Honestly, there are not too many books in the personal investing genre that we’d recommend for serious investment advice. But if you’re a serious investor considering a venture into short-term trading (formerly known as day-trading), you’ll benefit from the wisdom, mind-boggling detail and dizzying array of charts presented here. Tom Dorsey likens good investment advice to a sports playbook that a coach can follow through the twists and turns of the game. The plays and strategies that they outline will be valuable for novices, but getAbstract figures that they will challenge trading veterans as well. You need to do some homework (like following the indices and making charts) to work with this book. Dorsey and crew urge you to learn stock-market basics, govern your emotions, understand the psychology that drives investors and avoid common mistakes, like investing based on trends and hot tips. And, don’t mind their sports jargon; it’s just a framework to make the uninitiated feel comfortable.
In this summary, you will learn
- Why, to make money in trading, you need to understand the market psychology;
- What some common investor mistakes are; and
- Why deciding when to sell is the hardest part of investing.
About the Authors
Thomas J. Dorsey conducts risk-management seminars for brokers throughout the world at major stock exchanges and investment firms. He is the author of two prior books, Thriving as a Broker in the 21st Century and Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices. He has also written articles for such publications as The Wall Street Journal, Barron’s Fortune and Bloomberg Personal Finance. He is president of Dorsey, Wright & Associates, Inc., an investment advisory firm in Richmond, Virginia. The other authors are associated with Dorsey, Wright & Associates, Inc.