Customer Reviews

Prechter's Perspective: Conversations with Bob Prechter, Legendary Market Theorist

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In this interview-style book published in 2004, Bob presents his own perspectives on subjects as far-ranging as Elliot Wave Principle (obviously) to the way he believes that the 'normal' cause and effect relationships people take for granted in a market environment (and the world in general) are actually inverted.

As well as a detailed and personal discussion of the application of Elliott Wave in the context of the practical uses in actual trading, Bob gives some simple but excellent rules for trading in general. These include:

* Having a method
* Having discipline
* Gaining experience
* Accepting responsibility for your actions
* Accommodating losses
* Accepting huge gains

Although an interview format book is sometimes difficult for some people to extract the true `value' from, it is well worth the effort of studying this book since it can give you some useful insights into things that you may currently take for granted as `truths' that are actually detrimental to your trading performance.

The main novel theme in this book is about Bob's concept of `Socionomics', where social mood and psychology are the result of movements in the markets not the other way round. Believing that the market goes down because people are depressed, for example is a complete reversal of the `conventional wisdom' and thinking about it deeply can lead to some interesting conclusions and beliefs that have a significant practical impact on how one approaches trading.

Discussing specific approaches to trading, and how Bob thinks about them is a useful and informative look into the trading methods of an obviously accomplished and passionate market participant and also gives a context for the application of Elliott Wave Principle. All-in-all it should be considered a very worthwhile read.

Robert Prechter is a genius who has glimpsed deep into the heart of nature via his continuation of the ground breaking work of Ralph Nelson Elliott. He is a responsible steward of this knowledge and presents his analysis of Elliott waves in a concise and understandable manner. This book is invaluable to anyone who is attempting to gain not only an understanding of Elliott waves as it applies to the market but to over arching societal trends. This book is a gem as much for social scientists as for market researchers.

Even if you agree or disagree with the Elliott wave theory, it cannot be denied the increadible wealth of knowledge of history, markets, economy and social trends that Mr. Prechter has. For this reason alone one should read his work. Not for trading (or if you do, use his recommendations with a genuine trend following filter for the big calls like a multi-month breakout signal) but to open the mind on how forces can affect the stock markets. In my professional life I met only another major technical analyst with even a superior knowledge of the markets and that was Mr. Ian Notley. Charts must make sense and that is only possible when one overlaps them with macro indicators, cycles and yes, long-term elliott waves. Can I recommend also to look at the Kondratieff wave theory updated work by the "Long Wave Analyst"?

Just like the previous reviewer pointed out, it is set up like an interview. He answers questions about psychology, fundamentals, society, predictions of the future, and of course using Elliot Wave - particularly trading strategies. I liked the fact that he covered option trading strategies. I respect Precter's viewpoints and philosophy but have never subscribed to his Elliot Wave forecasts because he keeps calling tops too early.

Robert, uses trends in society. He also uses the "Elliot Wave Principle." It was very interesting.

The book is set-up like a interview. It's easy to read. A introduction about Prechter and his techniques and how he times the market.

I learned of Prechter from a Tony Robbins interview.

Prechters view is markets peaked in wave 5 in year 2000.
Never called the bottom in 2002, and stated the
high of year 2000 would not be surpassed.
Well 7 years later the DOW has indeed surpassed the year 2000 high!
High of 2000 was ~12000, today it is nearly ~14000 !

Listening to his advice would cost one dearly.
Not only missing out on the recent market rise, but also constantly
pushing one to take a bearish stance against the market during the
entire rise over the past 5 years!