Paperback: 176 pages
Publisher: McGraw-Hill Education; 1 edition (December 13, 1999)
Language: English
ISBN-10: 0071357548
ISBN-13: 978-0071357548
Product Dimensions: 6 x 0.5 x 9 inches
Shipping Weight: 2.6 pounds (View shipping rates and policies)
Average Customer Review: 3.6 out of 5 stars See all reviews (99 customer reviews)
Best Sellers Rank: #340,000 in Books (See Top 100 in Books) #61 in Books > Business & Money > Investing > Mutual Funds #930 in Books > Business & Money > Investing > Introduction #2048 in Books > Business & Money > Finance
This book is an elaboration on the investment techniques in Mr. O'Neil's prior book, How to Make Money in Stocks. The elaboration focuses on additional insights into avoiding losses and using technical analysis (examining stock price and volume charts) to pick optimal stocks and times to buy and sell. If you haven't already read How to Make Money in Stocks, this book will lack context. I suggest that you not read this book until you have read that one. If you have read that one, this book will be valuable to you only if you plan to do your own stock picking and wish to use the Momentum Growth Investing model that Mr. O'Neil recommends in that book, and supports in Investors Business Daily. If this book is not yet right for you, based on these qualifications, you need read no further.If this book fits, then, let me go on to provide some caveats. First, it is often hard to limit your losses in the kinds of stocks recommended by this technique. Following a company warning about earnings, it is not unusual for these stocks to fall 15-40 percent without ever trading at any price in between. So your losses may well be larger than he suggests here.Second, technical analysis is a field that is filled with ambiguity. Your success in reading charts will not be as good as these examples suggest. Many academic studies fail to find any value in technical analysis.Third, the kind of stocks that are recommended can perform very poorly if the market goes through a prolonged drop in valuation (as last occurred from 1973-1975). You will be buying stocks that are trading at enormous multiples. You could experience more sustained losses than Mr. O'Neil suggests in such a changed market environment, if it were to recur.
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