This week’s Book of the Week is Stan Weinstein’s Secrets for Profiting in Bull and Bear Markets. I purchased this book in college on the recommendation of the same professor who turned me onto O’Neil and Livermore, but for some reason I never got around to reading it until this year. I think it may have had something to do with Mr. Weinstein’s haircut. After hearing that Gary Kaltbaum also recommended this book, I realized I must have overlooked something.
Weinstein’s system is very similar to O’Neil’s CANSLIM in that it is basically a trend following, momentum investing system. One element that I thought particularly stood out from this book was Weinstein’s Stage Analysis. He breaks stocks down into one of four stages: The Basing Area, Advancing Phase, The Top Area, and The Declining Phase. This simplistic approach to a stock’s life cycle was very interesting to me.
The only negatives I found with this book was that the beginning was very introductory and was therefore quite dry. but then again, we’re talking about a book about stock trading methods. How exciting is it going to be, right?
Overall this book will definitely enhance your trading and would be a valuable addition to any stock market library.