Customer Reviews

The Dow Theory (Fraser Publishing Library)

5 star:		(3)
4 star:		(2)
3 star:		(0)
2 star:		(1)
1 star:		(1)

 

 

This book is the best of the Dow Theory books. A must read for the serious investor and those who have a clue about value and its relation to stocks in general. Those who do not learn from history are destined to repeat it. Their will always be periods when it is said, "This is a new age" but human nature does not change, nor does fear and greed. If one has any money in stocks one should read and reread this book. As a former Registered Principal, Registered Investment Advisor, Stock Broker and Certified Financial Planner I have found nothing better to determine when to ignore value and watch momemtum and or the Fisher Approach v.s. Graham and Dodd. And conversely when value becomes of upmost importance and asset allocation to stocks should be reduced. Sometimes the simple approach is best. Too much complexity can only obscure the issue.

If you liked "Reminiscences of a Stock Operator" then you'll love this one too. It's not about the wonderful first-hand stories and lessons of "Reminiscences" but for the outstanding insights and information on a very workable theory plus the charming writing style used. Highly recommended.

This is great for those wishing to know about the historical origins of the dow theory, but practically useless for those who want to understand how to apply the dow theory.

As one example, there are no graphs or table data on the rail averages (but there are for the djia) which is considered half of what is necessary for the dow theory.

I've read this book several times and always recommend it. Chapter 10, on the characteristics of secondary moves is spot on! "Secondary reactions...constitute the greatest hazard faced by the margined trader and also perhaps afford the greatest opportunity for gain to the student of the averages who can recognize a reaction as such and not confuse it with a reversal of a primary trend"

Even in today's markets where 95% of financial future volume is day traders the concept of the primary, secondary, and day-to-day trends (cycles) are imperative. Add in the "micro" or intraday trend as a forth tradable time frame, and you are on your way to a much deeper understanding of how markets move

The book does give Hamiltons WSJ columns, which are of historical interest, but does not provide a useful method of applying the theory. Much better material on the Dow Theory are available on the internet.

I think this book is the best among the "classic" books explaining the Dow Theory.

This may be subjective as reading is very personal.

Sure it's an old book but I feel that it is a good reference for all new investors because it'll give you a perspective, a foundation, a starting point, for you to begin your investing. This should belong on all investor's shelves.