BOOK REVIEWS

Here are a few books that I've picked up over the past few years.   I'm not going to summerize the books here, but I did try to tell you what I got out of the books.

If you like the review, and you are going to purchase the books, click on the "Buy it now!" button.   I get credit for sending Amazon customers.   So far, I've been able to purchase a few more books.   I don't think I'm going to get rich doing this, but every little bit helps!   Thanks for all your support.

The 2,000 Percent Solution

The 2,000 Percent Solution : Free Your Organization from 'Stalled' Thinking to Achieve Exponential Success
by Donald Mitchell, Carol Coles, Robert Metz 

I missed the boat when I selected this book, but it was a nice trip.   I'll write up a review in a few weeks...

Applied Statistics Using The Computer

Applied Statistics Using The Computer
by Ronald S. King and Bryant Julstrom 

I wanted to add a linear regression line to the software application that I have been working on.   I visited the bookstores, but most of the books were around $60 to $80, and the discussion of the linear regression was poor at best.   So I never purchase one of those high dollar books.   One day, while at the used bookstore, I found this books for $4!   Unlike those $80.00 books, this book has an excellent discussion (an entire chapter) devoted to the topic of linear regression.   The book was written in 1982, and it shows!   Dot matrix computer listings; even the cover is dated...

It's probably a good idea to browse the used bookstore on a regular basis.   When I checked-out the "Buy it now!" link, I found a used copy at amazon.com for $15.00.   In the technical analysis section of my web site, I've got a good dicussion on linear regression.   Check it out before you buy this book.

Beyond Candlesticks

Beyond Candlesticks: New Japanese Charting Techniques Revealed
by Steve Nison 

Known as "The Father of Candelsticks," Nison introduces three new charting techniques from Japan.   His charts and graphs, like before, take you through each of these new techniques, one step at a time.

This is a great book.   Out of the two Nison books, that I have read, this is the winner!   The books begins with a detailed discussion of candlestick charting and how it represents the market forces and trends.   There is a chapter devoted to the use of moving averages.   The three new charting methods introduced in this book are the: Three-line Break charts, Renko charts, and Kagi charts.   These techniques are discussed using interday data, but I have found them to be valuable when applied to intraday data for day trading.   Like the first book, Japanese Candlestick Charting Techniques, the presentation is easy to understand, and a real joy to read.

The Compleat Day Trader

The Compleat Day Trader : Trading Systems, Strategies, Timing Indicators, and Analytical Methods
by Jake Bernstein and Jacob I. Bernstein 

The first time I read this book I was not too happy.   I shelved the book for well over a year.   If you are on a quest for knowledge to learn about day trading equities I do not recommend this book.   Lately the equities day trader has been getting a lot of press.   I too assumed that day trading futures and day trading equities were identical.   I was wrong!

At first glance you would assume that I misspelled the title. Compleat means, "highly proficient or highly skilled." In order to profit from the methods outlined in the book, you need to practice. Bernstein is not presenting a trading system, so don’t expect to read this book to find a magical equation.   What you will find is a methodology; an approach to the market.   You will also find a few indicators that are real nice.

If you intend to trade futures, and you are fairly skilled (not a beginner), then this book would be a great addition.   If you intend to trade equities this is not a great book, but again, it’s only a weekend of reading.

The Electronic Day Trader

The Electronic Day Trader
by Marc Friedfertig and George West 

By the time I had picked up this book, I had already been positions trading, and "dead-cat bounce" trading for over a year.   I had alread established an electronic trading account, and realized the potential gains that could be obtained by day trading.

If you are a beginner, give this book a quick once over.   After you have set up you electronic account, made a few trades, and spent a few weeks watching realtime quotes, pick the book back up, and read it again.   The authors present information here that is so valuable, that you can't afford not to read it.   I can't even begin to summerize the wealth of information between the two covers.

Again, you should make a few trades to understand how you account works -- it will only cost you a few dollars, and it will be money well spent.   Understanding how to execute limit orders, stop orders, stop limit orders, market orders, and short orders. Watch realtime data, and look at intra-data charts, then read this book.

How I Made $2,000,000 In The Stock Market

How I Made $2,000,000 In The Stock Market
by Nicolas Darvas

This is a wonderful book.   My first thoughts -- "I'm sure."   Well, like anyone who wants to get rich quick, I picked it up.   It's NOT a get rich quick book.  

Nicolas Darvas is a hard working man, a dancer, who wanted to invest his money.   The book is the first person account of his experiences trading stocks.   He discusses how he went from an emotional investor, to an intelligent trader with a proven method.   He begins by explaining why he needed a method, buy showing his failures.   His method is revealed early in his book, and the remainder of the books is his success story.   He even traded stocks while he worked and traveled around the world, using any method that he could to contact his state side broker.

I felt the text of his book did not do a great job explaining his techno-fundamental trading method the Darvas Boxes.   It's a good thing I didn't read the first release of the book back in 1960; I would have surely written the author.   The 1994 edition of the book was released with a Questions and Answers section; where he prints many of the questions that he received, and the answers to those questions.   Without the Questions and Answers, I would not have been able to understand the "exact" process of creating the Darvas Boxes.

Japanese Candlestic Charting Techniques

 Japanese Candlestic Charting Techniques
by Steve Nison

Although this is an outstanding book, after purchasing and reading this book and Beyond Candlesticks: New Japanese Charting Techniques Revealed, I would not suggest purchasing this book. Nison's second book also does an outstanding job with the topic of the candlestick charting technique.   Save your money.

Shootout on Wall Street

Shootout on Wall Street : The $4000 to $1000000 Formula in Less Than a Year
by Grald A. Cannon 

This book emphasizes one point -- news!   Cannon tells you his success story trading on news stories.   He does not do technical analysis or fundamental analysis.   He simply watches new, and on a piece of good news, he dumps his money into that stock.

This books is no more that some fifty pages, but his presentation is wonderful.   You will find yourself laughing out loud -- very rare when reading a books on investing!

After reading this book, I was inspired to write a news reader application coupled with a knowledge base.   I realized that that was too difficult to do.   After doing a bunch of news analysis, I found that the work "earnings", and "exceeded expectation" are the two things to look for in a news title.   But the best profits can be realized after several quartes of below expectation earnings.   I'm going to have to expand my databases to include expected earnings and actual earnings.   I'll run something on the weekends to update my database for the most rescent four quarters.

Technical Analysis From A to Z

Technical Analysis From A to Z
by Steven B. Achelis

If you would like to have a reference book that discusses almost every technical indicator, this is the book for you.   I found the book to be invaluable!   I knew nothing about technical analysis, and this books provided me with information on a daily basis while I was writing my software.   The book is filled with charts, graphs, tables, equations, examples, detailed explanations.   What a reference!

I think he has every technical indicator you could possible immagine, with the execption of the Darvas Boxes.   I suppose it was left out because Mr. Darvas' work is not that well known.   I would have liked to read Achelis' interpretation and presenation of the topic.

The Technical Analysis of Stocks, Options & Futures

The Technical Analysis of Stocks, Options & Futures
by William F. Eng

"Two thumbs down!"

I read this book a couple years ago.   On my first pass, I really enjoyed reading the book.   The material seemed to be well presented.   I'm sure you know that I am a programmer by now.....   Well, I needed a volume indicator for my charting application, and OBV was the way to go.   I began writing the algorithms to add an OBV indicator to my application, and that's when I began noticing them.   ERRORS!   In the heart of the technical discussion of OBV, dozens of discrepancies and vague sentences that made it impossible to generate accurate algorithms.   I contacted the author to get clarifications and I received a form letter, and a catalog.   I was encouraged to purchase high dollar training courses, but Eng failed to answer any of my questions.   It's a good thing I had other resources at my disposal.

The book remains on my shelf, unused.   There are many other sources, that are much more reliable, that don't require an author's intervention to clarify details!   Personally, I wouldn't purchase another book by this author.   At one time, he may have had a passion for trading and teaching, but those days are long gone!


Copyright ©1996-2001, GerryCo.   All rights reserved.   This material is for personal use only.   Republication and redisemination, including posting to news groups, is expressly prohibited without the prior written consent of GerryCo.

Last updated on July 2001