Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are p…
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3.0 out of 5 stars
Could have been a very good artice
This book deals with how the amount of equity outstanding influence the price level in the stock market. If there are fewer stocks around prices go up, and vice versa.
4.0 out of 5 stars
Fresh ideas
The author claims to have altruistic motives and does present some new ideas, which likely work. Unfortunately, it is difficult to collect all the data by oneself.
I spent almost 20 bucks for this e-book that was written to pump their website and service.
Biderman claims altruistic intent to help the investor win the “stock market casino” against the corporate “house”.
He charges $6,000 a year for his Trimtabs.com newsletters for “mostly institutional” investors but this 6K a year is the 60% off sub rate for individual investors. Some altruistic intent huh?
He does collest information but I found a website that gives away for free most of the info he collects and wants to sell for 6K a year. http://www.capital-flow-analysis.com/
Most of the information he talks about in his book is freely available if you want to dig for it. On the the flip side he gives an interesting account of the rise and fall of the stock market in the 90’s and early 00’s in regards to “liquidity” theory.
In a nutshell, bet with the corporations and against the individual investor they are usually wrong. Like in 1929, 1987 and 2000, when the individual investor is hyped about the market, buy bonds. When everyone thinks the market sucks, buy stocks. There, you saved $20 to $30 bucks.
This book presents a series of indicators that track the supply of stocks from corporations and the demand of stocks by the public and investment firms. The author has devised these indicators over a long time but only recently (compared to other indicators) has put them together in a working system. His company provides updates to all of these indicators but the author also tells you how to prepare a number of them yourself.
It appears that the getting the data is somewhat difficult and messy. It thus borders more on art than science, as some data series come out late (but they are lagging indicators) and some data is just irregular or estimated.
The author’s testing show great results over the exuberant 2000 decline, but I believe the time period of live testing has been too short and the messiness of the indicators themselves augur for more testing.
Please note that it is doubtful that the average investor can accumulate the data to replicate what the authors have proposed. However, there are spin-off indicator ideas that could be applied by the interested market-timer.
Also note that there are many researchers who say that market timing is impossible, and that any research pointing to success just used a small period of time where it worked. They also say that market timers who say their systems have worked over the last 70 years have either fit their data going backward, or are just a statistical anomaly.
However, most market timers say that market timing can increase your odds of success in the market many times (like double or triple your returns if you can avoid the worst 10% or 20% of the market). To apply the research of these authors, you have to believe that market timing actually works, or that you can shave the odds to your favor.
I like this book because it clearly lays out a new indicator methodology along with a rationale. It’s up to the reader then to prove that the system works or that he can derive new, easier or better indicators on his own.
John Dunbar
Sugar Land, TX
2.0 out of 5 stars
Started off great, ended poorly
I was riveted to the first several chapters because I came to the same conclusions concerning the “Stock Market Casino” that the author did.
Charles Biderman thinks about the stock market differently. In his book, he uses liquidity analysis to very effectively predict the short term direction of market. He does it in a clear, simple and concise way. Is it a silver bullet? Of course not. There is no silver bullet! However, I have been an independent sales contractor selling TrimTabs Investment Research for nearly ten years and I can tell you that 29 of the largest over $1-5 billion hedge funds buy TrimTabs research. Why? Because it is original and unique research. I have come across no other similar research in all my years selling it. The book is worth reading for this reason alone.
Michael Alexander
5.0 out of 5 stars
A Bargain Price for an Inside Look at Investing
This book is really different for the world of finance because it is frank and down-to-earth without making a lot of grandiose claims.
5.0 out of 5 stars
A truely unique approach to timing the stock market
If you are tired of conventional investing wisdom and curious of how the largest hedge funds have done so well – TrimTabs Investing is a must read.