Average Reviews:
(More customer reviews)I found a couple of things, I would like to share with potential buyers of the book.
I also live by trading, managing others money.
With a team of 3 programmers, we do proper research. We read, study and
test academics articles, conferences presentations, etc.
I can be considered competent on this topic. It is my profession.
- I don't think the technique presented in this book works in a scalable way. It is too simple. If it works, it works only for
small caps.
The book suggests to limit stocks to 10,000 daily volume for $5 per share stocks, that is $50K per day $Vol. That is the limit.
That is min. about $7K transaction per hour. Suppose you have an account of $200K.
You want to buy 5 companies, so you have to buy $40K per company.
You cannot seriously buy stocks with $50K daily $Vol.
- I believe, much of the author's real life success depends on his execution of the trade
(actual buy/sell, setting ask-bid prices, etc.) He also admits that 'actual trading' is an art;
Don't expect that you learn this art from this book. You can learn it only from practice.
- the book is against dept, but if you have a vision from God (if God talks to you, like he talked to Jacob),
the book strongly recommends to leverage your position.
- the book says it is immoral to short stocks, but buying a bear ETF is right.
- it is about 200 pages, but there are many blank pages, and a way too many pages that are repeated.
Literally, pages over pages that you have in one chapter are repeated in the next chapters.
The whole strategy of the book can be summarized in max. 10 pages.
200 pages are an overkill.
- the chapter about performance measurement is a joke. Or I can put it more nicely:
don't expect rigorous backtest or proof that it works.
Transactions over the periods, or performance charts, Max. Drawdown, Sharpe, or other statistics.
All missing. At start, the book say, you have to be invested in only 'favourable' periods.
And it fails to convince me it can pinpoint the exact peaks and valleys of the market.
- also the VIX timing is just cannot work so nicely this way and it is not precisely presented.
At least the book fails to present the precise formula.
('anticipate about 49 days periods' (but there were exceptions from that), 'anticipate about 1 year lookback'
(but there were again exceptions))
- be warned that you have to update the excel table manually with price and other data (cash flow, earning)
for each of your 50-200? stocks. This can be tedious manually, it can take a day.
- I also reckon the author is sincere and wants the best for the society and that is why
he mixes the discussion of the faith and god with stock market research, but the practical value of the
book for me was zero: I was not interested in faith based stock trading (for the philosophical part),
and I don't believe the stock market research of the book works in a scalable way.
If you want a nice read about philosophy, read the Bernstein book, if you like
religion books, read that, if you want a professional book with precise
equations and formulae, read the Kaufmann book.
I would advise to change the name of the book to properly reflect its content.
Click Here to see more reviews about: The Value and Momentum Trader: Dynamic Stock Selection Models to Beat the Market (Wiley Trading)
A winning approach to stock trading based on proprietary statistical research in Excel
In The Value and Momentum Trader, Grant Henning presents a comprehensive approach to stock trading, which centers around Excel-based research methods he has developed. In this book, Henning presents the trading tools he has used to become a successful trader, and discusses some of the greatest challenges facing active market participants. This reliable resource presents both winning trading systems and all the skills necessary to perform as a trader as market conditions change. It also demonstrates how you can turn the successes and failures of any trading system into an interactive feedback loop to discover one's true trading skills.
Provides a solid understanding of the author's statistical trading system
Explores how to execute optimal trades under different market conditions
Outlines a very affordable Excel-based stock analysis method that is easy to implement
Dr. Henning has proven to be a trusted author with other academic publications in the areas of measurement and statistics.
The Value and Momentum Trader is an essential guide to trading today's dynamic markets.
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