Book Description

Discover how option Volatility indicates market tops/bottoms, how it tells you the best strategy to use, how it indicates whether options should be bought or sold & how it can be used to take advantage of premium "disparity" between option stock prices. Learn expert ways to exploit opition market inefficiences, how to use "neutral strategies" to trade like a "bookie" and methods that take advantage of seasonal factors in volatility. A special section explains how "gurus" like Natenbert, Najarian, Trester and others use volatility to their beneift."Comprehensive discussions of the most important variable in option pricing-volatility- is certain to benefit both profesional and novice traders" according to Larry McMillan, Author of "Options as a Strategic Investment."This edition has all new, fully updated charts. ... Read more

Reviews (3)

I'm not fond of options....but this is a great book!
Mr.Caplan has put a great spin on option investing. If 90% of options expire worthless why buy them, just sell them. This is where this book shines. I have been involved with futures for 11 years. I have been a broker an investor ...

In each instance I have avoided options on futures. With Mr.Caplan's assessment on how volatitlity plays a key role to determining what options to sell and what price to sell them at. I was impressed at how he was able to take a complicated subject and make it easy to read.

His inclusion of articles from various other option traders was great as well.

If you write options ONLY!
This book was promoted heavily on different sites on the net, and I happened to be one of those who bought it!!!! To cut the story short, this book is not for amatuers! And not for ordinary regular option buyers (like me)!

This book covers only:
1. Futures trades (mainly).
2. Option writing and spreads.

But if you are not both of the above... forget this book!!! At the beginning of this book, you'll see how deeply the author discusses futures not stocks! And when you get to page number 47, you understand that this book is useless if you (like me) only buy options.

I am not saying this book is good or now, how am I to know?!! I can't even test his methodology... but in my situation this book is of no use!

Worth a Read
Though dated and focused on Futures, I found this book to be very helpful. The last 3rd of this book is a collection of articles written by other authors on the subject. Very useful!

Why not 5 stars? It is focused on Futures instead of Options in general.
This is only mildly annoying as most of the information is relevant to Options.

Again, very helpful book. ... Read more

Book Description

Praise for The Logical Trader
Applying a Method to the Madness

"Fisher’s messianic willingness to share with the public the successful system he has developed is an opportunity to be exploited."
–from the Foreword by Paul Tudor Jones
Chairman and CEO, Tudor Investment Corp.

"Mark takes the same mental approach to trading that professional athletes and coaches use to succeed on the court. He has taken several college and pro athletes and provided them a game plan for life after basketball."
–John Calipari, Head Basketball Coach, Memphis University
Former NBA Head Coach, New Jersey Nets

"I have been actively involved in the markets (foreign exchange, equities, derivatives) since the early 1970s–as a trader on the CBOT floor in the bond and note ‘pits,’ as a foreign exchange dealer at a large multinational bank, as the head of a bank’s futures brokering operation, as a reasonably widely known analyst of the world capital markets writing a daily commentary on these markets, and as a trader on my own. I’ve read a myriad number of ‘how to’ books on trading, most of which have proven to be of little merit, if any. However, from the outset, reading and understanding Mark’s insights into his ACD system in The Logical Trader, I’ve learned methods of trading that I probably understood intuitively but now understand logically and with almost numerical rationality. The reading may be difficult for the beginning trader, but the lessons learned will be immediately beneficial; of that I am certain. I strongly endorse this book for the beginner and professional trader alike."
–Dennis Gartman, Editor/Publisher, The Gartman Letter, LC

In trading, as in life, you need a plan. In The Logical Trader: Applying a Method to the Madness, expert trader Mark Fisher reveals a plan and a method that he has used for over twenty years to successfully trade.

Mark Fisher has taught thousands of people–from traders on the floors of major exchanges to individual investors in front of computer screens–how to trade stocks, commodities, even currencies, using his highly successful and innovative ACD method. Now, in The Logical Trader, Fisher will teach you how to use the ACD method to trade more effectively and profitably than ever before. ... Read more

Reviews (15)

Where's the meat???
I truly believe that Mark Fisher is a great trader and his ACD trading system is one of the best. Who am I to stand opposite to Paul Tudor Jones who wrote in the Foreword that besides the four Bibles of the business (Reminiscences of a Stock Operator by Lefevre, Technical Analysis of Stock Trends by McGee and Edwards, The Elliot Wave Theorist by Prechter and Market Wizards by Schwager), he was going to add this book to his list of must reads for the beginning trader.

The critical drawback is, unless you subscribe with a fee to the author's research material or become his client (MBF is the largest clearing firm in the Nymex), you dont know what those time, trading period and vehicle specific inputs for the ACD system are, and everything written in the book becomes sales talk alike.

Nevertheless, with respect to Tudor Jones, I do agree with his compliment of Chapter 7 (The ACD version of Ripley's Believe it or Not) that it "presents incredible, real stories from the trading pit. Experienced traders will see themselves and their flaws in these stories, while novices can learn from these professional traders' mistakes". However, how can one single chapter compensate the cost of the whole 8 chapter book?

p.s.

1. Suprisingly, the domain mentioned in the book ...is registered but not in operation yet.

2. The "meat" of Chapter 7 include:
- Good News/Bad Action: When the news is good and the market just does not rise correspondly, sell.

- I have no clue: When a market goes up or down for no apparent reason, it tends to go a lot further int hat direction than people can imagine.

- Be the house: The more time you spend at the tabls, the more bets you are going to place, and the greater the probability that you will eventually walk out of the casino as a loser. The casino would rather not have someone make a single large wager and, win or lose, immediately walk away.

- Next!: An important rule of trading is that time is much more important than price. If the market doesnt move your way within a short time of putting on a trade, just get out.

An excellent book, but...
Overall, this is book provides some execellent insights into the thinking patterns of a successful daytrader.

My complaints:

A) On many occasions, Fisher refers the reader to "the Appendix" for further details and examples. Well, some of the information is there, and some of it is missing. At the price Wiley is charging for this book, they could have had an editor clear up those dangling references.

B) A more serious issue is that Fisher's ACD trading system depends on a number of market-specific time and price parameters, which the author says are calculated using his firm's "proprietary methods." So, if you want to use the trading techniques he describes in this book, you'll need to get some historical intraday data and do a little number crunching of your own to fill in the missing information.

Well worth it
In my opinion, the single most important idea presented in the
book is that the opening range is a signficant reference point
in volatile and liquid markets. This results in an excellent
risk/reward entry point.

I felt that some of the presentation in the book could be
improved. Especially the Macro ACD chapter. He does not
explain the premise behind the rating scheme (atleast I could
not find it). The book is also lacking in money management
techniques.

Some of his insights are original (value of money, teaching
being therapeutic etc)

In summary, I would highly recommend this book. Every trader
has a particular momemt in his trading career when the light
goes on in his mind. The concept introduced in this book
was that light for me.

Interesting and amuzing but no Toby Crabel
Toby Crabel's articles deal with the same issues , and on top of that he gives you the statistical breakdown.Much better than Fisher's stingy musings.

Hard gained experience from the trading trenches...
It is interesting reading the various reviews on this book. Most users love it, and a few don't. It is probably safe to say that those who didn't were looking for a single book about how to trade. If that is the case, I wish them luck. Please let me know when (or should I say if) you find it.

For the rest of us looking for greater insight and input from those who have gone before us, The Logical Trader is highly worthwhile. Only when you consider that Fisher runs a trading company in New York that employs 75+ traders who rely on his ACD system to make their daily bread, can its full value be appreciated.

I have had a ball with this book and am currently working on my third article for Investopedia in which I test a few of the ideas he discusses. I have found that with a little work and using some common sense that his techniques work quite well indeed. But like any good indicator or system, it is a pipe dream to think that it will work on any and every equity. It takes time to find those on which it works best. Fisher's ACD system is no exception. The payoff comes when the reader takes the time to search out volatile candidates and then finds them.

The book is straight forward and a relatively easy read. The proprietary A and C point values that he discusses can be more or less extrapolated by either eyeballing the security in question or by employing the Average True Range function in your favorite charting program. If you get stuck, he offers book customers a free trail to his website where the values are provided.

Those who are new to trading will find this book a good introduction into what is possible in trading even if the methods may take a while to grasp. Those who are experienced should find the ideas discussed refreshing and very useful if they are looking to employ some new trading ideas.

All in all the book is well worth the money. I have adopted the attitude that if I pick up one good new trading idea, the book is worth the price. This one has given me many so far with more to go. It is a book that should be in the library of every serious trader.(...) ... Read more

Book Description

Techniques to uncover and avoid accounting frauds and scamsInflated profits . . . Suspicious write-offs . . . Shifted expenses . . . These and other dubious financial maneuvers have taken on a contemporary twist as companies pull out the stops in seeking to satisfy Wall Street. Financial Shenanigans pulls back the curtain on the current climate of accounting fraud. It presents tools that anyone who is potentially affected by misleading business valuations­­from investors and lenders to managers and auditors­­can use to research and read financial reports, and to identify early warning signs of a company's problems. A bestseller in its first edition, Financial Shenanigans has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers. ... Read more

Reviews (22)

Great measures for making better company evaluations
The management teams of publicly traded corporations have many obligations to the owners (who are the shareholders) of the company. Two of those obligations involve financial statements. First is to report an accurate picture of the financial state of the firm - which argues for conservative accounting. Second is to maximize the share price - which argues for more aggressive accounting because higher reported earnings tend to produce higher share prices. These contrary pressures create differnt outcomes in different firms and investors need to be aware at what is happening at their firm.

This wonderfully informative book shows us how to understand financial reporting so we can determine if a given company is using conservative, aggressive, or even fraudulent accounting. I found it fun to read about the cases of shenanigans and how they were perpetrated and exposed. I also found it informative to learn about the gradations of shenanigans from aggressive reporting to outright fraud.

It seems to me that most people who want to put their hard earned savings into equity investments would do well to educate themselves at least a little to the potential pitfalls that occur when a management team is willing to break their trust with investors. It has been pointed out by others that many folks put more time and analysis into buying a refrigerator or a lawnmower than in their retirement investments. When you think about it that way, the misplaced priorities of some investors become clear.

Dr. Schilit has a lively writing style that keeps things from bogging down. This book isn't a hard read and can help the average investor understand more about what companies can and have done to basically phony up what they report to investors. Much of it is NOT illegal, but aggressive corporate behavior and reporting has too often led to disaster for investors. If you can clearly see which companies use aggressive accounting and which are conservative, you can better decide if you want to take on the risk associated with the aggressive accounting and the management style it represents. Maybe it is worth it, maybe it isn't, but at least you can decide for yourself rather than being in the dark.

The author takes us through seven shenanigans that show up over and over again and more than two-dozen techniques that have been used to accomplish them. Many of the examples included are from well-known companies you may be doing business with today. He also has some helpful information on how to do vertical and horizontal analysis of financial statements in order to find the early warning signs that something might be amiss. The book culminates in an extended analysis of the financials of a famous case of Shenanigans: Miniscribe - the late maker of hard drives.

And if you don't know anything about reading financial statements, there is a very helpful appendix giving you the basics of reading them and what they can and cannot help you see.

Dr. Schilit also provides a list of online resources (only one of which is his own) that can help you do research on potential investments. He also provides key phrases (indicating danger) to search for in annual reports.

No, this book will not make you a forensic accountant. But, yes, you will be more informed after having read it and that will help you make more informed decisions. Of course you can still make bad investment decisions, but they will likely have somewhat more reasoning behind them and maybe you can make fewer of them.

I personally agree with the author that being aware of aggressive accounting practices is a kind of early warning system for the more serious problems that follow on all too often and always at shareholder expense. This book is worth the investment of your dollars and time in order to avoid the kinds of losses associated with companies that choose to misrepresent their actual financial condition to their shareholders. Note the headlines recently about Royal Dutch Shell Oil and its accounting reserves and earnings.

The book does have a couple of minor typos, but they don't change the story much. They are usually easy to see and to adjust for in your reading of the example at hand. Yes, it would have been nice to not have them and I hope they catch them in a future printing. There is also a very useful index.

Overall, a valuable book and a very fine job!

It seems as if the positive reviews on this book are being given negative votes out of disagreement with liking the book rather than the review itself. I would be happy to receive emails from those of you who dislike the book so I can understand why.

Useful framework for analysis
This book was updated on the heels of the WCOM and ENE scandals. There are many interesting techniques available for the researcher here. It requires a meticulous person to properly apply these techniques. However, the average person with a limited number of holdings might do very well with applying these techniques to their portfolio. See the table of contents for a listing of the 7 "financial shenanigans".

Some of the items on Schilit's governance wish list are dealt with by the Sarbanes-Oxley legislation. This will do away with much of management's self-dealing and sleight of hand when presenting pro forma earnings. Some of the "shenanigans" have been dealt with FASB promulgations so there are less of an issue.

Schilit is too harsh on the FASB over the failure to expense stock based compensation the first time it was considered. The forces that oppose the FASB n that issue generated a considerable political threat to FASB's existence in Washington. FASB backed down was preserved and we are all the better for it. FASB is addressing this issue in an exposure draft and it appears likely that it will move forward this time despite the same forces trotting out the same vacuous arguments a second time. Schilit should have given better context with his critique of the FASB.

I remember seeing a piece in Grant's interest rate observer (a newsletter) about a presentation by Trevor Harris (an accounting expert employed by a bulge bracket firm). The article stated that hedge fund managers treated Harris like a rock star, because they needed to learn how to analyze the names in their portfolios better. Harris was simply presenting topics much like are found in this book.

In this book you will learn about many of the manipulations that have been used in the past by companies. Schilit uses the "case" method of teaching. The examples almost all have a real life demonstration of how the trick manifested itself.

At times, the book reads like an advertisement for Schilit's CFRA subscription service. There are 13 such references in the index. I guess this is to be expected, but is still a distraction in an otherwise fine book.

An easy to read accounting book? Ye gods, it's true!
This accounting book covers everything we wished we learned in our introductory accounting class, namely "How do we know if the managers are lying to us?"

In a very easy to read format, the book groups accounting tricks into seven major accounting shennanigans and then cross-references them to a variety of accounting scandals. In the end, you're left with a deeper understanding of the major ways people can manipulate financial statements for their own game.

A surprising interesting book given how dull most accounting texts are. It practically reads itself.

Packed With Knowledge!
Author Howard Schilit writes in surprisingly plain English, and provides the reader with a toolkit to determine what's so rotten in Denmark - or on Wall Street. You don't have to be an experienced reader of financial reports to learn a lot from this book. Schilit offers more than theory; he provides specific examples and case studies. Learn about the manager who reduced future expenses by purchasing $12 million worth of advance postage metering at the end of the year. Find out how "Chainsaw Al" Dunlop drove up the price of Sunbeam stock by creating a $35 million reserve, all while laying off 11,000 employees. Learn the inside story of how Enron became the poster child for corporate wrongdoing. We highly recommends this book to independent investors, and anyone else who needs to understand how unethical execs cook the books. It may not save you from losing a bundle, but at least you won't feel like you're in a battle of wits and devoid of weaponry.

Packed with Knowledge!
Author Howard Schilit writes in surprisingly plain English, and provides the reader with a toolkit to determine what's so rotten in Denmark - or on Wall Street. You don't have to be an experienced reader of financial reports to learn a lot from this book. Schilit offers more than theory; he provides specific examples and case studies. Learn about the manager who reduced future expenses by purchasing $12 million worth of advance postage metering at the end of the year. Find out how "Chainsaw Al" Dunlop drove up the price of Sunbeam stock by creating a $35 million reserve, all while laying off 11,000 employees. Learn the inside story of how Enron became the poster child for corporate wrongdoing. We highly recommends this book to independent investors, and anyone else who needs to understand how unethical execs cook the books. It may not save you from losing a bundle, but at least you won't feel like you're in a battle of wits and devoid of weaponry. ... Read more

Book Description

"John Murphy is one of a rare breed: an expert technical analyst who can actually write. This combination of skills helped make his Technical Analysis of the Futures Markets a classic. Now John has written the perfect overview aimed specifically at the stock investor who wants to learn technical analysis. . . . The Visual Investor offers a complete course in technical analysis, lucid enough to be accessible to the novice, yet thorough enough to range well beyond the basics. . . . [It] is must reading for the stock and mutual fund investor who wants to start incorporating technical analysis as a decision-making tool."—Jack D. Schwager, Author, The New Market Wizards and Technical Analysis

"The challenge of technical analysis is that it can be so technical. Now John Murphy, through The Visual Investor, explains everything for the common investor who wants to use technical analysis but doesn't want an overly complicated presentation."—Thom Hartle, Editor, Technical Analysis of Stocks & Commodities Magazine

"As my research group relies heavily on market analysis for its research product, we get numerous inquiries from professional investors on where to find books on this topic. John Murphy's The Visual Investor is my first recommendation to the novice investor as well as the investment professional. . . . [It] is the simplest and most helpful first look at markets that I have seen."—John Kozey III, CFA, CMT, Equity Research Director, Bridge Trading Company

"They say a picture is worth a thousand words. Maybe they should have said a thousand dollars. After all, we're talking here about using pictures to make money."—from The Visual Investor

As the host of CNBC's popular Tech Talk with John Murphy and the author of two landmark books, Technical Analysis of the Futures Markets and Intermarket Technical Analysis, John J. Murphy is one of the leading names in technical analysis today. He now brings his expertise and insight to The Visual Investor, a comprehensive and thoroughly accessible guide to visual analysis. Highlighting its essential components, Murphy takes you through the ins and outs of reading price and volume charts, "pictures" that can help you make sensible investment decisions—and a healthy profit. Special emphasis is placed on sector and global investing through mutual funds. Murphy shows you how to chart and analyze the mutual funds themselves.

Visual analysis enables an investor to analyze a stock or industry group without complicated mathematical formulas and technical concepts. Instead, it tells you—simply and quickly—whether or not the fundamentals of a particular stock are bullish or bearish from the direction in which the price is moving. As Murphy points out, the key to visual analysis is being able to discern whether this stock price is going up or down, not why it is behaving the way it is: "Knowing the reasons behind a stock's movement are interesting . . . [but] all that really matters is a picture, a simple line on a chart."

The Visual Investor brings the complexities of technical analysis into sharp focus, enabling you to make sense of these lines. Providing an in-depth overview, Murphy covers all the fundamentals, from chart types and market indicators to sector analysis and global investing. With actual examples and easy-to-read charts, you'll learn to:

• Spot significant support and resistance levels
• Understand the role volume plays in confirming price action
• Use moving averages to help keep track of trends
• Discern the difference between markets that are trending and those that aren't
• Determine whether a market is overbought or oversold using oscillator systems

To get started on your own visual analysis, The Visual Investor contains a complete resource section that lists important publishing and educational resources, as well as software products and data vendors. Also included is a demo CD-ROM of one of the hottest software programs currently on the market. ... Read more

Reviews (29)

An excellent introduction to technical analysis.
Murphy's book systematically introduces the concepts of technical analysis, building chapter by chapter on application, not theory. Once the basic aspects are covered, he then shows how they apply to foreign markets, and the interplay between stocks, bonds and commodities. He finishes the book by demonstrating the application to sector mutual funds. A CD with an abbreviated version of Wall Street Analyst by Omega as well as five years of data is included, this was very valuable as you can read about a concept, and then practice using it immediately. A great learning tool.

Good starter book but that's it
This is a good starter book for the beginner, although it will be much too basic for the intermediate or advanced trader. But if you're just starting out, the first 133 pages will give you a basic introduction to the different technical indicators and chart reading. The next half of the book deals with the application of the indicators to mutual funds and other topics. I would just read the first 133 pages, and then go on to one of the more advanced texts now that you have some background, as this book by itself isn't enough to give you a good understanding of the subject. Murphy himself has a more advanced book, and Martin Pring also, and many others. Just be advised this is really just the beginning. The book is also a bit overpriced but I will say it's probably the easiest book I've seen recently for getting your feet wet on the subject.

Perhaps the most important part of the book is Murphy's mentioning that the head and shoulders pattern was investigated by the Federal Reserve and found to be statistically significant, and supposedly now is using the indicator to time its currency interventions. However, the real use of technical analysis is not that the patterns mean anything in and of themselves, its having the experience and judgment to know which pattern applies in a given situation that makes them truly useful, and the fact the traders themselves believe in them, so to some extent they become a self-fulfilling prophecy. So the field of technical analysis is itself a combination of art and science.

And actually, the most important aspect of trading is loss control and sell discipline, and understanding position sizing relative to risk and reward, since understanding the technical indicators is actually fairly straightforward, and many charting packages will do that for you anyway, so you don't even know how to understand how they're derived. And the charting packages will generate buys and sells by whatever indicator you want, but remember, it's knowing when to apply a given indicator that's the hard part. Finally, if you're planning on starting in on trading yourself, make sure you read up on and understand what's known as "money management" thoroughly before you set out--such as proper position sizing (not risking too much money on a given trade) and not selling your losers promply--an almost universal mistake among novice traders--and even pros who should (and do) know better. Good luck and happy trading!

Yet another trading book
Absolutely nothing special at all. Target audience is on par of those reading Elder's Trading for a Living. Teaches a little bit of everything, but nothing very well. An advanced trader should literally be able to flip through the book, look at the charts and infer all that is necessary from this book. The few strong points that I saw were linked to intermarket relationships which Murphy has already written an entire book about.

Basic, Well Written and Overpriced
I bought this book on impulse, in part due to my respect for John Murphy's reputation. The book is well organized and well written and should give the beginner or novice trader good reliable explanations of various analytical tools and how to properly use them. If you're looking to delve more deeply into Stochastics, Bollinger Bands, Candlestick charting and the like, look elsewhere.

If you've bought more than a couple of books on trading and technical analysis, chances are Murphy's book won't add much to your knowledge. Given the price tag, its a good purchase for an earnest beginner, but vastly overpriced if you're looking for uncommon insight or depth.

A Charting Tour.
I would describe 'The Visual Investor' as more of an all-round charting tour,rather than a primer : the first quarter is given to the basics,followed by more complex aspects,and then there's a discussion of Mutual fund investing and Intermarket stuff. ... Read more

Book Description

Praise for the encyclopedia of chart patterns "A great achievement that fills a void for everyone who uses charts. Bulkowski has taken an intelligent and thoughtful approach to producing a practical guide to evaluating chart formations." —Perry Kaufman Author of Trading Systems and Methods, Third Edition "Not since Edwards and Magee has someone put together so comprehensive an assemblage of market behavior expressed graphically. That you also get a solid statistical assessment of the results of these chart formations is an unexpected and invaluable bonus. No chartist should be without this book." Interim Editor, Technical Analysis of Stocks & Commodities "Encyclopedia of Chart Patterns is a book I have wanted to see published for many years. It brings together the patterns found in many diverse charting methods and adds the valuable dimension of performance statistics, trading tactics, and behavioral characteristics of each pattern. It is a valuable contribution to existing literature on charting and should be considered an indispensable reference by any serious chart trader." —Edward D. Dobson President, Traders Press, Inc. "Having worn out my 1948 first edition of Edwards and Magee’s Technical Analysis of Stock Trends, I thought I knew a lot about chart patterns. Thomas Bulkowski’s Encyclopedia of Chart Patterns showed me how much more there is to learn. Meticulously researched, complete, and insightful, the Encyclopedia has earned a permanent place on my trading desk as a highly valued resource." —Thomas A. Bierovic Manager, Strategy Testing & Development, Omegs Reserch, Inc. ... Read more

Reviews (26)

Mark Twain said it best
There are many flaws to this book & most of them Bulkowski admits. The first is the sample is cherry picked based on fundamentals which TB never gives out. The second is that while TB is obviously familiar with stats (he mentions the terms freq distribution & population enough that at least a passing idea of them is true) he dwells on the sample of 500 stocks over 5 years and gives us a population of X. Well that's a bit bogus as most PATTERNS take longer than a day to create (forget this hanging man thing, it's minor) so if you average out the span of a pattern creation, which is the true size of a sample not the one day of data, that he is using. Finally this books data was from only one market, a baby bull market, whether the stats quoted would hold up in a bear or a mature bull is questionable. I for sure wouldn't be able to extrapolate that based on what's given.

I'd recommend the source instead, Edwards & Magee, Technical Analysis of Stock Trends & for those interested in indicators/gann/elliott waves, Connie Browns Aerodynamic Trading.

On the plus side, it is very complete though the kook-sounding review about trendlines and support has a point; a lot of TB's work could have been done with Fib Retracement levels. Still if you are really into patterns you cannot pass it by though realize it's a starter in your analysis not a complete foundation. The 'Sample Trade' section is a real waste; there is not enough information other than pattern formation for you to do your own analysis. If you read the Identifcation section and the first summary paragraph you probably have gotten all you need out of the 46 chapters and saved yourself a lot of time.

Regarding inaccurate statistics
I don't even know Mr. Bulkowski, but I felt compelled to write this review. One particular reviewer points out a few apparent discrepancies in this 672 page volume of research. It does not matter whether you are an author or have been published in trading-related magazines.

The reviewer sarcastically poses that since the "rectangle bottom" stats on page 659 portray a zero faulure rate, that traders can get rich and never lose money!

If you truly read the entire text, including Mr. Bulkowski's opening remarks that define his fresh statistical-analysis approach, then everything falls into place.

Furthermore, the author addresses the "zero loss stat" for the rectangle formation on pages 440 and 444. He states that the "sample size" was small for this pattern and said: "Let me emphasize that because I did not find any failures of rectangle patterns with upside breakouts does not mean there are none."

This is a good and comprehensive book with a very fresh statistical approach for analyzing classic (and newer) bar chart formations. There is a wealth of information addressing each of the many patterns. It is offered up to the reader as copious amounts of quantified data that any trader/investor can draw from to incorporate into his or her own trading.

I too am an author, and I trade stocks full-time for a living. This book is a great resource and fits in the top 15 T.A. books of which I own roughly 300.

Yeah, he called a "dogi" a "hanging man." To me that doesn't detract from the other 671 pages.

Buy it, read it and use it!

method of trading successfully
is not found here. Wordy beyond tears. Could have easily been 100 pages instead of 600. A mere pretender to the classic by Magee and Edwards.

Tedium must be the Bulkowski philosophy. I really felt he did little to clarify any technical view what-so-ever. Every page is an endurance test of what's his point and where to find it. It promises theme, but delivers anecdotes.

Loaded with questionable statistics, methodology and wordiness any reasonable trader can only come away with a feeling that this book was written for the sole purpose of making the author a buck.

What this book lacks in originality it makes up for in a scholarly pomp. Perfect for a non traders library.

The patterns are previous, The tactics non profit. This would be the last book in my trading library.

Very indepth and good use of statistics
As a trader myself I am always on the lookout for books and materials that do not tout get rich quick strategies. Mr. Bulkowski takes a very methodical and usefull approach in collecting many common and some exotic chart formations and then documenting how identify, trade, and ultimately reveal their statistical performances. One feature I found pricesless was the visual index in which you can match a formation visually and then figure out what it is called to read more about it. I highly recommend this book for people who are looking for a excellent chart formation book.

Outstanding Source of Information
This book definitely serves it's purpose. I'm not sure how anyone could give it less than 5 stars. Of those who rated it lower, they seem to want someone to give them "The Holy Grail". With 43 chart patterns, it would have been impossible for Mr. Bulkowski to study the effects of support/resistance lines, low-cap vs. blue chip, etc. lest he end up with an 8,000 page tome. He assumes that each individual reader will be able to take the information given, and create their own testing to suit their individual needs. Impossible to put down once you start reading it. ... Read more

Book Description

A one-stop reference for in-depth explanations of mortgage topics

With the creation of so many new, complex mortgage programs, it's difficult for consumers --not to mention real estate agents, attorneys, closing agents, and mortgage brokers--to keep track of them all. Written by nationally syndicated real estate columnist Jack Guttentag, The Mortgage Encyclopedia helps readers understand the various mortgage terms, features, and options by offering clear, precise explanations. The alphabetical organization of terms makes it easy to quickly find information on any topic, from FHA, Investor, and No-PMI Loans to Origination Fee and Rate Float. Each entry includes not just a description of the term, but also relevant advice for consumers, such as answers to the questions "Is this loan right for me?" and "Can I negotiate this fee?"

• Guides readers through the bewildering array of new mortgage programs
• Features definitions and explanations of common mortgage, escrow, and closing fees and arcane mortgage terminology

Book Description

YOU CAN GO AFTER THE JOB YOU WANT...AND GET IT! YOU CAN TAKE THE JOB YOU HAVE...AND IMPROVE IT! YOU CAN TAKE ANY SITUATION YOU'RE IN...AND MAKE IT WORK FOR YOU!

For more than sixty years the rock-solid, time-tested advice in this book has carried thousands of now famous people up the ladder of success in their business and personal lives.

Now this previously revised and updated bestseller is available in trade paperback for the first time to help you achieve your maximum potential throughout the next century! Learn:

* THREE FUNDAMENTAL TECHNIQUES IN HANDLING PEOPLE
* THE SIX WAYS TO MAKE PEOPLE LIKE YOU
* THE TWELVE WAYS TO WIN PEOPLE TO YOUR WAY OF THINKING
* THE NINE WAYS TO CHANGE PEOPLE WITHOUT AROUSING RESENTMENT ... Read more

Reviews (332)

principles stand the test of time
First published in 1937, this book is the result of 15 years of Dale Carnegie's research in human relations. When learned and applied, these 30 timeless principles will help you become more likable and influential in others' lives.

Millions of copies of this book have sold because the principles are basic and proven. Sure, some of the language is dated. Many of the characters and companies mentioned in these pages are no longer household names. Look beyond those quirks and you will find some of the most memorable and applicable people skills material ever produced.

With simple presentation and vivid examples, Carnegie deftly walks us through Fundamental Techniques in Handling People, Six Ways to Make People Like You, How to Win People to Your Way of Thinking, and How to Change People Without Giving Offense or Arousing Resentment.

When material is this old and this good, it could sometimes be considered trite and nothing more than common knowledge. Don't fall into that trap. Until its principles become common practice in our lives, this book is just as necessary and effective today as it was more than six decades ago.

Larry Hehn, author of Get the Prize: Nine Keys for a Life of Victory

The very best in self-help books!
What can't I say about this book?! I first read How to Win Friends and Influence People five years ago. I have made it practice to read it at least once a year now in the hopes that some day I may actually assimilate the incredible wealth of material included in the pages. Listen, there are a ton of self-help and motivational books out there, but this one isn't like all the rest: it is the forefather to all of them! I have to be honest when I say that this book has had a profound impact on my life and my way of thinking. It is timeless, priceless, and seems to get better with age. I hold no reservation or hesitation in recommending that you not only put one of these on your shelf, but that you read it over, and over, and over again.

Reviewed by: James L. Clark, MBA, MSc., PhD Candidate (Leadership) is a serial entrepreneur, lecturer, and consultant. He is the author of the book Wading Through the Crap: How to Start Living the Successful Life You Have Always Wanted (ISBN 0972697551) that has received rave review.

10 stars for this one!
When it comes to social skills, this book says it all. No need to look any further than this classic. To learn emotional and mental mastery and making the most of any situation, then Optimal Thinking: How To Be Your Best Self is your best choice. To learn how to deal with change, read Who Moved My Cheese. These resources give you all you need to be your best, get along with others and bring out the best from them.

Compelling book on developing social skills
If youwere to buy just 1 book of how to acquire people skills, How To Win Friends and Influence People should be that 1 book. This book is great. Written over 70 years ago, all of the principles still apply. Definitely add this one to your library, but more importantly, use it.

Timeless Advice
His advice is so obvious and so easy, so how come it's so difficult to do yourself and so rarely found in others? Is it cynicism or manipulation? No, it's human nature: Do Unto Others ...

THE FUNDAMENTALS

• "Speak ill of no man and speak all the good you know of everyone."
People react very badly to criticism; don't do it, not to their face nor behind their back ... especially not behind their back.

• Say "Thank You".
Express appreciation. People yearn, yearn to be appreciated.

• Talk about what people want and help them get it.
"Arouse in others an eager want."
Corollary: let others take credit for your ideas; they'll like your ideas a lot more if they believe them to be their own.

WAYS TO MAKE PEOPLE LIKE YOU

• Be happy to see people.
Greet everyone you meet and show an interest in them. Remember the things that are important to them.

• Smile!

• Remembers peoples' names!!
Remember it, use it when talking to them. A person's name sounds beautiful to them.

• Draw people out.
Encourage them to talk about themselves and their interests.

• Actively research the other person's interests.

• Every person you meet feels themselves superior to you in some way.
Strain to find out what that is and recognize their importance. Talk to people about themselves and they will listen to you for hours.

WIN PEOPLE TO YOUR WAY OF THINKING

• Don't argue!
Give in! Agree that the other person is right; often they are and if they aren't, you'll never convince them of it by arguing.

• Don't ever tell a person they're wrong.
They may be but telling them so is always counterproductive. It is difficult for a person to admit to themselves that they are wrong; harder still to admit it to others.

• If you know you're wrong, admit it.
Openly and freely admit whenever you're wrong. And always leave open the possibility that you're wrong even of you think you aren't.

• Friendliness begets friendliness.
Always begin that way. Don't accuse.

• Never neglect a kindness.
Look for ways to do or say something nice.

• Start out by emphasizing areas of agreement.
When a person has said "no" it's hard to get them to change even if they know they're wrong.

• Let the other person do most of the talking.
Listen patiently and don't interrupt. Let your friends be better than you.

• Let people come to your conclusions.
First, tell me what you expect of me; then tell me what I can expect of you. People will generally live up to the commitments they make to you as long as they came up with them on their own.

• Think always in terms of the other person's point of view.
Where they stand depends on where they sit; figure out where they're sitting.

• ¾ of the people you will ever meet are dying for sympathy.
Give it to them and they will love you.

• A soft answer turneth away wrath: but grievous words stir up anger.

• Dramatize your ideas.
"Don't use logic; tell stories." Make your ideas visible, concrete. Bear in mind that people don't know until you show them what you mean.

• Stimulate in others their innate desire to excel (perhaps through a friendly challenge or through competition).

BE A LEADER

• Don't go sailing into difficult interpersonal situations with guns blazing. You'll always get a negative reaction.

• Change "but" into "and".
Be indirect in your criticism. Praise before you condemn.

• Ask questions rather than giving orders.

• Be very careful to help others preserve their dignity.

• People crave recognition: praise the smallest improvement and praise every improvement.

• Treat people as though they had the virtues you wished they possessed.
Give them a reputation to live up to and they will work like crazy to live up to it.

• Praise the good; minimize the bad: encourage.
Make achievement seem possible. Take and encourage little baby steps. Seek out even the most insignificant of successes.

• Napoleon: I could conquer the world if only I had enough ribbon. ... Read more

Book Description

Develop a Winning Investment Strategy -- with Expert Advice from "The Nation's #1 Money Manager"

Peter Lynch's "invest in what you know" strategy has made him a household name with investors both big and small.

An important key to investing, Lynch says, is to remember that stocks are not lottery tickets. There's a company behind every stock and a reason companies -- and their stocks -- perform the way they do. In this book, newly revised and updated for the paperback edition, Peter Lynch shows you how you can become an expert in a company and how you can build a profitable investment portfolio, based on your own experience and insights and on straightforward do-it-yourself research. There's no reason the individual investor can't match wits with the experts, and this book will show you how.

In Beating the Street, Lynch for the first time:

* Explains how to devise a mutual fund strategy
* Shows how he goes about picking stocks, step-by-step
* Describes how the individual investor can improve his or her investment performance to rival that of the experts of the investment clubs. ... Read more

Reviews (44)

Peter's Principles are great
They've has done it again, this book is very funny and filled with useful tips from seasoned investor Peter Lynch. This book has several of "Peter's Principles" (which are very humorous one-liners that make a lot of sense for investors.) My favorite parts of this book are: The story about the St. Agnes 7th grade portfolio managers (these kids beat out 99% of fund managers when they had a two year gain of 70%.) Another part of this book that I enjoy are the subtle tips for evaluating stocks. Mr. Lynch doesn't tell you to do this, that, and another thing to find the ten-baggers, but he does give clues throughout the text.

Reed Floren

Yet Another Mis-Leading Exhortation to Buy Stocks
This book, written in 1993, simultaneously comes at the end of Mr. Lynch's career in money management and the beginning of a long sprint in the broader stock market, largely fueled by tech/internet stocks. In any period, one can expect 1 of 100 money managers to far outperform both his or her peers and the broader market by chance. Mr. Lynch was that one money manager.

Mr. Lynch starts the book by turning investing into a game. Although his method was subtle (using an example of grammar school kids picking stocks), the implications are profound. Investing does share some resemblance to many games we play in life, and one of the Great Money Masters, the fictitious 'Adam Smith' readily admits this in his classic book on investment, The Money Game.

However, Mr. Lynch takes things one step beyond the game, and as the book's title hints, he turns all investment activities into a competition. In so doing, he pits the small investor against the institutional Players, and as a result, sets up the naive reader to walk a well-trodden path littered with sorrow and the bones of many foolish investors.

Granted, 'Adam Smith' once said, "The Players aren't smarter than you. They just have more information", and there also is a certain level of truth to Lynch's assertion that the Little Guy can outperform the Big Boys. However, Lynch fails to disclose one important and critical difference.

I believe it was Hemmingway who said, in response to Fitzgerald's observation that the rich were not like the ordinary schmuck, that "Yes, I know. They have more money." Something frightfully similar can be said of the key difference between the Little Guy and The Players, but with one critical insight: The Players do not merely have more money, they have a lot more of Other People's Money. That in essence is the fundamental difference between The Players and the Little Guy, who must wager his (or her) own hard-won funds in order to play the Grand Game- the stock market.

Needless to say (but will be said anyway), the consequences of one's actions weigh heavily on one's shoulders when one's own money is at stake, but really aren't felt when Other People's Money is on the line. The Players play with Other People's Money, but you, dear investor, play with your own hard-won earnings. That said, the intelligent investor must ask herself, 'Do I really want to play with my money?'.

Beating the Street rests heavily on this undisclosed truism and a host of faulty assumptions. The book really is a sales pitch to buy stocks and to participate as much as possible in stock mutual funds. To that end, Mr. Lynch places before the reader a number of questionable arguments. Here are just two:

First, perhaps the most flawed argument of the book is that the small investor, upon retirement, will spend more than she earns in investment income. This is stated as a bona-fide fact when in reality, it is a generous assumption. From this assumption, Mr. Lynch then argues that one should invest in stocks and use some portion of the capital appreciation in addition to the dividend income for the purpose of meeting one's spending needs. He then fortifies his argument by citing inflation and emphasizing its ability to erode fixed income.

The facts are 1) how much investment income you will need is determined by how much you plan to spend, 2) many people choose to work either part-time or full-time after retirement (either out of necessity or desire), and thus have some supplemental income, 3) though the general historical trend for stock prices has been 'up', there is nothing that says that stocks have to go up, and finally 4) inflation can adversely affect stock prices (and have actually done so in the past). Lynch invokes the inflation argument when trashing bonds, and abandons it when touting stocks, even though inflation acts on both. Nor does his idealized comparison of stocks vs. bonds on pages 52-56 take into account taxes and transaction costs incidentally.

Second, on page 69, Mr. Lynch boldly says that, "If you plan to to stick with a fund for several years, the 2-5 percent you paid to get in will prove insignificant". This last statement may actually be worse than his first (of many) flawed arguments, for the following reason: the money lost to the load fails to compound at whatever investment rate of return, and over long periods of time, the difference between what you committed and what gets actually invested grows- and this is before we even consider the effect of annual expenses.

These and other flawed but superficial arguments for stock investing make for very difficult reading. Apart from the gross argumentative errors, the book presents many of Mr. Lynch's reminiscences of a stock market long gone. However, there are some useful hints in the book, most likely put there by Mr. Rothchild, but they are far outnumbered and over-shadowed by Mr. Lynch's deceptive pitch to buy stocks.

Excellent
It's hard to find a better written book on investing that Beating the Street. Despite working in the industy for many years, Peter Lynch urges people to do it for themselves. He writes clearly giving examples of how one could do better than the Wall Street pros. This book is one of the best on investing that I have read.

Not Half Bad.
In my opinion, this book was a lot more readable than I would have expected a book about the stock market to be. The light humor (very light) kept the book interesting and there were plenty of good tips. The "20 Golden Rules" were great. Lynch obviously knows what he's doing and he proves it by giving real life examples from his own successful experience. The only setback I found was that the tips were made out to be really easy, but they sounded tough. Overall, though, I would recommend it to both beginners and pros involved in the stock market.

Learn from the Master
Lynch's success comes not from his complex algorithms and estoric financial modeling, but from opening his eyes to the world and noticing good businesses.

His success at Magellan is attributed to his ability to find good companies, at reasonable valuations, and be patient enough to watch them climb.

This book is much more specific than his other release. Here, he provides detailed accounts of stock picking strategy, including how to choose from different stocks, when to buy, when to buy more and when to sell.

This is a quick read, but there is a huge amount of information that the average investor can use to their benefit. ... Read more

Book Description

The definitive guide to mortgage-backed securities --now revised and updated

The classic -- and single best -- resource for understanding and trading mortgage-backed securities has been brought fully up to date with The Handbook of Mortgage-Backed Securities, Fifth Edition, giving you timely insights into everything from fundamentals to investment characteristics of mortgage-backed securities, as well as state-of-the-art strategies for capitalizing on opportunities.

The Handbook’s seven sections bring you up to speed on mortgages and pass-through securities; stripped mortgage-backed securities and collateralized mortgage obligations; credit-sensitive mortgage-backed securities; prepayment modeling; valuation techniques, relative value analysis, and portfolio strategies; commercial mortgage-backed securities; and non-U.S. mortgage-backed securities.

This edition is more than just a revised edition – it’s practically a new book: twenty-nine of the chapters are either new or have been substantially revised, reflecting the most recent developments in the mortgage-backed securities market, in terms of both product development and financial technology. These entirely new sections give you a seamless transition into the 24-hour, global financial markets of the 21st century. ... Read more

Reviews (3)

Excellent but Compiled Work
I have seven years of experience selling these products, and I use Fabozzi's book often. This is a good reference, and a good treatment of mortgage and asset backed securities. I only gave it four stars because the fact that this is a compiled work of research material interrupts the flow of ideas. On the other hand, there is some merit to getting different angles on the subject from different viewpoints.

One caveat. Mortgage derivatives used to mean calls and puts on mortgage backed securities. Today, however, entire portfolios of mortgage risk are laid off in the form of credit derivatives.

Tavakoli has the best treatment of that topic in the book: "Credit Derivatives".

A major reference
A vast collection of articles by practitioners on Wall Street, this book covers a broad number of topics on Mortgage Backed Securities. While not a scholarly approach, 'street research' typically aims to educate the fixed income portfolio manager.

Fabozzi handbooks are overrated
It's the industry standard. Everyone has one. It stands alone in its field. And if you're reading this you're probably going to buy regardless of what is written here.

But I've found this book (along with some of the other Fabozzi 'Handbooks') to be overrated. Basically, the format of 30 or so different authors each writing a chapter in the form of an article diminishes the usefulness of the book. There is no narrative, pedagogical or otherwise. The format leads to significant gaps in coverage. The quality of the chapters is uneven, as is the level of detail covered.

Don't misunderstand me -- the Handbook isn't bad, by any strecth of the imagination. It's just not as good as it could be. It has almost no fluff, and all the information in it is good. And the competition is a very slim field. For many things Fabozzi is not only your best choice, it's your only one. ... Read more

Reviews (1)

Wow! Lots of forms and info...
This is a book for seasoned investors, brokers, and syndicators. It contains several hundred forms and checklists that will make sure you never forget an important element of the buying and selling process. However, it is not a "stand alone" book on real estate investing, but a book designed to accompany other texts on the subject. ... Read more

Book Description

The definitive guide to technical analysis . . . written from a trader's perspective

With the keen insight and perspective that have made him a market legend, Jack D. Schwager explores, explains, and examines the application of technical analysis in futures trading. In the most in-depth, comprehensive book available, the bestselling investment writer demonstrates why he is one of today's foremost authorities. Here is the one volume no trader should be without.

"Jack Schwager has accomplished the rarest of feats in this book. He has presented material in a way that both the professional and layman can profit from. It is a must read for traders on all levels." — Stanley Druckenmillern Managing Director, Soros Fund Management

"Jack Schwager's Technical Analysis is exactly what one should expect from this expert on futures. The book is comprehensive, thoroughly insightful, and highly educational. I recommend it to the beginner as well as the expert." — Leo Melamed Chairman, Sakura Dellsher, Inc.

"Jack Schwager possesses a remarkable ability to extract the important elements of complex, market-timing approaches, and distill that into something intelligible and useful. Not only is he able to present these ideas cleverly in an easily understood format, but he also demonstrates their application to the markets with clarity and precision." — Thomas R. DeMark Author, The New Science of Technical Analysis

"Jack Schwager's book, A Complete Guide to the Futures Markets, was one of the best books I have read on futures trading. We give a copy of it to all our new analysts. Jack's latest work, Technical Analysis, looks like a gold mine of information, adding significantly to the existing investment literature." — Monroe Trout President, Trout Trading Management Co.

Jack Schwager is one of the most important and visible figures in the futures industry today. His Market Wizards and The New Market Wizards are two of the bestselling finance titles of all time. Now, in the latest volume in the Schwager on Futures series, Technical Analysis, Schwager has created the most comprehensive guide ever for using technical analysis for futures trading. What makes Technical Analysis unique, besides its in-depth coverage, is that it is written from a trader's perspective. Schwager doesn't merely cover the subject, he explores what works and doesn't work in the real world of trading.

Contains a comprehensive guide to chart analysis written with a particular focus on trading applications

• Includes a separate 200+ page section illustrating the use of chart analysis in the real world
• Details and illustrates several original trading systems
• Includes a self-contained primer on cyclical analysis
• Describes popular oscillators, the pitfalls in their common use, and guidelines to their successful application in trading
• Explains the concept and use of "continuous futures" and compares 10-year continuous futures charts with conventional nearest futures charts for all major U.S. futures markets
• Contains a section on trading strategy and philosophy, including over 100 trading tips

Hundreds of charts, tables, and examples illustrate key points throughout, while the text is written in the informative, insightful, and nontechnical style that has made Jack Schwager one of the most highly regarded and bestselling investment authors ever. This invaluable book by one of the world's foremost authorities is destined to become the premier industry guide on technical analysis for many years to come. ... Read more

Reviews (10)

This book hurt my head!
I read this book ... I was thoroughly impressed.

I had read Schwager Market Wizards books after I had read this Technical books on trading. And although I liked it, I found many of the charts and graphs quite tedious. On the other hand was thoroughly impressed at level of information that was being presented. This book is a permanent part of my collection solely because it reads more like a college text book than a commercial investment book. He really delves deep and makes you think about what futures really are and what it takes to decipher their movements. I am looking forward to his comments on single stock futures.

One of the best Technical Analysis books
I thought Schwager did an excellent job with this book. I have read a ton of books on technical analysis and can say that this is definitely one of the best ones out there. I really liked the book, the real world chart analysis was excellent as was the section on trading systems. I recommend this book without hesitation whenever someone asks about a good technical analysis book. It is probably the best book on technical analysis I have read it does an excellent job showing how a trader actually uses and interprets charts and indicators. It ranks in the top 10 books on trading that I have and it has paid for itself many times over.

There is a Cheaper Version of This Book
I first read his book in paperback "Getting Started in Tech Analysis." Both books cover the same info, except the above reviewed book has more details on trading systems and has a lot more graphs and examples, which I felt I did not need. I would recommend the less costly paperback version - it is EXCELLENT!

A Complete Guide to Technical Analysis
Now don't get me wrong by the title, there are more methods of Technical Analysis than Schwager covers in this book...However, his many years of actually trading against analytical methods has given him great insight and time to study, characterize and rate the value of many of the most common analytical methods. He is quick to point out in several places in the book that these are "Western" analytical methods, practiced in the Euro-American world of futures trading.

The beginning of the book is a laborious and elementary but complete description of basic technical techniques. The later chapters talk about building trading systems using combinations of the techniques discussed in the beginning. There is a fair amount of history lesson given as to how the methods were 'discovered' or derived. In general, although ponderous to get through, I think that this detailed analysis allows the reader to believe in the method, the author, and the application of the method.

I highly recommend this book as the single basic reference that a technical trader cannot ignore.

A REASONABLY GOOD BOOK ON TECHNICAL ANALYSIS
Tis book is very complete in all the basic technical patterns such as flags, channels, head & shoulders etc. and would be a complete technical analysis course for beginners, but may prove less useful to professional traders. The second section is helpful in that you read about a trade based on a particular pattern and then turn the page to see the chart move out in time and how the trade would have worked. Its a sort of real-time trading practice. As we have often heard, these basic patterns are about 50-50 accurate and Jack seems to imply that when he said on p. 142 that "Trading success is not dependent upon been right more than half the time, or for that matter even half the time."

I think that any furthur edition of the book should get some charts that have dates below. These charts show the month and a few spikes in between to suppose dates but they are difficult to co-relate with a calendar and so it makes it a bit difficult to know on what day of the week or if it is a weekend that a particular move took place.

In Chapter 18 it states: "The systems detailed in this chapter are throwaway systems, that is systems far inferior..... to other systems I have developed to bother using.". Maybe, the ad. for this book should tell us that purchasers will get rejected systems which the author does not use! In this way one can make a more precise purchase decision. The final chapter of this book which contain 82 trading rules is to me the best part of it all. This chapter are excerpts from his market wizard books.

I must admit that I had read Jack's "Market Wizards" and his "New Market Wizards" books and I had been very pleased with them. I had written excellent reviews for both these books and would always recommend them to anyone. However, I cannot be too sure to say the same for this one on technical analysis. ... Read more

Book Description

Praise for INTERMARKET ANALYSIS

"John Murphy has done it again. He dissects the global relationships between equities, bonds, currencies, and commodities like no one else can, and lays out an irrefutable case for intermarket analysis in plain English. This book is a must-read for all serious traders."
–Louis B. Mendelsohn, creator of VantagePoint Intermarket Analysis software

"John Murphy’s Intermarket Analysis should be on the desk of every trader and investor if they want to be positioned in the right markets at the right time."
–Thom Hartle, President, Market Analytics, Inc. (www.thomhartle.com)

"This book is full of valuable information. As a daily practitioner of intermarket analysis, I thought I knew most aspects of this invaluable subject, but this book gave me several new ideas. I thoroughly recommend it for beginners and professionals."
–Martin Pring, President of Pring.com and editor of the Intermarket Review Newsletter

"Mr. Murphy’s Intermarket Analysis is truly the most efficient and unambiguous way to define economic and fundamental relationships as they unfold in the market. It cuts through all of the conflicting economic news/views expressed each day to provide a clear picture of the ‘here and now’ in the global marketplace."
–Dennis Hynes, Managing Director, R. W. Pressprich

"Master Murphy is back with the quintessential look at intermarket analysis. The complex relationships among financial instruments have never been more important, and this book brings it all into focus. This is an essential read for all investors."
–Andrew Bekoff, Technical Strategist, VDM NYSE Specialists

"John Murphy is a legend in technical analysis, and a master at explaining precisely how the major markets impact each other. This updated version provides even more lessons from the past, plus fresh insights on current market trends."
–Price Headley, BigTrends.com, author of Big Trends in Trading ... Read more

Reviews (4)

Great Rewrite of a Landmark Work
The original book Intermarket Technical Analysis was great for its time, however some of the relationships it described change in a deflationary environment which the author suggests we are in. However, the best reason for the rewrite was the writing in the earlier book was terrible in my opinion. It was a terribly boring book -- even if you are interested in the topic.

This book is different, and is a much better book. It also seems to me that the sector analysis coverage is a little more thorough (although I have not opened them up side by side to tell).

The only downside of this book is I don't think it gives you as many practical tools for tracking the business cycle and sector rotation as Pring's book, how to select stocks using technical analysis. It will give you the basics though, relying heavily on comparative relative strength.

If you want to see the big picture and understand how the markets are tied together, I can without hesitation recommend this book. There are several other books that complement this one as well.

A Good Read
This book will be helpful to those seeking an introduction to the interrelatedness of the currency, commodity, equity and fixed income markets. The book was well written and easy to read. However, I would not suggest the book to a person with no technical, economic or financial background.

Although I respect Mr. Murphy's work, he, like most technical analysts, can tell you with 100% accuracy exactly what happened.........yesterday. He really did do a good job on a very difficult topic, but the historical analogies referenced imply that the interrelatedness is rudimentary and predictable.
After a very detailed history of the four major market relationships, Murphy finally concludes that some of the historical tendencies are currently being challenged and that only time will tell if a new relationship has emerged or if history will again be proven right.

A Panoramic Market View
John Murphy's "Intermarket Analysis" is an updating of his excellent 1991 text "Intermarket Technical Analysis". Both books are the most clearly written and thought-provoking texts on this topic that I have encountered.

In the interest of disclosure, let me say that I do not know Mr. Murphy; nor has he or his publisher solicited this review. His editor at Wiley, Pamela Van Giessen, also edited a book I wrote on The Psychology of Trading. Knowing Ms. Van Giessen's integrity in a business that too often lacks that virtue, and having enjoyed Murphy's first book on the topic, I was eager to give "Intermarket Analysis" a thorough read.

Murphy begins with a review of the markets from the 1980s, recapitulating themes from the first book, including the close linkages among the currency, bond, commodities, and stock markets. His discussion of the role of oil and gold in economic slumps and booms is first rate, as he traces the interplay among these markets during the first Persian Gulf War and then during the "stealth bear market" of 1994. Throughout these presentations, Murphy captures qualitative relationships between markets that provide inspiration for traders interested in quantitative modeling. For example, the relationship between oil stocks and crude oil prices and the CRB/Bond Ratio are promising tools in capturing shifts in commodity prices that tend to impact the stock indices. I was particularly intrigued by his presentation of sector relationships during economic/market cycles, including the relative performance of cyclical and consumer stocks.

Where Murphy's book really shines, however, is in its explanation of intermarket relationships in a deflationary environment. He captures these relationships in his account of the recent bear market, drawing upon such diverse intermarket relationships as semiconductor stocks, Japanese markets, the Australian dollar, and the yield curve. This alone is a major advance over his previous text. At the end of the book, he traces the start of the recent bull market, illustrating the transition from a deflationary environment to an inflationary one--a pattern that also occurred after the great bear market of the 1930s.

Weaknesses in this book, from this reviewer's perspective, include an overemphasis on charts and visual data at the expense of quantitative treatments and a glib treatment of the Kondratieff Wave (long-term economic cycles). That having been said, this is an excellent market book. The presentation of sector rotation during economic cycles alone provided enough ideas to keep me busy with modeling efforts. Chart-based technical analysts and quants alike can find value in Murphy's work.

Brett Steenbarger
www.brettsteenbarger.com

Doing the Topic Justice
As John pointed out in an interview for Stocks & Commodities magazine with the author, it was his original goal to write the quintessential intermarket book but then found the topic so involved that each chapter could have become a book. There is just so much to discuss. Attempting to cover anything but a small snippet in a review is sheer folly. It is also impossible to do the book justice.

One technical analyst sent this author an email recently saying that she considered Murphy's first book on the subject, Intermarket Technical Analysis, to be one of the top three books on technical analysis. Those who liked his first book will absolutely love this one. This reviewer considers it to be one of his top three current technical analysis/market references.

Murphy is perhaps the only man alive today that could have written Intermarket Analysis with such conviction. As he mentions early in the book, anyone with the benefit of hindsight can choose what indicators would have worked best. There is no skill in that. What gives him the credibility to analyze what was happening at the time is that he was doing it daily for his subscribers to the MurphyMorris Market Message Newsletter online and much of the book is documented with excerpts and detailed charts written at the time the events were unfolding.

The book is well written and very readable with plenty of examples to demonstrate each key point. The business cycle and all important market cycles are discussed from the seasonal best time to be in the market (November through January) to the 54-year Kondratieff Long Wave Theory. It will be a book that one will read repeatedly as well as an essential reference to come back to time and again as new market events unfold.

There is also little doubt that this book will become a market best seller. But it will not become the sole domain of the technical analyst and trading community. Everyone who plays the markets will want to read it. It is not simply about trading or technical analysis, but about markets and how to operate within a global framework in the four asset classes and effectively gather crucial up-to-the-minute intelligence to make the best-informed decisions.

Murphy makes one fact crystal clear. There are a number of essential intermarket relationships of which to be aware, any one of which could save your financial bacon at the right time. The implied corollary is that ignorance of any one of them could prove fiscally catastrophic.

Markets have become so interdependent in the last decade, a correlation that continues to strengthen with time. If those who suffered financial ruin between 2000 and 2002 had read his first book, how many of them could have avoided huge losses and even profited from what occurred? We will never know for sure but is it a risk they anyone can afford to take, especially when considering that the cost of avoidance (cost of the book) is less than $50?

(Re-printed from Traders Mag with permission.)

Matt Blackman - Technical Writer/Reviewer Email: matt@tradesystemguru.com
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Contributor to Stocks & Commodities Magazine, Working Money, Traders.com Advantage, Active Trader, Traders Mag (Europe) and SFO Magazine ... Read more