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Hot stocks may get all the attention in the press, but, Timothy Vick argues in Wall Street on Sale, you're not going to beat the market chasing the latest high flyer. Vick, founder and editor of the newsletter Today's Value Investor, demonstrates how building a winning portfolio means becoming a smart shopper. He starts by offering a thorough definition of value investing, listing its seven principles: buy assets on sale; form a notion of value; avoid losses with a "margin of safety"; adopt a "for-sale" perspective; stick to it; be a contrarian; and ignore the market. Vick looks at the stocks listed in the S&P 500 index from late 1994 to mid-1997. The stocks at the beginning of the test period with a price/earnings ratio below 7 gained an average of 228.3 percent compared to an 85.3 percent return for the entire index. Those low P/E or undervalued stocks were the real winners.

But there's more to being a smart shopper than just buying low P/E stocks. He cites the work of value-investment pros, such as Warren Buffett, James O'Shaughnessy, and Michael Price, mixing in enough tables, graphs, and case studies to prove ably that buying companies at sale prices is a hugely successful stock-picking method. He then shows how to discover hidden values, analyze financial ratios, and assemble a portfolio. And thanks to the development of the Internet, most necessary information is available for free; Vick includes an appendix of 150 Web sites. This is a how-to book for the investor seeking value--the investor that wants to get a dollar's worth of Wall Street for 85 cents. --Thom Hartle ... Read more

Reviews (14)

Useful and practical guide to value investing techniques
Wall Street on Sale:

I have just finished reading Timothy Vick's book and found it extremely useful. There's a lot of practical information packed into the book. An investor is well advised to read the book a few times. The book stays true to the teachings of Ben Graham, but ventures to Buffett where appropriate. The author explains techniques Graham used and how Buffett has built on these principles to come up with his own style. The book explains things in a complete and practical manner that I can immediately apply. I recommend the book highly for both novice and intermediate level investors wanting to better understand 'value investing'. Since reading this book, I have also subscribed to the author's value investing newsletter.

The average investment book...
Actually, to think that this book will teach you a whole lot about Warren Buffett's investment technique is significantly misleading.

I know many people have found this book more than just fascinating and it's probably bcoz this was the first value investing book they read rather than anything else.

This book, describes the many people who've had success with buying stocks at decent prices (hence, the VALUE investment idea) and how you too, as a reader can do the same. Then the author goes on to talk about Buffett, the billionaire investor who roughly made $8,000 plus out of every $1 invested over a 40-year period.

Now, to take this book as an intro to the technique is fine, but to take it as a "How Buffett did it book" is totally misleading.

You see, Buffett investing is about the margin-of-safety principle (essentially, making the purchase price so good even a bad sale yields satisfactory return), it's about his former lecturer Ben Graham and Mr. Market, it's about the temperament of investors, the attitude towards bear markets (falling markets), it's the pitches, strikes, and when to swing your money bat and most importantly, it's about the patience, rationality and discipline.

It's not just buying cheap. Buffett investing is about value NOT in the sense which the author of this book preaches. It's so much more than that.

I've come to understand Buffett investing as creating the most impressive investment record possible, consistently, over the long-term. To do that, you need to have some idea of how Buffett felt when he's buying and when other investors and the whole stock market is selling. It's about how to minimize your risk of losing money in a stock market crash, by doing this thing he calls "Workouts". And it's not about avoiding technology stocks either, that's a personal thing. Many argue that Buffett's techniques won't get you far these days which I think is a bit of a short-term thinking. Buffett's technique can be applied to technology stocks if you really understand the business. "Remember, what lies under every ticker symbol and stock tape is just an ordinary business!" Now, as a Buffett investor our task is to separate the myths and the facts and then, step on the plate... to swing at the perfect pitch. You don't have to buy them at rock bottom prices, they just have to be selling at a price you think is below it's intrinsic value.

Now, of course, more on intrinsic value if you read Hagstrom's first book, "Buffettology" by Mary Buffett and several other books. From my experience, you really need to read just a few books to be able to invest like Buffett and that the secret to this whole idea lies only in a handful of quotes. I'll leave you with one of my favorites,

"You don't need to know a person's exact weight to know that she was fat... " --Ben Graham

ahmadredza@rocketmail.com

superinvestor@prontomail.com

Read it again and again
Read it and use it. I don't think you will get a poor result in the security market.

Best Investment book
I have read many investment books but this gets my vote for the best of all of them. It is very easy to read as it is so well written and Mr. Vick makes many points that are so indisputable that I plan to re-read and re-read this book many times over in order to see through the sales pitch that Wall Street often sells us.

A great book!
I'm a new investor, and this book was very understandable, practical, informative, enlightening, ect.. This is a very vaulable resource of information on investing. I highly reccomend it. ... Read more

Book Description

Maximizing the trader’s state of mind is the key to successful results.Conflicts, contradictions and paradoxes in thinking can spell disaster for even a highly motivated, astute and well grounded trader. Mark Douglas, a trader, personal trading coach, and industry consultant since 1982, sends the message that "thinking strategy" will profoundly influence a trader’s success rate.Douglas addresses five very specific issues to give traders the insight and understanding about themselves that will make them consistent winners in the market.

Trading In The Zone offers specific solutions to the “people factor” of commodity price movement.It uncovers the true culprit for lack of consistency when it comes to stock picking: lack of focus and self-confidence.Through simple exercises, traders will learn how to think in terms of probabilities, and adopt the specific beliefs necessary to developing a winner’s mindset.Along the way, they’ll gain valuable insights into their own entrenched misconceptions about the market.

Backed by compelling examples, Trading In The Zone adds a new dimension to getting an edge on the market.Through a better understanding of themselves, as well as of Wall Street’s realities, traders will come to leverage the power of their psyche for unprecedented profitability. ... Read more

Reviews (59)

Shows traders how to make their emotions work for them.
Every trader knows that mastering your emotions is key to success in the market, and every would be trader has heard or read this. "Trading in the Zone" is sort of an "inner game" book for trading stocks and commodities, but far superior to other such books that I've seen. Mark Douglas gets into detail about how our beliefs, attitudes, etc, originate from our experiences, control our perceptions of the world and shape our actions in ways that may be contrary to our best interests, and then tells how to overcome these negative influences to produce positive results in the market. But, unlike most books of this sort, it isn't just "tell yourself that you're good". He lays out a specific plan for developing your "game" of trading, so that you learn how to develop a proper emotional state along with your technique. He stresses low risk trades, so that you have time to learn without being wiped out in the process. And he stresses paying yourself as the market makes profits available, so that you can enjoy positive results and their psychological benefit even if the overall trade result is negative. I think this book is also useful for life in general. I gave the book 4 stars instead of 5 because I felt that he used too much repetition, no doubt in an effort to drive home his point.

Picks up where every other book leaves off
     If you are like most people, after your first few losing trades you set about to learn better market analysis. After your next string of losers you learned about risk management. But there's still one more challenge to conquer; yourself.
     That is the major premise of this book. If it sounds like wishy-washy psycho-babble to you, I'll only say that I would have agreed -- four months ago, before I quit my 20-year technology career, obtained a Series/7 license and joined a professional day-trading firm. I now believe most people would lose money if you gave them 50/50 odds on whether or not it was going to rain tomorrow.
     In other words, successfully forecasting the market is not enough. Why not? Well, this book explains why not. It has to do with one's sense of self-worth, one's moral judgment of money, one's work-ethic, one's tendency to focus on good news while ignoring bad, and other things.
     "Zone" was recommended to a friend of mine by a professional floor trader who told him, "I wish I had read it before starting two years ago. Don't place another trade until you do." Well said. Does this apply to investors as well as traders? Oh, absolutely! If you have ever said to yourself, "I'm not selling that stock while it's down, I'll wait until I have a profit in it," then for the love of money, read this book.
     Finally, read "Zone" before Douglas' earlier work. If you still want more then read "Disciplined Trader" for a general review plus a deeper exploration into the author's philosophical and meta-physical theories.

Emotions Kill In Trading
I thought this was a well written book by Douglas. He constantly hammers the point of getting your emotions in check before trading. He says this in every single chapter in one form or another. Learn through repetition.

Wished I had read this book first many, many years ago before I lost bucoo $$$$, but now I've learned the hard way. The book is also easy to read and hits home on many things regarding one's emotions. They do NOT belong in trading (unless you want to lose money).

Found that greed and fear were my 2 biggest enemies. I don't have specific examples to give you of what he talks about since I read the book awhile back, but this book is definitely worth reading again and again, just to remind yourself the market plays no favorites and doesn't care who you are.

Learning to get your emotions under control as a stock trader or investor is of greatest importance, if you want to make money.

Focus on trading in the "Now" moment
Good traders dispassionately address opportunity as it presents itself. How do you arrive at this "destination state"? The author tells us that learning more about the market is a wasted effort if you first do not know about yourself. If you assume that each trade is independent of the other trades you have taken and view them as a probable outcome based on your "edge" then you are miles ahead of other traders.

You will need to find another book to generate trading ideas (your edge). This tome does a great job of discussing the "trading attitude". Douglas uses some odd imagery to describe how dearly a belief is held. He says that it has "energy" and then describes how physics states that energy cannot be destroyed. He lost me on that analogy, but the point he made is that we have unproductive beliefs that have to be neutralized by adopting productive beliefs and emphasizing them over those unproductive beliefs.

There are seven principles of consistency and five fundamental truths in trading presented here that are helpful to any trader review on an ongoing basis. If you are already successful then you may note that you have these beliefs already internalized. If you are new to trading these are invaluable because it can help you avoid the pitfalls that await you.

A must read for any trader - regardless of experience level
An excellent book written by a very experienced trader and author. I still use, regularly, one of his entry/exit strategy's outlined in his book, Trading The Zone.

Also, a very easy and enjoyable read.

Kevin Gillespie ... Read more

Book Description

Blind Faith takes head on the unquestioned financial dogma of modern times: that stocks are the best long-term investment you will ever make. But, as Ed Winslow ably reveals, the way we’ve been counseled to "play the market" amounts to little more than gambling, not investing. The time-honored means for controlling risk: asset allocation, diversification and having a long-term time horizon are inadequate. Blind Faith offers a new and easily understood means of investment risk management that will cause investment professionals to reexamine the underlying assumptions and foundation of Modern Portfolio Theory. ... Read more

Reviews (11)

JP from Oregon
Finally someone willing to write an honest analysis of the self-serving behavior of the financial industry. Anyone invested in the market who reads this book will strongly reexamine their beliefs with regard to investing. Undoubtably many in the financial services industry will hope that this book does not get read. I for one, hope that it becomes a classic.

Finally, some answers!
This book is one of a kind! It is the first book I've read that speaks the truth about the perils of investing in the stock market. The suggestions are clear, sensible and a must for anyone who isn't buying into the old worn out advice that no longer works in todays environment.

There is another way...
Finally, a book that speaks to concerns that I've had about investing since I read my first investment book but that no one seems to talk about.

The author covers topics that are taboo in most investment texts, such as how the investment industry is rigged against the individual investor (corporate structure, taxes, investment banks, government regulation, etc.), and what you can do to protect yourself from market risk. Diversification doesn't help when the whole market collapses after a catastrophic event like 9-11 or in a deep recession.

If you want to take advantage of up markets and hold onto your gains in down markets, then read this book.

A cutting edge, no-holds-barred financial guide
Knowledgeably written by Edward Winslow (the Founder and Manager of First American Financial Cooperative), Blind Faith: Our Misplaced Trust In The Stock Market And Smarter, Safer Ways To Invest denounces "playing the stock market" as being little better than gambling, and presents wiser, safer, more effective means to invest and put money to work. From why ordinary Americans should steer clear of stocks; to intelligent risk management strategies; to protected investments and means geared for retirement, and more, Blind Faith a cutting edge, no-holds-barred financial guide which is especially relevant in light of recent economic pitfalls, Wall Street volatility, and dramatic stock-related corporate scandals.

The Proof is in the Pudding
The proof is in the pudding. How many of us (the small investor) have actually made returns equal to the SP 500 index in up markets, and haven't lost their shirts in the down markets? In this book you'll learn why, and how the financial industry encourages us to be blind sheep. Mr. Winslow explodes the conventional investing dogma and shows us a better way. ... Read more

Book Description

The Five Rules for Successful Stock Investing

"By resisting both the popular tendency to use gimmicks that oversimplify securities analysis and the academic tendency to use jargon that obfuscates common sense, Pat Dorsey has written a substantial and useful book. His methodology is sound, his examples clear and his approach timeless."
–Christopher C. Davis
Portfolio Manager and Chairman
Davis Advisors

OVER the years, people from around the world have turned to Morningstar for strong, independent, and reliable advice. The Five Rules for Successful Stock Investing provides the kind of savvy financial guidance only a company like Morningstar could offer.Based on the philosophy that "investing should be fun, but not a game," this comprehensive guide will put even the most cautious investors back on the right track by helping them pick the right stocks, find great companies, and understand the driving forces behind different industries–without paying too much for their investments.

Written by Morningstar’s Director of Stock Analysis, Pat Dorsey, The Five Rules for Successful Stock Investing includes unparalleled stock research and investment strategies covering a wide range of stock-related topics.Investors will profit from such tips as:

• How to dig into a financial statement and find hidden gold . . . and deception
• How to find great companies that will create shareholder wealth
• How to analyze every corner of the market, from banks to health care

Informative and highly accessible, The Five Rules for Successful Stock Investing should be required reading for anyone looking for the right investment opportunities in today’s ever-changing market. ... Read more

Reviews (7)

Watch out for mathematical errors
Great book on investing. The book covers information you would normally have to search in many places for.
There are errors in the perpetuity formula on page 150 and the multiple used for discounting on page 144 should be 1.1449 no 1.449.

Insightful!
The best investing principles, as clearly reiterated here, are stable and evergreen. As an investor, you'll welcome author Pat Dorsey's unambiguous, straightforward presentation of the always valid wisdom of the markets. This conveniently organized book offers several chapters of general relevance to investors in all markets and industries, including an industry-by-industry examination of the determinants of value. The title is cute, but the content isn't about the title's rules - it is about learning and obeying the basics of stock investing. We recommend the author's long term perspective. Many of the directions he sets for potential investments could still be valid years hence.

Handles an intimidating subject artfully
There are many books on financial statement analysis, and I've bought most of them...being a liberal arts major who is working toward an MBA in Finance, I've found mastering ratios and concepts related to reading company annual reports frustrating and challeging: my brain seemed not to be wired to be competent in this subject matter. However, I find Pat Dorsey's treatment effective in that he uses the concepts in a less intimidating context than other books might, without watering down the content. Can someone read this book and decipher GE's annual statement to the last footnote? Not hardly. It is often said that it's knowing the essential 20% of a subject that is responsible for 80% of one's success, and this book fills this role in understanding that 20%. Further, the chapters breaking out how to modify analyis of different sectors and industries in the market is also helpful to avoid comparing apples to oranges when evaluating stocks and companies. Beyond this book, the next step up from this would be "Analysis for Financial Management" by Higgins.

WHY allow book reviews by those who don't read the book?!
I was utterly appalled by the sheer stupidity of the book review submitted by 'amodeus1791 from New York City'(28Jan04) - who claims he never read the book, but then he submits a self-admitted ignorant review of this book. I was even more appalled that Amazon allows "non-review" book reviews to be submitted!! Evidently, 'amodeus1791 from New York City' is a terribly un-read, unsophiticated, myopic, arrogant person who is abundantly ignorant of history also. Clearly, 'amodeus1791 from New York City' is the epitome of an example for that insightful maxim "Living is easy with eyes closed - it's understanding all you see."

So-called amateurs have made incredible contributions to knowledge in a variety of technologies and sciences in the ecourse of human history. And so-called amateurs have also made incredible millions in the stock market too. It is precisely the discerning amateur eye that has broken ill-fated innummerable mindsets throughout history time and time again. Why? Simply because so-called 'amateurs' aren't afflicted with myopic blinders - or blindfolds as in the case of 'amodeus1791 from New York City'. (You also have to question whether or not a respected research company such as Morningstar would really publish a true & pure 'amateur' on such a subject?)

My first recommendation is that all Amazon readers trash ignorant garbage that is spewed off so indiscriminately like that from 'amodeus1791 from New York City'. I also recommend that Amazon refuse to allow "non-review" book reviews to be published on Amazon!!

Actually, if you are looking for a variety of perspectives on a very complicated subject that is part science, part gambling, part intuition, and part art - then this book is as good as any other "random walk" before graduating on to the Benjamin Grahams and John Murphys of the world. It is well written, well researched, well organized, and well thought out -- unlike 'amodeus1791 from New York City'.

And for that matter - don't place any faith in my review either -just read the book if you are a semi-serious student of the subject. Because if you are a semi-serious student of the subject you'll want a variety of input - and you'll know how to make up your own mind as to what market perspectives suit your style of investing.

And by reading the book - you'll know infinitely more about it than 'amodeus1791 from New York City' does!

Good Source of Sector Accounting
This book does two things well. First, Mr. Dorsey spends time to walk the reader though the "firm value concept" of intrinsic valuation methodolgy. What is important is his summation points that there is no such thing as an exactly correct discounting rate. So, based on that comment, you should begin to question the whole process. I have wrestled with this question for decades and I can attest that just because "I" think the equity is worth x$ there is no way that the market has to agree with me, or Mr. Dorsey. The math exercise is good to learn and understand but it is not a guaranteed way to stock market riches. A point of contention, Mr. Dorsey's methodology elects not to reduce his equity valuation by the amount of long-term debt per share. Many others do, so, leave yourself a big margin of safety.

The other value of this book is its second half which is devoted to better understanding the various accounting differences among industry sectors. I welcomed the discussion on operating lease commitments as an off-balance sheet debt obligation. I think what you will find when you crunch the numbers is, most companies are very indebted. The concept of "Enterprise Value" and "Cash Return" is also useful but, it also won't make the market move your way.

In summary, a good read with something to teach but certainly it does not make this market speculation look like "investment". ... Read more

Book Description

An all-in-one product that provides preparation information for the two tests necessary to sell stocks

Passing the Series 7 and Series 63 exams are necessary for anyone who wants to sell stocks. The Boston Institute of Finance Stockbroker Course combines the industrys premier print study guide with access to the industrys premier online test-prep materials. This unique course has refined and improved the study materials for these exams to the point where it has become one of the best products available for preparing for these exams. The study guide chapters are designed to parallel the content of the exams. Each chapter includes review questions and provides the core knowledge necessary to pass the exams. For those looking to pass both the Series 7 and Series 63 exams, The Boston Institute of Finance Stockbroker Course is the only guide they will need. ... Read more

Book Description

Today's most all-inclusive reference of technical indicators­­--what they are and how to use them to add value to any trading program

Technical analysis has become an incredibly popular investors' tool for gauging market strength and forecasting short-term direction for both markets and individual stocks. But as markets have changed dramatically, so too have technical indicators and elements. The Encyclopedia of Technical Market Indicators provides an alphabetical and up-to-date listing of hundreds of today's most important indicators. It defines what each indicator is, explains the philosophy behind the indicator, and­­ of the greatest importance­­ provides easy-to-understand guidelines for using it in day-to-day trading.

Broad in both scope and appeal, this one-of-a-kind reference painstakingly updates information from the previous edition plus defines and discusses nearly 100 new indicators.

Reviews (12)

Top Notch!
If you are serious about technical analysis and would like to be able to understand the underlying logic, formula, success rate, and limitations of market osicllators and indicators, then this book is for you.

The Encyclopedia of Technical Market Indicators
The best technical analysis and indicator encyclopedia. Comprehensive, best refernce.The only book yoy will ever need. Not a dictionary of indicator, complete analysis and trading models explained.

The Encyclopedia of Technical Market Indicators, Second Edit
A must for the serious investor. A concise and easy to understand examination of technical market indicators. Mr. Colby's book is invaluable when determining the usefulness of indicators. This book is about as close as you can get to a "one stop shop" for technical research.

Formulas are in Metastock
Add 2 stars if you don't care that the formulas are in Metastock shorthand, NOT in straightforward mathematical terms. I'm a programmer, looking for a book with the straight formulas for technical indicators. Here's what it says on the book, as quoted by amazon: "Simple, intuitive, easy-to-understand, and precisely defined formulas". Sounds great, so I buy it. NOWHERE does it mention that these formulas are in Metastock shorthand, which is NOT decipherable without Metastock, so I returned it. The book is very good at explaining the use of these indicators, but I'm very disappointed in the misleading marketing of the publishers and amazon.

A Valuable Resource
Robert Colby's book is a valuable resource for any practitioner of technical analysis, or consumer of technical analysis reports. Every TA method one is likely to encounter is explained clearly, and in detail.

Colby's bent is toward the science of TA, which is both a strength and a weakness here. His book places considerable emphasis on the backtesting he has done on the TA methods presented. The results are interesting, but would have served better as material for an appendix. ... Read more

Book Description

Praise for The Vital Few VS. the Trivial Many

"George Muzea's unique approach and market savvy make this a must-read for any investor who is serious about trying to understand what is really going on inside companies. He is hands-down the best analyst of insider activity in the business."
—Jon Jacobson
Managing Director, Highfields Capital

"George Muzea is an insider trading whiz.George sells his research to the cr¿me de la cr¿me of institutional investors. His market calls have been uncanny.Knowing men like George is one of the perks of my job."
—Herb Greenberg
CBS MarketWatch and Editor of Herb Greenberg's RealityCheck

"Most investors lose money in the stock market because of a lack of discipline. George Muzea provides a distinct course of action for those who want to win instead of lose.Having followed the market and Mr. Muzea for a number of years, I have no doubt that those who read this book would become better investors."
—Stanley Druckenmiller
General Partner of Duquesne Capital

Filled with in-depth insight and expert advice, The Vital Few vs. The Trivial Many will open your eyes to a new way of looking at the investment world, especially the stock market. You'll discover how to look past media hype to discern what the Vital Few or corporate insiders—those who know their companies best—are doing. By explaining which information is accurate and valuable, as opposed to that which is misleading and financially hazardous, investment professional George Muzea will show you how to successfully and intelligently evaluate the stock market and find valuable gems that have yet to be discovered by the masses. ... Read more

Book Description

For over half a century, financial experts have regarded the movements of markets as a random walk--unpredictable meanderings akin to a drunkard's unsteady gait--and this hypothesis has become a cornerstone of modern financial economics and many investment strategies. Here Andrew W. Lo and A. Craig MacKinlay put the Random Walk Hypothesis to the test. In this volume, which elegantly integrates their most important articles, Lo and MacKinlay find that markets are not completely random after all, and that predictable components do exist in recent stock and bond returns. Their book provides a state-of-the-art account of the techniques for detecting predictabilities and evaluating their statistical and economic significance, and offers a tantalizing glimpse into the financial technologies of the future.

The articles track the exciting course of Lo and MacKinlay's research on the predictability of stock prices from their early work on rejecting random walks in short-horizon returns to their analysis of long-term memory in stock market prices. A particular highlight is their now-famous inquiry into the pitfalls of "data-snooping biases" that have arisen from the widespread use of the same historical databases for discovering anomalies and developing seemingly profitable investment strategies. This book invites scholars to reconsider the Random Walk Hypothesis, and, by carefully documenting the presence of predictable components in the stock market, also directs investment professionals toward superior long-term investment returns through disciplined active investment management. ... Read more

Reviews (13)

not for those of limited intellect
There is no indication anywhere that this book was intended
either as a follow on to Burton Malkiel's A Random Walk Down
Wall Street or as a primer for day traders. Hence it is
rather disappointing to read the reviews of those who
somehow managed to reach one of the preceding conclusions.

Several statistical studies have made it clear that the
markets are not completely random as asserted by much of the
academic economics community. It is impossible to prove or
refute the Efficient Markets Hypothesis, because, as Farmer
puts it, the EMH, by itself, is not a well-posed and
empirically refutable hypothesis. This book tries to
rigorously analyze the markets as they are.

The average investor could easily reach the same conclusions
as Burton Malkiel strives for, namely that he is best off
investing in an index fund. However, they do it in a more
interesting fashion than simply asserting that, on average,
one cannot beat the average.

not a primer for day traders
The other reviews are right...this book is definitely not a how-to guide for personal investors looking to "beat the market." It's essentially an academic tome, so its theme is tightly circumscribed (so they do not and should ask about all asset markets that might possibly be relevant to investors -- only the stock market over certain periods). The exposition is extremely sophisticated and makes use of cutting edge mathematical and especially statistical modeling to make the case.

The punch line has two important parts: (i) the "random walk" hypothesis is false -- day to day movements in stock prices are not random bouncing that many extant models claim they should be; and (ii) most of us will never have the capabilities to employ these modeling techniques to put the rubber to the road and find out WHICH way stock X is going on December 13.

So it's fascinating in regard to the mechanics of asset pricing, but totally useless as a practical investment guide. But that doesn't mean it's a *bad* book or that it warrants a 3-star rating (the average at the time of this review). Blame _Business Week_ if you expected something else. The book is exceptional and does no more and no less than what it claims to do.

A bit technical
After reading A Random Walk, I was expecting another easy, entertaining read. This turned out to be much more technical. Even with a fairly strong statistics background, I still got lost. The style is much more dry. It's not written for the general public like A Random Walk is.

Excellent Econometric Analysis for the Right Audience
This is a book about financial economics, not day-trading. The techniques used is advanced econometric analysis, not technical charting. The purpose is to clarify some common myth about efficient market theory and the random walk hypothesis, not to show one how to pick stocks. Just like the authors' other book ("Econometrics of Financial Markets"), this one is of the highest high quality, and does a superb job on what it set out to be.

Some readers seem to be disappointed at this book by naively assuming what the title implies, as shown by some of the reviews here. They really can't blame anyone but themselves. Just because Burton Malkiel's classic didn't show us how to day trade doesn't mean a book with the opposite title will do so, nor did the authors ever claim that, either.

A non-random challenge to the random walk hypothesis
The random walk hypothesis, considered the bedrock of financial theory and modeling, is challenged in this collection of eleven papers by the authors. They attempt in these papers to show that the financial markets do contain a certain degree of predictability, and they illustrate this by both analyzing empirical data and with the development of various mathematical formalisms. It is always interesting when a given paradigm which is entrenched in the minds of a field's practicioners, is challenged and shown to be either inconsistent or not supporting the real facts. The authors make a strong case in this book against the inherent randomness of the financial markets, and they do so in a way that is very understandable. Also, after a consideration of their results, one can construct practical trading software packages that are based on financial models not using the random walk hypothesis. Thus their study is very useful from a practical, everyday trading point of view.

After a brief overview of the efficient markets hypothesis, in the next chapter the authors go right into the analysis of the efficient markets hypothesis by using a specification test based on variance estimators. They conclude from their results that the random walk model is not consistent with the behavior of weekly returns. Interestingly, they find large (negative) autocorrelations in security prices. They do not conclude though that all financial models based on the random walk hypothesis are invalid, but rather they use the specification test to study various stochastic price processes. Since volatilities do change over time, the authors are careful not to reject the random walk hypothesis because of heteroskedasticity; the test they do employ takes into account changing variances. They also discuss the possible role that non-trading practices may have on their conclusions. For the purely mathematical reader, they include in an Appendix to the chapter proofs of the theorems they used in the chapter.

In Chapter 3, the authors employ Monte Carlo simulations to study the variance ratio, Dickey-Fuller, and Box-Pierce tests under Gaussian null and heteroskedastic null hypotheses. They also consider the power of the variance ratio test against an AR(1) process, AR(1) + random walk, and an integrated AR(1) process models of asset price behavior. The discussion is very thorough, and they conclude that the variance ratio test is a viable tool to use for inference in financial modeling. Since they do inform the reader the particular packages they use to perform the Monte Carlo simulations, their results, which they report in tables in the chapter, can be straightforwardly checked.

A somewhat esoteric but very readable account of what has been called nonsynchronous trading is given in the next chapter. They begin the discussion by employing an interesting and elementary argument that explains very well the consequences of ignoring nonsynchronicity in the sampling of multiple time series. The authors list ten consequences of the presence of nonsynchronous trading and then study the empirical evidence for nontrading effects. Also, they give a brief summary of the implications of employing Markov chains to build dependence into the nontrading process, motivating readers to perform the necessary calculations on their own.

The next chapter focuses on contrarian investment strategies; namely one that takes advantage of negative serial dependence in asset returns. The authors summarize the data on autocorrelation properties and also present a formal model of a particular contrarian strategy. They conclude, interestingly, that a large portion of contrarian profits cannot be attributed to overreaction.

The most interesting chapter in the book is the next one on long-range dependence in stock market prices, for it is here that many alternative statistical techniques have been devised to study this dependence. The R/S statistic is modified and then used by the authors to test for long-range dependence in daily and monthly stock return indices. Surprisingly, they find that after correcting for short-range dependencies, there is no evidence of long-range dependence in this data.

The authors switch gears somewhat in Chapter 7, where they discuss deviations from the capital asset pricing model. They discuss effectively the two models which attempt to explain these differences, based on risk-based and nonrisk-based alternatives. These two models are proposed as alternatives to the multifactor asset pricing models that have been employed to explain deviations from CAPM.

In chapter 8, data-snooping biases are investigated using the theory of induced order statistics and tested with Monte Carlo simulations. The authors effectively convince the reader of the impact of data-snooping biases in asset pricing models, and how these biases arise from tendencies to focus on anomalous data.

Even more practical considerations are considered in Chapter 9, where the authors show how to maximize predictability in asset returns. They use a model of time-varying premiums to estimate what they call the maximally predictable portfolio, with this model using an out-of-sample rolling estimation technique to avoid data snooping problems. Monte Carlo simulations are again used to validate the results of the models. They emphasize in their conclusions that predictability does not imply market inefficiency.

Emphasizing the discreteness of real price data, the irregular timing of transaction prices, and the conditional nature of price changes, the authors develop in Chapter 10 a model that addresses these issues using what they call an ordered probit model. They conclude, using some interesting technical analysis with their model and its comparison with empirical data, that discreteness is important in financial modeling.

Chapter 11 is very empirical, wherein the authors study transaction data on the S&P 500 futures contracts with the goal of studying price behavior in relation to arbitrageur strategies. They conclude that on the average, mispricing increases with time to maturity and is path-dependent.

The last chapter of the book discusses the October 1987 stock market crash, with the goal of analyzing order imbalances and stock returns. They conclude that there are notable differences in the returns realized by stocks in the S&P index and those that are not, interestingly. ... Read more

Book Description

FREE! The word and concept have been the advertising foundation for billion dollar corporations, the heartbeat of huge marketing campaigns, and the nexus between companies and customers for eons. Now, New York Times best-selling author Wade Cook introduces the LOCC(tm) (Large Option Covered Calls) system -- a system that can generate 80% to 100% returns for traders who master it.

"...you read the title to this book: Free Stocks: How To Get The Market To Pay For Your Stocks--FREE!, and what do you think? Is there a catch? I'll be right up front and say there is, but it's not what you think. ... There is a way to get FREE STOCKS, which if you get to the bottom line meaning of FREE, is simply that you do not pay for your stocks yourself. I'm talking about quality stocks...you get to choose! You can be as diversified as you want. ... you can pretty much start with any amount of money....

"...this is not a get-rich quick-plan. This is also not some ambiguous, nebulous method that only a few people can master and use. It is also not a theory. It is an in-the-trenches, workable, cash flow stock market money machine. This plan takes a simple yet overlooked aspect of the stocks and options markets and puts it to full use. The results are dynamic and far-reaching." (Excerpt from the book.)

If you like the buy-and-hold strategy of investing, how do you get the money to pay for your stock? Wade Cook demonstrates how to get the market to pay for your stock with five to seven months using his NEW LOCC(tm) system.

In Free Stocks, you will find out about:
* Option Cycles And Market Makers
* How Implied Volatility Affects Option Pricing
* Buybacks And Rollouts
* Stock Repair Kit
* How To Put Volatility On Your Side -- Be A Seller, Not A Buyer
* When You Get Your Money
* Exploration Of Ways To Increase Gains And Reduce Taxes
* What To Do If The Stock Dips -- Make More Money!

And you simply must see Chapter 2 where the Stock Market Institute of Learning, Inc.(tm) will award $10,000 to the charity of your choice if you find one person who has attended our Wall Street Workshop(tm), used our strategies exactly as they are taught, and then lost money.

Purchase Wall Street Money Machine, Volume 5: Free Stocks: How to Get the Market to Pay for Your Stocks--FREE today! Learn how to start building the portfolio of your dreams -- for FREE! Each book includes the Audio CD 'Completely Retire in 10 to 12 Months' and two complimentary tickets to a three-hour Financial Clinic. ... Read more

Reviews (40)

Get your stocks for FREE?
In Wall Street Money Machine Vol 5-Free Stocks: How to get the market to pay for your stocks-FREE Wade Cook introduces the LOCC (Large Option Covered Call) system. This system is a machine-a machine for generating consistent cash flow in sufficient quantities to better any lifestyle. A system that literally lets you get your stocks for FREE!

There is a saying that when something sounds too good to be true it usually is right? What's the catch you may be asking yourself. Is there a catch? To be brutually honest, yes there is, but it's not what you may think it is.

There is a way to get your stocks for free, which, if you get to the bottom-line root meaning of FREE, is simply that you do not pay for your stocks yourself. We're talking about quality stocks that you get to choose! You can be as diversifiedas you want. And get this-you can pretty much start with any amount of money you have.

This is not a get rich quick plan. Nor is this some ambiguous, nebulous method that only a few people can master and use. It is also not a theory, but an in-the-trenches, workable, cash flow stock market machine. This plan takes a simple yet overlooked aspect of the stock and options markets and puts it to full use. The results are dynamic and far-reaching.

LOCC has a beginning, middle and an end. It puts the emphasis where it should be; on generating income so you can retire. Yes, huge assets are nice, but let's go for simple ways to build steady monthly income so we can do more of the simple yet wonderful things that life has to offer.

If you like the buy and hold strategy of investing, in FREE STOCKS, you will learn how to get the market to pay for your stocks in 5 to 7 months with the LOCC system.

In FREE STOCKS, you will learn:

- Option cycles and market makers
- How implied volatility affects option pricing
- Buybacks and Rolloouts
- Stock Repair Kit
- How to put volatility on your side
- Be a seller, not a buyer
- When to get your money
- Exploration of ways to increase gains and reduce taxes
- What to do if the stock dips-Make more money!

Finally, if you followed more traditional forms of investing and lost a ton of money in the stock market over the last three years, FREE STOCKS may be just what the doctor ordered to get back on track and make that money back.

During the Bear Market of the last three years, I and others used the strategies in FREE STOCKS to recover losses on deep dips. Question: How much money did you lose by not knowing these strategies? And how much money will you lose by not applying these strategies going forward?

Get the book. It's a must read!

Options? Terrific! Wade Cook? Fantastic!
I completely disgree with the reader from Austin regarding his comments on Wade Cook and his latest book: FREE STOCKS.The examples Wade uses in his book are dated back to 2000. Stocks have dropped and option prices have changed. Margin is not a bad word---it's a form of leverage that creates wealth. Since the reader is familiar with Robert G. Allen, he should be aware that Mr. Allen also recommends leverage. So does Donald Trump. So do all successful investors.Returns are not unrealistic. This reader from Austin needs to go to the cboe and check option prices. The genius of Mr. Cook is that he uses real estate type techniques in the stock market; options, margin and covered calls. Throught out this and other books by Mr. Cook, he constantly suggests caution.I made 50% on a stock split play earlier this week and am now using the LOCC FREE STOCKS technique and have the stock market pay for my stocks. Again this is straight out of real estate, buy a piece of propery and have it pay for itself by lease options or rentals.Reader from Austin is obviously very inexperienced in the markets and didn't take the time to read the whole book. Too bad for him.

More creative advice by Mr. Cook
Although the techniques in this, the fifth installment of the WALL STREET MONEY MACHINE series were and are practiced by savvy wall streeters, how many were sharing these ideas with the rest of us? Answer? Only one--WADE COOK!

And that is the only thing that I will agree with regarding that Wade Cook basher (yeah, it really is only one guy), that is, what Wade teaches is not necessarily new, savvy experienced investors knew about them and unforunately, they want to keep it that way---to themselves.

Thanks WADE for sharing.

When they say it's too good to be true..........
It usually is, except with Wade's book FREE STOCKS. It really works! How do I know? I've done it! Great stuff. Thanks Wade!

More powerful advice from Wade
I love the word FREE. Something special about that word FREE. In Free Stocks, Wade Cook uncovers even more insider secrets on how to turbo charge your stocks. Funny, I was talking to a seasoned 25 year stock market veteran and he says he has been doing this for years and was a little taken back that WADE COOK so the masses could learn and benefit from this.

We should all be grateful that a guy like Wade Cook is around who shares this wisdom.

FREE STOCKS is a powerful book that can turbo charge your investments and give you POWERFUL RETURNS.

Great book. Highly recommended. ... Read more

Reviews (11)

A Better Way to Invest and Trade In Volatile Markets
After reading my fair share of investment and trading books, I have to say that this one stands out - Headley offers a lot of practical, detailed ways to trade successfully in various market environments. I'm not the only one who learned since 1999 that simply buying and holding stocks can actually be quite risky - the point of the book is to show the way that bullish and bearish market and sector cycles have accelerated tremendously. As a result, you can either get punished during the rough stretches or take some steps to take advantage of the market's directional moves along the way. Best of all, the book takes some traditional ways of spotting big trends in stocks and updates them with new methods I've never seen before.

A couple of areas really stand out: The well-researched explanation of conventional technical and relative strength indicators used by William O'Neil, John Murphy et al. with new tools like Headley's Acceleration Bands and Momentum Divergence signals. These are things I was able to use immediately, thanks to the indicator formulas he provides. I've been able to enter and exit positions profitably overall without being badly affected by big market swings. I think that's the big difference here. Too many other investing guides simply rehash existing knowledge (or advertise someone's service) without helping you be a smarter investor. The book also opened my eyes to several key option strategies to help generate income or protect profits in difficult markets. I recommend this book to anyone who wants to expand their trading knowledge and apply the concepts to real-world trading.

No Rehashes...Ideas Traders Can Use Immediatly
For everyone who reads this highly original book, there will probabably be a chapter or two that will be most significant that can add to ones bottom line. For me, it was the discussion of managing a straight put or call position once entered and how to exit that position. Exiting markets is critical to success...as those who have suffered through the 1999-2002 meltdown in the stock market now know. Hadley's ideas on trade management and exiting strategies have already made me money and helped solidify my approach to this important aspect of the market. I have had excellent entry point strategies, but just was really struggling with how to exit in a way that made sense to me. Hadley provided the missing piece.

Of course as already noted, there is some very highly original research on using VIX, put/call ratios, etc. to help time the stock market.

In short, this book is packed with outstanding information that will help any stock market trader turbocharge his/her trading results.

For those who had read over four trading books
As a trader who had read tens of trading books, I still found this one interesting and helpful. I like its variety of content (that the author introduced a lot sentiment indicators like CBOE Put/Call Parity + Volatility Index, RYDEX Mutual Fund Flows, Volume indicators for QQQ and S&P 500 Depository Receipts), plus the author's writing style and integrity (the author did quoted frequently from other writers). Some technical tools like MACD, ADX were discussed, but only briefly. In fact, I like Chapter 12 about trading psychology and money management, Appendix D favorite quotes the most.

To conclude, if you want to read an intermediate to advanced level trading book, and that you are appreciative of logical and contrarian trading, this one is for you.

p.s. I like Mark Douglas, Bernard Baruch and Jesse Livermore very much. As the author does appreciate these "gurus", I admit that my positive comment may be a little bit biased.

A True Contrarian
A common theme among all the fundamental and technical analyst books is that you need to become a Contrarian investor in order to consisitently make money trading stocks. This book provides a true blueprint for accomplishing that goal.

Finally someone else who says day trading doesn't work
The average investor is not made to be a daytrader. There money is not large enough to succeed, and when they use leverage to compensate they compound their problem by overleveraging. Mr. Headley points out all of these issues in his book. This book ... paves the way for a new generation of futures traders and stock traders.

The only drawback is this book doesn't discuss the new security futures. Other than that it is a fine primer and reference book for years to come. ... Read more

Book Description

A handy reference to the top 500 stocks in the market

Morningstar Stocks 500 provides readers with comprehensive one-page reports that contain the essential information investors need to understand a company and its stock. Each page summarizes what the company does, how its past growth stacks up to its industry peers, how high its profitability has been, and how strong its finances are. Morningstar Stocks 500 also includes exclusive Morningstar tools–such as star ratings for stocks and stock grades. ... Read more

Book Description

Japanese Candlestick Charting Techniques, 2nd Edition, provides an in-depth explanation of candlestick plotting and analysis, conveying to the reader, in easy-to-understand language, the author’s years of practical experience in this increasingly popular and dynamic approach to market analysis.It includes hundreds of examples that span the equity, futures, fixed-income, and foreign exchange markets and shows how candlestick charting techniques can be used in almost any market. It has been thoroughly updated to include:

* New techniques and strategies
* The author’s concept of the Convergence (when a series of signals converge at one zone, thus increasing the chances for a market turn from that area)

This new edition broadens the book’s focus and all new updated charts, and information on several new areas such as day trading and how candlestick charting can be used to improve returns and help decrease market risk.

It includes everything from the basics, such as constructing the candlesticks and learning the patterns, to advanced topics, such as the rules of multiple technical techniques.

Whether you are new to candlestick charts or a seasoned pro-the reward will be immediate and long lasting. ... Read more

Reviews (53)

Sometimes a book's price is its value indicator...
...and this book is well worth every penny. It's not simply a candlestick charts book, but also a very good TA work. It helps a lot in spotting continuation patterns or reversing trends, although I have to say that I'd have prefered that mr Nison provided us with some more candlestick combinations with other TA tools. Trading using candlestick alone can be dangerous.

There's no way a barchart, a HLC, OHLC or any other kind of chart can tell you as much as candlesticks can do. While you can't tell which of the bars were up or down closes by looking at a barchart, a simple glance at the candlesticks could provide you much more information about accurate trade signals. One of the things that struck me the most is the fact that mr Nison explains the psychological and emotional aspects that go with almost every pattern. That's what the chart reading is supposed to be.

Shorting a stock has almost been a taboo for me for a long time, but since I learned to spot "the dark cloud" on strong volume and some other things, I became much more confident with the short side of the market.

This book is for everyone: for the novices, the intermediate, the advanced and professional traders too. This, I think, is a very rare thing to find in a trading book nowadays. Get it, no matter how versed of a trader you are!

The best for Candlesticks - the BEST and I know
I have a few books on candlesticks. I bought others which were cheaper, even though many reviews pointed towards Nisons' work. Note that in Australia, we are talking about $35 (other books) compared to $150 (Nison's book) ... so anyway, after buying many others, and looking all over the 'net for info. on Candlesticks, I ran into Nisons' book in a shop, looked through it and had to have it.

It has a LOT LOT LOT more depth than the others. There is more to candlesticks (or any price movement analysis) than just a bunch of patterns, names, formations ... the other books are far far too brief. I cannot emphasise this enough.

Look at all the other reviews for this book, many many good words said.

It is very readable, very clear, the examples are excellent, but most valuable are the insights for all the patterns ... that other books simply do not have.

Sure, it costs a bit more than the other candlestick books, but hey, how much money are you trading? Does an extra 30 or 50 bucks make that much difference for the extra insight you will gain?

This is not just the best ~Candlestick~ book, but it is a very very good TA book as well. Candlesticks are, after all, just a way of plotting price movements.

Note that, in searching the web for info. on TA and investing, this book came up time and time again as ~highly~ recommended. Now I pass that recommendation on.

Note also Nison has another book, "Beyond Candlesticks", and while I think that this is also a good book, get this one first and learn it all, the second book concentrates more on a few "Advanced" techniques, I don't know if they are so much advanced as they are just a few more techniques + brushing over what is in the first book. Get this first book, because it has more depth on the essentials that you need to know. Get the other book later, don't try and save money by jumping to the second one in the hope it will make the first obsolete, don't try and save money by getting a cheaper candlestick book, don't brush this stuff off thinking you've learnt all the candlestick stuff just by seeing a couple of patterns and names.

I also highly recommend Technical Analysis of the Financial Markets, this is recently updated and so incredibly good.

Beginner trader: will help you a lot, a very good investment, but also look to the book recommended above.

Intermediate: what are you doing? making a profit? get the book. Not making a profit? get the book, or get out of trading.

Advanced: why don't you have it? it should be on everyone's bookshelf, have you no pride? can't you afford it?

This is one of those trading books you cannot afford not to have. I don't give that rating to many other trading books.

Good luck!

Oh, and it is enjoyable to read.

good depth
This book has more depth than the other similiar books. There is more to candlesticks (or any price movement analysis) than just a bunch of patterns, names, formations ... the other books are far too brief. I cannot emphasize this enough.

It is very readable and clear, the examples are excellent, but most valuable are the DETAILED insights behind all the patterns.

This is also a good TA book that explains how to combine candlesticks with western indicators like RSI, STOC.,MACD and others. A valuable extra tool for active traders to use in addition to traditional western indicators. This is one book besides elder`s Trading for a living that i keep close by and refer to again and again.

Good for active traders
If you must learn about candlesticks this is the book to read. Very comprehensive with many illustrations and detailed explainations of the various meaning of the patterns. Good for day and short-term traders when combined with western indicators. Its a bit pricey but its a book well worth having if your an active trader.

True Principles
I've bought many books on investing and day trading, and this book are by far on top of the list.

Nison presents the key strategies to day trade, nothing fancy, just tried and true principles.

There are no wasted words. ... Read more

Book Description

Praise for Yes, You Can Time the Market!

"‘Buy and hold’ makes sense for the average investor in stocks. Even better, say Stein and DeMuth, is to buy only when prices are low and hold when prices are high, keeping accumulating savings in Treasuries while waiting for ‘low’ prices. They define ‘low’ and ‘high’ prices by historical experience. An interesting and thoughtful analysis."
–Professor Milton Friedman
University of Chicago, Hoover Center
Nobel Prize Winner in Economics, 1976

"Wall Street, prepare yourself. Ben and Phil hit the nail on the head with their insightful guide to investing. No gimmicks, no games, just tapping the true power of economics to make sensible investment decisions. Add to that the authors’ dry wit, and this handbook is a must-read for investors small and large."
–Diane C. Swonk
Director of Economics, Chief Economist
Senior Vice President, Bank One Corporation

" The logic and reasoning are persuasive. Stein and DeMuth buttress them with evidence, lots of it. The term ‘valuable’ properly applies to the guidance of the conclusions."
–C. Lowell Harriss
Professor Emeritus of Economics
Columbia University

"How refreshing to read commonsense advice about the stock market! Stein and DeMuth’s findings are both verifiable and free of quantitative trickery. What’s more, their writing is as clear and straightforward as the methods they recommend."
–Martin Fridson
author, It Was a Very Good Year:
Extraordinary Moments in Stock Market History ... Read more

Reviews (27)

Yes, You Can Time the Market!
This exceptional book is a must-own for anyone who is serious about investing. I would still give the book 5 stars if all it did was prove its thesis in a highly readable fashion that, indeed, the market can be timed. Or, if all it did was show you why it's not smart to put your money into index funds or to buy stocks willy-nilly at any time of year. The book does all of that -- i.e., tell you why and how the market can be timed and prove it in succinct clear prose -- but it does more: while Stein and DeMuth guide you effortlessly through the trees, you feel like you're seeing the forest (and you are). You'll come away from this book knowing how and why to invest your money today, while understanding the entire market from the beginning of the 20th Century. I can only think that Ben Stein and Phil DeMuth had a large staff of folks to compile a colossal amount of information -- essential information for any serious investor -- and then the two of them distilled it all down and made it easy to consume. As I said, this information alone would make the book worth 5 stars (and indeed makes it a steal at its current price), but it's worthy of 5 stars "plus" because of the presentation. A few weeks ago, The Wall Street Journal reviewed four new books on investing, this one being one of them. Of the four, the Journal liked this book best. It's really a great piece of work.

What the Street won't tell you
A lot of common sound investing strategy. The authors test various pricing metrics agains 100 years of stock/market pricing data and show you the results over 5, 10, 20 years.

They show you how to use p/e, price to book, price to cash flow, price to moving average, as measures to tell if the S&P 500 is overvalued or undervalued. In years when it's undervalued, buy. When overvalued, keep your cash and wait, but hold long term. (Peter Lynches books tell you the same stuff but with more fluff and junk.) This book is packed with usefull tidbits and historical data that you just can't find easily on it's own.

It's the same stuff that you'd learn in an MBA program, that the street professionals don't want to tell you. They want to sell you stocks today because they need commissions today. They'll use whatever metric says yes or make one up, to justify you buying an over priced stock.

If you read this book, you'll know more than 90% of the slobs packing $$$ every month into their 401Ks without a clue on what they're buying. They're buying on faith only..... People that buy on faith and hope get crushed by the market at some point when things get priced back on fundamentals.

Make no mistake, the finanacial markets are buyer beware. As IPO crazed people, day-traders, and holders of ENRON found out.... Don't be a victim, learn before investing.

Real Investing Advice. No Kidding. Really!
When I saw the cover of this book, with Ben Stein and his co-author lounging by the pool, bags of gold coins and gold ingots at their side, I thought it would be a send-up of investing books. Oops.

In spite of the kicky title and irreverent writing style, this is a genuine attempt to educate investors. It's full of rather conservative, long-term advice. Look for undervalued stocks. Don't jump in and out of the market. Diversify. When Stein and DeMuth talk about Market Timing, it is not a reference to day trading, rather to buying stocks when they are cheap. Buy low, in other words.

Their thinking on dollar cost averaging is refreshingly sensible. Instead of the Bob Brinker style of investing a fixed amount every month (or year or whatever) regardless of cost per unit, you should wait until the stock is cheap, then buy as much as you can. This assumes the investor has a brain, and enough discipline not to mess it up, which seems to be Brinker's fear.

Anyway, there isn't much new here. It's solid investing advice, breezily presented, so if you need a refresher, or are new to investing, this isn't a bad book to start with.

I'm buying it for everyone I know!
Finally, at last, a book about the financial market that combines great advice with true wit and common sense. I've bought it for everyone I know. (Including my three year old son... A must for every Mom who'se thought about entering the market, but has never quite felt able to trust it before. With these chaps you're in safe, informative, entertaining hands. Alison Larkin

A Must- Read for Long-Term Investors
This is not a book for traders, but for long-term investors. With wit and wisdom, Stein and Demuth prove their point: long-term investors must pay attention to market cycles. If you buy when the market is high, you are all but guaranteed to wind up under water. You could be buying the best company in the world--it does not matter. Pay too much, and you'll be burned.
The investors of the 90s forgot about market-timing.Wall Street told them it didn't matter, and they followed that advice-- to their eternal regret. As another reviewer has pointed out, Wall Street's salesmen want to sell stocks now. Caveat emptor if you pay too much.
Maggie Mahar's "Bull! A History of the Boom, 1982-1999: What Drove the Breackneck Market and What Every Investor Needs to Know About Financial Cycles" fleshes out the story and gives investors some sound advice on what to do next. Read both books. ... Read more

Book Description

New edition of the bestseller that started thousands on the road to commission-free investing!

It's been called "The investment guide Wall Street didn't want published," and it ignited the commission-free investment revolution! With Buying Stocks Without a Broker, Second Edition, Charles B. Carlson, CFA, thoroughly updates his unique guide to dividend reinvestment plans. Better known as DRIPs, these investor-friendly programs give you a safe method for buying stocks directly from issuing companies -- often with a discount and always without paying commission fees to brokers. If you want to own stock but resent paying commisions, you'll get the best of both worlds with this edition's...
*Directory of 1000 DRIPs -- with brand-new, enticing DRIP opportunities
*Thumbs-up/thumbs-down at-a-glance ratings of every DRIP on the market
*New corporate profiles and performance ratings
*New model portfolios using DRIPs
*Charles Carlson's favorite DRIP picks ... Read more

Reviews (11)

Excellent reference and guide for the $10.00 investor!
This book explains, in detail, the biggest investment secret on Wall Street- Dividend Reinvestment plans. Imagine- buying stocks without brokerage fees! This book tells you how- exactally how. Buying Stocks Without a Broker is a must for every small investor's library. This book can help you get into the stock market with a MIMIMUM of capital, as it describes companys, like IBM, with investment requirments as small as $10.00 per investment. A warning though; as some company's programs change, information in this book becomes inaccurate. Always first check with the company of interest as phone numbers and contacts are included in the book.

Helpful for the novice investor
This book was written before the likes of Ameritrade and E-Trade came along, and therefore is rather dated. The fees associated with most plans today and their minimum investments make DRIPs less attractive today then they were five years ago. However, for those who want to buy stock in companies and hold for ten or 20 years, they are worthwhile. Carlson writes in easy-to-understand language that a person not well-versed in Wall Street can grasp. Plenty of information on the company's listed along with telephone numbers and websites. Different kinds of portfloios are profiled so the investor can see what they can do with whatever funds they have to invest. The pros and cons of this kind of investing are listed so a person can decide if it is for them. It is a worthwhile read.

Helpful, But in Need of Updating
I first purchased this book years ago, and I have to admit at the time it was a revelation. I was trying to buy stocks and usually failed to do so simply because I did not want to pay broker fees and I was rarely in a position to buy 100 shares at a time (if you bought less, the stock price and the broker fee both usually went up). Back then, the book was a great aid. I still own a stock list in the book that I purchased thanks to this book.

But in many ways, this book has lost a lot of relevance. Now one can go online and purchase stocks in any amount with fees of as little as $3.00. And the fact that the book has not been updated since 1996 weighs heavily against recommending it be purchased by anyone today. Perhaps Carlson has not bothered to further update because of the ease with which stocks may eb purchased on-line.

Still, for someone who is a long term investor, it provides some choices as far as investing without involving a broker. And it is definitely an option if you have no desire to use the internet to make stock purchases. Just be aware that your options are limited; most companies do not offer direct purchase of their stock or Dividend Reinvestment Plans (DRIPs) to the public at large.

Disappointed
I bought the book hoping to learn a few more things about DRIP investing, and did not learn a thing! I am sure that the book was good when it was written (especially the first edition), but there is simply TOO much free information available today.

I gave the book a sympathetic 2 stars because Carlson is (or was) the DRIP guru.

Waste of Money. Out of Dated Investment instrument
I read this book and would say this is a non-sense book. Who would bother the hassle to read this book and buy stcok directly from a compay if an online transcation (e.g, datek, eTrade, etc) only costs you a tiny amount of money? The Price of the book allows you to execute two instant online transactions.

Don't buy it. Please. I have already wasted my money. ... Read more