106 of 110 people found the following review helpful:
5.0 out of 5 stars
Made a lot of $$$ with this book., December 13, 2008
I was able to triple my trading account in the past 18 months with this book. Although, I did own the first and second editions, it is the third edition that gave me these remarkable results. How did I do this? I followed the stepwise procedure below:
(1) I programmed the scan suggested by the author on pages 357-383 into my stock scanning software to find long trades reversing from a bottom. I also adapted the scan to search for short trades reversing from a top. This is quite easy to do by reversing the stated conditions.
(2) I used the market timing indicator discussed on pages 179-185 to decide whether the general market is turning up or down. The indicators in the book are best used to detect an inflection point in the market which is critical to catch moves early in the trend.
A down signal was given by this indicator in Nov 2007.
(3) When the general market is turning up I run the scan that searches for long trades. I focused only on two high profit setups discussed in the book: VPV reversal and the highly profitable falling rectangle. My reason for focusing on these setups is that not only they have high profit potential, they get you in early in the trend thus reducing the possibility of being stopped out of the trade and keeping drawdown at a minimum.
While VPV reversals are not hard to find, the highly explosive falling rectangles do not come by more than few times a year , but once you find them you can get profits upwards of 50% in a short time.
(4) If the general market is turning down I ran the scan that searched for stocks to short. In this case, however I looked for a rising rectangle pattern which is essentially the opposite of afalling rectangle. I also required that the break below the rectangle be accompanied by a volume spike. Knowing that markets and stocks fall much faster than they rise I would buy puts on the stock at the next strike below the current price. Once that strike price is reached and if the downtrend is still intact I will sell the puts I hold and buy puts at a lower strike and so on.
To show the explosive profits you can get using this technique, I will give a specific example: On 8/21/08 my short search program identified JDSU as a stock falling with a heavy volume spike. On examining the chart a break below a rising rectangle was evident. By buying $7.5 puts when the stock was at $10+ and then selling them when the stock hit $7.5 and buying $5 strike puts and so on until the stock hit $2.5 , my small investment grew by 20 times.
I have taken the advice of the author in my trading "to specialize in specific setups and get good at them to the point where they can be recognized by a glance at the chart".
I waited this long before writing the review since I had read many reviews and even written reviews myself on books without addressing the critical question: did the reviewer make money with ideas in the book. In most cases it is difficult to answer that question, however is this case it was possible since I followed a specific approach suggested in the book and it worked.
My actual rating for the book though is slightly shy of 5 (around 4.75) stars mainly because the author does not discuss record keeping in detail. He touches on psychology and does discuss money management and risk control by setting stops out of congestion areas, so you do not get run over by market makers and using specific option strategies to control risk.
I do not believe this is a major drawback since there are many books that discuss trading psychology and record keeping.
A personal note regarding trading psychology: When I was not doing so well trading I started reading books that focus mainly on trading psychology , record keeping , followed their advice and got little improvements.
However , a successful trading system changed my psychology by making me more confident, and thus willing to pull the trigger when I see a setup that falls within my specialty. Since most trades were profitable it was easy to cut losses on the ones that were not, thus following the saying cut your losses and let profits run was much easier to do.
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32 of 32 people found the following review helpful:
5.0 out of 5 stars
Best Trading Book I Own, April 16, 2011
I have been trading stocks and options for over 10 years, and I own over 25 books on trading, most written by some of the most respected names in the industry.
Having said that, I have learned more useful trading techniques from this 3rd edition of "Generate Thousands in Cash on your Stocks before Buying or Selling Them" by Dr. Samir Elias then I have from all the other books I own. This was a fascinating book to read, and if you have experience in the turbulent trading markets of the last few years, you can not help but be captivated from page one. In fact, I read it again as soon I finished it, just to make sure that I didn't miss any key points.
He has a unique writing style that cuts through all the clutter and gets right to the heart of the matter. If you have no background in options trading prior to reading this book, you would be well advised to read up on them before reading this book. Ron Ianieri's "Options Theory & Trading" being a great place to start the journey.
The techniques Dr. Elias uses to generate option income on stocks are presented clearly. In addition to options trading, there is a wealth of information on general trading methods that is extremely valuable to any trader. I know of no other book that gives a trader such a clear road map to achieving success in the stock maket.
If I was asked to suggest one book that could help a new trader learn how to trade successfully, it would be "Generate Thousands in Cash on your Stocks before Buying or Selling Them", hands down.
Pass this one over and you will do so at your own peril.
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24 of 24 people found the following review helpful:
5.0 out of 5 stars
.Very good in my opinion, March 24, 2011
This book will not only show you a system to make money it teaches you how to trade. No fooling.A few zingers like "I don't know about you , but I'm not going to live forever."Along with very very specific trading examples that show prices and entry points and exit points on a variety of real trades on modern stocks,by the numbers.
I've been finding squeezes and options selling opportunities everywhere I look since reading this. I go to the text and compare the examples to the stock I'm looking at to construct stock/options strategies that are actually working !. I like this book very much. It will teach you how to trade.
(No, I don't work for the author)
Chuck K
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