Trading Software and Books Reviews

The Stock Market Survival Guide

This is a book of strategies and concepts. Often we look at books that are very specific in nature, and that need to be closely studied from cover to cover. This book could be read on an annual basis or could even be the foundation for a regular review with your investment team (your accountant and financial planner).

Rather than just talking about dealing with down trending markets, the book looks at some of the many possible strategies that people can use to increase their returns. Generally most people make money in bull markets. The catch is that these strong trends represent only part of the overall time frame. Also, stock popularity and success doesn’t last forever. For example, only a few of the companies around in the 70’s and 80’s are still around now. As well as crashes brought on by irrational exuberance, as Harper suggests, other factors such as terrorist attacks have significant impact on markets and the way investors react and respond. This is certainly a subject for the new century.

And don’t just think it is the smaller dud companies that have disappeared. Some very large companies, in which people have had long-term investments, have foundered or even totally failed. Blue chip stock are just the biggest chips the house has to offer.

One of the things I like about the book, is the way it helps people explore different investment horizons and income expectations. Maybe this book should be read in conjunction with Kiyosaki’s Cashflow Quadrant, where various attitudes to money handling are clearly and concisely defined.

If you don’t have this book already, put it on your shopping list for this Christmas, and read it this Christmas, and the next and the next and…

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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