When a book on investing starts off with I defected from the Russian Navy by jumping of the ship and heading to the American embassy, I also want to jump ship... but I'm glad that I didn't.
The book goes through the forces that affect the markets. He not only classifies markets as being bullish and bearish he also refers to traders in the same way. As a phycologist I feel that the author certainly does understand the crowd mentality and how it can affect our decisions. He then takes this forward to explain why an individual should not react to changes in the market because they are changing but to view the reasons why they are changing so that one can make a rational decision whether to buy or sell.
As with all of the traders who have written books on this subject, he builds into this book a system that he followed to make himself successful in the stock market. This method in which he uses is similar to that of Peter Lynch who wrote "one up on the Street" and "learn to earn". Both authors concentrate on the day/short term trading. The book itself goes through the ins and outs of what a day trade with actually cost you after you take out the fees and the slippage and gives useful and technical advice on how best to deal with these situations. Then gives information on how he picks the stocks and guidelines on how he then evaluates whether to invest or not.
If you are not interested in Short term trading I would suggest that you look "The New Buffettology" by Mary Buffett or "The intelligent investor" by Graham. Both of this books look at longer investment cycles. So if you just want to invest and not worry about the day to day of the share price then these are the books for you.
All and all this is an interesting read and worth the money. I wouldn't say that it's a reference manual for short term investing but it certainly comes close.
This book is extremely interesting whether you are interest in "playing the stocks" or not. Mary Buffett is the narrator and I have to say she does an excellent job. It's extremely easy to listen to and to follow.
The basic trust of this book is to look for stocks that are under valued, have an excellent history and track record and are not price competitive. The author gives details on how to evaluate these companies using simple formulas so that you can select a stock that will give you a return in the double digit arena. The book also gives you a 10 step plan to evaluate the company to see if it's a "Buffett" company... these 10 steps are extremely well laid out and explained beautiful with financial information to back them up.
Some of the introduction of the book is quite amazing if you know little about the man Warren Buffett, who apparently started his first business at the age of 6!! Left home at 13 and had made over $6000 by the age of 18. His early life really shows a man who was driven from an early age.
In summary, if you are interested in investing for the long term, this is certainly the book for you and I would also recommend "The intelligent Investor" by Benjamin Graham... who incidentally was buffett's university lecturer. If you are however interested in market speculation and making risky "fast money" I would say choose another title.
PS. there is a workbook that you can buy separately that is excellent to help you understand the Math... highly recommend both.
This is an excellent start at looking at the basics of investing in the stock-market. Using simple analogies Peter Lynch shows why investing in stocks in the long run is an excellent way to become financially free.
The terms that are used in the financial market and financial publications such as bear markets, bull markets, P/E ratios etc are extremely well explained. Lynch also gives example of what happens in a general sense when there is a readjustment in the market or when a company gets bad news and stock prices fall. By using real examples to show how long term investments can accumulate and pay dividends to the investor if chosen well and held over the long term.
The basic theory of this book is a simple and similar in theory to many books written on Warren Buffett in fact many of the example written about in this book are stocks that Buffet has made a lot of money on. The theory is to buy when others are selling for the simple reason that excellent companies will always survive down turns in the economy and great companies still make large profits during times of uncertainty... even in the recession people drink Coke. If you are investing for the long term this certainly the way forward because as a individual trying to predict the hot stocks there is just too much risk.
The book however doesn't go into the picking of stocks in much detail, it is merely a starting point to look from. If you are looking for a book with more insight into what to look for in a stock price or a P/E ratio then I think that the next stage after this book would be "The New Buffettology" by Mary Buffett. This book goes into the aspects brought up by Peter Lynch in deeper context. With these two books under your belt I would suggest "The intelligent Investor" by Benjamin Graham, Warren Buffett's first mentor.
In conclusion I would highly recommend this book to anyone interested in investing.
This book is really easy to listen to and give you the basic principles of how to buy stocks rationaly. I really enjoyed it. I would defenitly recommend this audiobook to everyone interested in value investment mostly for lay investors.