Comments on: The Complete Guide to Investing in Short-Term trading: How to Earn High Rates of Returns Safely

By: Jeff Savin

Jeff Savin — Thu, 27 Mar 2008 19:06:12 +0000

Jamaine Burrell’s “The Complete Guide to Currency Trading and Investing” is an excellent reference manual which offers a well-rounded background to foreign currency markets. There are extensive descriptions of each major central bank and their relationships with one another and the global economy as it pertains to currency trading. Someone unfamiliar with trading foreign currencies and the unique language associated with it should have a firm grasp of the fundamentals once reading through this book. As a seasoned stock and options trader, it was refreshing to get a different view of trading from the Forex side of things. The fundamental analysis was very complete and covered many economic indicators for all the major countries. There could have been more detail in the technical analysis portion and it would have been nice to see examples of charts for easier understanding. However, the information provided in the appendices completes the book nicely and makes this book a great tool to keep in any trader’s collection.

By: Rita Friedman

Rita Friedman — Mon, 17 Mar 2008 20:04:57 +0000

This book is a full-on crash course in short term trading. Although it’s designed to educate beginners there’s a ton of advanced material in here. Luckily, Alan Northcott breaks down this dense subject matter into clearly-defined subsections and tackles each piece individually. It made me feel like I had a good understanding of concepts that I previously had no knowledge of, like how to place different types of orders and buying stocks on margin. Before I picked up this book my eyes would just glaze over when I looked at a price chart, but by the time I got through the chapter “Caught on the Technicalities” I was actually excited to watch CNBC!

Throughout the text there are short “Success Stories” that are enjoyable to read and that help put the high volume of technical information into a more personal context. Overall, it’s a well-presented introduction to an intimidating subject. Of course, there were several sections I had to read a few times (as well as others that were much quicker to read through). I found it very useful that bullet points and lists of key words to know are provided at the end of each chapter. The glossary in the back of the book is also great for quick reference.

I really appreciated Northcott’s blunt approach and constant cautions not to get carried away. While I’ve read other books on investing that emphasize how much can be gained from the markets, Northcott rarely goes a few pages without reminding the reader that thrilling highs can easily turn into devastating lows. (This point hits home especially hard when he discusses the current state of the economy.)

This is easily one of the most useful books I’ve read in a long time and one I’ll return to when making potentially expensive decisions. Hands down, any book that could help me feel confident about tracking indicators and questioning an analyst deserves a full five stars.

By: Beth

Beth — Tue, 11 Mar 2008 01:40:16 +0000

Just reading through the table of contents may seem daunting for this incredibly detailed and well broken-down text. But don’t put it back on the shelves simply because of information overload! This book claims to be a complete guide to investing, and it takes that claim seriously. The strength of this book, in my opinion, is its variety of voice. Technically, it has one author. But between the covers are numerous interviews and personal stories on success and failure of stock market trades- not fictional scenarios, but real anecdotes from real (and often well known) ‘expert’ traders. There is also the layman’s approach to it all, with a glossary of terms and handy information ‘bullets’ in the back of each chapter (in case the words were making your head spin). The author also does not cushion us readers with false hope or any sugar-coated lies about ease and success- which, as a beginning stock trader, I greatly appreciate. So, although it may take you weeks to fully comprehend the mass of information here, stick with it. Because, as we all know, playing the market is based on education, not luck, and so if you’re a beginner in short term trading you should do your best to educate yourself fully. And this book should be a part of that education.

By: Linda O'Dell

Linda O'Dell — Mon, 10 Mar 2008 22:41:02 +0000

I wish I had read this book years ago — I may have been able to react more appropriately (ie: I wouldn’t have tuned out, or my eyes wouldn’t have crossed) when my husband raved about a stock that he had just sold at a profit, or another one that he was watching as CNBC pundits argued in the background. I’d go into the “huh? zone” because I didn’t understand what he was talking about when he referred to futures, options, puts and calls. All I vaguely knew was that a stock going up in price was a good thing, and you buy low and sell high. So, while I’m not planning to do any short term trading, this book gave me a better understanding of trading in terms that I could understand.

I sailed through the first several chapters in which Northcott went over the basics: supply and demand, global influences, the mindset of a trader, the differences between the markets and exchanges, placing orders, the types of traders, economic indicators and the tools that are needed to be a trader. Northcott’s cheat sheet at the end of each chapter offers a quick look at the chapter in the form of “success bullets” and “words to know” that I found helpful and invaluable to someone using this as a reference book. I did start to get into the “huh? zone” around Chapter 8 when Northcott went into the nitty-gritty world of charting, and I found my reading slowing down as I stumbled over candlestick charts and support, resistance and continuation patterns. His lesson on indicators (ie. Moving Average Convergence/Divergence indicator and the Stochastic Oscillator) go into a detail that should make this book required reading for the beginning trader.

The next several chapters aren’t a quick read - in fact, they’ll take several re-readings and a highlighter. But they’re basic tools for anyone wanting to research and trade on the markets.

I closed the book with new knowledge and a better understanding of just how risky and exhilarating short term trading can be. This book doesn’t offer a get-rich-quick plan, but it does provide a look at the basics of what it takes to do this kind of trading. Throughout the book, Northcott stresses that short term trading is a business, so the novice needs to think of it that way. Don’t let emotions like greed and fear get in your way. Come up with a business plan and stick with it: do research to get in or out of the markets, and know the point when you’ve got to fold and get out.

I’d give this book five stars and recommend it as a required reference book on the shelf of anyone who dabbles in buying or selling on the markets to those who want to make it a career.

By: Stephanie Quinn

Stephanie Quinn — Thu, 06 Mar 2008 23:23:56 +0000

It’s no secret that short term stock market trading can lead to big profits… that is, if you know what you’re doing. The Complete Guide to Investing in Short Term Trading, by Alan Northcott, teaches you exactly how to safely earn a high rate of return by short trading in the stock market. Short term trading means buying and selling certain stocks over a short period of time, earning the investor fast profits.

This comprehensive book covers everything from getting started in short term trading to reading charts, picking the right stocks, and even how to handle fees and taxes. It leads the reader to maximize profits while avoiding the common pitfalls of short term trading. Readers will also learn the “lingo” of a short term trader, how to recognize profitable trading signals, and information on options, bonds, currencies, futures, and more.

Alan Northcott’s trading methodology is laid out seamlessly in this easy-to-understand, well-written, and very readable book. His trading strategy makes sense to this seasoned investor and I am excited about the possibilities this book offers. I believe the information in The Complete Guide to Investing in Short Term Trading is a valuable asset for beginning traders or for stock market pros.

By: Noel Lynne Figart

Noel Lynne Figart — Thu, 06 Mar 2008 15:27:20 +0000

The Complete Guide to Investing in Short Term Trading is a good, basic book on short term trading. This is no “get rich quick” scheme. Northcott is blunt and to the point about the advantages and drawbacks of short-term trading. He gives a detailed analysis of the stock market – its history as well as the basics of how it works. His style is easy-to-read and straightforward, so you absorb the complex information fairly easily.

This book does assume you have some knowledge of business. It’s not going to teach you how to handle taxes from your trading profits, for instance. What it does and does well, is guide you through the different types of trading, giving you the advantages and disadvantages of each. Each chapter gives a bulleted review of the information you should have absorbed from the material as well as a vocabulary list of concepts you will have encountered. The book contains an excellent glossary so that you can review terms easily. He explains how to read charts and trends,

Because Northcott does not encourage taking foolish risks, and is realistic about how one will do in the short-term trading world, he makes suggestions about how to practice what you’ve learned before you risk any of your own money. Being a realistic author, he also dips into lifestyle, discussing the stress and demands of being a short-term trader.

It was refreshing to read a book on short-term trading that did not seem like a get-rich quick scheme, but a solid analysis of how to succeed in such a demanding field.

By: Margaret Norton

Margaret Norton — Mon, 03 Mar 2008 22:20:59 +0000

The Complete Guide to Investing in Short-Term Trading by Alan Northcott, is an excellent book for the person who wants to get involved in day trading. The market can be very complicated and risky. The author states that it takes most people about six months to feel comfortable with trading and that 90% of the attempts are unsuccessful. This book gives you step by step instructions on how to maximize your profits when investing.
The book goes into all aspects of investing, beginning with an examination of the investor’s attitude. He talks about greed, fear and self-control as they relate to trading. He recommends that the investor write a business plan, set goals, and purchase the right kind of equipment (computers). From here he goes into the different types of trades – Day, Swing, and Position. He explains terminology, the different types of markets, and the different types of brokerage firms.
The book is very current; it even talks about the recent sub-prime crisis. He explains economic theory and gives the mathematical equations behind market activity. What is remarkable is that he does this in an easy to read and understand language. All of the material is written well and illustrated with examples. Each chapter ends with bullet points of the important concepts to remember. There are also interviews with investors who share their personal success stories.
Charts and graphs of market activity often confuse us. In this book he does an excellent job of explaining how the charts are critical to your success and what you need to know to interpret them. Included are many examples to help you develop your analytical skills. He tells how to set up an investment system on your own or which computer programs you can purchase to do this for you.
This book truly does cover all aspects of starting your own day trading business. The internet has made trading much easier but it has not eliminated the risk. Risk can be reduced with knowledge, which is what the reader will get from this book. Lots and lots of knowledge, packed full on every single page.