Online Investing, Second Edition [Paperback]

Jon D. Markman (Author)

Book Description

Publication Date: February 17, 2001

Using one of author Jon Markman's momentum-stock models, a single $10,000 investment in 1986 would be worth $5.4 million today. That's ten times what the S&P 500 did! In Online Investing, Second Edition, Markman builds on his innovative "year-trading" model and shares new wealth-building strategies -- once again demonstrating how to use the power of the Internet and a home PC to do in minutes what Wall Street professionals do full time. The book provides updated information on growth year-trading and delivers new content on month-trading, seasonal trading patterns, where momentum comes from, and how to pick the stocks with the potential to gain 10,000% in 10 years! In the book's highly regarded first edition, this award-winning author made complex investment terminology and trading strategies accessible to even the lay investor. Online Investing, Second Edition delivers more of Markman's expert and easy-to-read advice, complete with powerful new techniques for finding -- and buying -- the right stocks at the right time.

Editorial Reviews

Amazon.com Review

Everyone's looking for a special-purpose guru of some stripe or other, and Jon Markman is one of the better ones when it comes to researching investments that suit your personality and goals. Markman is known for his MSN investing column, and Online Investing is a more formal record of his ideas about investment selection, and a collection of his favorite Internet resources for investors. The result is quite good, though he more than anything else endorses careful thought and research over impulse. He also presents point and counterpoint wherever possible, leaving the decisions to readers. There are even fewer guarantees in investing than in other parts of life, but this book will help you approach the market as an informed individual investor.

Markman takes a three-pronged approach to investing. He first explains how model portfolios work, and the alternative philosophies (momentum, growth, value, and so on) on which they can be based. Second, he shows you how to assemble and track your own models. And third, he explores more explicitly some of the investor resources on the Internet. This is more than a catalog: for example, Markman comments on the characteristics and long-term performance of a number of investment newsletters. It's obvious that he does his research. --David Wall

Topics covered: Strategies for developing a personalized approach to individual investing, with emphasis on building a model portfolio (based on technical or fundamental analysis of shares) and researching potential investments with the help of online resources.

Product Details

• Paperback: 370 pages
• Publisher: Microsoft Press; 2 edition (February 17, 2001)
• Language: English
• ISBN-10: 0735611238
• ISBN-13: 978-0735611238
• Product Dimensions: 9.1 x 7.4 x 1.2 inches
• Shipping Weight: 1.8 pounds
• Average Customer Review: 4.0 out of 5 stars  See all reviews (32 customer reviews)
• Amazon Best Sellers Rank: #1,668,849 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

53 of 54 people found the following review helpful:

5.0 out of 5 stars It's a Strong BUY, December 2, 1999

By 

SHAWN GOOKIN (Hollis, NH) - See all my reviews

This review is from: Online Investing (Independent) (Paperback)

This post is out of chronological order with my additional post as my intitial post was dropped somewhere at Amazon.

This book was a wonderful surprise. Aware that Jon Markman is a quant I approached it with some trepidation. Being more right brain oriented, I feared endless charts, formulas, and complex mathmatical theories. However, I quickly discovered that this book is very readable, gets right to the subject at hand and would definately make me more money!

Jon gives clear insight into what makes a stock move and describes, in plain english, how to find winning stocks. As a bonus, Jon's Supermodels community at MSN.com (FREE) provides an invaluable environment to help you put these ideas into action.

It's certainly working for me...my Year Trader portfolio, started on Oct 29th using the techniques found in this book, is up an amazing 30.4% in just over a month!

Happy Investing!

Shawn Gookin

54 of 56 people found the following review helpful:

5.0 out of 5 stars Markman gives you all the tools needed to suceed, December 18, 1999

By 

A A. Adamsen (Las Vegas) - See all my reviews

This review is from: Online Investing (Independent) (Paperback)

As a long time passive investor in 401 k's, 457's and IRA mutual funds, I felt a more active approach will be benifical as my my investment timeline shortens. Like many others I watched the 8 year bull market from the sidelines and wondered who was able to profit from runup in the narrow band of stocks that was propelling the Dow, S & P, and Nasdaq. Markman's book decsribes in clear, concise detail the most basic and the most detailed interworkings of " mechancial " investing. It's easy to buy a stock, the tough part is the correct time to sell. I followed the steps for months " on paper " with impressive results. After only one month in the real world of momentum investing, do I feel compelled to write this review. One month return - Nov 99 + 27%

44 of 46 people found the following review helpful:

2.0 out of 5 stars Serious Reservations with Markham's Systems, August 9, 2001

By A Customer

This review is from: Online Investing, Second Edition (Paperback)

If you are considering purchasing a book to get you started in online investing, Markham's book is worth a look, but his advice should be taken with a great deal of skepticism. I have used Markham's recommendations to invest in stocks from the middle of 2000 through the middle of 2001 (when I liquidated my portfolio). Unfortunately, I cannot in good faith recommend this system for a novice investor (like myself), as I lost 65% of my beginning investment using this system exactly as specified.

There are several major problems with Markham's investment strategies for the novice investor, but most notably, there is a lack of discussion of risk and return, and an overemphasis on the use of these mechanical systems without what I consider to be proper testing. Markham only uses data that goes back 14 years (to 1986) to test this system. Why? Given the poor performance of these models over the last year, it's probably because these systems perform badly prior to 1986. I am not accusing Markham of being dishonest, but the narrow window of time over which Markham monitored the performance of these systems is suspect.

Using the Supermodel system requires the purchase of a significant stock spread, usually 10-15, to minimize risk. Most beginning investors do not have enough capital to invest in this number of stocks, and will select two or three, which substantially increases market risk. Beginning investors with less than $20,000 to invest are far better served by investing in broad index or even sector mutual funds.

I should mention two additional red flags: (1) Markham used to publish the results of Supermodel picks, but once the models started doing badly, MSN removed these results from the visible public view. They may be on the website somewhere, but I am hard pressed to say where. (2) Many of Markham's own stock picks have largely turned out to be atrocious money losers.

Caveat emptor!