Sunday, June 8, 2008

Tim Sykes Book Review

An American Hedge Fund was an unexpectedly pleasurable read. Boy makes good, the “great American dream”. Refreshing in the telling (and I must say, I agree with other reviewers, it does remind me of Reminiscences of a Stock Operator), it highlights the incredible euphoria and gut wrenching lows of penny stock trading. While not a trading manual, his downfall trade of Cygnus paints a quintessential story of a newer trader’s education and downfall by letting emotions/ego take over and ignore the market facts. The fact is, the market doesn’t care what you think. Get over it.

Tim’s book is also a great read for its take behind the hedge fund curtain and market manipulation. When you finish this book you should know that the odds are stacked against you at all times, particularly as a small investor. Penny stocking is a risky business. Tim’s book is the appetizer. Buy his DVD for the whole enchilada.

1 comment:

Michael N said...

His book was a good read..his experience in the stock market gave him a short bias attitude. The momo stocks he picks to short eventually fall back to earth. However, he often misses the run up opportunity of small cap stocks because he is scared to buy into the hype. Btw, i have scottrade elite.Velocity&Force is a new function, the velocity shows how fast the market is reacting to a stock, measuring the frequency and share volume in aggressively priced orders. "Market Velocity can indicate changes in market direction, momentum and liquidity"

"Market Forces provides an indication of market direction and is expressed as a number of shares or a percentage of shares in buy versus sell orders."

After you click V&F, right click to set up with VF chart, you can do configure time period like 1 minute, or add Stochastics, or CCI.

I am still learning how to use it.

happy tradiing