Do you believe "The Little Book That Beats the Market "

[gnome]

Most traders, especially newer ones, spend a lot of effort looking for "the thing" of market success. There IS no "thing"!

The ONLY "thing" that works in the long term is to be good at evaluating the market and making proper adjustments to strategy *on the fly*.

Very few have demonstrated the ability.

Any trader who thinks [hopes] he can be successful following one simple strategy, or even a complex one, doesn't get it.

 

[pepper_john]

Quote from gnome:

Most traders, especially newer ones, spend a lot of effort looking for "the thing" of market success. There IS no "thing"!

The ONLY "thing" that works in the long term is to be good at evaluating the market and making proper adjustments to strategy *on the fly*.

Very few have demonstrated the ability.

Any trader who thinks [hopes] he can be successful following one simple strategy, or even a complex one, doesn't get it.

Please explain more.

 

[nononsense]

Quote from pepper_john:

No. He has written another book about special situations (sorry forgot the name).

thx.

 

[fletch2]

Quote from ShoeshineBoy:

This is a side question, but why would I guy with a successful write a book about how he does it?

What makes you think he did?

While "You Can Be a Stock Market Genius" probably touches on some of the ideas his fund used to make money, "Little Book" is just something he made up, and never used in his fund, as far as I can tell.

Fletch

 

[pepper_john]

Quote from fletch2:

What makes you think he did?

While "You Can Be a Stock Market Genius" probably touches on some of the ideas his fund used to make money, "Little Book" is just something he made up, and never used in his fund, as far as I can tell.

Fletch

But he probably used his magic formula as part of the screening process.

 

[glenjohnson]

Quote from ADX_trader:

Do you believe the method mentioned in The Little Book That Beats the Market by Joel Greenblatt? It seems so simple but his performance is a good support for his approach also.

Why don't you try it and let us know if it works.

 

[thecalip]

I read market genius, and I think it's amazing. Of course, you really need to discliple yourself and do your research. Especially he trade on a long term view.

 

[slackeral]

Did you ever check out the web site? I've had to because my father got all exited about it for awhile. It has a screener which recs the junkiest small caps out there.

 

[nononsense]

Quote from pepper_john:

But he probably used his magic formula as part of the screening process.

Is that in the "other book" that you don't remember the name of?

 

[pepper_john]

Quote from nononsense:

Is that in the "other book" that you don't remember the name of?

no, I mean the book "the little book that beats the market".

Actually the back-testing of his magic formula on a different data set (bloomberg stock data base) is much less impressive.

In any case, he has even set up a website for his magic formula,

http://magicformulainvesting.com/book.do