This book started with great promise with the gem of a sentence, `It's when the walls start to crumble that we earn our way, and with the strategies in this book ...'. The authors then went on to discuss Trade management via Stop-Loss, (the best chapter in the book) as the first of three steps to make profitable trading as simple as one, two, three: 1.Stop Loss, 2. Fundamental Analysis, and 3. Technical Analysis. The discussion on Stop-Loss included several gems. For example, `It's how bad trades are handled that separates the superstars from the hacks', and (then while discussing the Resistance level in XOM chart) `resistance at $95 was clearly a strong valuation number, where funds and institutional investors were choosing to pass on the stock'.

The authors' recommendation of putting hard stops on portions of one's stock holding at the Fibonacci retracement levels (38.2%, 50% and 61.8%) is a great idea. As the authors say, `by reading this chapter you won't have to experience the immense feeling of disappointment and stupidity where you let a winning trade leak into the red'. Amen!

Using the term Strategy in all "Chapter headings" does not make the content a strategy; for example, Chapter 14: ROA and ROE. No strategy is explained here although the terminology is presented succinctly.

Chapters 5-7 cover the technical indicators (SMA, RSI, MACD, Stochastics) and the information is well presented. The discussion of exuberance (`a period when we generally do not trade in channels or envelopes and instead switch over to momentum strategies that focus on breakouts and breakdowns') is fresh, followed by the illuminating presentation of `profits through pitchforks', which includes the enlightening observation `envelopes do not indicate larger trend reversals, as pitchforks often show'. For beginning readers I recommend that they also read Constance Brown's `Technical Analysis Demystified' and/or Tina Logan's `Getting started in Candlestick Charting'. Tier II play and sector rotation are covered in chapters 8-9 with some general observations; the chapters lack specific guidance on how the reader can profit from these strategies.

Chapter 13 (Option Primer and LEAD Options) is disappointing. The ice cream stand discussion makes a delicious story but does not define or explain what the Call (and Put) options are. A sentence like `Options that are not in the money expire worthless', without defining what `At the Money' means, does not bode well for a chapter titled `Option Primer' which ought to help the beginner in options. While muddled explanations abound, this chapter lacks option terminology definitions. Chapter 19 (Covered Call Options) is riddled with numerous math errors (especially, p184 - 185). I hope not to appear as being nit-picky; stock trading is about understanding the strategies and turning a profit. One should be able to compute correctly to know if profit is at hand to make a successful trade.

While explaining `Understanding the risk with Straddles' the authors erroneously refer to Strangle as having different month expirations (as opposed to different strikes and same month expirations). Such errors may be forgiven (even though they may reflect a careless attitude on the authors' part) but for the fact that they confound many readers. The authors having made the tantalizing observation `pitchforks can easily provide great guidance to figuring out whether the risk of taking on a straddle is worth the potential profit at hand', missed out on showing how this is so.

The $70 cost on the jacket of the book and its title raised my expectations. This book started out bearing great promise in the early chapters; unfortunately it fell short on delivering on the great expectations.

Getting Started in Candlestick Charting (Getting Started In.....)
Technical Analysis Demystified: A Self-Teaching Guide