From the Inside Flap
"Trading is a game," asserts veteran market analyst and industry legend Laszlo Birinyi in The Master Trader: Birinyi′s Secrets to Understanding the Market. And "like all games, there are winners and losers. Hopefully, you will emerge a winner by understanding the reality of today′s markets and being aware of the land mines and pitfalls."
For more than forty years, Laszlo Birinyi has been one of the financial world′s leading voices a brilliant trader, prognosticator, and unique personality unafraid to speak hard truths that rattle the cages of Wall Street. Now, in The Master Trader, this Wall $treet Week Hall of Famer gives us a frank, entertaining, and highly applicable road map to navigate a stock market riddled with potholes of misinformation.
In The Master Trader, Birinyi debunks widely accepted, but often faulty, financial advice through hard, realistic scrutiny of financial analysts, experts, academics, and even Nobel Prize winners. He emphasizes the marketing incentives that too often override truthfulness in the stock market, befuddling investors and leading to overwhelming economic strain.
With a thorough but no–nonsense tone, Birinyi exposes technical analysis and its potential for failure, demystifies the business protocol of Wall Street, and deciphers trading indicators, anecdotal data, and price gaps. Brimming with insider strategies and personal trading vignettes, The Master Trader addresses:
- Market changes that will likely occur as Spyders adjust in pre–trading
- Techniques for predicting the future success of a stock that reports better than expected earnings
- Methods for determining when to buy or sell stock
- The real function of money flows as a fundamental input instead of a technical indicator
- How to use magazines and newspapers, which are actually databases in disguise, to your advantage
- The futility of stock market research as an indicator of the future instead of an assessment of the past
Combining case studies and real data with Birinyi′s fearless insights and trademark wit, The Master Trader is a rare window into the mind of a master. Read this book less as a cheat sheet for making money than a guide to not losing it. In today′s struggling economy, that may be enough to come out on top.
From the Back Cover
Praise for The Master Trader
"Early in this excellent book, the author and rightly acclaimed market expert Laszlo Birinyi rails against ′mealy′ worded analysis. He goes on, in his fashion, to mince no words, but to deliver a solid lesson in how to avoid the pitfalls presented by exaggeration, pomposity, and misleading data, and also how one should approach the market singularly, with skepticism, and unemotionally. The Master Trader summarizes years of experience from one of the great veterans of Wall Street and offers the reader a very valuable lesson in historical perspective. It′s a must–read for anyone who takes investing in the stock market seriously."
Joe Saluzzi and Sal Arnuk, cofounders of Themis Trading and coauthors of Broken Markets
"Laszlo Birinyi is the king of market analysts and this book is destined to become a classic. Filled with facts and evidence instead of anecdote and opinion, it should be read and studied by every serious investor."
Bill Miller, Chairman and Chief Investment Officer, LMM, LLC
"Laszlo Birinyi has been one of the most sagacious and successful investors of our time. For those of us who have listened to him, we have been rewarded handsomely. Media snippets from him have provided periodic insights into his thinking, but this book is a superb compendium of his decades of market insight."
Mike Holland, Holland & Company LLC