepts, so it might be a good introductory lesson in investing.
   
   For a system to use for real investing, I would recommend perusing the columns of Paul Merriman and Mark Hulbert on the CBSMarketWatch website. They have tracked the performance of a simple moving average market timing system. It is about as good as buy and hold, but with less risk, because it takes you out of the market in severe downturns. You have to religiously follow it, of course, even when all your emotions are telling you the opposite. This is a problem with any trading system, of course.
   
   Another system followed by Hulbert is seasonal investing -- only being in the market at certain times of the year when gains are most likely.
   
   With a little effort, one can find better market timing systems -- the information is free on the web. However, I've read Stein's books for basic knowledge. I refuse to follow his ideas slavishly, and I wouldn't recommend anyone else do so, either.



2. The authors provide a lot of sophisticated-sounding analysis to substantiate their "novel" approach to market timing. As evidenced by some of the reviews on this site, this approach succeeds in garnering the authors their share of believers.
   
   However, their analysis is in reality quite unsophisticated. Scratch beneath the surface and you will come across profound breakdowns in logic and a host of invalid analytical techniques. Some of the book's most egregious failings are detailed by reviewer Gaetan Lion. I recommend you read his review---he hits the nail right on the head.



3. The authors not only completely fail to recognize the roll that randomness plays on their poorly conceived "strategy", they also profess to being able to eliminate the single biggest risk of investing in the stock market. If their secret really worked, why sell it to anyone? Why not invest everything they have, make a killing, and retire to a country of their own? The worst part is that this pair has access to DFA funds. That's a shame. It gives them credibility when none is deserved. I guess Ben wants to win all the money back (from other peoples' wallets) that he lost in his last game show . . .



4. I had previously read, and definitely recommend, a book by the same authors "Yes, You Can Still Retire Comfortably!". It was straightforward, practical, to the point. And in that book, they referred many times to this earlier book of theirs. I thought ... wow! ... if these guys can make market timing as simple as they made retirement planning, the world is a wonderful place.
   
   I was wrong. Simple? Yes. Totally simple. But, let me save you the time. While making a convincing case, they "prove" that only a fool (and I do not mean that with a capital F) would have bought stocks since about 1984. If you believe that, buy this book.
   
   In short ... buy their retirement book. Skip this one.



5. A good primer on analysis, moving averages, and cheap vs. expensive. There is a major hole in this book: When is it time to sell? You will find no analysis. Ben and Phil only make the case for when to enter a position in a S&P500 index fund, and when to avoid adding to the position. When the indicator suggests stocks are high, buy t-bills until the indicator changes.
   
   If you use one of the timing indicators to put money in, what about taking it out, thereby avoiding a "reversion to the mean"? If you are only timing an entry and not an exit, you aren't timing... So in my opinion, NO you can't time the market (not by reading this book).

No comments about Investing with Anthony Bolton: The Anatomy of a Stock Market Winner.

No comments about Sector Investing, 1996.

4 comments about The Triumph of Contrarian Investing : Crowds, Manias, and Beating the Market by Going Against the Grain.

1. First let me say, Ned Davis Research does excellent work. I was hoping to get some insight into the types of research his company uses. But I'm sorry to say I can not recomend this book to anyone but those completely unfamiliar with sentiment analysis. Only the basics are covered. Over half of the book is stock charts showing fundamental variables (I thought this was about sentiment?) and is a waste of space. He does say he is using these variables as a measure of investor sentiment but maybe they could have used a handful of charts as examples, not over half a book that is only 170 pages long.



2. Buyer beware...the book is padded in large part by graphs and data. The actual chapters are short and can be covered in a day...This is a beginner's book with little insights...Professional stay away!



3. This book did not contain much information, only 70 pages of text. The rest of the book being made up of a series of graphs.
   
   The author frequently referred in the book to subscription research services he offers, as if the book was an advert.
   
   I was disappointed with this book.



4. I have respect for Ned Davis as an analyst and this led to me buying his book.What a disappointment.Only 70 pages and the rest meaningless page after page of charts.I believe it is misleading to advertise a book of 188 pages and then only have 70 pages of content!! Buyer beware

1 comments about The Small Investor Goes to Market: A Beginner's Guide to Buying Stocks.

1. Gard describes in simple words basic principles of stock evaluation and stock picking. Aimed mainly at the begginer investor and the investor that wants to get into the market, but not give up his day job in the process (i.e. how to limit your research time to the bare essentials not requiring an MBA, yet do it intellegntly). Gard also adds many stories, some from personal experience, to help the reader in grasping the "feel" for stock valuation. A bit too simplistic for my taste. All in all a good book, well written.

5 comments about Winner Take All.

1. Two hundred pages into "Winner Take All", you'll find Gallacher dissecting Ralph Vince's optimal F strategy for position sizing, pointing out the obvious ways in which it can result in dangerous levels of overtrading that can put you out of business. At the end is an illustration of a trader aiming a gun at his own head and blowing his brains out, with the caption "optimally f'd". While it sounds kind of tasteless written down this way, when I came across it the first time I was laughing so hard I had to put the book down and catch my breath for a minute.
   
   That's the sort of work you'll find throughout this very contrarian text whose nominal focus is on commodities trading. The scathing commentary wouldn't be so helpful were it just being sensationalist, but the analysis throughout this book is spot on in addition to being extremely funny at times.
   
   While Gallacher's coverage of commodities is solid, albeit fairly pedestrian, his discussion of trading gurus is simultaneously informative, entertaining, and controversial. Ralph Vince gets off pretty easy compared with how other revered industry fellows are lampooned. You'll find plenty of dirt on popular trading role models like John Murphy, W. D. Gann, Elliot, Larry Williams, Richard Dennis (and the turtles), Bruce Babcock, and Welles Wilder (not to mention a thoroughly deserved bashing of Neural Networks). Anyone who is following techniques proposed by those gentleman should consider reading "Winner Take All" just to make sure you're seasoning their claims with a healthy enough skepticism. As other reviews here claim, Gallacher may be doing his own manipulation on the data in order to prove his own points in this area, and you'd be wise to apply the same level of skepticism he brings to other figures to his own claims. Very interesting reading, and written in a thoroughly enjoyable style.
   
   The centerpiece of the book is one of the most real-world discussions of an working trading system I've found. A standard trend-following breakout system is presented and shown to make 385% annually; pretty good, right? It's then shown rather realistically how commissions, slippage, and stop order issues will eat into that. Then, he analyzes the real capital required to actually run that system through its expected drawdowns. When
   it's all done, that magic winning system is lucky to hit 17% across the amount of capital actually required to run it. Having built multiple trading systems myself with multi-hundred percent per year predicted results that actually lost money once the entirety of actual trading and money management was factored in, I'm shocked that more books on trading systems don't cover this topic. Note that some of the things that really bash the profits in the examples down are specific to commodities (like the limit down/up problem), but stocks have their own issues that are of equal magnitude (in my own systems, I've noted that the bid/ask difference on stocks going through a breakout on volume are dramatically higher than any model I've ever seen suggests).
   
   In short, those looking for a healthy dose of anti-holy grail trading advice might do well to read "Winner Take All", and those building any sort of trading system should consider it essential. You won't get much advise on what to do unless you're specifically looking for information on trading commodities on fundamentals, but there's a lot of solid material on what to make sure you don't do.



2. The author attempts to degrade technical methods of market analysis? Why bother? If they don't work for him, why get so emotional about them? There is maybe one in ten people in the population smart enough to even want to attempt to learn methods like Elliott. Of those who try, maybe only one quarter will apply it properly and not give up. Of course such details will be useless to most traders but it does not mean that they are useless to the handful with the discipline to study and master them.
   
   He doth protest too much. This author is a mental midget compared with Fibonacci, Elliott and Neely. Maybe in time he can learn and be enlighted. But for now, his mind is closed.



3. This book should be on the essential reading list for every aspiring Trader.
   
   Trading is an extremely difficult business. It is often difficult to identify charlatans and myth from genuine journeymen and truth. Everywhere there is someone hawking a product with the promise of an easy path to success and riches. A primary focus of "Winner Takes All" is to debunk these people and their products. The real value in this book is that it is written by an insider - someone who has been a broker but who now trades his own account. It is rare to find a writer in this business who is not pushing some personal (and often concealed) agenda. Gallacher is one of those rarities. He is not trying to improve his station or business. He simply sets out to write an entertaining book that sets straight a few solid (and, for some, unpalateable) truths.
   The hardcover edition is subtitled " A Top Commodity Trader Tells It Like It Is" . The paperback edition is half the price of the hardback and doesn't suffer the unnecessary hype; instead the subtitle here is " A Brutally Honest and Irreverent Look ..." . This subtitle is much more in keeping with the spirit of the book. Gallacher makes no claims about his own "success", he merely informs us that he has been trading for 20 years and that he has never wiped-out nor has he had to send additional funds to bolster up his account. At the least this makes him a survivor, which already puts him in the top 1% as far as I'm concerned. In any event one of the things that impressed me most in this book is that Gallacher makes no effort to bignote himself.
   He readily tells us that he is very conservative (12 trades per year!) and that he strongly favors a fundamental approach. Having said this, and knowing he won't win any votes, he goes on to effortlessly bring a few big-name technicians (and other vendors) down a few pegs. Remember, here is a guy who at least walks the talk.
   
   It is worth reading all the reviews because this book has elicited some extreme reactions( from 1 star to 5 stars). I believe the poor reviews tell us more about the people writing them than about the issues they raise:
   
   The most detailed negative review is by maclee33 (1 star) who goes to much trouble to demonstrate an apparently incorrect argument in the book.
   
   But it is the review that is fallacious, not the book, and here's why. Gallacher uses a chart from Murphy's book "Technical Analysis of the Futures Markets" (and I have this book too, so I can verify the chart) to show that Murphy's use of trendlines is after-the-fact and superficial. There is no discussion here about active and inactive contracts etc. Gallacher simply takes a chart that Murphy himself has used and shows how misleading it is to draw trendlines with 20:20 hindsight. As Alexander Elder points out it is easy to trade the middle of the chart but, in the real world, we have to trade the extreme right of the chart.
   
   "The lesson? All examples of the alleged uselfulness of trendlines, flags, pennants etc. will, under scrutiny, be shown to be the product of hindsight, perceived after the occurrence of the events they are alleged to foresee...Chartists see what they want to see, not what is really there."
   
   Admittedly this is a polemic statement (and I do not personally agree with it) nonetheless this was the point that Gallacher was making and I cannot see anything "egregious and inexcusable"(maclee) in that.
   
   Another reviewer defends Larry Williams (who gets a caning by Gallacher) stating that he (Williams) " made a million in a year" not once but twice ... and then taught his daughter (how to do it)". This anonymous reviewer gave the book 1 star while pointedly overlooking the fact that Gallacher's actual criticism was based on Williams losing more than $6million in one account while "making" the so-called $1million in another account - an event for which both Williams and Robbins Trading Company were taken to court and convicted by the NFA.
   
   Another 1 star reviewer was upset with Gallacher's harsh treatment of neural net systems. Another didn't like the criticism of Elliot.
   
   I think all of these negative reviews miss the point which is that it is very easy to mislead people in this business and we should be thankful for good watchdogs like Gallacher.
   
   The book is humorous, insightful and well-written. I usually prejudge a book through Amazon by how many Customer Rating stars it gets. Sometimes these ratings mislead or disappoint. In this case I think 4 stars is honestly earned.
   
   If you read this book with an open mind you will treasure it.



4. I have hundred of books on the markets and this is one of the best. Gallacher debunks many falsehoods in the futures markets and, quite frankly, after reading the book one is uncertain whether or not trading futures makes any sense at all. That having been said, this book has things about money management that you will not find anywhere else. Gallacher swings his sledgehammer at Ralph Vince's "Optimal f" as well as money management systems involving fixed percentages of capital. Although I did not agree with some of Gallacher's conclusions, this is a well-written book that no serious student of the markets should be without.



5. Wow. It has been a long time since I've written a review. Sometimes though you find something that gets you out of your chair and to the keyboard. Gallacher is clear, concise and sensible. The basic message: Have a fundamental reason for investing, and use the trend to ensure that you profit from your reasoning, or at least to ensure that you don't get hurt too badly if you are wrong. The message is that simple. The writing is that clear.
   
   If you are a beliver in TA or purely mechanical trading systems, you will likely be offended by his constant unmasking of these concepts. He even takes a swipe at the father of systems-based investing/backtesting, Robert Pardo. But at the same time he says that what does work is "the trend." And guess what, academic research since he published this book backs it up.
   
   This is the kind of guy you wish you could meet over dinner and just pick his brains. He seems to have a good sense of humor too. A great writer with a great story.

5 comments about The Guide for Penny Stock Investing.

1. Did you ever notice that nearly every good review for this book comes from a "person" who has only reviewed this one particular book? On top of that, nearly all of the positive reviews sound exactly the same. They all seem fake! They must be because this book stinks! Very poor grammar. How did this guy graduate school with such poor penmanship?



2. This book is worth ten useless books that I have at home. Mr. Lowy thinks outside of the box and yes it is not a grammar book. People are critical but exactly what have they done with thier lives that make them so great. My gammar is horrible. Tell me, how many English teachers are rich.



3. I learned something from EVERY chapter. This is a MUST book for the new investor. It all makese sense here! I didn't care about the spelling. You know what the author is trying to say.



4. Wow...this was a BAD one! First of all, the book is out of date. The markets have completely changed since this book was written. Second, the grammar and spelling are TERRIBLE! There is no way that an editor even looked at this book. Ever heard of a spell-checker? Apparently, this is par for the course for Mr. Lowy. Read the reviews for his other books and you will find the same thing with each one. Poor grammar. Poor spelling. Nothing original. Save your money.



5. This is an okey book that I would not put much faith into. Tells other points of view, but nothing I would 100% follow.

5 comments about Innergame Trading (Paper).

1. I found this book to be very insightful and clear. I would recommend it to both inexperienced and experienced traders. I also found the trader interviews as well as the chapters on the psychology of technical analysis thought provoking and profitable.



2. This book reminds me of a sentence I saw in Time Magazine several years ago from Bono of U2. "To me, writing a song is easy. Writing a good song is not."
   
   The authors had given a good eg of the above and showed how to write and sell a trading book with the least effort.
   
   First, create an eye catching name. "The inner game of trading" certainly qualifies. It is the best part of the book, in my opinion.
   
   Second, talk about trading psychology. Ask readers whether they have goals, plans, strategies, the right motive (money should never be the first priority, they said) before any trade. Ask them to model themselves after successful traders to have edges in discipline, focus, knowledge...If you dont follow these and you dont know how to answer the questions, that's your fault. (Should the readers have a degree in psychology before reading this book so that they can condition themselves psychologically just by reading less than 10 pages of 1.5 line spacing script and undergoing serious personality change). 50 pages
   
   Third, interviews with some famous names or at least figure heads from CME, so other members of the Exchange will do the recommendation and referral. They had Leo Melamed, who to me is a diplomat or CEO much and not a trader. 60 pages
   
   Fourth, put some intelligent sayings, relevant or not, here and there. Appeal to experts, for the name of Thomas Edison and President Lincoln, can heighten trustworthiness.
   
   Fifth, show charts and graphs, talk about technical analysis so that everything looks more scientific. 40 pages
   
   Sixth, conclude that if readers can cut loss short, let profit ride, discipline themselves then they will be winners. The authors had not told you how but they had done their part. If the reader fails, it's just that he/she does not follow the teachings or lessons good enough. 30 pages
   
   I am sorry to say so but I have to conclude that the authors just want cash in on their dubious trading knowledge (being in the trade is different from trading successfully), relation with institutions and the urge of market participants for trading advice. Certainly, writing a book can help the promotion of their daily business.
   
   To save the best for last, the authors said that over 80% of market participants are losers and the turnover rate in CME had been 1/3 per annum. If you would like to belong to the crowd, buy and hold on to this book.



3. The discussion is highly focused on the psychological requirements for being a top trader. Very succinct writing style that is practical, with no unnecessary pop-psychological meandering. Definitely worth a read.



4. Another "Me Too" book. Nothing new in this book that you can find in a hundred other better books.



5. Similar to Market Wizards, this book has a basic presentation and then interviews with master traders. Unlike market wizards, this one explores internal psych issues that are encountered to trade correctly. It is not as many interviews as Market Wizards, and does include key trading techniques.