The Stock Trader: How I Make a Living Trading Stocks [Hardcover]

Tony Oz (Author)

Book Description

ISBN-10: 0967943507 | ISBN-13: 978-0967943503 | Publication Date: July 21, 2000

"Put your money where your mouth is," came the challenge. So he did. Best selling author, Tony Oz, was challenged by Tim Bourquin and Jim Sugarman, founders of the International Online Trading Expo, to prove that his stock trading strategies work, that he could consistently take higher-than-average returns out of the market. To meet the challenge, Tony kept a trading diary for four weeks, documenting each and every trade he made. The simple story that unfolded turned out to be of much greater consequence than anyone could have foreseen, as Tony chronicled a first-hand description of one of the worst stock market crashes in recent memory. Tony was already into his four-week trading challenge at the peak of the Nasdaq market, just before the Crash of April 2000. Having no idea at the time that he was in the middle of a “correction” that would wipe out over two trillion dollars of stockholder’s equity, Tony managed to earn respectable profits each week, and had only a few losing days. What is truly extraordinary is that all trades were on the Long side – not one trade was selling Short in a rapidly declining bear market. The results of the challenge are detailed in this exciting new book. Inside, Tony tells how he chose a broker, set up an account, and then drew a handsome income from the stock market each week, earning a 56% return on his capital in one month – more than most investors earn in a year. Over 100 round trip trades are recorded, charted and explained in a daily trading journal. Tony reveals what he was thinking and feeling, and he explains each trade’s strategy, and his profits and losses - all the while walking the reader through his simple methodology and simple rules. At the end of each week, he ordered a check from his broker to “sweep” his account, and prevent compounding of profits. “After all,” Tony explains in the book, “Friday is payday."

Editorial Reviews

Review

This book is a MUST read for all daytraders. It is a practical and entertaining book. I strongly recommend both of Tony's books to all my daytrading students. -- Professor Zayas-Bazan, Miami-Dade Community College

This book is written in an easy to understand format that all can enjoy. It will help many traders - Beginners and Veterans. -- Chris Wheeler, President DaytradingStocks.com

From the Publisher

Electronic stock trading has become one of the most lucrative and accessible professions in today's computerized world. Stock trading is the career of a new generation, and stock traders who enjoy complete control over their own income, working conditions, and careers are today's upcoming entrepreneurs. When you add up fast executions, electronic access to information, and a state-of-the-art computer systems, it is easy to understand the gold-rush of the 21st century. The question is can anyone do it, or is stock trading just another form of gambling, a sure way for the unlucky to get to the poor house? In the book, "The Stock Trader," author, Tony Oz, answers this question. He shows the readers how a professional stock trader makes his living during a 31% market crash. Mr. Oz is providing the readers with the picks and shovels, so they, too, can find the gold they are searching for. If you think stock trading is gambling, this book ought to change your mind! for good!

See all Editorial Reviews

Product Details

• Hardcover: 279 pages
• Publisher: Goldman Brown Business Media (July 21, 2000)
• Language: English
• ISBN-10: 0967943507
• ISBN-13: 978-0967943503
• Product Dimensions: 10.4 x 7.4 x 1 inches
• Shipping Weight: 1.8 pounds
• Average Customer Review: 4.4 out of 5 stars  See all reviews (40 customer reviews)
• Amazon Best Sellers Rank: #422,368 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

46 of 46 people found the following review helpful:

4.0 out of 5 stars Interesting and Useful, October 10, 2002

By 

Charles Miller (San Jose, CA USA) - See all my reviews
(REAL NAME)   

This review is from: The Stock Trader: How I Make a Living Trading Stocks (Hardcover)

Don't read this book if you are looking for esoteric set-ups and tricks that you can use in today's market. Do read it if you want to sit with a successful trader and get a hint of what it's like to live by trading.

Mr. Oz impressively made 32% on his account during the crash of April 2000 when the NASDAQ dove by 30%. He did it without shorting and by trading only the hard hit tech sector. The strategy he used was basically the "buy on the dip" technique that worked so well during the historic run-up. However, this feat is not the "take-away" from this book.

The real lesson is risk management. First, Tony is ruthless about leaving bad trades without afterthought or regret. Even when the stock bounds up shortly after he sells, he affirms that he did the right thing by exiting when he did. He always enters a stop loss as soon as he enters the trade, and raises it as soon as feasible. Those of us who have learned this lesson the hard way can only admire his intestinal fortitude. Second, Tony almost never hits his target for a trade. He almost always exits sooner, but he preserves his profits. Mastering these two seemingly simple lessons is what separates the real money-makers from those who finance them.

66 of 69 people found the following review helpful:

4.0 out of 5 stars a snapshot of thirty days of trading, April 4, 2002

By A Customer

This review is from: The Stock Trader: How I Make a Living Trading Stocks (Hardcover)

The author accepted a challenge to open an account with $50,000 and trade for one month, which resulted in this book, where he documents each trade and the associated chart pattern. He made over $22,000 during this challenge, if you include positions he opened but did not close until shortly after this time period.

In understanding this book, it is critical to recognize the period of time that he was trading. This was essentially the very end of the biggest bull market in history. Much has been made of the fact that there was a huge NASDAQ crash during his trading window and he was only trading to the long side. However, during this volatile period, the NASDAQ also made huge rebounds from some of these selloffs. A trader always prefers volatility, which is what creates opportunity.

The author's trading strategy was to buy expensive tech stocks (over $100 a share) based solely on support and resistance levels and look for gains of 1, 2, 3 dollars a share or so. He was essentially playing the old day trader's "momentum" game, which is now just a memory. The tech stocks he was trading now sell for a fraction of what they were, for example, five dollars now instead of $120 during his trading challenge.

One must also understand that during low volume, low volatility markets that are not strongly trending, support and resistance levels often are not present. We are currently in such a market. Could the author trade successfully in today's market environment? Possibly, but certainly not the levels of success he obtained during his challenge.

One of the real values of this book is the author's religious use of stops. Until a trader understands the importance of cutting his losses early, he has no hope of succeeding. I also commend the author for documenting his actual trades, which should be a requirement for anyone writing a book on trading. I would suggest that any author of a trading book should be legally required to submit his prior six months trade confirmations, their accuracy guaranteed by a certified third party.

As a final comment, I would note that the book represents only the end results of an experienced trader's work. It never mentions the long journey required to get to that point, particularly having to overcome numerous mental and psychological obstacles.

37 of 39 people found the following review helpful:

5.0 out of 5 stars Don't pass on this one, August 22, 2000

By 

Matt Kreegar - See all my reviews

This review is from: The Stock Trader: How I Make a Living Trading Stocks (Hardcover)

Many authors write books about trading for the sole purpose of marketing training or website access. Tony's books are different. They provide in-depth information that is clear and concise. The Stock Trader is the perfect compliment to his first book, Stock Trading Wizard. I found it to be absolutely fascinating and accessible for those with trading experience. It actually enhances my understanding of the first book because it adds the hands on insight which is so critical. The first book dealt with Tony's rules for trading. It's sort of like ground school when learning to fly an airplane.While this is the essential foundation of trading one also needs to see these rules in action. His new book does this perfectly. We move from ground school into the flying plane and get to see every move.

As each trade unfolds all of the nuances of Tony's trading style become clear. He uses simple, easy to recognize, support and resistance coupled with effective analysis of Nasdaq level II and the major indices to find and execute high probability trades. This doesn't make successful trading easy, but as Tony says it does make it "doable". For me it also reinforced one of life's essential lessons: The simplest effective solution is almost always the best solution.

In many respects Tony has taken the methods first illuminated in Reminiscences of a Stock Operator and showed us how to apply them utilizing today's technology. The information contained in The Stock Trader coupled with his Stock Trading Wizard are all experienced traders need to develop a successful trading style.

Matt Kreegar