Shortly before we left on our trip, the folks over at TradingMarkets.com sent me a copy of How Markets Really Work by Larry Connors and Conor Sen.
As a quick note, Conor's father is the blogosphere's own Ron Sen.
Longtime readers will know that I am a big believer in using stock market history, along with current events, to try to build a forward looking analysis. How Markets Really Work is a great tool to understand market history from a quant/technical view. The book debunks several stock market truisms that aren't really true.
The amount of data crunched to assess what really happens in down trends and up trends is very impressive and will come in handy for short term traders. Longer term investors, and do-it-yourselfers can benefit from the this is just how it is aspect of the data. This is something I touch on a lot. The market works a certain way and does certain things. A better understanding will lead to less trades done with too much emotion and not enough logic.
Simply put the data can be a useful part of your information war chest.
Being completely candid, I'm not sure why the book costs $49.95. I have no experience doing this type of comprehensive number crunching and maybe this price level is appropriate. You can decide for yourself but I am glad I have a copy of the book.
Wikinvest Wire
1 comments:
Do you think it is possible to beat the s and p average over a 15 year or twenty period, given the law of reversion to the mean and the length of time?
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