Those who can ignore the rather garish cover on this book will find a solid, straightforward guide to making winning trades in even the most bearish of markets. The author, who millions of insomniacs know through his middle-of-the-night infomercials, writes with a highly personal voice that some may find a bit grating, but his rags-to-riches story is compelling and needs to be told.
In a nutshell, Michael Parness went from living on a park bench in Brooklyn to a summa cum laude degree from Hunter College in New York City to founding a successful sports memorabilia company. After making $150,000 in that business, he followed his broker's advice in 1998 and ended up losing virtually his entire nest egg. Since then, he has invested carefully after studying media reports and understanding "market psychology." Now a broker-averse multimillionaire, he shares with readers a number of strategies that have worked for him in both bull and bear markets.
Augmented with exercises that truly help readers determine their own level of risk aversion, this guide shows online traders and, particularly, investment clubs exactly how market psychology drives daily and cyclical market moves. As Parness says, "I'm not mechanical, and I'm not good at figuring out technical stuff like computers or plumbing or chain saws, but I can figure out how things measure up in terms of probability. And probability is what trading is all about."
A few too many ka-chingos and wowsas mar an otherwise informed writing style, but nevertheless the book offers some excellent insight into how the market actually works, and how one can make money using that insight. Those looking for a serious study of economic trends and forecasts may want to look elsewhere, but readers interested in a breezy, anecdotal read about market bubbles and bursts will be entertained and more than likely enlightened. --Charles Decker
From Library Journal
An erstwhile playwright/screenwriter who became a multimillionaire through online trading, Parness provides a Gen-X view of the stock market. His loss of working capital owing to "expert" help and his success in doing it on his own temper his views. In truth, Parness covers little new territory this is Investing 101. Leslie Masonson (Day Trading on the Edge, LJ 1/15/01), who outlines the pros and cons of day trading, goes several steps beyond Parness. While Parness does make a number of well-founded recommendations, explaining that investors must learn from loss and understand the cyclical nature of the market, he offers little beyond the "Motley Fool" newspaper columns (and web site) by Tom and David Gardner. Libraries with other recent investment guides can readily do without this book. Not recommended. Steven Silkunas, Southeastern Pennsylvania Transportation Authority, Philadelphia
Copyright 2002 Cahners Business Information, Inc.