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INVESTING BOOKS
Posted in Investing (Saturday, October 11, 2008)
Written by Ben Stein and Phil DeMuth. By New Beginnings Press.
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5 comments about Yes, You Can Get A Financial Life!: Your Lifetime Guide to Financial Planning.
- This book lays out a simple approach to starting and keeping up with financial planning for retirement. The best part about this book is that anyone, and I mean anyone can follow these steps easily. The book shows you where you should be, and how to get there for every 5 years of your life, starting at 25. This isn't a make money fast type book, the opposite if anything. There is simple investment advice than anyone can follow, it even lists index mutual funds from Fidelity and Vanguard to help you out. It also shows simple allocations for your retirement for every decade of your life, including post-retirement.
- I think this book should be separated into three books. 20-30 year olds, 40-50 year olds and pre-retirement people.
- Ben Stein & Phil DeMuth's Yes, You Can Get a Financial Life! is a practical, albeit, sarcastic book that is great for everyone from teenage on. While I don't know enough about the ESPlanner software that they recommend (it was reveiwed recently in Money or Kiplingers and didn't get outstanding support), the principles espoused within the first four chapters (see below) are insightful and in-step with the other publications and websites that I've seen for the middle class such as Fidelity's NetBenefits & 401k.com, Hewitt's Resources (Resources.Hewitt.com), Money (Money.CNN.com) and Kiplinger's. I recommend this book especially for those with teens and wish that I'd had the benefit of this insight in my early years.
- This book serves as a good overview of how all individuals should save for the major events of life - having children, buying a home and eventually retirement. The breakdown by decade and the charts indicating how much you should have saved by a particular age to meet your retirement goal make it easy to see if you are on track or not. The authors write in a sort of parental tone, not overly strict parents, but as parents trying to give you advice that will help you the rest of your life.
The authors focus mainly on retirement savings, but there is helpful advice on everything - mothers leaving the workforce to have children, life insurance, not overextending yourself to project a lifestyle you can't afford, and how to pay for your children's college (which they suggest the child do, they are acquiring an asset that will benefit them for the rest of their life and should be willing to pay for it).
I'd certainly recommend this book to anyone who feels they need a little guidance on financial planning.
- The authors might argue that it's never really "too late," but the earlier in life you really comprehend what they are saying in this book, the better off you'll be for the rest of your life.
This book, when properly used, forces you to not only acknowledge but to think about and ponder major expenses throughout your lifetime, and how best to prepare for them. Thinking of getting married and having children without any savings plan and dumping all of your paycheck into the best car/apartment/computer/whatever you can? You should probably think again. And this book will guide your thinking in logical directions.
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Posted in Investing (Saturday, October 11, 2008)
Written by Steven A. Finkler. By CCH, Inc..
The regular list price is $24.00.
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5 comments about Finance & Accounting for Nonfinancial Managers.
- I am the author. I would like to point out that the reviews that appear here, which are dated prior to May 2002, are for the previous edition. In this new Third Edition, I have worked hard to take this top-selling, clearly written book, and add content in many areas to provide more depth to the book. There are six new chapters covering tax concepts, capital structure, business plans, working capital and banking relationshsips, accountability and control, and personal finances. In addition many other chapters have been siginficantly modified and or supplemented with new information. I hope you enjoy my book.
- Though rudimentary, this book filled some gaps for me left by more advanced texts, including some definitions that I was fuzzy on, and enlightened me as to why some things are on financial statements in the form they're in, since I don't have a business education background.
The CD contains the text, which is handy on a laptop, but marred by having the text superimposed on a busy patterned background that has some kind of periodic highlights that are particularly annoying (the current generation of magazine, book and web site designers can't seem to grasp that the point of text is to be read, and that stuff that looks nifty on the computer screen may be darn near impossible to read in print; busy photo backgrounds, light text on dark backgrounds etc. belong ONLY in ads, where no one is expected to read the text anyway.) Also, the spreadsheets would have been more useful if incorporated in groups into workbooks instead of individual ones. You can't readily get numbers from one to another. And the disk titles are of the "sheet23.xls" variety, not helpful for finding the one you want, so you have to either have the book listing handy or access them strictly from the CD PDF file text. Being used to technical book web sites that contain errata, new material, suggestions from users, etc., I was disappointed to find nothing new there. And the list of web links, as usual in this fast-changing world, contains a number of missing links. I would have appreciated a good old fashioned bibliography in addition to the links, because you can usually find out of print books through a library, used dealers on the web, and most really important books and texts have current editions.
- I consistently buy this book to distribute to participants in my company's credit training seminars. I have used the previous edition and this newest edition, both of which are very informative and easy to read. To the author... Great Job!
- Business Basics Bestseller 1: The Easy, Interesting, Open-book Look at the Game of Business Numbers! 2nd Edition
If you never had this finance and accounting (F&A) stuff explained to you before, you will like "Business Basics Bestseller 1" as a basic starting point. This is not a suggestion that you substitute it for this book, just that you check it out as well. The BBB #1 book was written by a guy who is not an accountant -- imagine what that can do for cutting through the jargon accountants love without even knowing it.
BBB #1 will introduce you to the basics of business including the terms behind the numbers and where all the formulas come from before you plow into a true "finance and accounting" text. Search for "Business Basics Bestseller 1" and add it to your consideration. It can be one of your best investments. At less than 150 pages, you can zip through it. This is a beginner's book for those wanting to know such provocative things as "Where do income statements come from?" and "Are balance sheets the dirty laundry of accounting?"
- For a standard paperback trying to cover two subjects that usually take up a few phonebook-sized texts each, this one does a pretty good job. After reading, you should be able to walk away with a decent grasp of the fundamental concepts of accounting: income statements, balance sheets, LIFO vs. FIFO, etc., as well as the philosophies behind all the many millions of rules, and how to use those rules to make a company look healthier. Most of the book concentrates on accounting; coverage of finance is mostly limited to the final chapter on ratio analysis.
Note that this still isn't light reading. You probably won't finish it all in one sitting; it takes quite a bit of concentration to keep referring back to the numbers and tables and absorb all the examples. At times, there are enough of those to make this feels like a college textbook -- one that's been forced into novel-like format. Still, the guy writes with pretty good clarity.
I had already taken basic accounting in college and didn't like it -- possibly because of my professor -- so I picked up this book to give the subject a second chance. Having finished, I'm now grateful at this book for confirming my suspicion: accounting really is dry, boring material, regardless of the quality of its presentation.
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Posted in Investing (Saturday, October 11, 2008)
Written by James O. Lunney. By McGraw-Hill.
The regular list price is $29.95.
Sells new for $8.69.
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4 comments about Surviving the Storm: Investment Strategies That Help You Maximize Profit and Control Risk During the Coming Economic Winter.
- One of the best investment books in decades. For starters, the book was just published. Lunney wrote about the current mortgage problems months if not years in advance. It must be nice to have a crystal ball. Must read for anyone who wants to invest wisely.
- Lunny's book is written sensibly and organized such that a novice investor or those who've never thought about their finances carefully can feel comfortable heading in a new direction. His idea of looking at ones entire "wealth" including investments, insurance, mortgage, etc. is practical and straight forward. Lunny explains his points in clear easy to read language. I bought the book for my husband and my son - both have learned a lot from it and are glad they have it!
- Nice to read someone who takes a global view without predicting the end of postive personal investing.
Offers insights into choices you can make now and for some years ahead.
Refreshing to read after listening to the daily hype we're confronted with on TV and newsletters.
Projects a potential scenario going forward without talking down to the reader.
If he is right in some areas then well worth the price.
Insightful,helpful charts,well outlined stratagies
- I havent finished this book, but what I have read has not wasted my time one bit. New ways of seeing things. Ways to simplify getting to what's important. Skipped to the back and see where I can find exactly information I have been wanting to know. This is a very very good and useful book. Was afraid it would be about the same old boring retirement garbage.... not at all! Thank you James Lunney, with Larry too! What a surprise to find!
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Posted in Investing (Saturday, October 11, 2008)
Written by Thad Greer. By Young Author Publications.
The regular list price is $22.95.
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4 comments about The Executive Rules! A Complete Guide to Landing an Executive Job.
- Mr. Greer's breakdown of the "Seven Key Career Questions" should be the foundation for anyone hunting for a job. Whether you are just starting a career, or looking for the next step to take, Mr. Greer's book provides readers with the insider's guide to everything you need to know. Particularly important is his emphasis on the details, such as making sure your resume is readable and professional. Filled with anecdotes, examples, and invaluable information, "The Executive Rules" is a must-have for anyone looking for a job. It would certainly make a great gift for any recent grad.
- First off, this guy knows what he is talking about. This isn't some general job hunting advice book. Greer uses his experience in management recruiting and gives an inside track on how to get a high paying position in the absolute quickest time. The information in this book covers in depth nearly all aspects of the management/sales seekers employment process and provides direct and to-the-point strategies that will get your resume read by the decision makers.
The major thesis is that the job search is a process, and while there are many things you can't control, you can control your process and execute on your strategy to maximize your probability for a positive outcome, and more importantly, minimize wasted effort and costly time. This is a straight forward, to the point, no holds barred examination of the best and most practical process to find and get a job as quickly as possible.
T. Greer has done an excellent job laying out the blueprint for an effective search that includes everything from who should write your resume, to interviewing, to what and what not to say and do when effecting a transition from your current job.
I was employed in three months in a great job. I highly recommend taking the time to get real about your job search.
Jason K.
G.E.Capital
- This is a wonderful read with tremendous amounts of hardcore advice that we should all take to heart. Mr. Greer gives you the unabated version of what most successful recruiters look for in a candidate. I keep a copy of this in my home office and I reference it often. After reading this book I ended up getting my dream job and I think it has also helped me to be a better employee. This is a must read!!!!
- Wow..The Executive Rules does RULE on how to land that top job. Anyone thinking about changing employment or needing information on how to find an executive position must read this great book. I give it 5+ stars.
Randy Loren
Author
Climbing The Money Mountain
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Posted in Investing (Saturday, October 11, 2008)
Written by A. Michael Lipper and Douglas R. Sease. By St. Martin's Press.
The regular list price is $27.95.
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1 comments about Money Wise: How to Create, Grow, and Preserve Your Wealth.
- Unfortunately for me, I do not have to ask myself the "What now?" question about my wealth because I haven't amassed it yet. Many of you have created great wealth for yourselves and Michael Lipper and Douglas Sease have written a book specifically for you, to help you preserve the wealth that you have worked so hard to create and how to make it even bigger! Do you even know how much wealth you have? This book will help you to measure your wealth, learn about investing and what works for you, learn how to spend your wealth and when not to spend it. Mike Lipper is an analyst who has helped develop the Lipper Indices for mutual funds, so you are hearing this from an expert that can really help you. If you have been successful and have accumulated wealth that you just don't know how to handle, take the advice of a credible, and proven expert to make your money work for you and not against you. Many people are scared of investing, advisors and money, this book will help you shelve your fears.
If you are like me and don't have any wealth as of yet, I would recommend you read this book so that when your wealth hits you, you know what to do with it in a smart and knowledgeable way.
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Posted in Investing (Saturday, October 11, 2008)
Written by Jay P. DeCima. By McGraw-Hill.
The regular list price is $18.95.
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5 comments about Investing in Fixer-Uppers : A Complete Guide to Buying Low, Fixing Smart, Adding Value, and Selling (or Renting) High.
- For the most part I find book reveiws helpful. But I wonder about those by who expect to get the whole nine and a half yards for $12.98. If I can get one tip that may help me make thounsands $$ (and it has) for the price of a Subway lunch, then I'm ordering up. A guide to Investing in Fixer-Uppers, $12.98; Investing in yourself, priceless.
- I found this book to be a good primer for new real estate investors. Seasoned pros could find a nugget or two as well. More than anything else, DeCima's writing style, folksy as it is, is just fun to read. A good addition to your real estate library.
- I have read this book 5 times now, and am putting his strategies to good use. Using Jay's strategies, I just fixed up an older house in my neighborhood. With 3 month's part time work, (I also teach 3rd grade) I now have 28k in equity, and 209.00 per month positive cashflow. The house was even owner financed, 2% down, and deferred payments too! (Jay's strategies). Next week, I will close on a second rental property for $46,500, and it appraises for $65,000. Some folks say Jay is too folksy, but he can be as folksy as he wants to be if his strategies get me $46,000 in equity in less than 6 months.
- I can't agree with those who criticize this book for being like all other real estate investment books. This book is a breath of fresh air from many other real estate books! The author actually offers practical advice from his experience, and its written in a readable and humorous manner.
In particular, the author's description of the Haywood Houses purchase on pagers 16 to 25 is a good example that addresses many of the issues that new (and experienced) investors face, such as:
1.) Where do you find your investment houses? Jay found his in the newspaper. I found my first investment property in the newspaper also. It was a great fix-up bargain at $85,000 in 2002, and is a great rental property now, bringing in over $200/month;
2.) What do you do when you find a good property? Jay says "act quickly" when you find a property in neglect. Jay says houses in neglect are worth big bucks for us do-it-yourself fix-up investors. Jay's list of what constitutes an ugly property, including "unsightly yards, no painting done for years, broken down fences, unsupervised dogs & cats." This list should be taped on our walls to constantly remind investors what we are looking for;
3.) Fixing people problems. The property was overrun by scary looking people with tattoos who drank beer and worked on junk cars. The owner wanted out. Jay fixed the sort-term people problem in exchange for receiving valuable long-term benefits.
This is a useful book that I keep handy.
Terry Sprouse - author of the book, "Fix 'em Up, Rent 'em Out: How to Start Your Own House Fix-up and Rental Business in Your Spare Time."
- This is a great book that will pay for itself! I do not see why people are complaining that this not a flipper book - because it's obviously not a flipper book in any way! The title clearly says Investing in Fixer-Uppers : A Complete Guide to Buying Low, Fixing Smart, Adding Value, and Selling (or Renting) High. It does not say buy a piece of trash, paint, and sell it to the next gullible sucker. (i.e. the mentality of most get-rich-quick flippers nowadays.) This is a buy and hold for huge profits book. If you want a flipper book, then search for flipper books. If you want to retire one day soon (or at least know you can!), then stop watching the Flip This House TV shows with grossly inflated profit margins, and buy this book! Don't believe everything you see on TV.
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Posted in Investing (Saturday, October 11, 2008)
Written by Ryan Jones. By Wiley.
The regular list price is $60.00.
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5 comments about The Trading Game: Playing by the Numbers to Make Millions.
- Explains the principles of money management; covers in detail the various aproaches (pyramiding, martingale, fixed fractional, optimal f et al) and shows why they are not optimal for traders. Finally offers his own money management approach called Fixed ratio. Loosely derives from fixed fractional, but reduces drawdowns and risk, while still allowing for improved growth.
The book is complex and somewhat dry, there are LOTS of tables of figures and you will need to re-read many sections. The method of money management seems sound enough although I haven't incorporated it into my approach yet.
Defintely worth reading as money management has been shown repetedly to be key to success in trading (alongside psychology, emotions and good exit strategies - which are not covered in this book).
- If you really want to optimize your Forex trading returns, you need to understand the principles of money management. This book by Ryan Jones is probably one of the best books available on the topic of Money Management. If there is such a thing as a Holy Grail then Money Management is it. With proper money management you will be able to stay in the game for the long term. One of the biggest mistakes novice traders make is that they don't know how to manage their trading risks, that is why the failure rate for beginning trades is greater that 95%. Most novice traders blow out their account within the first year.
This book will be a real eye opener; it will provide some great insight into why proper money management is critical to your success. The following is a sample paragraph from the book:
"you don't need $1 million to achieve $1 million. You only need to build profits that total $100,000 based on trading a single contract. What this means is that a person who trades a single contract and makes $100,000 at the end of 5 years, instead could make $1 million by implementing proper money management"
Ryan does an excellent job at detailing the various Money Management methods along with their short comings. Parts of the book are complex; you may have to read them a couple of time to fully understand the concepts. Ryan does include a lot of tables and calculation in this book but they are easy to follow and comprehend. You don't need more that a high school math background to understand the calculations. This is another one of those "Must Have" books that you need in your trading library. We here at EffectiveFX highly recommend this book. It can make the difference between financial success and failure. Any trader serious about trading for a living must utilize proper risk management principles to be in the game for the long term.
Go to our site to see a list of highly recommended books for successful forex trading.
- I liked the ideas in the book about position sizing, very helpful material. But the author will throw all kinds of numbers at you without really explaining how or where he got those numbers. The material is probably obvious to the author, so he assumes that it will obvious to the reader, as well. If you buy this book be ready to read and reread sections.
Here is an example: "After having acquired $100,000 in profits using the $5,000 as the delta for the fixed ratio method, we would be trading 20 contracts. The minimum level of profits to trade 20 contracts is $1,000,000. Therefore, what took 4 years to generate $225,000 estimated profits, generated $750,000 more in profits during the next four years"
Did he not say in the first sentence that 20 contracts would be traded for $100,000 in profits? In the second sentence it is $1,000,000? He does not explain how he got $225,000 or $750,000. I am sure Mr. Jones knows how he got these numbers but readers are left to figure it out for thmeselves.
The parts of the book that I did understand, I have begun to apply, such as position sizing. But it is a long and frustrating read.
- This is one of the two books about money management that I would recommend to anyone who is trading, the other one is Trade Your Way To Financial Freedom by Van Tharp.
This book actually covers all issues related to position sizing and teaches a method especially beneficial to traders starting with a smaller account. I understand the numbers in the book is not properly illustrated, and the examples are somewhat intentionally designed, by the logic behind the method is very robust. Meanwhiles the author does not exclude the possibility of other position sizing strategies, he does suggest to switch from fixed ratio to fixed fractional method once you have build up your account to some point(on page 220).IMO, it is actually the best money management plan that will cover the whole life of a trading account.
I strongly recommend this book, as the best book on position sizing, and one of the best( together with Tharp's book) on money management.
- It's always been surprising to me that this book sells so well and the classics are not as popular. The sensational sub-title "Playing by the Numbers to Make MILLIONS" must convince readers that Jones can give them the secret to becoming a millionaire.
Thing is he doesn't give you any secrets to success, instead he sends you in the wrong direction by stating that "risk of ruin" isn't important and that the "Jones Fixed Fractional" approach is better than the standard "optimal F". Neither claims are true, and you'd be better off learning about "risk of ruin" from Balsara and about "optimal F" from Vince, the true grand daddy's of money management. If Vince and Balsara are too complicated, a newer author, McDowell, simplifies both of these concepts so that you can get on the right track.
Check out the review of Ryan Jones book "Apples and Oranges" dated July 7, 2001, that reviewer has a real understanding of money management and what works and explains the flaws of Jones' book with great clarity. At the end of the day, you'd be better off getting a Vince, Balsara or McDowell book if you want to improve your trading results.
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Posted in Investing (Saturday, October 11, 2008)
Written by Karen Berman and Joe Knight and John Case. By Harvard Business School Press.
The regular list price is $24.95.
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3 comments about Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers (Financial Intelligence).
- With all the talk of aligning IT with the business, financial intelligence is probably the most overlooked or avoided part of an IT manager's toolkit. This book is well written and actually fun to read. It should give you an advantage in your career. Buy it now.
- Financial Intelligence for IT Professionals seeks the elusive sweet spot between being approachable on the one hand and substantive on the other. If you are looking for the bible of corporate finance or an alternative to an MBA, you'll probably be disappointed. If, on the other hand, you or your employees would benefit from a clearly written and well organized introduction into corporate finances, you really can't go wrong. Berman and Knight do an excellent job covering the basics, including income statements, balance sheets, cash flows, ratios, and measures of investment/project performance. The examples provided are simple enough to illustrate the concepts without feeling dumbed down. I was particularly impressed with the clear manner in which the concept of cash flow was presented, as, in my experience, the difference between income and cash is a topic often misunderstood by folks without financial training. In addition to the concepts listed above, the authors make it a point to highlight how financials can be influenced, intentionally or not, by the assumptions and actions of executives and accountants.
Here is where we run into my first (very small) criticism. While I appreciate the discussion of some of the `gray areas' that can be found in accounting and finance, I think the focus on fraudulent behavior is a little out of balance. Certainly there have been several great scandals over the last few years to provide fodder, but in my experience most financial executives make honest judgments to the best of their abilities, usually under tremendous pressure. My second tiny criticism is that the author's suggest a number of times that an IT leader equipped with financial knowledge can more intelligently challenge the assumptions of controllers, CFOs, etc. In my organization, this is encouraged and, frankly, expected of top level managers. In other organizations, however, questioning the CFO might get you a short trip to the unemployment office. Readers will need to use some judgment here...
The book concludes with a brief discussion of the value of employee financial knowledge to the performance of the company. The case is well stated, and the author's passion for the empowering impact of financial intelligence seems genuine. I am fortunate to work for an employee owned company that really emphasizes financial understanding for all employee-owners, but I also know from prior experience that my company is the exception, not the rule.
Bottom Line: This is a book whose impact on your organization will grow with the number of people who read it. So buy a few, and share them with anyone who in interested. That's what I'm going to do.
- You get what you pay for is a commonly repeated proverb because it is so commonly true. Co-authored by Karen Berman and Joe Knight, "Financial Intelligence for IT Professionals: What You Really Need to Mow About the Numbers" is an informed and informative guide to understanding that Information Technology (IT) requires an infusion of capital to get the best use out of it. With basic information on understanding IT-related statements and balances, estimates and their effects, challenging data, investments, and so much more. Highly recommended reading and a welcome addition to personal, professional, community, and academic library Business reference collections, "Financial Intelligence for IT Professionals" is essential reading for anyone wanting to get the most out of their IT dollar investment.
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Posted in Investing (Saturday, October 11, 2008)
Written by Michael Schlesinger. By CCH, Inc..
The regular list price is $117.00.
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2 comments about Practical Guide to S Corporations (Fourth Edition) (Practical Guides).
- Another great product of CCH. This guide is current and update, but allows you to transport this book to meetings or take to your client sites. While not as current as the loose leaf publication, it has the detailed analysis and insights to the current S corporation issues.
- After conducting an extensive and fruitless search of bookstores in the Washington Metropolitan Area for a good reference book on Subchapter S Corporations, I was fortunate to find exactly what I was looking for on Amazon.com
The Practical Guide to S Corporations, by Michael Schelsigner has literally saved me over $30,000 in taxes through its invaluable guidance on the intricacies of S Corporations.
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Posted in Investing (Saturday, October 11, 2008)
Written by John Boik. By McGraw-Hill.
The regular list price is $29.95.
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5 comments about Monster Stocks: How They Set Up, Run Up, Top and Make You Money.
- The book's title is misleading to say the least. The book offers little new information than his previous book - How Legendary Traders Made Millions. It just simply repeats the same principle in the chart again and again. Buy stock in the break out, pyramid buy more when stock drops to its support level, usually at 21 or 50 day moving average. Sell when the stock has its finally climax run. It could have been a 5 to 10 pages brochure.
If you really want to find out how a monster stock got setup, started and finished, I strongly recommend you read Brad Koteshwar's book - The Perfect Stock: How a 7000% move was set-up, started and finished in an astonishing 52 weeks.
- Fire up your charting software. Scan for stocks that have gained greater than 200% in the last 250 trading days (1 year). Review. You have just saved yourself $29.00. There is nothing new in this book. O'neil was quoted so many times I began to think this was written by him. I congratulate anyone who has the moxi and staying power to finish and publish a book. That doesn't mean I have to like the finished product.
- I had previously purchased his other two books. The first covered the best US traders (this is a very good book) and the second book covered the US equity market and the best US traders through history, this book also was pretty good in terms of detail and explanation. His current book was shallow lacking in detail and appears to have rushed to the publisher. I was throughly disappointed.
I agree with some of the other reviews you would be much better served by purchasing the books on trading written by William O'Neil
- Boik's term "Monster Stocks" refers to stocks that have at least doubled in price within 18 months. This book describes the practical application of a set of rules for identifying and profiting from such high-growth stocks. These rules involve criteria both for a stock's fundamentals, and subtle details of price and volume action of the stock and of the general market.
What I liked about the book is that it profiles about 30 such stocks as brief case studies, which include the chart basing setups that may have been evident, key points and characteristics of corrections during the stock's growth, and indications that presaged of the end of their run-ups. These are accompanied with annotated charts of relevant market indices and of the stocks profiled. The attendant commentary on these particular growth stocks and the events in the markets allowed me to learn by comparing the rules to how I would have reacted in the same situation. Most of the examples occur during the period 1996 through 2006.
Much of the methodology aligns with and makes mention of the Investor's Business Daily rules as described in their educational material and in Bill O'Neil's books. This book builds on IBD's teachings in that it uses the methods to focus on the special case of stocks that at least double in price including the psychological challenges, buying and pyramiding tactics, and the significance of moving-average support.
Boik describes methods that are relatively simple, but adds that the attention to detail and discipline required is not easy. I know from experience that many of us will find it difficult to make a large commitment to a high-growth stock, at least in its early stages, because the characteristics go against much of the conventional wisdom. Many investors will sell such a stock when it makes violent corrections - only to watch it make new highs soon thereafter. Similarly, it takes great discipline to act on the various warning signs and sell even though the stock is making successive new highs and the fundamentals have never been better. Boik does a reasonable job of explaining the details of what to observe, and rules by which to buy, add more, sell or hold these stocks through such observations. Among other things, the rules limit your risk and provide assurance when holding such stocks during their growth phase.
The book concludes with a Monster Stock finding and handling template, and a summary of the Monster Stock rules.
A criticism that led me to rate this book four stars instead of five was that the writing style tended to be wordy and repetitive, making the book longer than it needed to be. Also, the graphics were sometimes difficult to follow, and required some study before I was able to relate them to the text. I was able to endure this however, and found a lot of valuable content.
I can also recommend the following to those wanting more on growth stock investing:
The Zurich Axioms by Max Gunther ©1985
Reminiscences of a Stock Operator by Edwin Lefevre ©1923
How to Trade in Stocks by Jesse Livermore ©1940
How to Make Money in Stocks by William J. O'Neil ©2002
The Successful Investor by William J. O'Neil ©2004 (*a true gem)
Trader Vic-Methods of a Wall Street Master by Victor Sperandeo ©1991, 1993
The Market Wizard series of three books by Jack D. Schwager
- John Boik presents a well thought out method for acquiring wealth. The big money he claims is made in finding those few companies who can change the world. If an investor can recognize these monster stocks and manage them correctly, the result will be life changing wealth. Boik gives the reader a history lesson--that all monster stocks display the same characteristics just the names of the companies and their symbols change.
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Yes, You Can Get A Financial Life!: Your Lifetime Guide to Financial Planning
Finance & Accounting for Nonfinancial Managers
Surviving the Storm: Investment Strategies That Help You Maximize Profit and Control Risk During the Coming Economic Winter
The Executive Rules! A Complete Guide to Landing an Executive Job
Money Wise: How to Create, Grow, and Preserve Your Wealth
Investing in Fixer-Uppers : A Complete Guide to Buying Low, Fixing Smart, Adding Value, and Selling (or Renting) High
The Trading Game: Playing by the Numbers to Make Millions
Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers (Financial Intelligence)
Practical Guide to S Corporations (Fourth Edition) (Practical Guides)
Monster Stocks: How They Set Up, Run Up, Top and Make You Money
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