The praise poured in for this book
Recommendation: A book that will give 21st-century traders an edge amidst the AI ​​onslaught (Choi Han-cheol)
Recommendation_No other method has been so unique, integrated, and focused (Leon Cooperman)
Prologue: There's No One Secret to Beating the Market
Acknowledgements

Part 1.
Basic knowledge for surviving in the financial market

Intro.
People who jump into the game without knowing the rules: The Secret of Gamboni

Chapter 1.
From Gambler to Master: The Birth of a Professional Trader
In search of freedom
Price Tape Analysis
over-the-counter options
Taste independence
Discovering the properties of trends
Gain freedom

Chapter 2.
The Essence of Stop Loss: The Alligator Principle
be eaten alive
Think about the essence

Chapter 3.
Business philosophy that sustains success
Capital preservation
Consistent profits
Pursuit of higher returns
conclusion

Chapter 4.
Order in Market Disorder: Dow Theory
Good ideas that are misunderstood
Dow Theory hypothesis
Summary of Dow Theory
conclusion

Chapter 5.
Accurate understanding of trends
Uptrend, downtrend
To summarize the basics
The importance of verification
Four major phases of the market
Significant trading volume
conclusion

Chapter 6.
Pros and Cons of Technical Analysis
Ebb and flow trader
price manipulator
Purist
summation

Chapter 7.
Confirming a trend reversal is a no-brainer
Trend Judgment, Trend Line Drawing
Identifying Trend Reversals with the 1-2-3 Rule: A Piece of Cake
Profitable 2B Patterns
Why Test and 2B Patterns Appear
Basic principles of secondary adjustment
summation

Chapter 8.
Analysts can fail due to factors unknown to them.
Just how important are anchovies?
Understanding Moving Averages
Different perspectives on relative strength
Momentum Indicators: Oscillators
Individual stock selection
conclusion

Chapter 9.
How the World Actually Works: The Basic Principles of Economics
Jigsaw puzzle
The Economics of Robinson Crusoe
The role of money
Economics and Human Nature
Production before abundance
Savings, Investments, Credit, Wealth
Summary: A breakfast that's practically free.

Chapter 10.
Boom and Bust: Who Causes the Boom and Who Causes the Bust?
Boom and Bust: The Business Cycle
Properties of business cycles
The Structure and Role of the Federal Reserve System
The process by which credit and currency are created and controlled
Reserve requirement ratio, federal funds rate, and discount rate
How to Predict Trend Reversals Based on Fed and Treasury Policy
conclusion

Chapter 11.
Fund management by risk measurement
The true meaning of risk
A groundbreaking risk measurement technique
Capital allocation based on probability

Chapter 12.
50 Ways to Blow Your Money
$4,017 hair dryer
Trading Principles and Why They Came
Definition of Principle
85% principle

Concluding Part 1: The Keys to Keeping Trading Profitable

Part 2.
Will to Execute: Emotional Control

Intro.
A Trader's Dream: A Fable

Chapter 13.
The War Between Reason and Emotion: The Spock Syndrome
From Predator to Trader: The Evolution of Human Emotions
The positive function of emotions
emotional dysfunction
The Source of Consistency: Emotional Control
conclusion

Chapter 14.
Success is what we make of it
Prerequisites for success
The meaning of success
The mind is a supercomputer
Discover and use your motivation
conclusion

Chapter 15.
Solidifying a clear change
Use your body
Use your consciousness
The discovery of awareness
Focus: Narrowing Your Thinking
Question: Changing the focus of your thoughts
Evaluation: Determining the value of something
Values ​​and personality
Beliefs and Character
How to harness the power of your subconscious mind
Anchor Dropping Technique
conclusion

Chapter 16.
Overcoming false pride
The Most Important Reasons Why Trading Fails
Evil Twin: The Idealized Self
The Pursuit of Glory: Perfectionism and Neurotic Ambition
Obsession and imagination
Self-Deception: When Wishes Turn into Needs
The tyranny of duty
True pride and false pride

Epilogue.
For your true freedom

annotation
References
Translator's Note
Search

There is no single secret to beating the market!
A profitable trader must be omnivorous.

Regarding the author of this book, Victor Sperandeo, former CEO of Goldman Sachs Asset Management, Leon Cooperman said, “He is not a technical analyst.
“That said, I am neither a fundamental analyst, a value investor, nor an astute time picker,” he wrote in his recommendation.
Victor Sperandeo, based on his long experience working on Wall Street, said, “It is very rare to find someone who makes money consistently by focusing purely on one thing,” and “Stock speculators who make money are a mongrel.
They combine the strengths of technical analysis with the strengths of fundamental analysis,” he says.
He further revealed that he is a “hybrid with a leaning towards technical analysis.”
The author defines his trading technique as “a technique that integrates probability, markets and commodities, technical analysis, statistics, economics, politics, and psychology.”
The book is filled with examples of integrated techniques, including how to read trends and predict market movements, risk assessment techniques that combine elements of technical and fundamental analysis, and how to position trades using government policies, including monetary and fiscal policy.


The Secret to Hitting the Jackpot Without Excessive Risk
Three Business Philosophy for Sustaining Success

The author says he set his trading goal as “making consistent money every month and every year” and hit the jackpot without taking excessive risks.
The author says that the reason people lose money in trading is because they bet too much on one position, and that this mistake is due to a lack of business philosophy.
The author's three business philosophies, which he cites as the secrets to his trading success, are "capital preservation, consistent profits, and the pursuit of higher returns."
In short, making profits continuously without losing money.
To this end, specific practical techniques, such as how to always maintain a favorable risk-reward ratio and how to determine stop-loss and liquidation points, are presented throughout the text.


Investing is a game of probability that increases the accuracy of predictions.
Understanding Stock Price Trends with Dow Theory

One of the key points of this book is to increase the accuracy of market predictions.
That is, finding the exact timing to buy and sell to realize profits.
The first step is to understand the pulse of the market flow, and the author found a solution through the 'Dow Theory', which was devised by Charles Dow and summarized by Robert Rea.
“Dow theory can be a useful tool, like a doctor’s high-sensitivity heart monitor or a meteorologist’s barometer.
“These tools don’t tell us what causes change, but they do tell us when change is coming,” the authors say.
Chapter 4 explains how to use the Dow Jones Industrial Average (Dow) as a useful indicator throughout the book.
You will learn how to use market indices to your advantage in investing.

Simple and easy-to-remember chart analysis techniques
Trend reversal detection, the 1-2-3 rule, and the 2B pattern

After understanding stock price movements, or trends, using the Dow Theory, the author then explains in detail the trend analysis technique he devised.
The author, who says, “The most useful tool for analyzing trends on charts is the trend line,” kindly explains how to draw a trend line accurately.
He adds that his trend analysis technique “reflects not only the definition of a trend but also the trend reversal elements of Dow Theory.”
Starting from an uptrend line and a downtrend line, it teaches anyone to easily understand 'trend lines' by comparing incorrectly drawn trend lines with correctly drawn trend lines.
The author's trend analysis techniques, including trend reversals and "test" periods that break through mid-term trend lines, the 1-2-3 rule that signals trend reversals, and the 2B pattern, are detailed throughout the book, focusing on Chapter 7.


It also provides easy-to-understand methods for taking buy and sell positions in bull and bear markets, respectively.
Using the concept of secondary corrections based on Elliott Wave Theory, for example, “the best buy positions are those taken at or immediately after the bottom of a mid-term downtrend, (…) the best sell positions are those taken at or immediately after the top of a bull market or the top of a mid-term correction in a bear market.”
The adjustment phases of each bull and bear market are explained with charts for easy understanding.

It is good to use it as an auxiliary tool in ‘stock selection’
Technical and fundamental analysis indicators

Another distinguishing feature of the author is that he does not rely on any particular analytical technique.
Although we use some technical techniques and fundamental analysis indicators, they are only auxiliary tools.
“The biggest mistake anyone can make when using a technical technique is falling in love with it,” the author warns.
Assuming that no technique is 100% accurate, I will explain the technical analysis and fundamental analysis indicators that I use, that is, auxiliary tools, focusing on Chapter 8.
Its great advantage is that it goes beyond simply explaining the technique and easily explains the principle.
The author states that moving averages, relative strength indicators, and oscillators are the most commonly used technical techniques, and explains how to use each of them in detail.
The charts provide detailed explanations of how to identify buy and sell signals through the intersection of the 10-day moving average, 200-day moving average, and 10-week and 30-week moving averages.


The author explains how to view relative strength by directly linking it to the trends he defines, saying that relative strength is “an indicator that measures stocks that will perform well and increase in value faster than other stocks.”
Relative strength can be used to select stocks to buy and sell.
How to utilize relative strength in the commodity market is also explained easily with charts.
The author introduces the oscillator indicators he uses in both the stock and commodity markets.
Chapter 8 details various techniques for assessing market momentum, including short-term and long-term market breadth oscillators, price oscillators, forward-moving average market breadth oscillators, and trend-following indicators.


The author, who "predicts the future movements of market participants through technical analysis and tracks the relationship between statistics and price trends through fundamental analysis," explains that he uses the correlation between earnings growth rate and stock price increase rate as an indicator of fundamental analysis.
The author details his own use of profit growth rates (Chapter 8).
Earnings growth rate is also a useful indicator when selecting stocks in both bull and bear markets.
The author also introduces a simple PER method for stock selection.

If you want to make money in the financial market
The Minimum 'Economics' You Need to Know

The author argues that “ignoring economics is a fatal mistake if you want to make money in the financial markets,” and that “success in speculation and investment requires understanding the nature of government fiscal policy, monetary policy, market intervention legislation, and the overall business cycle, and being able to predict their impact.”
Additionally, Chapter 9, “How the World Works,” explains the basic principles of economics in an easy and interesting way.
The goal is to use this knowledge to understand how to predict business cycles and make money.
In fact, there is a case in which the author made a lot of money by predicting the collapse of the franc after hearing the social welfare remarks of François Mitterrand, who was elected French President in 1981.


Reagan's remarks regarding the oil industry after being elected US President in 1980 were also an important indicator that brought the author a lot of money.
Beyond this, there are many useful examples of how to view mechanization, automation, and other innovations from an investment perspective.
Chapter 10 explains how the boom-bust cycle is formed and how to make money by taking advantage of it.
As an example of understanding the impact of credit expansion on the boom-bust cycle, this paper explains the stock market speculation frenzy and stock market crash in France in the 1700s, leading to the French Revolution.
It seems like a simple example that makes it easy to understand the principles of economics.

How to become a trader who doesn't lose money?
Trading principles to prevent mistakes at the source

The author diagnoses that the main reason traders lose money is because they follow their "emotions" rather than their "principles."
He argues that "without principles, every decision is driven by hope, and hope often goes against the market," and presents 19 trading principles.
The background and failure cases of each principle are presented.
“Follow the trend.
“Trends are your friends!” “Buy when it’s weak and sell when it’s strong.
“Be willing to take a sell position just as you would a buy position.” “Be an investor in the early stages of a bull market.
“Be a speculator during the final stages of a bull market and a bear market,” etc. are all famous sayings that investors can adopt as their motto.

Now that you have the knowledge, it's time to put it into practice!
Emotional training methods to increase willpower to execute

The author has met countless people while trading, and one of the things that has puzzled him is that even veteran traders sometimes become violent under stress, and that few, despite being competent and well-educated, survive to the end.
After focusing and researching this issue, the author discovered a significant difference between those who succeed in trading and those who fail.
“The difference is not intelligence or knowledge, but the will to put knowledge into practice,” he argues.
In two parts, we explain various ways to increase your willpower to execute.


Chapter 13 explains the "Spock Syndrome," which epitomizes the conflict between emotion and reason, and Chapter 14 discusses the qualities investors need to survive in the financial markets.
Chapter 15 describes specific techniques for increasing your willpower to execute.
A variety of practical techniques are presented, including how to use the body, how to use consciousness, how to use concentration, questioning, and evaluation, anchoring techniques, and how to use the power of the subconscious mind.
Chapter 16 identifies false pride as the most important reason for trading failure, and explains the resulting perfectionism and neurotic ambitions.
It also suggests ways to transform false pride into true pride.
There's a lot more to learn, too. Chapter 11, "Money Management by Risk Measurement," details how the author predicted the New York Stock Exchange crash of October 1987.
The author made a lot of money and became famous at this time.
The author's 'groundbreaking risk measurement technique' and 'capital allocation based on probability' method are presented.

“This book opened my eyes to new perspectives.”
“Stop trading for a moment and read this book first.”

Hong Jin-chae, CEO of Raccoon Asset Management, said in his recommendation, “Thanks to this book, I gained new perspectives.”
It also received praise such as, “A book that fills you with anticipation, wondering ‘what treasures might be hidden?’ with every turn of the page” (Kim Dae-hyun, author of ‘Breakthrough Trading Strategy’) and “A book that will bring an ‘edge’ to 21st-century traders in the midst of the AI ​​onslaught” (Choi Han-cheol, CEO of Neurofusion).
In addition, Mark Minervini and Jack Schwager have heavily cited and recommended Victor Sperandeo's techniques in their respective books, "High-Yield Growth Stocks" and "The New Market Wizards."