Stock Market Stratagem: Loss Control and Portfolio Management Enhancement

Rating:
Summary: A Must Read!
Review: Author Braden Glett is bold enough to take on not only efficient market theory and index funds, but also the investment approaches advocated by such luminaries as Peter Lynch, Warren Buffett, John Bogle and their ilk. Although Glett does not name these names, he finds plenty to disagree with in almost every popular or conventionally recommended investing strategy. That makes this book provocative and interesting. It's always good to see conventional wisdom shaken. However, the author writes in a very difficult style, and his message hits various grammatical and logical road blocks due to a shaky editing job. With that caveat, we believe that investors and traders may want to check this short book, as long as they take the author's recommendations as opinion - he offers little in the way of solid research to back his contentions, but he raises some potentially useful doubts.

Rating:
Summary: Glett's book is a winner ...
Review: I agree with other reviewers that this book deserves 6 stars. Over the last 30 years, I've accumulated a lot of investment books but this is the first I've seen that has a chance of withstanding the test of the many varied business cycles over time. I note that this book has been selected as a text for several "practical" college investment courses.

Here are the specific reasons I like this book:

First, this is a book about lifetime investment principles for the DIY individual investor. Glett's idea is to devise easy-to-use techniques to take advantage of high growth stock market opportunities while minimizing possible losses with "risk control" strategies. Central to both concepts is the notion of diversification, where a portfolio of stocks are developed that maximizes the opportunity of finding a few big winners (doubles and triples), while limiting the number of losers to a tolerable few.

Extensive knowledge of economics or financial analysis is NOT required. Rather Glett advocates letting the market make the key buy/sell decisions. To provide insight, the techniques are explained using paper-and-pencil with public data from the web, but suggestions for simplifying the process using professional computer software are introduced as well.

An actively managed portfolio is advocated, where market conditions dictate what and when to buy and to sell. It is a "contrarian" strategy with a twist. It advocates the selection of low profile stocks in emerging market sectors rather than just the big names. It is also a "momentum based" strategy with a twist. Glett's "Reverse Scale" strategy advocates allowing winners to run, while losers are cut immediately. The twist in each case, however, is that its diversification and loss-control strategies are constructed to reinforce each other to minimize risk as defined by the investor. One of the key outputs of this strategy is the discipline to execute a stop-loss order within minutes after buying the stock to guard against subsequent "unreasonable exuberance."

Glett advocates the use of technical (charting) techniques to determine a stock's trend in order to quickly narrow a list of potentials to a select few. Charting is also useful in determining loss-limits. Financial and fundamental data are then used to gage the trend's sustainability.

And finally, techniques are developed for recognizing the onset of a bear market at which point the portfolio goes into limbo where winners continue to run, but losers are not replaced. A technique for knowing when to safely get back into the market is also presented.


Rating:
Summary: A LOGICAL METHOD OF MANAGING A PORTFOILIO
Review: I found this book to be very easy to understand. It contains information that you won't find elsewhere and has really changed the way I buy and sell stocks. I highly recommend this book for anyone who wants to manage their own money, and do it well.

Rating:
Summary: A LOGICAL METHOD OF MANAGING A PORTFOILIO
Review: I found this book to be very easy to understand. It contains information that you won't find elsewhere and has really changed the way I buy and sell stocks. I highly recommend this book for anyone who wants to manage their own money, and do it well.

Rating:
Summary: A Real Gem
Review: I wish there was a 6 star review - this book deserves it. I came across an on-line article written by Mr. Glett some time ago. I was so thrilled by what he had written I just had to send him a complimentary email. I was delightfully surprised when he answered. That comunication lead me to discovering his book, Stock Market Stratagem. And wow, what a wonderful book it is. As a middle-aged person just finally getting around to begin investing (hey, better late than never), I had bought and read a plethora of financial investing books before I found this one. And it quickly became my favorite, my most trusted source of investment information. It's simply superb. Mr. Glett writes in a most engaging style, it almost feels as though he's talking to you, one on one. His insight and take on what many of us were raised to believe as gospel is a refreshing change from those pot-boiler books flooding the market. I would rate Stock Market Stratagem way up there on the list of books you just have to own as you travel through life. It is packed full of wonderful advise and wisdom - you will not be sorry investing in this book (no pun intended). I highly recommend it.

Rating:
Summary: Destined to be a Classic!
Review: If you had the opportunity to purchase only one book on stock investing, this is the one to have. I know of no other book that covers all the bases as well as Stock Market Strategem and I've purchased and read hundreds. All but 9 live in boxes in the basement. If you're new to investing or even if you've had some experience and success in the market you can improve your performance and returns. I sincerely believe that this book is destined to be a classic.

Rating:
Summary: A Real Gem
Review: This book is very helpful. It has specific instructions on how to minimize losses in your portfolio so that during bear markets you will not be watching your stocks go down. Instead you'll be in cash waiting for the momentum to begin again.
There are specific instructions indicating when it is safe to get back in the market, and on how to pick rising stocks, how much to invest in each one so that if one does go down you won't lose your shirt.
The most important concept is a loss control plan. Glett shows you how to put it all on paper, so that when the time comes to invest you will know when, how much, and when to bail out.
The directions are easy to follow, even for the lay person. He makes a special effort not to use professional jargon. I like this book very much and refer to it often.

Rating:
Summary: Very good guide for the individual investor.
Review: This book is very helpful. It has specific instructions on how to minimize losses in your portfolio so that during bear markets you will not be watching your stocks go down. Instead you'll be in cash waiting for the momentum to begin again.
There are specific instructions indicating when it is safe to get back in the market, and on how to pick rising stocks, how much to invest in each one so that if one does go down you won't lose your shirt.
The most important concept is a loss control plan. Glett shows you how to put it all on paper, so that when the time comes to invest you will know when, how much, and when to bail out.
The directions are easy to follow, even for the lay person. He makes a special effort not to use professional jargon. I like this book very much and refer to it often.

Rating:
Summary: At Last - A Simple, Practical Investment Plan
Review: Whilst browsing the net in January 2003 I chanced upon some of Gladen Bretts concepts on investing in stocks in the US stockmarket. I emailed him seeking some elaboration and clarification. He was generous in his assistance and also advised that I obtain a copy of his latest book - Stockmarket Stratagem.Thank goodness I did so.I had read numerous books and articles on stock selection and management by US, Australian, NewZealand and British authors and "gurus" up to that point but found it difficult to distill a well reasoned, simple, pratical stratagem from their writings although ironically the authors impressed the importance of having such an approach to investing.Braden Gletts stratagem has these features. I began to apply it in the context of the Australian Stockmarket in April 2003 and to date my portfolio has exceeded my most optimistic expectations. As gratifying as this is the most valuable features of Mr. Gletts strategem are its simplicity and risk management principles which give the small private investor the wherewithal and the confidence to go it alone. By far the best stock investing book I have read - a real blueprint for investing.