Stock-market

I was hoping to get the inside scoop on how the robber barons, I mean market makers, colluded in nefarious activities to rip off the public. I expected chapters on payment for order flow, trading ahead of large customer orders, surreptitious ECN 100 share orders that refill to infinity, price fixing, holding market orders for 30 minutes then turning the stock price the other way (this actually happened to me once), etc. What I got was a primer for people who don't know what a dead cat bounce or double top is but, nevertheless, think they are smarter than the consensus and want to throw their money at the market.

The section devoted to psychology was excellent. The rest I could have done without. I wonder how market makers can make money nowadays with the spread basically nonexistent in most stocks and the NASD more vigilent on enforcement. Maybe in his next book we will find out.

Although this book contains useful techniques to increase the novice trader's knowledge about trading, no market maker techniques and strategies are actually even mentioned in the book. In markets such as the NYSE, AMEX, etc. specialists (market makers) are privileged with the knowledge of every single order that comes across for the securities that they are trading. These specialists are then able to use this "information" to trade profitably. A recent WSJ article (March 2001) reports that specialists on the floor of the NYSE are making more money than EVER. On the NASDAQ, market makers use Level II and Level III "information" to make profitable trades. It is widely believed that 95% of market makers NEVER lose money and that 95% of individual investors (wannabe traders) ALWAYS lose money. So what does that mean? Trading is a zero sum game, somebody has to lose (YOU), and somebody has to win (MMs). This book should have talked more about how to trade (and win!) like a market maker, and not about old moving averages, macd, and what nonsense that individual investors (wannabe traders) use to lose money day in and day out. Market makers actually use ma's macd's and other technical signals to find out what the ignorant public is likely to do and use that information to trap and make money off of them. They know where the public puts stop orders, so they'll find an opportunity to dump/short stock, temporarily triggering sell pressure, then accumulate shares as the price drops to cover their shorts. Of course MMs use many other strategies to make money (that I don't know of), but this is an example of the mechanics of trading as an MM and this is their "edge". As none of this crucial information is even mentioned in the book, I feel three stars is actually quite generous.

I have to say that as far as day trading is concerned, reading the time & sales is easier and works better, at least for me. I bought this book just because I wanted to master better the level 2 reading, and it helped, although I admit that this book is somewhat incomplete. Reasonably you can't expect market makers to divulge all about their methods and tactics, like how they work big trend-setting institutional orders not letting other market's participants notice it, how to spot a headfake and the like. I get the feeling that the authors, like other market makers, haven't really spilled the beans. But that's okay, cause I didn't expect them to. The book that covers all about trading is still to appear, so buying a bunch of books that almost cover it all is fine by me. I have resigned myself to this idea now.

Anyway I'd like to learn some more on level 2 especially, as I wasn't much interested in other chapters, whether it was technicals or fundamentals. Let's hope that the Lukemans or someone else will provide us with more information in future books about market makers and their tricks of the trade.

This is a 100% trading psychology book. No FA, no TA, but ten chapters or the author's so called principles on trading psychology, which are

1. The market is always right.
2. It's all in your head.
3. You cant prepare enough.
4. Supply and demand rule the markets
5. Commit your thoughts to paper
6. Developing and perfecting your trading shtick
7. Enhancing your shtick
8. Discipline
9. Staying the course
10. On becoming the ideal trader

Though the above can be commonly found in most trading books, the author had done it relatively well by drawing many uncommon analogies, stories, idiomatic phrases that put life into the book. In particular I like his description of successful traders as captains in the oceans, mice in the laboratories and actuaries in insurance companies.

In short, if you wanna read a good trading psychology book, this is it. If you want TA or FA knowledge, look somewhere else.

p.s. The seven cardinal sins of trading in the last chaper is a favorite of mine. They are:-

1. Pride, which challenges the first rule of trading: The market is always right.
2. Greed, holding onto trades hoping for more and more profits while all TA signals are telling you the party is over.
3. Envy, drains positive energy from their psyche, leaving them mean spirited and weak.
4. Anger, that when Greek gods decided to destroy a human, they got him angry and let him destroy himself.
5. Lust, equates to ignoring key defensive rules or self control. The unbridled gambler is the epitome of lust, doubling up after every loss.
6. Gluttony, a lack of focus. Trading becomes obsession They eat and sleep trading.
7. Sloth, that a lazy successful trader is an oxymoron. He or she just doesnt exist.

I have read other books by Mr. McCafferty and have found this one to be the most valuable, not to mention entertaining. It seems as though most of the newer books out there are just a rehashing of commonly known techniques and offer little valuable insight into how the market actually operates, that is not the case with this fine book. Mr McCafferty seems to understand the way the markets operate and the players in the trading community. He mentions several successful traders and their methods and explains them very well, probably better than those traders could themselves, which is a true testament to his ability as a writer. I learned specific strategies that have changed the way I trade and have been surprised by how well the simple things Tom mentions (and many of us overlook) have worked for me. I can say that I am a more profitable trader because of what I read in this book and for the [$$] it cost me, that is an unbelievable deal. Thank you for unselfishly sharing your trading experiences with us Tom, my life has been enriched because or your words.

A great book on learning about the stock market. Talks about many different types of strategies that any new upcoming investor could use. It let's you find out what kind of investor you will be by seeing what strategy fits you best. I myself like the O'Neil strategy. I would recommend this book to any who are curious about the stock market and investing in it.

The Market Gurus by John Reese and Todd Glassman is one of the first investment books I've ever read. The book is fairly easy to read and doesn't require too much prior knowledge. Each section starts with an introduction of the guru, his achievements, and a summary of his investment strategy. The strategy is then applied step by step to two companies. What I particularly like is that plenty of links to various websites as well as recommendations for other investment journals/books can be found scattered throughout the book.

The problem, however, is that some gurus share similar views and it can get rather redundant. But overall it is well worth a look, even if you don't finish reading everything.

Confused with all the "expert" advice available on investing? Why does there seem to be so many different views and different ideas on how to best invest? Of course risk is one of the biggest factors as is how much time you are willing to put into analysis each day. Some people are comfortable with a lot of risk if the potential reward is a really large gain, others are not. Some enjoy watching the stock tape cross their computer screen all day long and watching their investments, others are to content to watch their investment progress on a monthly basis.

Reese and Glassman examine the most respected investment advisors today and detail not only their philosophy but also the level of risk the investor should be comfortable with and the level of effort the investor needs to put forth to follow that person's advice.
Each expert is analyzed one at a time including the criteria they use for investing, how they determine if a stock meets that criteria or not and examples of individual stocks with an analysis of where they pass and fail the selected criteria. The analysis is detailed and yet straight forward so that someone with minimal experience in stocks can understand the basis philosophy.

Who are these investors that are analyzed? Only the most revered names in stock investng: Peter Lynch, Benjamin Graham, William O'Neil, Warren Buffett, The Motley Fool, David Dreman, Martin Zweig, Kenneth L. Fisher, and James O'Shaughnessy.

Most of the experts selected have written their own books on how to invest. This book distills down all the fluff and long winded information in the other books to a single chapter on each advisor, a chapter with all the information required to follow that person's style. So, I guess you have a choice, buy several books and read them all or buy this one and get all the knowledge as well as a detailed step by step plan of how to follow their investing style. Complete analysis (even on those who have not written a book), risk profile information, detailed examples of how to apply the methods, and simple pass/fail criterion information, the information is complete, easy to understand and easy to apply, there is nothing not to like about this book! If you are an investor or want to try your hand at it or have a self-directed IRA or similar instrument then you owe it to yourself to read this book, select at least a style that is appropriate for you and apply it.

The book is meant to describe market microstructure. My discovery is that one needs to know a lot about the subject matter to get anything out of it. I had the feeling of reading footnotes without seeing the text! It quotes authors and papers without the slightest indication as to what they are about. I do not recommend it. But there are other books covering the subject. Campbell, Lo and McKinlay (The Econometrics of Financial Markets) proovides in one chapter more information that this book. FInally, there is a French book on the topic that is excellent; it would call for a translation (the authors are Biais,Foucault & Hillion).

This is the quintessential book on the theory of the microstructure of financial markets. Although it is not meant for people with just a casual interest in the area, it is nevertheless an indispensable book for academics and for people serious about the topic.

It is also far more readable and understandable than Daniel Spurber's book which provides little of the working intuition of O'Hara. In fact Spurber is meant more for the theoretical economist with an interest in market microstructure, whereas O'Hara appeals to a broader audience in the field of finance.

This book does not need praise. It is widely considered the best introduction to the academic work in market microstructure. The only reason I've listed this review is to counter the unfortunate review already listed. This book is perfect for the researcher or PhD student interested in the issues addressed in market microstructure. Although the book is not written for the average mba student, a careful read would benefit anyone interested in the structure of markets.

This book provides concepts of intermediary firm and its functions in economy. The author starts by introducing Princing Mechanism and Adjustment (with uncertainry) in the first part. He give use a fancy applications in Economic Theory (Gen. Eqlm.) and competition among intermediaries in part II. Part III, he seperates the concepts of matching and searching. Part IV, Adverse Selection and Moral Harzard problems are also given. Part V is Transaction Cost. Part VI is Agency Theory. All are presented with intermediary concepts. The author gives ideas about intermediary in many aspects by collecting lots of papers and conceptualization of thems. The concepts can be used in financial and physical markets. It is indispensable for students who want to study Market Microstructure, Intermediary and E-commerce Concept.

Intermediaries play a significant role in market economies. The author identifies that role and develops a conceptual framework of the major functions of intermediaries in markets. The main idea, which goes beyond the classical dichotomy of firms vs. markets, is simple but powerful: firms create and manage markets. I think it is a book that should be read by everyone interested in understanding how markets work.

This book carries you beyond daily headlines and the siren song of the stock of the day. Ms. Yamada seeks to identify the underlying enduring trends, rather than tout a cookbook style prescription to current fads. This is a history lesson, making extensive use of comparisons with prior bull markets. As a result, the reader should expect to be an active participant by reviewing the the detailed charts and data. A page turner it is not. The core thesis and eventual conclusions are well worth the effort. After all it is your money.

Reading this book teaches the reader that demographics play a vital role in this "new" economy. The future is completely predictable if we focus on logic vs emotion. A must reading for all long term investors.

I was turned on to this book by theStreet.com's review which gave it five stars saying "Salomon Smith Barney technical analyst Louise Yamada has written a monumental book, one that all serious and professional investors should read." After a couple of times through Market Magic I couldn't agree more. The first part of the book reads like an analyst's detective story as Yamada exlains how she came to publish her 1994 prediction of 7680 for the Dow even though the average was then stalled at 3600. Yamada then takes on the future and describes the global macrotrends that are already shaping the world economy, and will continue to do so despite interim setbacks. This is not a beach book. It challenges readers to think anew and question outdated concepts. I can't imagine a more rewarding guide to the future.

This book is totally empty of any useful concepts.
Its just a way to promote Nassar's trading school.
Get Master Swing Trader instead. The people giving this book
good reviews are probably not traders or maybe are
Nassars friends.

I rated the authors' previous book "Rule of the trade" with four stars and wrote the title of my review on Amazon as "Concise but covers +95% of rules I need to bear in mind". However, I had been very disappointed by this new one.

The authors are definitely gurus in trading and trading psychology. Nevertheless, their explanation of TA tools are extremely clumsy and disorganised, in particular the sections on Stochastics and MACD. That made me very frustrated because over half of the book was about TA from which I really could not get any significant benefit from reading it. Those regarding system trading, trading strategies etc are badly written as well. I just cannot recall and apply what I had read into my daily trading practice. There's not a holistic and organised picture about trading, and not to mention swing trading (a term you surprisingly scarce in a book with a title "for swing trading") at all.

In a word, a sub-standard trading book not to be recommended.

Once again, David Nassar combines his technical trading expertise with his natural skill for straightforward, clear explanation in his latest bestseller, Market Evaluation & Analysis for Swing Trading. For years, David's Marketwise Trading School has educated thousands of traders through his live sessions and bestselling books. This new work really puts the best of both worlds on paper - outlining for today's investors and active traders the step-by-step process for developing a successful trading program that's ideal for today's shorter-term markets.

This book clearly outlines the most basic and traditional elements of any trading game plan - from psychology of trading and methods for spotting trading trends and patterns, to specific methods and tactics. But he also provides a wealth of new strategies he's perfected for trading in shorter-term timeframes. Of particular interest are the methods he presents for swing trading, a technique that's become increasingly popular in the last 10 years.

Nassar was at the forefront of the short-term trading trend when his first book, "How to Get Started in Day Trading," was released. Now - he pours his years of experience into this thorough new book which offers a complete and comprehensive trading game-plan. It walks traders through actual trading scenarios and provides real-world examples that demonstrate his proven techniques in action. In other words, he puts theory into practice. Whether you're a new investor or a seasoned trader, this book will enlighten you, and help improve your trading skills, by providing proven techniques in easy-to-implement terms. Definitely a good investment decision!

`On Efficiency of Competitive Stock Markets where /traders have Diverse Information, Journal of Finance,XXXI (2), May, Sanford J Grossman, `On the Impossibility of Informationally Efficient Markets`, American Economic Review, 70 (3) June,`Proof that Properly Anticipated Prices Fluctuate Randomly`, Industrial Management Review,6, `Stock Prices: Random vs. Systematic Changes`, Industrial Management Review,3,

`On Efficiency of Competitive Stock Markets where Traders have Diverse Information, Journal of Finance,XXXI (2), May,Sanford J Grossman `On the Impossibility of Informationally Efficient Markets`. American Economic Review, 70 (3), June, etc.