Have you ever read a book which has a formula for picking good solid stocks? I have read a few books now and they all have their different things to look at to pick a good stock. The methods in those books seemed to have logical ways of picking good stocks with solid foundations. My dilemma Even though I have read the books I never had the time to sit down and actually study more in detail what each term meant and then learn how to apply it using the methods they talk about. I did learn some but not enough to make a well informed decision on which stocks to buy. I did learn enough from the other books to know that one of the stocks I do currently own (a stock given to us not bought using any method) would be a great buy and a really good solid company but…..the stock is flat, one would think with the great numbers the company has the stock would be doing great. So I have a stock with great numbers but it is going nowhere against all of what I have learned in prior books. The Layman’s Guide To Trading Stocks Now what does this have to do with the book I am reviewing? Well in The Layman’s Guide To Trading Stocks by Dave Landry, the author talks about how sometimes it doesn’t matter how good a companies numbers are, it is the perception that the public has about the stock and maybe even the sector it is in which determine how well the stock does. “Stocks trade on emotions, period. They do not trade on reality. Stocks trade on the perception of reality, which is driven by human emotions.” So if the company is not in a trend and the public perception is not good for the stock then the stock will go nowhere and might even go down even though it might be a great company with good numbers. The method he uses to pick stocks is to look at the trend for the company is the company going up, sideways or down. He uses different indictors based on the price and if the stock goes lower or higher following a trend. The key is to catch a stock as the trend is starting to go up or if shorting as it starting to fall. He looks at the stock as well as the sector it is in. Also he follows the market it is in to see where the trend in going. He has formulas on when to enter the market and when to get out; you really want to plan what will be your exit strategy. His method is all based on the price of the stock and the trend it is following. He uses a lot of charts to show what he is talking about and the pricing charts are a key way on how to figure out the trend. I have been able to go to Yahoo Finance to try to figure out how to make a similar chart myself and it didn’t take too long to do. With a little more time I might be able to study how to make sure the stock is really in a trend and maybe just try trading stock on paper which he recommends before buying stocks in the real market. He also talks about money management so if you do lose on a stock the hit is not too bad for your over all account. Would I recommend this book? Maybe to a friend if that friend is interested in learning different methods of trading stocks. I personally have not had a chance to see if this works in real life. The book is a pretty easy to read and to understand his method because it about how the stock is trending going up, sideways and down, which can be obvious when you look at the charts. So if you are interested in stock trends and some of the different methods in which to enter and exit these trends then The Layman’s Guide To Trading Stocks would be of interest to you. This guest post was written by ChristianPF reader Christine Veloria. Related Articles: Wisdom on Value Investing | Book Review Learn How To Invest In Stocks – For Free Forex Analysis And Trading | Book Review What is a Stock? Build Your Own Mutual Fund | Review Forex Trading 101: Major Currency Pairs, Most Traded Currencies, & More Should I sell my stocks or buy more? This article was written by a Guest Author. If you would like to write a guest post for our personal finance blog , you can find out how here . The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .
Read the original:
The Layman’s Guide To Trading Stocks | Book Review