93 of 103 people found the following review helpful
A decent introduction,
Verified Purchase(What is this?)
This review is from: The Naked Trader: How anyone can make money trading shares (Paperback)
It would be unfair to rate this book very low. But I do have a number of issues with it which give some cause for concern. From a positive perspective it is an excellent and up to date introduction to trading and current internet information systems. However; having stated this and effectively recommended the book to the novice, it is very worrying how willing the author is to introduce leverage and spread betting to the novice. In my opinion the dangers of leverage, although repeatedly mentioned throughout the book, are far too high for the novice to even contemplate entering the market to spread bet. Spread betting is presented in the book as a tax free advantage and a complement to your other portfolio's. Mention is made of how spread betting can help to minimize losses. But that is a deep subject on it's own and little guidance is given on that aspect of leveraging.
The book is filled with examples of traders having used leverage and almost always losing money. It's almost like the book sells leverage and spread betting as an option to making a fortune but then contradicts itself by giving masses of examples of people who failed at this. The fact is that trading requires a very stable and controlled mind. Leveraged trading requires substantially more mind control and stability. Anyone not accustomed to the normal daily routine of trading pressures and anxiety would be fooling themselves thinking that leverage is any easier.
Also I am one of those people who does not appreciate being sold to and unfortunately this author never misses an opportunity to sell one of his own products to you. The book is filled with invitations to contact the author directly for various 'special offers' and intro's. The author criticises some other traders for selling ineffective trading courses to novices for £k's but he himself runs a course set at £599 which makes me uncomfortable.
By way of summary I would say the book is well worth reading, and is packed full of useful current information about trading and practices but it is far from an ideal trading companion. It is more of a 'trading light read'. Anyone new to trading would do well to add this to a very long list of books to read. Anyone thinking that this book is a gateway to a trading account and success is in for a very negative experience.
Tracked by 7 customers
Sort: Oldest first | Newest first
Showing 1-10 of 40 posts in this discussion
Initial post: 10 Nov 2012 21:57:11 GMT
A very sensible review. Thank you.
Posted on 6 Apr 2013 19:36:25 BDT
Mr. C. Osei-nyame says:
Yes indeed, a very sensible review. Thanks for that.
In reply to an earlier post on 6 Apr 2013 19:52:24 BDT
Thank you both for the positive feedback - since leaving my earlier comment I have been closely watching the author and increasingly I am left feeling uncomfortable with his claimed trading. He presents little if any justification for his trades and worse yet what leaves me feeling even more uncomfortable is that whenever he announces a trade that he supposedly made earlier in the week, you will notice an almost guaranteed instant profit. Never will the price stated to have been paid be available to the punter. He also claims that his real profits are not displayed on his website, claiming that his real profits far outstrip the web declared profits. If you plan to sell an investment idea or philosophy, I reckon that total openness and being entirely candid are the basic starting points. I think for anyone serious about trading or rather investing, there are far better books available and this one should be shelved as an intro only. Anyone trading the Naked Trader way on the basis of this book alone is highly likely to end up losing money.
In reply to an earlier post on 14 Apr 2013 11:03:55 BDT
I used to read his website to see if I could pick up some trading ideas and you're right. The prices he has claimed to have bought at are usually the absolute best price the share went to within the past week. Also, I've noticed that when a share does badly it's usually never mentioned again rather than being reported as a loss.
I did go to his seminar a few years ago and he must make a killing on them. Firstly its a room of about 40 - 50 people who've each paid £500 odd. You are also asked when you register which company you work for and on the day he'll ask the employees of companies he's thinking about buying if they know of anything coming up, joking telling everyone "it's ok, you can tell us, remember, nothing leaves this room". He'll then go through a list of shares he recommends and will buy them there on the day, of course these 40-50 people all go home and the next day buy the same shares which pushes the price up and puts naked trader straight into profit.
In reply to an earlier post on 15 Apr 2013 09:17:18 BDT
Chris001 - a very insightful and intelligent observation - for example last year he stated he owned btg - btg started doing poorly for reasons that I will not go into here and all of a sudden for the past 6 months it has vanished off his weekly reports. Another important factor is that e has no obvious or stated trading pattern or system. Some websites and books state that he uses a GARP system but he himself makes no mention whatsoever of entry or exit criteria other than to state that 'I think it will go up...' or 'I think it's seen the best days...' As an investor none of these comments make any sense to me. I need a reason to want to buy a company and that reason should be based on some fundamental arguments and occasionally it helps if there is support from the charts. Another odd thing is that this gentleman does everything in his writing to make trading or 'investing' sound like something you do wandering around the garden in flip-flops drinking copious amounts of tea and toasted cheese sandwiches. He clearly wants to appeal to the 'ordinary fella'. He certainly does this effectively too as it plays on most people's image of investors as relaxed laid back money generators. How further away from the truth can you be? A recent Wall Street poll suggested that to even have a chance of meeting the average DOW or FOOTSIE returns a private investor would need to spend at least 10 hours a week reading and studying the market. The Naked Trader makes to think you can just set a system and let it run - if only.....
In reply to an earlier post on 29 May 2013 13:53:32 BDT
Many thanks for your review which i thought was very balanced and sensible.
I am entirely new to trading (though i hold a few long-term stocks) and have not (yet?) bought this book. You mention in your first comment to your review that there are far better books on trading/investing. Would you be able to recommend some?
Many thanks in advance!
In reply to an earlier post on 29 May 2013 15:21:32 BDT
Well WhiteCrow - it all depends on your plans and psychology. It's very much a personal thing when it comes to investing. I can only speak for myself and I do not profess to be an expert by any measure but my style fits in with my temprament as I tend to spend a lot of time thinking, analysing and recording information before I act. I generally will never act if the expectation is a hasty act or move - I prefer to miss an opportunity than act in haste. Due to my work I am used to voluminous reading and analysing detail and therefore I actually enjoy researching companies and markets. When I shortlist a company I will read every printed item there is on that company including annual reports and trading statements for as far back as I can get and I will even read the annual reports and trading statements issued by their competitors. As a general rule I pay no attention whatsoever to analysts, stockbrokers or the press, with perhaps the exception of the WSJ and the FT, both of which are very decent publications. ADVFN is good for information and research but be very wary of the BB's as they are loaded with comments from people who frankly would not be able to find the trunk on an elephant. As for books, there are so many to choose from and as stated it all boils down to knowing you (I follow shares as a hobby, like some people follow football teams, I follow companies - yes geeky, but it's my forte and I enjoy it). Some of the most useful books I have read I list below. Each has it's emphasis and each has a lesson or two to teach. My all time bible is of course Benjamin Graham's:
1. The Intelligent Investor - Benjamin Graham
2. Security Analysis - Benjamin Graham
3. The most important thing - Howard Marks
4. Free Capital - Guy Thomas (good to help you get to know the different types of trader/investor mentality that all work)
5. Come into my trading room - Alexander Elder (good for margins and risk management psyche)
6. Monkey With a Pin - Pete Conley (helps you understand that you really don't want to trust any investment adviser/guru)
7. One up on Wall Street - Peter Lynch
8. Company accounts and trading statements - to be read at leisure
In reply to an earlier post on 30 May 2013 13:34:21 BDT
Wow, what a fast response. Many thanks for that. Very useful advice. Much appreciated.
In reply to an earlier post on 1 Jun 2013 14:24:47 BDT
Jet Lagged says:
Thank you for these interesting comments.
Was his seminar any good?
In reply to an earlier post on 1 Jun 2013 17:45:02 BDT
John - I have not and would not ever attend his or any other persons seminars promising stock exchange riches. There is more value in any single book I have listed above than you will gain from attending an introductory course on how to trade the market. Search the internet and find me a single independent reviewer who claims to have attended this seminar or indeed a seminar run by any other 'guru' and then walked off to make a fortune! Have you seen the book 'I went to an NT seminar and made a fortune'? No - cos it aint been published Sir and never will be either
There is no secret to trading - it's all about learning the markets, learning the companies and sectors and most of all learning about yourself. It's a bit like professional horse racing gambling, except that companies can sometimes be a little more predictable - if you choose the predictable type! If you want to bet all your money on an oil and gas explorer or the next mega drugs discovery then you get what you buy - high risk volatility most probably in the almost unregulated AIM. True trading genius should be candid, have stood a very long test of time of at least 2 or three decades and ideally have been played with the persons own money - I refer of course to Mr Buffett. One of his shareholders letters will teach you more than moving in with a £500 a course guru.