Write down the date that you bought your losing position and your reason for buying, and be honest with yourself as to why it didn’t turn out. If it was merely a whipsaw, say so. but if upon later examination you realize that either the volume was inadequate, or the relative strength was lacking, or the group was negative, or you were influenced by a rumor, write down that error. After several months look for a common denominator in your losses.

We all have psychological patterns. When you see what your particular destructive pattern is, it will be easy for your to retrain yourself and deal with it so your investing will become even more profitable.

– Stan Weinstein, Secrets for Profiting in Bull and Bear Markets

The philosophy is based on the view that nearly all stocks experience four price stages: accumulation (stage 1), uptrending (stage 2), top area (stage 3), and downtrending (stage 4). Therefore, an investor, has a high probability of success if he or she enters the cycle just before the stock moves to stage 2. Then he explains how to select a stock by simply studying its price/volume chart and how to time your entry.

He addresses the issue of fundamental vs technical analysis. He explains that technical analysis is much superior over fundamental analysis because technical analysis incorporates future information that is not available to the average investor on a timely basis. I found the book very clear and very helpful in selecting winning stocks with less stress. I read several books but this one is the best of them all.

The book discusses when to buy, how to refine the buying process, when to sell, selling short, recognizing market tops and bottoms all in a manner so clear that you won’t have to read a sentence twice for the sake of understanding alone. The quizes at the end of each chapter are meant to reinforce your understanding and I think it is a great idea.

It is for longer term trading, perhaps 3 months or more, depending on how long the stock trends upward. This is probably the best longer term trading method I have seen.I wouldn’t say Weinstein’s methods are “secrets,” they are just 100% common sense, and very effective.

If you’re a beginner or intermediate, this book will certainly give you a huge boost in mastering chart reading as well as execution. Unlike any books that sort of short in explaining one critical area, I find Stan’s book very clear and entertaining as well. It opens your eyes on what to look for in a chart.

It is one of my favorite trading/investing books.

– Stan Weinstein, Secrets for Profiting in Bull and Bear Markets

– Stan Weinstein