Before this book, I had no idea what the real stock investing techniques were. When I saw this book on the bookstore shelf, I immediately turned its pages to check its contents and was pleasantly surprised by the level of detail and coverage of stock market investing. Impressed with what I read, I bought it without hesitation.
After reading this book and applying some of the lessons taught, I can say that I am now a better investor in the stock market. Before, I was just a newbie. I’ll explain why.
This book teaches the fundamentals of stock picking that Adam will show you. The technical aspects of trading are illustrated by Conrad, who traded his way out of bankruptcy using very good strategies. He easily earns US$5000-US$7000 a month trading stocks and options. That can replace anyone’s salary at any time, don’t you think? His record is US$22k++ in a single month.
One of the important concepts mentioned at the beginning of the book is investing in the stock market and using the power of compounding. You can be an automatic millionaire when you retire using this technique. All you need is patience and some consistency in investing. This is how Warren Buffet became the richest man by investing in the US market and letting his investment returns accumulate.
The rest of the book explains four strategies for growing your funds in the stock market based on the level of investor you are currently at with the returns and time horizon you are considering.
The first growth strategy is the most basic level for novice investors that teaches you how to achieve compound returns of 10-12.08% per year by buying the market or buying sectors or industries that are outperforming.
The second growth strategy shows you about value investing that can earn you an annual return of 15% to 25%. This method requires you to buy large companies at a deep discount and sell them for a large profit. Warren Buffett uses value investing to choose his stock. He will learn the nine criteria of value investing to choose stocks that investors like Warren Buffet or George Soros would choose.
The third growth strategy tells you about momentum investing, which can achieve a higher return of more than 25% in a shorter time, such as 3-6 months. This involves selecting stocks whose price is about to rise significantly due to market optimism. Adam shows you seven steps to detect this type of action.
The last growth strategy is the most advanced of all, allowing you to net profit from 100% to 500% in one day to 3 months. This strategy consists of buying and selling options on shares that are traded. Trading allows you to make money in any direction, be it up, down or sideways. The authors have dedicated 2 chapters to explain the fundamentals of options and they are clearly illustrated with examples on some commonly used strategies for the reader.
I really enjoyed this book because it was clearly written and provided a practical approach to investing and trading. This book has given me a good foundation as a beginner to prepare for more advanced strategies and implementations. I highly recommend this book to anyone who wants to start investing or trading any stock market and doesn’t know how to get started.
