- Ebook I. The Investor's Landscape & Financial
Professionals - 65 pp, $9.95
- Ebook II. Fundamentals of Trading - 83 pp, $9.95
- Ebook III. Realistic Investment Performance
Appraisal - 33 pp, $9.95
- Ebook IV. Real World Investment Management -
41 pp, $9.95
---- The Entire Series - $19.95 ----
RANK
"We need to educate the investing public
about how they should interact with those who
are conspiring to separate them from their money."
This quotation from the first ebook in the series
sets the tone and the approach to this work. The
first ebook presents the author's overall philosophy
of investing. The second presents the steps to
be followed. The third helps you evaluate progress.
The fourth is a recapitulation, plus discussion
of subjects previously missed. Although they are
labeled as separate ebooks, they all are part
of a coherent whole.
Selengut's investment philosophy may be summarized
as follows:
- DON'T TRUST WALL STREET - Don't pay
attention to averages, indices, analyses and
"research". He calls research "the intellectual
rationalization of the speculator". He also
insists that you avoid all investment "products,"
among which he includes mutual funds.
- NEVER SPECULATE - A speculator gambles.
An investor manages risk, which is entirely
different.
- BE A TRADER, NOT A BUYER & HOLDER
- If you buy and hold your investment you miss
many opportunities to make money.
- NEVER BORROW FOR A TRADE - It is almost
never worthwhile.
Selingut's trading approach is fairly simple. Here
is how he presents it:
"Phase I. Limit daily intake of business
news and information to 30 minutes
Phase II. Cancel all business newsletter and research
subscriptions
Phase III. Establish reasonable, personalized
goals and objectives"
YOU are responsible for your trading. No one else.
The major steps are as follows:
- PRELIMINARY: Define Your Stock Selection
Universe. Build a spreadsheet listing the stocks
you plan to work with. You choose them carefully,
based on 3 major criteria: Quality, Diversity,
and Income.
- EACH MORNING: Choose buying opportunities
from this Stock Selection Universe. Do this
each weekday morning before the stock exchange
opens.
- DURING EACH DAY: Buy Low and Sell
High. Low means 20% below the highest cost during
the past 12 months. High means 10% above what
you paid for it. The author repeats over and
over: "Take profits too soon."
All of this is supported with good examples
and tables.
Of course, you want to evaluate progress. Again,
Selengut says, pay no attention to Wall Street.
You prepared YOUR plan. YOU evaluate it to see
if YOUR objectives have been met. He offers the
Annual Trading Summary table to help you in this
process. Essentially, you list each buy-and-sell
together with the dollars gained.
This is an excellent book for investors who
want to increase their wealth in an intelligent,
clear thinking, orderly manner. The author invites
you to deal forthrightly with your emotions, shows
how not to be brainwashed by Wall Street, and
presents a simple but hard-working approach to
becoming a successful trading investor.
Though it is written for print publication,
The Investor's Creed is eminently readable. It
is punctuated by bold words and sentences to emphasize
the major points made.
Two big lessons I learned from this ebook series
are:
- BEWARE OF WALL STREET - Over and over
he discusses the traps, the schemes, the fraudulent
activities of financial companies and individuals.
This is very useful, but I think it is overdone.
- BE DISCIPLINED - This is perhaps the
most important message of all. If you develop
a plan and rigorously follow the author's rules,
it will help you avoid temptation and to stick
to your plan. As he puts it, don't be a "sheep"
or a "shark". Don't let your emotions take over
and you will succeed.
Overall, this is a good ebook for investors who
want to increase their wealth and are ready to devote
the necessary time to learn to be successful traders
