Stock Market Logic: A Sophisticated Approach to Profits on Wall Street, offers comprehensive coverage of the stock market for investors and professionals, and presents a coherent philosophy, showing how investors with reasonable objectives can use this approach to reap steady rewards. It outlines a financial management system to measure the market and keep score, and explains how to use market logic and mutual funds to maximize profit and reduce risk. Offers investment techniques, indicators, and ideas for making a profit in the stock market, together with advice on developing a financial management system.
This book is directed toward a definition of what objectives are reasonable and the development of a sophisticated and rational approach to the realization of those objectives. Part One, Stock Market Indicators, is devoted to an in-depth analysis of the vast array of techniques which have been developed over the years to forecast stock market trends. Part Two, Econometrics and the Stock Market, describes the integration of the stock market indicators into useful econometric forecasting models, and explains the advantages of an econometric approach to stock market prediction.
A number of possible answers to the then logically ensuing question of what stocks should be bought are explored in Part Three, Stock Selection Theories. The seemingly endless number of techniques for picking winners are shown to be but variations on a handful of basic themes, most of which are of dubious value. There are surely many paths to success, but Part Four, Stock Selection: From Theory to Practice, concentrates on an approach that combines a rational theory with a long history of superior results.
The next step to making money on Wall Street is learning to apply the tools of portfolio management, covered in Part Five, A Total Financial Management System. After defining objectives, several methods, some common and some unorthodox, of improving total returns and adjusting risk levels are explored.
Part Six, Measuring the Market: Keeping Score, explains how to measure relative performance to learn if your portfolio is doing better than someone throwing a handful of darts at a page of stock listings might do by chance alone; in short, you will be shown how to truly distinguish between winning and losing performances. Part Seven, Using Market Logic, describes a total investment advisory approach utilizing the logical investment framework revealed in this book.
Part Eight, The Mutual Fund Alternative, unveils a new method of profit maximization and risk reduction using these popular investment and trading vehicles. Finally, for those who fear that a random walk still lurks somewhere on Wall Street waiting to trip up investors seeking above average profits, breathe easier. The concluding Part Nine, A Run Down Random Walk Street, allays those fears by tripping up the random walk instead.
- STOCK MARKET INDICATORS
- ECONOMETRICS AND THE STOCK MARKET
- STOCK SELECTION THEORIES
- STOCK SELECTION: FROM THEORY TO PRACTICE
- A TOTAL FINANCIAL MANAGEMENT SYSTEM
- MEASURING THE MARKET: KEEPING SCORE
- USING MARKET LOGIC
- THE MUTUAL FUND ALTERNATIVE
- A RUN DOWN RANDOM WALK STREET