Top positive review
manage some of my investments (dabble more like it). Dabbling in the recent run up in ...
Reviewed in the United States on August 23, 2017
I'm your average Joe trader, manage some of my investments (dabble more like it). Dabbling in the recent run up in cryptocurrencies is what drove a friend to recommend this book to me. I've never written a book review but felt compelled to do so, not to rave on this book, but as "warning" to how to get the most out of it before giving up.
The last third of the book is where it shines for novices. Most who have been around for a while will know there is market and your own psychology behind prices, various entry strategies out there, the standard stuff you nod your head at. The book's value shines through in covering stop-loss, how to take profit, and how to position size. These concepts have actual technical methods and the book covers it at a semi-approachable 12th grade reading level.
The book also shines in that it gives you some perspective about how to look at trading in general. The "snowball fight" analogy is very good, you're trying to accumulate earnings while accepting that there will be losses. However over the course of hundreds/thousands of trades, they need to average out to where you're accumulating, net.
This is why I'm writing this review. Put frankly, the writing/literature/style of this book is horrendous. It's harder to read than a college textbook, even for simple concepts. The editors did a very very poor job of editing for style, clarity in the text, and even clarity in the pictures. It's obvious this book was written in the 1990s, most examples are not relevant anymore (tens of pages on impact of transaction costs. Who still trades over the phone?), and even the pictures are not clearly labeled (you literally need a magnifying glass to see the numbers on chart scales that the author constantly references). I've wanted to throw away the book about every 5 pages because I have to re-read sections multiple times just to make sure a pronoun the author uses is what I think it means. This is simply unacceptable. I'm constantly thinking: there must be another book on amazon that covers similar topics, but written differently. All suggestions are welcome!
The last con is that some of the most important topics (stop loss, exits, position sizing) don't go into much detail. The author does a good job citing previous research and his primary sources, but I feel 1/4 of the book has irrevelant fluff that could be replaced with deeper depth about the important stuff.
HOW TO GET THE MOST OUT OF IT:
The author at the very end suggests readers read the book 4-5 times so the concepts become second nature. I agree 100% with this, because the concepts go against your natural inclination. However because of the crap writing, the average Joe trader needs to read it an extra 3-5 times just to make sure he understood what he was reading.
Read this book with investopedia at your side, and you will change the way you look at "trading". Investing? Less helpful. More than 1 trade per month? Definitely buy and read 10x in the next year, it will change your life.