118 of 122 people found the following review helpful
This is the best book on trading techniques that I have ever read. It is based on how to do "stage analysis," that is, looking at charts to determine whether a stock is going up, topping, declining, or bottoming out. The author stresses using stage analysis not only on individual stocks, but also on industry sectors as well as indexes like the Dow and Nasdaq.
I cashed out of my stocks three weeks before the recent Dow and Nasdaq declines, simply because, as luck would have it, I had just finished studying the chapter on spotting market tops. All the signs that Weinstein laid out so neatly in that chapter were apparent--it was truly a textbook case.
Anyone doing trading should know the information in this book....it's very basic, as the author teaches the minimum you need to know for success. But it works, and the information is presented clearly in very readable, friendly prose.
59 of 60 people found the following review helpful
on May 31, 2000
Reading this book will tell you a simple, effective way to trade on charts. No nonsense, no complex indicators, no sigma notation mathematical sequences, just basic, effective trading techniques.
It is for longer term trading, perhaps 3 months or more, depending on how long the stock trends upward. This is probably the best longer term trading method I have seen. It is so basic you may already know most of it (unless you are just starting), but this book puts chart reading into a simple, practical method that can be mastered. One of the problems I had with CANSLIM was when to sell. Reading this book will give what I consider a good answer on when to take profits. And, like the book says, go short.
I wouldn't say Weinstein's methods are "secrets," they are just 100% common sense, and very effective. CANSLIM investors may find this a very useful book on expanding charting knowledge.
It is one of my favorite trading/investing books.
33 of 33 people found the following review helpful
on March 3, 1997
To anyone who wants to beat the market and improve their success rate by learning and using Technical Analysis this book is a gauranteed way to get started. Its written in simple terms, has excelent examples and offers advice based on time-proven methods.
Compared to other similar tomes on this subject it uses no math or formulas but relies on actual charts of stocks. The method teaches how to view price, volume and trend data so that stock picks yield winners 60 to 80% of the time and with gains (for me) 2x to 10x!
It also provides lessons on the how to cut losses and how to learn the discipline of selling for maximum profit.
This is a book which can (and must) be reread over and over as one gains expertise at Technical Analysis. The methods learned provide logical procedures which eliminate the hype of the stock market and turns the hype into profits.
Weinstein's motto of the "Tape Tells All" is the foundation
for success because it places stock action as the primary source of information over OPINION.
25 of 26 people found the following review helpful
on September 11, 2005
This book is by far the most outstanding book on investing that I have read and owned. Simply because, every technique, every statement Stan writes about has absolute clarity and no need for interpretation. Plus all these techniques can make you real money, as it has done to me.
This book is about technical investing. So you may pooh at high PEs and buy; likewise, low PE stocks may not be the right opportunity. Technical analysis of stocks study the supply/demand equation more than anything else. Stan believes that you can make money either in a bear or a bull market as the title says.
One of the biggest vaccuums in an amateur investors array of techniques is filled by this book's extensive coverage on shorting. Once you read this chapter, you will agree that shorting is as much a risk as buying long itself. Stan combines buying/selling short with excellent risk management techniques - the key to keeping sanity and preserving your portfolio from those two universal fears in investing - fear and greed.
The book discusses when to buy, how to refine the buying process, when to sell, selling short, recognizing market tops and bottoms all in a manner so clear that you won't have to read a sentence twice for the sake of understanding alone. The quizes at the end of each chapter are meant to reinforce your understanding and I think it is a great idea.
Though this book was published in 1988, every bit of it is relevant today and will be 100 years from now. In my 9 years of investing, I had gotten carried away with such classics as the 'The Intelligent investor' by Benjamin Graham and held onto its views for most of these years only to see very little profits - it didn't work for me at least. Switching over to CANSLIM'ing (read William O' Neal's books in this regard, click on all my review against my name to see my review on one of his books) and further coming across this gem from Stan Weinstein's has helped me be ahead of the averages this year. Moreover, with these books my decision making has matured and I have seen real profits. The emotions in investing are going away and that is a tremendous progress for an amateur.
Don't even think twice about whether to add this to your library. Just buy it. If you are a serious investor/trader, this book is worth its weight in gold!
25 of 26 people found the following review helpful
on July 18, 2002
In the past 6 months, I have bought and read over 15 books on trading and investment (Van Tharp, LeBeau, Nison, Oz, O'Neill, Murphy) and this is by far one of the best books out there. At first, I was reluctant to purchase this book based on the date of publication (Pre 1990). But, as other great trading books, this one is a classic that should be in every library of technical investors/traders at an extremely affordable price.
- Very practical, systematic and clear. Excellent communication. You don't get bored reading it.
- Sound trading system.
- Stan's stage analysis is a tremendous help to separate the stock price movement in stages. Very valuable insight.
- His stop loss explanation on both and long are extremely valuable and clear. He explained it in a step-by-step fashion. This alone can save you $$$ by locking-in your profit.
- Other excellent explanation: important chart patterns to be considered (he only selects the best ones), volume analysis, importance of Relative Strength and moving averages. What to buy, When to Buy, When to Sell, How to Short....And he separated those key processes between Traders and Investors. So, you will have a clear understanding of what to do. A step by step explanation on how you can find the A+ stocks using his "Forest to Trees" approach.
- Excellent Quiz & Answers and the end of each chapter that tremendously re-test you understanding of the important concepts.
If you're a beginner or intermediate, this book will certainly give you a huge boost in mastering chart reading as well as execution. Unlike any books that sort of short in explaining one critical area, I find Stan's book very clear and entertaining as well. It opens your eyes on what to look for in a chart.
38 of 43 people found the following review helpful
on November 24, 1999
I have spent more that 1500 dollars on investing books. What a waste of time. If this were the first book I ever purchased I would not have needed to purchase another. This is the only investing book you will ever need, but you will need to subscribe to a decent charting service like tele-chart 2000 to get the full advantages of the book.
18 of 19 people found the following review helpful
on November 21, 2003
Out of the dozens of books I've read revolving around technical analysis this is still the one I recommend to people who show an interest in learning TA. I first read this book in 1989 and it's still as valid today as it was then.
Weinstein writes in a very accessible style. And he includes just the topics that are necessary to be successful with TA. No complex techniques that may or may not add anything to your trading results. Just the solid and steady core techniques that will let you pick out profits from the trend. Any techniques I've adopted since 1989 have just been additions to what I learned in this book, not replacements.
This book is more for the position trader than the swing trader. It's all about riding Stage 1 (stock going up) and Stage 4 (shorting or avoiding stock going down). If you've read Nicholas Darvas' How I Made $2,000,000 In The Stock Market you'll notice that Darvas basically stumbled on some of the core principles that Weinstein describes.
This book really doesn't have any secrets. It's just that Weinstein kind of follows the 80/20 rule. 20% of TA techniques give you 80% of the profit. Most other books confuse people by jamming in the other 80% that only gives you 20% extra and losing the core principles in the process. With Weistein the core principles stick out like a sore thumb.
76 of 93 people found the following review helpful
on September 15, 2005
The book is a fun read. It describes Mr. Weinstein's chart breakout method. The problem is that Mr. Weinstein does not provide a track record of his method in the book. I was able to find a 1998 reference from the Business Week website citing a ten-year return of his now-defunct Professional Tape Reader service of 7.13% per year. The S&P returned approximately 15% per year over the same period.
Interestingly, the New USA Fund, established by David Ryan, and using another breakout strategy, that of Investors Business Daily's CANSLIM method, posted only a 3.14% return per year from April 1992 to May 1995. This was after he had won some U.S. Investing Championships with over 100% gains. This fund is now defunct.
When you look at charts of stocks that have had big runups, you will often find a breakout from an area of consolidation. The problem is that careful examination of charts of stocks in general will reveal these same patterns, often not followed by a big price move. Any decent method will show periods of spectacular return, but the vast majority won't beat the indices long-term.
The main value of this book, in my opinion, is reinforcement of the importance of risk control and exit strategy. Don't buy this book expecting to find the Holy Grail of investing.
12 of 12 people found the following review helpful
on March 6, 2004
"The Tape Tells All" The Professional Tape Reader published by Stain Weinstein (the author of this book) As the title of Weinstein's suggests he analyzes stocks via technical analysis.
I believe this book and CAN SLIM can work together or you can use them separately. In fact I was surprised at the number of things that were similar in Secrets for Profiting... compared to How to make money in stocks. Things such as "Buy high, sell higher," ignoring P/E ratios, Relative strength, cutting losses etc... it was a very good book to confirm that the CAN SLIM methodology works.
There was one glaring difference between CAN SLIM and Weinstein's methods. Weinstein doesn't care if a stock is making money or not, in fact he just buys and sells based on the technical analysis of stock charts.
This book is full of quizzes charts, practical examples and easy to read definitions. And I believe this is a great addition to our bookshelves. I know it is a book I will refer back to.
12 of 12 people found the following review helpful
on January 19, 2002
The author's investment philosophy is based on the view that nearly all stocks experience four price stages:accumulation(stage 1), uptrending (stage 2), top area (stage 3), and downtrending (stage 4). Therefore, an investor, he says, has a high probability of success if he or she enters the cycle just before the stock moves to stage 2. Then he explains how to select a stock by simply studying its price/volume chart and how to time your entry. He addresses the issue of fundamental vs technical analysis. He explains that technical analysis is much superior over fundamental analysis because technical analysis incorporates future information that is not available to the average investor on a timely basis.
I found the book very clear and very helpful in selecting winning stocks with less stress. I read several books but this one is the best of them all.