Customer Reviews

Trader Vic II: Principles of Professional Speculation (Wiley Trading)

5 star:		(17)
4 star:		(4)
3 star:		(1)
2 star:		(2)
1 star:		(1)

 

 

I rated Vic I a 5 stars. However, I dont see any reason for the existence of Vic II, which just primarily repeated what had been covered in its predecessor. Hope you had read this review before you buy and read Vic II. Just go directly to Vic I! It's a great read.

I was looking over the past reviews for this book, and noticed the one about Sperandeo's need for a formal education. I disagree completely. I have an MBA from Wharton in Finance. Mr. Sperandeo's command of economics seems rather sound. More importantly, Mr. Sperandeo delves into areas that academics won't delve into and give crucial information on developing a winning trading strategy. Take time to read this book if you are serious about the market.

This book has some strong ideas and analysis on economic fundamentals, credit and business cycle, macrofundamental forecasting, political influences on business and the economy, the effects of taxation on the long term trend, GNP and the dollar. But you find most of this stuff in the first book by M. Sperandeo, and I really don't see the need for another book on these matters. What's the purpose here? The first one was written about investors and traders, and this one was written about speculators (as their respective titles would suggest)? The big questions remain the same, but what differs is the approach?

On the other hand the 25 pages on options trading alone made this book's price worth paying, at least for me. I wish that M. Sperandeo had written more on options and I hope someday he'll write an entire book on options and futures alone. Now that might really be worth it!

Anyway, Victor Sperandeo remains one of my favorite trading bookwriters. When it comes to combining trading and investment ideas with analysis and presentation simplicity, I still do think that he's one of the best out there.

I'd like to comment on 2 things. First of all, Mr. Sperandeo is no joke and he has done all the things he says - He's not just some guy who writes books like a lot of so called "traders" out there. (there are WAY too many to name...!) Secondly, the 'reader' who commented on Mr. Sperandeos lack of formal/university education really has no clue as to what trading is or how it works. Plenty of traders "on the floor" have no extensive schooling. I don't & I traded options on the floor of the Amex (MY $$ - Not a firms) along with many other men who made high 6 figure incomes. Don't be so quick to criticize.

Mr. Sperandeo's books belong to the classics of trading literature, and yet or perhaps of this, they are not as widely known as they deserve to. They combine a superb research, common sense, and straightforward approach to trading that are far from ubiquitous in the literature that more and more frequently revolves about esoteric nonsense, hype, and self-promotion. Not so in these books, written by a master trader and fund manager with outstanding credentials. Anyone aspiring to successful trading should give these books more than a cursory consideration. There is something for everyone in his books, from beginners to advanced aficionados of trading, so nobody will feel disappointed. Their scope is broader than in many other books on trading, which certainly reflects author's great erudition. His gentle style and numerous personal stories from his trading career guarantee that the books are a pleasure to read. These are books that you may want to revisit time and again to learn more or to get a new perspective on things. There is some overlap between Vic I and Vic II, but definitely not great enough to dismiss Vic II as a rehash of Vic I. I recommend both of them highly to all of my clients and to everyone interested in intelligent, particularly long-term, speculation in the financial markets.

This book has been read and re-read many times over. It has gone over with multiple highlighters. The material is solid. It is a little rehash of Trader Vic I but still is awesome material. I use it consistently as a reference guide. I am always learning things from it. Having said that, I do not consider myself a successful bottom line trader, nevertheless, an intelligent one. I don't trade for a living or even on the side anymore, but this is one book I won't donate to the library.

This is a book you want to keep and never loan out. It can be read over and over. I liked the section regarding "time of day" which is crucial for short term and day traders.

The praise for this book by many professionals( e.g. Tudor Jones) is well understandable. Victor adds material to the one he has presented in his first book, and thus makes this one an even better read. His often cited calmness can be witnessed in his hardly matchable humour- and the excitement he has for superior returns on investment captures the reader, experienced or not , fast.

A very good follow-up and extension of Mr. Sperandeo's earlier work. This work too, is based upon research and experience, and extends the current knowledge regarding life expectantcy profiling, modern Dow Theory applications and other critical matters. One might normally have an appreciation of this author's generousity and a respect for work that contributes so significantly. An important book.

The options section pays for the entire book. I read through the section every time I put on a questionable trade, so I can see if I've done something wrong. But options aren't the only thing he gives you in the book.

What I really admire about Trader Vic is that he is willing to state his disagreement with something and then admit it's possible validity. He gives charts that work for him after telling the story about an indecisive chartist he hired, who could never give him a sure answer. He gives some fundementals to look for. His offering is a wide variety that aims to help amateur and intermediate traders expand their world view on the markets and for me it made me realize what I was doing.

I have to go back to the options. I almost exclusively trade options. I've tried my hands at futures, I like them, I like Futures options, and I like stocks, I doubled my first 2,000 dollars, trading just stocks during the first part of the rally in 09, but options have not only been my bread and butter, they've not only reduced my stress while trading, they are the one instrument that goes with my personality. In trading, that's all that matters, anyone that tells you differently is a fool. Any system can make anyone money, as long as that system goes with the person. His four rules for option trading are golden.
1. Keep Trades small: 2 to 3 percent of your risk capital. (I started out with five, going as high as fifteen due to my limited capital and now trade about 3 to 10%, usually 5% again).
2. Trade only when the odds are in your favor. (Honestly, options is strictly a game of odds and percentages, it's how I taught my friends to trade them. With the two encyclopedias by Thomas Bulkowski on Chart Patterns and Candlestick Patterns, you can really game your percentages even better.)
3. Trade only when the potential payout is at least 5 to 1. (Honestly great advice, it gives you a wide girth for being completely wrong, I personally cut my losses at 30 to 50% depending on how much I've invested in the option)
4. Never buy just because the price is low; never sell just because the price is high. (This is not to be confused with don't buy low valued options. Some of my top trades have come from such arbitrage opportunities).

I am truly impressed with this work, and believe it can add another level to any traders trading.