Reviewed by Ed Dobson, President, Traders Press, Inc.
Investors looking for a long-term trading plan, look no further. “Trader Doc”, author of ADXcellence, has done it again. In his latest book, he provides an unambiguous, well defined and precise approach that seems to make a lot of sense. Written in a straightforward, no-nonsense style, this book is, in my opinion, indispensable reading for any investor…rookie or veteran.
Readers of Schaap’s first book, ADXcellence, a highly technical treatise and definitive guide to the use of this technical indicator, will find his latest work equally valuable and intriguing, yet written on a level that can be easily understood and used by those new to investing and, at the same time, seasoned veterans.
Dr. Schaap (formerly an MD turned trader) and his wife, Candy, are a husband-wife team; they are both professional traders and trading mentors who teach others how to trade profitably through their website and a chat room service. Schaap’s literary efforts make his considerable talents and knowledge available to a much wider audience than the one consisting of their students and provides much needed education to the average investor.
This book is written in a manner that accomplishes a most difficult feat…being entertaining while it educates, a phenomenon I have seen before only in the works of Dr. Alexander Elder, a well known speaker, trading educator and author.
Schaap postulates that successful investing can only be achieved through a three-fold approach, the “trilogy of success”, which encompasses a profitable mindset, knowledge of the market and how it works and an organized plan. The first section of the book deals with the mindset -- this is some of the best material I have seen anywhere on the psychology of investing.
One of the main themes is that investing is easy, provided you do not think. Thinking leads to opinions, and the only opinion that matters is that of the market, as expressed in the price chart. Schaap’s philosophy is remarkably close to my own, after more than four decades of trading and observation of charts and markets. Throughout the book, I found myself thinking how “right” I felt the approach he teaches to be…and how valuable it would be for other traders to learn his approach.
The core and primary theme of the book is Schaap’s “50-50” strategy: An organized, unambiguous and straightforward approach to investing that encompasses stock selection, timing and trade management. I won’t spoil the surprise by divulging the details of this approach here, but, suffice it to say, I highly recommend that any serious investor learn this approach.
Throughout the book, Schaap gives step-by step directions to do exactly what the title says: “invest with success”. He has a gift for explaining matters very simply, which might otherwise seem complicated…and he explains them in a delightfully entertaining manner. The book is replete with puns and colorful metaphors, such as “try angles”, the “BIGS”, “from here to returnity”, “grow me the money!”, “the SPY is falling!”
Schaap gives valuable sources of information, free of charge, which the investor can use to implement his strategy. He gives step-by-step, keystroke-by-keystroke directions on exactly how to scan for the top stocks and top sectors, how to find which stocks have the strongest “fundies” (fundamentals) and how to develop and maintain a “watch list” of the best stocks to consider for investment using his “50-50” strategy when the timing is right.
He gives valuable advice not only on what to do to invest successfully, but also on things not to do, even avoid as if they were the plague. This is one of the most practical and useful books on investing I have ever read…and I have read literally thousands. I highly recommend that you get it, study it and use what it will teach you. It just might make you rich.
Review by
Edward Dobson, President
Traders Press, Inc.
Greenville SC
Additional details and table of contents may be viewed at this link: http://www.traderspress.com
