Trading Software and Books Reviews

How to beat the Managed Funds by 20% Review

The title might lead you to think that this is a book about using managed funds to do better than fund managers do, but it is much more than that. It is a guide both to designing portfolios, and to selecting the strategies and tactics to use within those portfolios.

People with knowledge of the markets may, like me, feel that this task is impossible to fully explore in 169 pages. But as a broad map showing the paths that need to be taken, the book is excellent. It is easy to read, not overly technical, and is full of well-explained diagrams. Its clear layout leads the reader’s thinking through key areas that need to be explored if consistent success is to be achieved.

If you are new to trading, think of this book as a good foundation on which you can build your personal wealth-creation strategies. If you are more experienced, think of this book as a keystone – the stone at the top of an arch that holds all the other stones in place.

However, readers must also realise that the book is only laying a foundation of process and procedure based on the psychology, values and beliefs of the author. While these are quite sound, they will seem too conservative to some and to others too risky. But after this journey through the author’s logical presentation, readers will be much wiser and much more aware as a result of the time they have invested in the book – provided they do the necessary home work.

Dale Gillham does a good job of looking at the myths that have caused many people to come unstuck. After clarifying concepts he builds a solid case, based on sound reasoning supported by evidence, for the reader to consider using his approach.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

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