Customer Reviews

The Day Trader's Survival Guide: How to Be Consistently Profitable in Short-Term Markets

5 star:		(15)
4 star:		(8)
3 star:		(8)
2 star:		(1)
1 star:		(1)

 

 

as a somewhat active online trader, i was both surprised and blown away by alot of what I read in this book - particularly about the kind of nonsense that is allowed to go on in the NASDAQ -

As someone who has bought about 14 day trading books in the past year,I guess I'm as good a critic as anyone - this book is so far ahead of the other daytrading books in both quality, illustrations, and content that it stands alone -

I am a firm believer that if you can walk away with 1 or 2 lasting ideas from any book than you are ahead of the game - Farrell book has about 15 such ideas - not to mention I think that the 3 sections on how the market makers, NYSE specialists, and day traders manipulate stock prices is the most informative chapters in any of the daytrading books out there -

Written near the end of the Dot.com glory days, this book offers many good basics for any day trader. However, it desperately screams for an update that reflects the current status of online trading, data services, and even the change from fractions to decimals. One glaring deficiency is the lack of reference to the availability of the NYSE Open Book, which offers a very similar picture as that of Nasdaq Level II. Perhaps when the book was written, that data was inaccessible for the online trader, but now it can be purchased by anyone. It is essential for anyone who wants to trade NYSE stocks.

Also, the references to companies with intraday swings of 40-60 points is so unfathomable in today's market, that it really diminishes the effectiveness of some of his examples.

Nevertheless, even with all the failings of this book in relation to the trading climate of 2005, it still provides some useful insights and information for the beginning day trader. I would recommend this book, as long as you can get it cheap. You won't find it to be a reference book (like "A Beginner's Guide To Day Trading Online"), so you might even save your money and check this one out from the library.

I wish Christopher Farrell would go back and revise the book to reflect the changes in the market, because they are quite signficant compared to the crazy days of the Dot.com boom.

I bought this book after reading the recent positive review in Online Investor Magazine (Feb issue) - this book is not some loose, "how to" book on day trading - instead, the author spends his time slicing and dicing many of "the shady ways" in which both the NASDAQ market makers, and NYSE specialists operate -

is by far the most in-depth day trading book of the 10 I have bought because it talks about issues that, literally, none of the other day trading books I have ever read even mention - this books wastes no time on the "getting started 101" nonsense that so many other day trading books talk about (how to get started, what broker to choose) - also, this guy actually worked as a bond trader on Wall Street before he got started - so I think his perspective on "the shady side" of how Wall Street works is a bit more accurate than the others - Here is why I liked the book: Farrell attacks things like: why the NASDAQ can be so tricky, how the NYSE specialist can made a stock collapse by cancelling bids, how big firms like Goldman Sachs can hold a stock down with the appearance of 100 share sell orders, how hidden orders affect the supply and demand in a stock - this is all stuff that I had absolutely no idea even went on -

I read Farrell's first book, which was downright awful, so I was a bit skeptical when I bought his latest work. This one is much better than the first. However, it might be better titled, 'NYSE Day Trader's Survival Guide' Farrell specializes in NYSE stocks.

Despite what the author might have you believe, it is difficult to trade NYSE stocks. The specialists simply are thinking one step ahead of you. As an actual trader, I often found it impossible to scalp 1/16 as Farrell mentions in his books. You are going to lose money if you try this strategy. Also, trading large quantities of low-priced stocks is an almost sure way to blow out your account sooner or later. The author doesn't warn the reader.

Be aware that the NYSE is soon going to replace specialist trades of 1,000 shares or less with a system closer to that of trading NASDAQ stocks. The activation date is getting close, as this topic was in the news just a few days ago. You won't find this covered in the book.

'The Day Trader's Survival Guide' is a well polished effort. If you decide to buy it, then by all means Be sure to read Farrell's first book, 'Day Trade Online' so that you get a better depth of what Farrell and trading NYSE stocks are actually about.

There are many daytrading books out these days. I've read quite a few of them, each having a different slant on how to attain success at trading the stock markets successfully. Most involve trading Nasdaq stocks exclusively, while focusing on market maker activity, support and resistance, chart setups or patterns, etc.

Christopher A. Farrell's book stands out as a different and brutally honest look at both the Nasdaq and the NYSE, how they work, and the pitfalls they hold for traders. Numerous quotes by market notables supporting the author's contentions are interspersed throughout the book.

One of the book's major themes is technical and fundamental analysis are useless to the daytrader who is contemplating a trade where a large market maker could be manipulating the stock's price. I couldn't agree more. However, I believe the author goes too far in discounting the usefulness of these valuable tools, as he sounds as if he believes that charts and fundamental information would never enter in as valid trading criteria in any other styles of trading. Nevertheless, I found his insights about market makers to be invaluable.

Ways in which a trader can gain somewhat of an edge over the Nasdaq market makers are spelled out, such as how to use "hidden orders." Also, "Spoofing" was a very interesting tactic exposed by the author: the advertising of huge size to buy or sell on Level II with no desire to be filled, but to manipulate the stock higher or lower. The author is very experienced at trading.

Insights into the NYSE specialist's role are covered in great detail, as well as a number of NYSE daytrading tactics. The author puts us in the specialist's shoes, giving various scenarios of market conditions and what a specialist does in his own interest and in the interest of the public. A more informative piece I have not read.

The author concludes by speculating on a trading world of totally fair markets, or "The 24-hour Unified Exchange, the Virtual Specialist, and the Extinction of Wall Street." A nice sentiment, but a lot of big money and influence stands in the way. All told, this book is an excellent read for any trader.

The first thing I look at when I pick up a trading book is when it was published. Pick this one up--"Copyright 2000." That immediately sets off a siren in my head, and warns me to take everything in the book with a substantial amount of salt. Anyone can write a book on how to successfully invest in a market where everything is hot--if you don't believe me, do a search of real estate investment books and see how many of them are older than the current boom. When everyone's an expert--well, just be careful. Couple that with the fact that this guy's website is gone--I've read up a little on him and it would appear he's no longer trading--and caution is definitely warranted.

That having been said, I was able to glean from this work some important information, and certainly picked up a couple tidbits that I've found useful. This was one of the first daytrading books I ever read, and I think it has its merits for a strict novice. Farrell's sections on NASDAQ level II were insightful as were his thoughts on trading NASDAQ vs. NYSE stocks. His rants on the evil nature of "market makers" and how they're out to get individual daytraders is probably overblown but certainly worth thinking about. And though most of us will never move the kind of capital around required to "scalp trade" (meaning you trade a huge position and hope for a razor-thin margin), I found the technique interesting.

In short, I wouldn't use this book as a basis for a trading strategy, and would keep in mind the fact that most of these techniques are outdated. Look, for example, at the other reviews of this book--the most recent ones rate this book much lower than those written in the heyday era (or even shortly after). I do believe, though, in assimilating useful information wherever it is found, and that having been said I'd recommend this book for a casual read, not to be taken too seriously and keeping in mind that the value of the author's opinions are very limited. If anything, view it as a daytrading history lesson, and learn from the mistakes of the past.

These days it's really hard to find trading books that are as practical and simple to understand as this one. Most of the info outhere is full of the same thecnical analysis jargon that makes you lose a lot of times. Basically most tehcnical trading books tell you the same story but organized in different chapters using different words and charts as examples.

Some places on the web have pretty practical information also. One site that I recommend is ChatHotStocks com. They have a pretty clear way for trading momentum stocks using easy to understand strategies. This is also one place where you can understand why the use of a Level 2 system is critical for trading the rally.

Understanding how to trade a rally is one of the most important aspects of trading, since for us traders it's all about the rally.

There are some interesting aspects of this book, particularly the chapters on the NYSE specialist system. This seems to be the author's area of expertise.

As a professional trader, however, I think the author overstates the difficulty in trading NASDAQ stocks and the level of manipulation in the OTC market. Also, some of the information here is inaccurate. For example, he states that momentum traders avoid stocks like Intel, Cisco, and Microsoft. This is not true. I personally trade literally hundreds of thousands of shares of these stocks daily. In addition, he vastly overstates the volatility of NASDAQ stocks, saying that "500 share buy orders will drive the stock up 2 points". This is ridiculous.

All in all, not bad. The NYSE information is good, but take the NASDAQ chapters with a grain of salt.

Chris Farrell writes an intriguing book as a good window into the world of daytraders. For the expert daytrader this book may seem like it was written for children. In fact some of the language and a little of the attitude seems quite simple. That is because it makes daytrading seems simple. It is a great way to break (or even just peek) into the exciting world of daytrading stocks. Before reading this book, I considered myself a part time daytrader, trying to catch stocks on their way up, selling a few days later and buying the next one that was set to have a rebound day or week. With the current bear market this has failed miserably. After reading Farrells book I know why, and knowing is half the battle. From the beginning he gives you a few basic rules that any experienced daytrader knows, but explains them so you can use them when appropriate. From such postulates as the best time of day to trade, explaining why holding something for five minutes is long term, to why and how to trade along with big money, not against it, Farrell helps you see why some counterintuitve actions may help you become rich with out risking too much in the market. THere are also deep, yet comprehensible explanations of how markets move, the differences between NASDAQ and the NYSE, how to maximize your own profits by minimizing the profits a broker makes on you and how to identify market manipulations. According to Farrell seven out of ten daytraders lose their shirts, and the factors causing that to happen are simple. For anyone who is interested in becoming a succesful daytrader, whether thay have already been unsuccesful, or have not been bold enough to try, or is just interesting in understanding the market from the inside, this is a great, easy to understand book.

This is the first book on the subject matter that I have read. I must say this book is a must for any novice investor. The author sheds light on understanding why the online novice daytrader is not on a level playing field. (Did you know 7 out of ten daytraders lose money?)Upon reading this book, you will understand why. Currently, I have delayed further day-trading until I get access to a "more" level playing field. For example, quicker connection's, perhaps not using an online brokerage firm. Researching NASDAQ LEVEL II QUOTES!, understanding who,what,why,how the specialist, and money makers role is, researching software, and of course getting my hands on other books!!!