"Is this the 'real bottom'? If you want to know, open to Chapter 11."
Trend-following practical know-how, day trading, and options trading strategies.
Technofundamental trading combines the strengths of fundamental and technical analysis.

The second book in Victor Sperandeo's "Big: The Legendary Pro Trader," which records an astonishing average annual return of 72% without a single loss for 18 years.
While Volume 1 introduced the fundamental principles of speculative trading, which have yielded remarkable results, Volume 2 focuses on developing the skills to trade with "low risk and high returns" by providing more detailed explanations of market analysis and forecasting tools.
The author, who gained fame as a "Big Trader" on Wall Street, is the original "techno-fundamentalist" who emphasizes macroeconomic trends.
It combines economic fundamentals and technical analysis to identify trends and presents specific methods for leveraging government policies and market sentiment.
Covers the core elements of practical investing, from techniques for seizing opportunities in volatility to options trading and day trading strategies, and even mental management.

As you read, you'll find yourself nodding along to understand why Mark Minervini and Jack Schwager so heavily cite and recommend Victor Sperandeo's techniques in their respective books.
The author emphasizes that a professional trader must be able to "protect the principal investment and generate profits every year."
The book's practical examples, presented with numerous charts, help readers answer any questions they may have.
Let's try probabilistic and scientific trading using the stock market's average life analysis table.

The discovery of truth is very important.
Because analyzing failure is the foundation for our growth through life's challenges.
Sometimes in the market, the right outcome can come from a wrong cause, and the wrong outcome can come from a high probability of success.
The reason may seem vague, but it is simple.
The point is that the market is not always objective.
Markets are sometimes emotional, subjective and psychological.

--- p.21, from "Prologue"

Most investors use either fundamental analysis or technical analysis when evaluating a trade's potential.
This is quite a wrong approach.
The reason speculation requires the integration of both fundamental and technical analysis into its analytical tools is that it allows for the ability to predict not only future events but also the timing of those events.
By doing this, you increase your chances of trading success.
Furthermore, profits are maximized when the level of research and knowledge required to accurately identify mid-term (weeks to months) market interventions and liquidation points is raised.

--- p.27, from "Prologue"

I would like to note that so far I have not used the words money or credit, but rather general terms related to economics and finance.
From the perspective of basic economic principles, production, savings, investment, capital, profits, losses, etc. have nothing to do with money or credit.
Money and credit are merely technological innovations that make the chains of production and economic growth more efficient, manageable, and measurable.

--- p.60, Chapter 2.
From “Predicting the Market Using Economic Principles”

Typically, during a recession, there are growing calls for the government to "do something" to help the national economy emerge from the doldrums.
But the government is unable to change the reality that a period of adjustment is needed.
All the government can do is stop the wrong fiscal policy of confiscating capital and investing it in the wrong places.
This means cutting both taxes and spending.
But in reality, this rarely happens.

--- p.96, Chapter 3.
From “The Effects of Monetary Policy on the Business Cycle”

How can a capital gains tax cut benefit only the wealthy? If the capital gains tax were nonexistent or the rate were reduced, more and more companies, like Joss, would shed that stigma, branded "unpromising" by investors.
As a result, more resources are used to create new wealth (new products and services).
The result is more jobs, more competitive prices (assuming low inflation), more spending, more profits, more savings, more investment, and a host of other benefits.

--- pp.120~121, 「Chapter 4.
From “The Effects of Fiscal Policy on the Business Cycle”

In 1985, I updated Lea's findings using the Industrial Production Index.
As a result, when targeting the overall bull market, the Dow Jones Industrial Average rose 70.1%, the Dow Transportation Index rose 69.3%, and the Business Index rose 74.6%.
In a bear market, the figures were adjusted to show declines of 57.9%, 53.3%, and 61.76%, respectively.
This numerical data alone makes it clear that the stock market has predictive power.

--- p.184, Chapter 8.
Stock prices are leading indicators of the economy.

Based on the average life analysis table, among all bull markets, the trend size was larger in 53.5% of cases and the trend duration was longer in 67.3% of cases.
In other words, the market was reaching an intermediate level in both dimensions: the magnitude and duration of the trend.
From a statistical standpoint alone, the probability that the market's 'lifespan' would soon end was about 40% on average.
Therefore, if you use this as your sole criterion, your maximum long position in your stock portfolio should not exceed 60%.

--- p.222, Chapter 9.
From “Risk and Reward Analysis”

Technically, the first step in assessing a trend is to draw a trend line.
It seems like a simple task, but just as few people can correctly define a trend, few people can accurately draw trend lines.
The method of drawing trend lines that I want to explain is based on the definitions described above.
However, when I gave only this definition to my 39 trainees and did not explain it further, not a single one of them was able to consistently draw the trend line accurately.
Although it usually follows the trend, it draws trend lines that sometimes give false signals about potential trend reversals.

--- p.243, Chapter 10.
Among the “strong technical indicators”

September oats (Figure 11.1): After a downward trend since December, the price bottomed in February and rebounded and tested in March.
When a new low was formed at 133.0, 2B (new low but no trend progression) appeared.
At this time, you can use 132.75 as the stop loss line and take a buy position at the next day's closing price of 135.25.
Then, you can increase your position size above the March rebound high.
Remember, you should never trade below the March high.
The fact that the March high is broken downwards is itself a very important signal.

--- pp.275~276, 「Chapter 11.
From “Practical Chart Analysis”

Taking smaller options positions reduces the number of trades that must be successful.
By only trading when you have a good chance of winning, setting a risk-to-reward ratio of at least 5x, and using relatively small bet sizes, you can be ahead of the game even if you win just one out of four times.
You can make money just by doing this.
If you make a profit just one out of four times, you are successful.
Even if you succeed just once out of six times, you will have enough capital to continue the game.

--- p.314, Chapter 12.
From "The Magic Key to Three-Digit Returns"