Average Reviews:
(More customer reviews)The author's claim he turned $33,000 into 7 million in 15 months is extraordinarily unlikely, and extraordinary claims require extraordinary proof. However, you will not find any trade confirmations or affidavits from accountants in his book. In fact, he does not even detail one single trade he has ever made. One might wonder why someone who is supposedly so proficient at trading needs to write books, run a trading website, hawk videos, infomercials, etc. His book also contains numerous errors that make me wonder if he has ever traded at all. For example, he doesn't appear to understand the details of the new SEC day-trading rules, particularly the increased margin available under these rules to intraday traders. He states that Datek (now merged with Ameritrade) is not a direct-access broker (false). In fact, Datek at one time owned a chunk of the Island ECN, the ECN used almost exclusively by all sophisticated traders.
If the author did manage to achieve the gains he claims, it would have been during the very end of the biggest bull market in history, a speculative bubble that will probably never repeat itself in our lifetimes. Many of the "trends" which are the basis of his trading strategy no longer exist. For example, IPO and stock-split plays. In this current market, how many IPOs or stock splits have you heard of recently? Although the book discusses many solid trading rules such as always using stops on every trade, these rules can be found in a thousand other books on trading.
The most important part of trading, the mental and psychological barriers that need to be overcome in order to be successful are really not discussed at all, or are simply assumed. Ultimately, the book is irresponsible because it does not ever disclose how difficult it is to succeed at trading. For example, Massachusetts regulators seized the records of one day-trading firm in the late '90s. They found that the firm had 68 traders, and 67 of them were losing money. This works out to be close to the typical failure rate of 97% for individuals who attempt to trade for a living. Do I think the author is one of the 3% who made it? Nope. It's much easier to write books on how to trade than to actually do it.
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