Trimtabs Investing: Using Liquidity Theory to Beat the Stock Market
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Book Overview
Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are primarily a function of liquidity--the amount of shares available for purchase and the amount of money available to buy them--rather than fundamental value. Finally, it outlines the building blocks of liquidity theory and explains how you can use them to predict the direction of the stock market. "Charles Biderman, a savvy and battle-scarred veteran of the investment wars, has fashioned an intriguing approach to making money in the stock market that adroitly avoids both heavy-breathing speculation and the standard Wall Street practices that enable investors, big and small, to lose money in good markets as well as bad. Aimed at the sophisticated investor (which may or may not be an oxymoron), the book is written in blessedly straightforward prose and is a worthwhile read for anyone with an urge to have a fling at investing.--Alan Abelson Barron's "Since the days of Joseph and Pharaoh, it has been axiomatic that the size of the grain harvest affects the level of grain prices; but today's investors have been slow to appreciate the fact that the supply of stock shares significantly determines the level of stock prices. Biderman's long overdue book outlines the theory and evidence behind 'Trading Float, ' the actual--and exploitable--power behind major moves in the stock market. --Paul Montgomery CEO and CIO of Montgomery Capital Management "'Trade as corporate execs do, not as they say.' Charles Biderman has built an impressive list of hedge fund clients from this essential insight, and this book does a great job explaining exactly how retail investors can incorporate it into their investing." --Eric Zitzewitz Assistant Professor of Economics, Stanford Graduate School of Business "Charles Biderman is a smart thinker, clear writer--and he offers here some very interesting ideas. This book is for the little guy who enjoys reading about money and economics, even if he doesn't adopt the strategies offered here; and for the professional or sophisticated investor, who, to a greater or lesser degree, just might.--Andrew Tobias author of The Only Investment Guide You'll Ever Need
Format:Hardcover
Language:English
ISBN:0471697206
ISBN13:9780471697206
Release Date:April 2005
Publisher:Wiley
Length:195 Pages
Weight:0.90 lbs.
Dimensions:0.8" x 6.3" x 9.3"
Customer Reviews
5 ratings
Fresh ideas
Published by Thriftbooks.com User , 18 years ago
The author claims to have altruistic motives and does present some new ideas, which likely work. Unfortunately, it is difficult to collect all the data by oneself. The subscription service is expensive. If Mr.Biderman is truly altruistic, he will keep his subscription cost low.
Predicting the short term direction of market
Published by Thriftbooks.com User , 19 years ago
Charles Biderman thinks about the stock market differently. In his book, he uses liquidity analysis to very effectively predict the short term direction of market. He does it in a clear, simple and concise way. Is it a silver bullet? Of course not. There is no silver bullet! However, I have been an independent sales contractor selling TrimTabs Investment Research for nearly ten years and I can tell you that 29 of the largest over $1-5 billion hedge funds buy TrimTabs research. Why? Because it is original and unique research. I have come across no other similar research in all my years selling it. The book is worth reading for this reason alone. Michael Alexander
A Bargain Price for an Inside Look at Investing
Published by Thriftbooks.com User , 19 years ago
This book is really different for the world of finance because it is frank and down-to-earth without making a lot of grandiose claims. As an individual investor, I am not interested in tracking company earnings but want to time my buy, move and rebalance decisions. I could relate to the character in the first chapter. I was not as interested in the looking back section as much as the liquidity in action and the looking ahead sections. So, it's about reading the chapters that pertain to your investment goals. There, I confess to skipping the more aggressive strategies but the point is that Biderman makes these strategies available. The view of supply and demand in the market is intriguing. This liquidity view seems to be an important piece of the puzzle. The author's voice is loud and clear. I like his candor. I think it's irrelevant what his company charges for research because this book gives me a rare inside look at how professional money managers might operate. Biderman sounds like someone I'd like to sit down with for a consultation.
A truely unique approach to timing the stock market
Published by Thriftbooks.com User , 19 years ago
If you are tired of conventional investing wisdom and curious of how the largest hedge funds have done so well - TrimTabs Investing is a must read. The book is a great resource for investors who seek to make money in all market conditions. While most investors are wrapped up in second guessing earnings estimates, Charles Biderman has focused on the supply and demand of equity stock outstanding. Turns out, company insiders have been doing this all along and they know more about how they are doing than we do. Using basic Liquidity Theory, which bases market timing recommendations on a fact-based approach that monitors the signal value of changes in the supply and demand of equity stock outstanding, Mr. Biderman provides a simple, transparent, and repeatable process for actively managing market exposure. With a strong foundation in liquidity theory, you will have more confidence in going against the grain, shorting the market when it is over-backed and going long when equities are undervalued. I highly recommend the book.
New indicators for supply and demand of stocks
Published by Thriftbooks.com User , 19 years ago
This book presents a series of indicators that track the supply of stocks from corporations and the demand of stocks by the public and investment firms. The author has devised these indicators over a long time but only recently (compared to other indicators) has put them together in a working system. His company provides updates to all of these indicators but the author also tells you how to prepare a number of them yourself. It appears that the getting the data is somewhat difficult and messy. It thus borders more on art than science, as some data series come out late (but they are lagging indicators) and some data is just irregular or estimated. The author's testing show great results over the exuberant 2000 decline, but I believe the time period of live testing has been too short and the messiness of the indicators themselves augur for more testing. Please note that it is doubtful that the average investor can accumulate the data to replicate what the authors have proposed. However, there are spin-off indicator ideas that could be applied by the interested market-timer. Also note that there are many researchers who say that market timing is impossible, and that any research pointing to success just used a small period of time where it worked. They also say that market timers who say their systems have worked over the last 70 years have either fit their data going backward, or are just a statistical anomaly. However, most market timers say that market timing can increase your odds of success in the market many times (like double or triple your returns if you can avoid the worst 10% or 20% of the market). To apply the research of these authors, you have to believe that market timing actually works, or that you can shave the odds to your favor. I like this book because it clearly lays out a new indicator methodology along with a rationale. It's up to the reader then to prove that the system works or that he can derive new, easier or better indicators on his own. John Dunbar Sugar Land, TX
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