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Download Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades (Wiley Trading) epub book
ISBN:0470139765
Author: Aidan J. McNamara
ISBN13: 978-0470139769
Title: Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades (Wiley Trading)
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ePUB size: 1506 kb
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Language: English
Category: Investing
Publisher: Wiley; 1 edition (October 19, 2007)
Pages: 190

Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades (Wiley Trading) by Aidan J. McNamara



That's why they've created Contrarian Ripple Trading.

Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades (Wiley Trading). Aidan J. McNamara, Martha A. Brozyna. Download (pdf, . 3 Mb) Donate Read. Epub FB2 mobi txt RTF. Converted file can differ from the original. If possible, download the file in its original format.

This technique-which has been successfully used by the authors-is based on contrarian principles and exploits the normal short-term fluctuations of both the overall stock market and individual stock prices.

Throughout the book, and in accompanying Appendixes, McNamara and Broz?yna refer to examples of their flawless trading record-1,225 profitable, round-trip trades over a twenty-six month period-to illustrate how contrarian ripple trading can produce a regular stream of profits in many different market conditions.

book by Martha A.

Contrarian Ripple Trading sets out to teach its readers a short-term stock trading technique that can assist ordinary people, with no professional financial background, how to trade profitably. Unfortunately, many fail to realize the difficulty of achieving this goal. Throughout the book, and in accompanying Appendixes, McNamara and Broz?yna refer to their flawless trading record-1,225 profitable, round-trip trades over a twenty-six month period, with no losing trades at all-as they illustrate the fundamental factors that drive the market's moves; explore how a short-term trader can take advantage of and profit from these factors; and. demonstrate the underlying techniques that have allowed them to make such a large number of successful stock trades.

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Contrarian Ripple Trading "Contrarian Ripple Trading is a well-written and well-documented observation for stock traders. I especially enjoyed hearing the commonsense behind McNamara and Bro?zyna's method. For those individuals looking to cut through the huge amount of poor information out there, I think you will thoroughly appreciate this book. I found the high percentage of winning trades hard to argue with." --Jason Alan Jankovsky, FOREX trader and author of Trading Rules That Work Making money in today's stock market can be a difficult endeavor, especially if you're not an expert in the worlds of finance or business. Authors Aidan McNamara and Martha Broz?yna--a married couple who work outside the investment world, but who happen to be active traders--can relate to this situation. That's why they've created Contrarian Ripple Trading. Written in a straightforward and accessible style, this reliable resource outlines the approach they've successfully used to capture profits from the stock market for many years. With this book as your guide, you'll quickly discover how you too can effectively implement a low-risk trading technique that consistently generates short-term profits on trades in large capitalization stocks--regardless of whether the market is moving up, down, or sideways. Throughout the book, and in accompanying Appendixes, McNamara and Broz?yna refer to examples of their flawless trading record--1,225 profitable, round-trip trades over a twenty-six month period--to illustrate how contrarian ripple trading can produce a regular stream of profits in many different market conditions. By combining aspects of investing--notably the need for safety and decent returns--with characteristics of short-term speculation, Contrarian Ripple Trading arms you with a technique that can be used to generate a reliable extra income stream through low-risk, short-term stock trading.
Reviews: 7
Diab
If you look at all of my reviews, you can tell I read a lot of investment books. This one looked "interesting" and had some good reviews so I ordered it. In 30 minutes, I read the whole thing.

Basically the book says to buy large cap stocks near their 52 week low, look for stocks that also have low PE's and pay dividened's. Buy 100 shares of the stock and sit on it until they have a $40 profit and sell. The "buy" strategy covered a page and 1/2 of the whole book, the rest was fluff. There is no loss plan, use your own loss program?? Yes, they can be 100% profitable using this method unless you buy a stock going down the drain. You just may have to sit on it for a while until the stocks price goes back above what you paid for it.

Never again will I buy a book based on looking at the ratings. I'm batting about 1 out of 5 investment books that are worth anything.
Dawncrusher
I was researching a idea and saw this book thinking it answered my questions and it did not. I am sure it is a help to many just not me.
Damand
Overall there are some useful nuggets of information in this book that I have adapted into my own system. However, there are a few major flaws that I must mention. Regardless, I would still recommend the book since it is a short read and gives you a good perspective on another trading system.

But be forewarned that you must have some knowledge of financial markets and trading, otherwise you will be constantly looking up terms and concepts as you read. Don't expect this to be your primary book or resource on the stock market.

One thing that that I would have liked to see added to the book is a basic intro to chart reading. Maybe five or ten pages would cover that topic adequately.

Anyway, here are the main issues I have with the book:

1. There is something in trading called settlement, which basically limits your flexibility to be able to quickly buy and sell and then use the proceeds to quickly buy and sell again. So looking at their examples, it looks like they were pretty active traders, which means that it would have been extremely difficult to trade the way they did without either having a lot of cash in the account (I'll just say $100,000) or using margin.

The authors do not even touch on the settlement issue at all. I believe that would basically make their system worthless to the average person who doesn't want to use margin. So either they are assuming that the average person has $100,000 sitting around to trade with or they just conveniently forgot to mention the limitations of settlement. The authors seem like very knowledgeable people, so I question why they left out this very important concept.

2. In the example below from the book, they held onto 100 shares of stock for over a month, only to sell at an increase in the price of about 1%. This is just absurd. Keeping the money in a high-interest savings account for that time would have been better and required less work.

Bought 6/7/06 at $60.31 | Sold 7/28/06 at $60.99 | Profit = $58

Waiting over a month to make $58 from a $6,000 investment is just a waste (they bought and sold 100 shares). I believe in the basis of their system, but the examples are just absurd. To make such a small profit and have to actively manage the stocks (since they don't use sell limit orders) is just really more of a hassle than it's worth. They claim that their system is simple and can be done part time, but the way they trade requires active management and access to a trading system during market hours, something that is not easy to do when you have a busy day job.

3. With this strategy, the authors generally sell when they make a profit net of commissions of at least $40 for intraday trades or $50 otherwise. But then they go on to explain that they don't use sell limit orders because they want the flexibility to ride a hot stock. Talk about contrarian!

Also, using $40 or $50 as a profit goal doesn't make a lot of sense. Why not 4% or 5%? If I'm going to risk $5,000, I certainly would expect more than a $50 return, especially if I have to ride it out for several weeks or months.

I think the basic idea of basing buying and selling decisions on the ripples of the market and the 52-week low/high prices are good, but some of their reasoning for doing certain things, like not using sell limit orders, just doesn't make a lot of sense.

4. The authors mention how they are willing to hold onto stocks longer until the price reaches their predetermined profit level. One stock was held for 25 months! This is just absurd. If the principal involved in that stock was $5,000, several hundred in interest could have been made if it was put into a high interest savings account. Yet the authors hold onto that stock until they can at least make a $50 profit.

The authors just simply do not want to sell at a loss! But in actuality, if you have to hold onto a $5,000 position for one or two years just to make $50, then that is a loss. Period. They can rationalize it anyway they want, but based on the time value of money, that is a loss if you only make 1% return on your principal after two years (or even one year for that matter).

During that holding period the authors made several profitable round-trip trades on new positions of the stock being held and probably earned some dividends. But that is not the point. The point is that the stock being held will be sold at a loss based on my numbers above and adjusting for the time value of money. Rationalizing that by taking profits from another position in the stock only lessens the effects of the loss, but it is still a loss nonetheless.
Rare
If it were not for the very positive comment from the author of "Trading Rules That Work", one of my all time favorites, I should not have read it and am still wondering whether I had missed something important. IMHO, the authors performance from 2005 to Feb 2007 was attributed to the upward trending market, luck and under trading (or deep pockets which allowed them to hold losing positions that long), and thus far from its self claimed low risk, short term trading, non value investing based approach. In short, not recommended.
Kata
I also have read a few dozen trading books, and I have to say this tops the list of the most useless. All the few points of the book can be written on a page or two, the rest is just filler. The profits they claim (not sure about the subsequent 4 years) are small and not commensurate for the risk they are taking. Just buying a stock near its year low is not a trading plan for success (and there basically is not much more to this book) and I venture to say the few readers who would try to do this would have poor and random results.

I am a professional options trader, for the last 7 years; and I think substituting in-the-money options for stock might improve their results. However, I am certain they are leaving out alot or most of the details of their methodology.