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Strategies to Beat the Stock Market
Strategies to Beat the Stock Market
Description
Book Introduction
"Strategies That Beat the Stock Market" is a book that tests the investment theories and trading methods that are claimed to be able to beat the stock market or have beaten the stock market, by applying them to the Korean stock market.
This book identifies three keys to successful investing that beat the stock market: the nature of the investor (Man), the nature of the market (Market), and the nature of money (Money).
So, from these, we derive the principles of psychological discipline (Mind), trading techniques (Method), and money management that can help you beat the market.
Furthermore, these three are expressed as a single word, "strategic trading," and objectively verified data is provided to present in detail the stock selection strategy, market timing strategy, formula plan strategy, and money management strategy for exceeding market returns.

index
Introduction
In the revised edition

Chapter 01: Getting Started with Strategic Trading

1.
Are great investors born or made?
2.
Standing on the path of investment
1) First investment cycle
2) Second investment cycle
3.
Three keywords for strategic trading
1) The nature of investors
2) The nature of the market
3) The nature of money

Chapter 02 Stock Selection Strategy

1.
Profitability of stock selection strategies
1) The return game between chimpanzees and fund managers
2) Fat-tailed and power-law distributions
3) Distributional characteristics of stock returns
2.
Stock selection strategy using trends
1) Will the trend continue?
2) Research on trend continuation and reversal
3) Continuous investment strategy and contrarian investment strategy
4) Short-term trends reverse!
5) Practical strategies for opposing investments
3.
Value Investing Stock Selection Strategy
1) Relative value investment strategy
2) Magic formula
3) Combined value investment strategy
4) Dow's Dog
5) Investment in public offering stocks
4.
Event Study Stock Selection Strategy
1) Inclusion and exclusion from the KOSPI 200 index
2) Free and paid potatoes
3) Free capital increase and paid-in capital increase
4) Acquisition and disposal of treasury stock
5) Stock split and stock consolidation
6) Summary of case study results
5.
Stock selection strategy using supply and demand
1) Information asymmetry market
2) Trading patterns by investor
3) Net buying strategy by subject
4) Foreign ownership tracking strategy
5) Conclusion of the subject-specific follow-up strategy
6) Practical strategy for following each subject

Chapter 03 Market Timing Strategy

1.
Profitability of Market Timing Strategies
1) Can you make profits through market timing?
2) Overcoming the limitations of chart analysis
2.
Market Timing Strategies Using Calendar Anomalies
1) January effect
2) Day of the week effect
3) Mid-month effect
4) Public holiday effect
5) Daily effect
6) Practical strategy for daily effects
3.
Market Characteristics Analysis Using Technical Indicators
1) Trend-following and counter-trend-following strategies
2) Performance of basic technical indicator strategies
3) Look at the market with a basic strategy.
4) Market Characteristics Analysis Using Moving Averages
4.
Market Timing Practical Strategy
1) MA counter-tracking strategy
2) Reverse Turtle Strategy
3) RCI breakthrough strategy
4) 20-80 strategy
5) Additional verification and conclusion of practical strategy

Chapter 04 Formula Plan Strategy

1.
Formula Plan
1) Shannon's Goblin
2) Features of the formula plan
3) Types of formula plans
4) Results of the formula plan
2.
Permanent portfolio
1) Permanent portfolio composition method and overseas performance
2) Permanent portfolio strategy in our country's market
3.
Tactical Asset Allocation and Rebalancing
1) Profit structure of rebalancing strategy
2) Rebalancing strategy using Kodex200 and Kodex Inverse
3) Rebalancing strategy for top market capitalization stocks

Chapter 05 Fund Management Strategies

1.
Risk Management
1) Stop loss
2) Target profit
3) 2% rule
2.
Volatility Management
1) Diversification
2) Geometric mean maximization
3) Portfolio asset allocation
3.
Position size management
1) Martingale and reverse martingale
2) Transaction volume management techniques
3) Summary of Fund Management

Chapter 06 Market Changes and Strategic Trading

1.
Evolution of the Stock Market
2.
Natural Selection and Strategic Trading in the Stock Market

Outgoing post

Into the book
Strategic trading is a trading method that explores the human nature that causes errors in trading, establishes principles of psychological discipline to overcome them, understands the nature of the market to develop trading techniques that can beat the market, and learns money management principles that minimize risk and maximize profits from the nature of money, thereby moving toward successful investment.
--- p.27

But, will trading like this really be profitable? Let me ask again.
Can you generate outperformance by identifying and trading stocks with high net buying percentages, high net buying amounts, or high foreign ownership increases in large- and mid-cap stocks, due to significant foreign or institutional buying over the past week or month? The bottom line is that following foreign and institutional investors is unlikely to yield outperformance.
To outperform the market, you need to follow individual investors, not these people.
--- p.169

When you understand the characteristics of target stocks through basic indicators and strategies and use a trading strategy that matches the movements of those stocks, when you accurately recognize that transaction costs that seem thinner than a dragonfly's wings can accumulate to be bigger than a mountain, when you can identify patterns of market inefficiency with probabilistic advantages, such as the intraday effect, and appropriately incorporate them into your trading strategy, and when you train these through repeated verification, only then can you achieve market-beating returns using a market timing strategy.
--- p.281

Just as crops are a collaborative effort created by the sun, rain, wind, and the owner's sincerity, excess returns from stock investment are also a collaborative effort created by a combination of stock selection strategies, market timing strategies, rebalancing strategies, capital management strategies, and the investor's continuous and repeated verification.
--- p.315

In the future stock market, where machines will replace people, existing inefficient patterns will disappear quickly and new ones will be created quickly, even if inefficient patterns do not completely disappear.
And in such a market, as Dr. Doin Palmer said, you can only generate excess returns by quickly discovering and trading profit opportunities in microscopic patterns.
--- p.380

Publisher's Review
One day, the author received a phone call.
“How can I make a profit by investing in stocks?”
It took me five years to answer this short question.
And finally, this book provides an answer to that question.
“Invest the proven way!”


This book is divided into six chapters.
Chapter 1 first examines the problems faced by investors who fail to make profits from stock investments and introduces the essential information for successful investment.
Chapter 2 introduces stock selection strategies that utilize anomalies found in financial indicators, subject-specific supply and demand data, and event studies.
Chapter 3 introduces practical market timing strategies using calendar anomalies and technical analysis indicators.
Chapter 4 introduces formula plan strategies such as Shannon's Goblin, permanent portfolio, and rebalancing.
Chapter 5 introduces money management strategies such as risk management, volatility management, and position size management.
Chapter 6 introduces the future of the stock market, which will become a battlefield for algorithms.

This book goes beyond a simple list of trading strategies. It explains in detail why various unusual patterns appear in the stock market, how recurring unusual patterns can be used to create trading strategies, and how to utilize these patterns to achieve investment success.
Investors reading this book will be able to verify whether widely known investment methods can actually generate profits in the real market.
Additionally, investors can personally verify the trading strategies presented in this book and find the one that suits them best.
Detailed information about the trading strategies introduced in this book, including their algorithmic logic, verification methods, and verification results, is available on the blog.naver.com/chartist website.

The first book to analyze almost every anomaly that appears in our country's stock market!
A book that demonstrates various profitable trading strategies, verified with objective data!
A book that shows how a very simple trading strategy can far outperform the market!

There are numerous trading strategies in the stock market.
However, only a very small number of these strategies are profitable.
Because known trading strategies have not been objectively verified, investors do not know which of them will yield profits.
This book provides clear answers to these questions.
Rather than simply talking about subjective experiences, I present all of this as verified data with objective data.

Here are some of the things investors are curious about when investing in stocks: which financial indicators should be used to generate profits? How can a strategy be developed using technical analysis indicators to generate profits? Should I buy stocks that have risen in price in a short period of time or stocks that have fallen? Should I buy or sell when announcements such as stock splits, bonus issues, or treasury stock disposals are made? Is it more advantageous to buy at the beginning of the week or on the weekend? Is it more advantageous to buy at the beginning of the market or later in the day? Which investment entity should I follow to generate profits? Should I buy stocks with an increasing or decreasing foreign ownership? Is lump-sum investing advantageous or lump-sum investing advantageous?

This book thoroughly verifies the results of analyzing the above-mentioned content and shows that they are completely different from what investors generally think.
The author states the following regarding the importance of verifying trading strategies:
“In the stock market, for a claim to be credible, it must be supported by verified data and withstand a long period of market refutation.
“A story that mixes one’s subjective views and emotions with unverified or refuted data is nothing more than a sensational novel.”

To support this argument, the author provides a wealth of validation data on all sorts of trading strategies that investors might be curious about.
For this reason, the author explains content that could otherwise be stiff and difficult to read in an easy and fun way.
Through this book, investors will be able to correct their misunderstandings about the stock market.
Additionally, you will be able to figure out which of the numerous trading strategies in the stock market will yield the most profit.
GOODS SPECIFICS
- Publication date: June 22, 2021
- Page count, weight, size: 388 pages | 178*251*30mm
- ISBN13: 9788964814376
- ISBN10: 8964814371

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