Customer Reviews

Stock Market Stratagem: Loss Control and Portfolio Management Enhancement

5 star:		(10)
4 star:		(1)
3 star:		(0)
2 star:		(0)
1 star:		(1)

 

 

I agree with other reviewers that this book deserves 6 stars. Over the last 30 years, I've accumulated a lot of investment books but this is the first I've seen that has a chance of withstanding the test of the many varied business cycles over time. I note that this book has been selected as a text for several "practical" college investment courses.

Here are the specific reasons I like this book:

First, this is a book about lifetime investment principles for the DIY individual investor. Glett's idea is to devise easy-to-use techniques to take advantage of high growth stock market opportunities while minimizing possible losses with "risk control" strategies. Central to both concepts is the notion of diversification, where a portfolio of stocks are developed that maximizes the opportunity of finding a few big winners (doubles and triples), while limiting the number of losers to a tolerable few.

Extensive knowledge of economics or financial analysis is NOT required. Rather Glett advocates letting the market make the key buy/sell decisions. To provide insight, the techniques are explained using paper-and-pencil with public data from the web, but suggestions for simplifying the process using professional computer software are introduced as well.

An actively managed portfolio is advocated, where market conditions dictate what and when to buy and to sell. It is a "contrarian" strategy with a twist. It advocates the selection of low profile stocks in emerging market sectors rather than just the big names. It is also a "momentum based" strategy with a twist. Glett's "Reverse Scale" strategy advocates allowing winners to run, while losers are cut immediately. The twist in each case, however, is that its diversification and loss-control strategies are constructed to reinforce each other to minimize risk as defined by the investor. One of the key outputs of this strategy is the discipline to execute a stop-loss order within minutes after buying the stock to guard against subsequent "unreasonable exuberance."

Glett advocates the use of technical (charting) techniques to determine a stock's trend in order to quickly narrow a list of potentials to a select few. Charting is also useful in determining loss-limits. Financial and fundamental data are then used to gage the trend's sustainability.

And finally, techniques are developed for recognizing the onset of a bear market at which point the portfolio goes into limbo where winners continue to run, but losers are not replaced. A technique for knowing when to safely get back into the market is also presented.

Author Braden Glett is bold enough to take on not only efficient market theory and index funds, but also the investment approaches advocated by such luminaries as Peter Lynch, Warren Buffett, John Bogle and their ilk. Although Glett does not name these names, he finds plenty to disagree with in almost every popular or conventionally recommended investing strategy. That makes this book provocative and interesting. It's always good to see conventional wisdom shaken. However, the author writes in a very difficult style, and his message hits various grammatical and logical road blocks due to a shaky editing job. With that caveat, we believe that investors and traders may want to check this short book, as long as they take the author's recommendations as opinion - he offers little in the way of solid research to back his contentions, but he raises some potentially useful doubts.

I wish there was a 6 star review - this book deserves it. I came across an on-line article written by Mr. Glett some time ago. I was so thrilled by what he had written I just had to send him a complimentary email. I was delightfully surprised when he answered. That comunication lead me to discovering his book, Stock Market Stratagem. And wow, what a wonderful book it is. As a middle-aged person just finally getting around to begin investing (hey, better late than never), I had bought and read a plethora of financial investing books before I found this one. And it quickly became my favorite, my most trusted source of investment information. It's simply superb. Mr. Glett writes in a most engaging style, it almost feels as though he's talking to you, one on one. His insight and take on what many of us were raised to believe as gospel is a refreshing change from those pot-boiler books flooding the market. I would rate Stock Market Stratagem way up there on the list of books you just have to own as you travel through life. It is packed full of wonderful advise and wisdom - you will not be sorry investing in this book (no pun intended). I highly recommend it.

If you had the opportunity to purchase only one book on stock investing, this is the one to have. I know of no other book that covers all the bases as well as Stock Market Strategem and I've purchased and read hundreds. All but 9 live in boxes in the basement. If you're new to investing or even if you've had some experience and success in the market you can improve your performance and returns. I sincerely believe that this book is destined to be a classic.

This book is very helpful. It has specific instructions on how to minimize losses in your portfolio so that during bear markets you will not be watching your stocks go down. Instead you'll be in cash waiting for the momentum to begin again.
There are specific instructions indicating when it is safe to get back in the market, and on how to pick rising stocks, how much to invest in each one so that if one does go down you won't lose your shirt.
The most important concept is a loss control plan. Glett shows you how to put it all on paper, so that when the time comes to invest you will know when, how much, and when to bail out.
The directions are easy to follow, even for the lay person. He makes a special effort not to use professional jargon. I like this book very much and refer to it often.

Whilst browsing the net in January 2003 I chanced upon some of Gladen Bretts concepts on investing in stocks in the US stockmarket. I emailed him seeking some elaboration and clarification. He was generous in his assistance and also advised that I obtain a copy of his latest book - Stockmarket Stratagem.Thank goodness I did so.I had read numerous books and articles on stock selection and management by US, Australian, NewZealand and British authors and "gurus" up to that point but found it difficult to distill a well reasoned, simple, pratical stratagem from their writings although ironically the authors impressed the importance of having such an approach to investing.Braden Gletts stratagem has these features. I began to apply it in the context of the Australian Stockmarket in April 2003 and to date my portfolio has exceeded my most optimistic expectations. As gratifying as this is the most valuable features of Mr. Gletts strategem are its simplicity and risk management principles which give the small private investor the wherewithal and the confidence to go it alone. By far the best stock investing book I have read - a real blueprint for investing.

Braden is a fabulous writer. Thanks to his wisdom, I have made decent amount of money on Indian markets. It was only after reading his book that I was convinced that investing in stock markets is far from rocket science. I have not only invested myself after reading his book but have also enthused many of my acquaintances to undertake investing. USP of Braden is that he has an enviable knack of simplifying seemingly complex things. The insights that he has developed in this book equip even a novice investor with sufficient knowledge to undertake wise investments. A must read for all.

I found this book to be very easy to understand. It contains information that you won't find elsewhere and has really changed the way I buy and sell stocks. I highly recommend this book for anyone who wants to manage their own money, and do it well.

I've been trading in the markets as a technician for over six years now. In that time I have read O'Neil, Livermore, Elder, Tharp, Link, Vic, Weinstein, and many other great authors. None ever provided a single, 'secret' formula for cornering the stock market, nor did I expect them to. They did, however, provide great insights and concepts that every future successful investor needs to consider. Braden Glett does this very same thing with Stock Market Strategem: he presents some great ideas, and provides his personal approach to the subject.

I recommend Stock Market Strategem simply because it discusses subjects that many investment books don't even bother to mention: risk management, for example, and his method for exits (even though I would never use his exit approach, for reasons beyond the scope of this review). Does Mr. Glett present some holy grail, end-all-be-all solution to investing? Of course not; nor should you expect him to. He does, however, honsetly provide great material that you and everyone else should consider prior to risking hard earned money.

Individuals looking for a single book to tell them how to make a fortune in the stock market are in for a bumpy ride at best, and will inevitably lose much money. People who understand that investing is a lifetime endeavor, however, will realize that this ambitious little book is a gem in the rough, deserving to sit beside the texts of the many other great authors that you will (right?) inevitably study as well.

In Stock Market Strategem, Mr. Glett presents one watered-down method for the long/intermediate term investor who wants to actively manage his portfolio. While this method is not for everyone, simply because there is no single method that fits everyone, I do admire Mr. Glett for his honest approach to the subject. I say this with all sincerity, having no connection to the person whatsoever.

The above having been said, I wish you the best of luck with your decision regarding the purchase. And best of luck with the trading/investing as well...

I always knew I needed some plan for investing. I was searching through internet, books but unsuccessfully. Until I have found this book. The book is great not only because it is talking and advising on investing into stocks, but it provides a complete step by step tutorial on how to create an investing plan and loss control plan (money management) and this is invaluable since I was not able to find such information anywhere else. It gives the best explanation on how to protect investor's investments an money, how the correct stop loss shall be used and many other great stuff. I read this book several times and created my investing plan, stock selection system, exit plans etc. I also created my own blog which serves me as a journal recording how I am doing on implementing this strategy described in this book. I must say that this is really the best book I have ever read. [...] I just have started investing couple months ago with some rules and discipline and I am still learning. Until then I was collecting loses only.