Tape Reading and Market Tactics | By Humphrey B. Neill

BOOK REVIEW

By Cam R

Title: Tape Reading and Market Tactics

Author: Humphrey B. Neill

While going through all the books that are supposedly about tape reading, and there are not very many unfortunately, I happen to come across Tape Reading and Market Tactics by Humphrey Neill. I count myself pretty fortunate to have read this book immediately after reading Studies in Tape Reading by Wyckoff, and in my mind, these are probably the two books you will ever need if you are interested in studying tape reading. Why is that so? Read below to find out.

Packaging - 4/5 (Paperback)

Around B5 size, the book is sturdy and feels pretty heavy for a paperback. It’s likely due to the paper used, which is pretty thick and will definitely hold up well even under constant usage. The cover design is old-school, but pleasant enough. I liked it actually, it looks like a textbook on tape reading, which it pretty much is in a way.

Writing Style - 3/5

Neill traded back in the 1920s, in the same time period as Jesse Livermore, so the writing is of that time period. It is slightly old-school English, but Neill has a gift of explaining things in a simple and easy to grasp manner. No problems here.

Trading Methods (Specifics) - 4/5

He sets out to explain the art of tape reading, and does it in a very systematic way. He explains what speculation is, what tape reading is, and then proceeds to explain exactly how to read the tape with examples. The teachings are clear and he supplements it with appropriate examples to explain the concepts he is getting across.

Here is an example of how he explains the turning points on heavy volume:

“Heavy volume at the end of a move is especially important, inasmuch as it generally indicates a turning-point in the market. In this situation, on the upwards side, we have volume during the advance with continued, increasing activity of transactions at the top without stocks’ making further headway. In other words, our buyer wants more stock and continues to enter order after order; meanwhile, our seller, who previously would sell only on advancing prices, now offers for sale great quantities of stock. For a time there is a tug of war between buyers and sellers, but this extreme activity near and at the top is indicative of a substantial reaction to follow.”

Neill also goes on to explain supports and resistances, as well as the various types of market and their characteristics.

Trading Management (Soft Skills) - 4/5

I like how he gets across the importance of deducing supply and demand from reading the tape, and not letting non-essential stuff cloud the mind.

A snippet of his words.

“The ticker tape is simply a record of human nature passing in review. It is a record giving us the opinions and hopes of thousands of people. We must dismiss from our minds all other facts. Precious few know, or can hope to know, who is buying or selling. We hear that So-and-So is buying; he may also be selling, through another broker. If he wants us to know that he is buying, we should be chary. So, let us disregard hunches and wild conjectures. If he buys and sells, the record of his transactions will be on the tape. We must make our interpretation from the record. So long as we continue to guess who is doing the buying and selling, we shall remain in a sea of confusion. The person who is privileged to know who is buying, does not need the ticker tape.”

And I really like how he explains what the tape actually shows.
A short snippet again below.

“In all that I shall have to say, I warn you that I see on the tape only the results of buyers’ and sellers’ transactions in stocks; mine are not eyes that perceive the occult signs of movements of J.P.Morgan and Company or short sales executed by Jesse Livermore. Mr. Livermore may be buying, or selling; but if the stock advances, and I am “long”, I shall be content.

Inasmuch as I am not well acquainted with any member of J.P. Morgan and Company, or with Mr. Livermore, I am quite certain that they are not interested in me as an individual. However, they are interested in me collectively. Here is what I am driving at: the individual trader tries to find out what some important operator is doing, but he never stops to think that that operator must tell from the action of the stock he is operating in what the public, of which the individual trader is a member, is doing.”

Trading Psychology (Mindset) - 3/5

He does devote a section to what he terms human nature and speculation. Here is what he terms market-poise.

“Market-poise is the result of a sense of mental well-being – confidence in the outcome of a speculative venture which has been entered into calmly, thoughtfully, and deliberately. If it should not work out profitably, as planned, and it is necessary to accept  a small loss, this would not upset us, in as much as we should realize that we had applied our best judgement to the problem. We should appreciate that it is impossible to judge every market commitment correctly. Market-poise is engendered by judgement, rather than by guess-work; by conservatism instead of rash chance-taking; by the willingness to remain on the sidelines when the issues between buyers and sellers is beclouded, rather than by feverishly demanding action at all course.”

Longevity - 3/5

As a guide, or textbook if you will, this is one of the books to go back to when you need refreshing of the basics.

Value - 4/5

For anyone interested in learning the art of tape reading, this is really one book you must read. There are a lot of strange, and frankly nonsensical, notions on trading the market. But thankfully, this book is not one of them. The author must have been a trader, and the concepts of tape reading that he puts across are sensible, logical, and along the lines of what has been also said in Reminiscences of a Stock Operator. It’s less than $10 for a new book, and contains more value than most of the books on tape-reading.

Things to Watch Out For -

The examples of stocks that he cites are dated due to the fact that it’s published during the 1920s, so it’s something to keep in mind while reading the book.

Overall - 4/5

An excellent book on learning how to read the tape. It’s not an easy read for sure, since you probably need to read, think and then assimilate what he has explained about tape reading. But for the core concepts, this book is pretty much a fantastic introduction.

Score Recap:

Packaging - 4/5

Writing Style - 3/5

Trading Methods (Specifics) - 4/5

Trading Management (Soft Skills) - 4/5

Trading Psychology (Mindset) - 3/5

Longevity -3/5

Value - 4/5

Overall - 4/5

Where to Buy:

If you found the above review helpful and want to buy the book, please do consider buying it from my affiliate link below. The prices are competitive, and any purchase goes a long way in supporting this site. Thank you!

       

Related Books
If you are interested in the art of tape reading, be sure to also check out Studies in Tape Reading by Richard Wyckoff. It is also an excellent guide on the art of tape-reading. (Review Here)


Thank you for reading!

And do check back for new and updated reviews, cheers! :)

So Far So Good – The First 94 Years | By Roy R. Neuberger

BOOK REVIEW

By Cam R

Title: So Far So Good – The First 94 Years

Author: Roy R. Neuberger

I first heard of the trader Roy Neuberger from reading Jim Rogers’s book Street Smarts, in which Rogers described his former boss as one of the best tape-reading traders in the business. As I have somewhat of an interest in tape-reading, I decided to seek out Neuberger’s book – which is his autobiography, to see if it may shed any light on his trading.

Packaging - 3/5 (Hardcover)

A pretty typical hardcover, about B5 size. The white paper is of good quality, if slightly rough to the touch. The cover is pretty unique for an autobiography. It shows a portrait of Neuberger in a pretty avant-garde style. It is likely a homage to his love of the arts, particularly contemporary modern art.

Writing Style - 3/5

Simple and straight-forward writing style, with no fluff. In fact, it feels a little like he speaks his thoughts out to you while you are reading the book. The book felt slightly lean in certain descriptions of events, bare-bones actually. I felt he could have elaborated more in certain aspects, but other than that, the book is a pretty quick and easy read-through.

Trading Methods (Specifics) - 3/5

The first part of the book consisted of how he started in Wall Street, and is pretty much the main part of the book for market-related stuff. He describes how he started out, with a cursory overview of some of his trades, including his well-known hedge trade during the 1929 market panic. There are no specific methods on reading the tape, instead it’s more of a recollection of sorts. In fact, I couldn't discern from the book that he was a tape-reader. If he wasn't described as a tape-reader by Jim Rogers, I would have thought that Neuberger was a intermediate to long-term investor.

His 10 percent rule is quite sensible and useful though. As below.

“You can’t always win on Wall Street, so you have to learn to cut losses quickly and move on gracefully. At one point, I was bullish on International Harvester. Right after I bought it, unfortunately, it began going down, down, down – and I realized I had made a mistake. I sold it the same day, lucky to take a small, quick drop rather than a big, drawn-out loss. Like many traders, I don’t win on everything. Over the years, I've lost quite often, but obviously I've won more than I lost.

Getting married to a stock can prove disastrous. The 10 percent rule is sensible: If your stock starts falling, take a loss of 10 percent and start again. I take this idea very seriously, and it’s worked quite well for me. The flip side of that rule is not to be greedy with profits. Never try to guess the top.”

Trading Management (Soft Skills) - 2/5

The book is pretty lean on trading management aspect. In fact, the overwhelming sense I get after reading the section in which he describes his years in Wall Street is that his trading style comes across as very logical and sensible.

It seems like he doesn't make big bets, he has no emotional issues, and his success was basically a step-by-step process. He found his life purpose to support contemporary artists, he needed money to do it, Wall Street was where the money is, he went to Wall Street, he made money as a trader trading his own account, he opened his own firm, and it just grew from there.

 In fact, he sounds really happy and satisfied. It’s rare to read someone’s autobiography in which everything seems smooth-sailing from the start to the end. To borrow the book’s title, it's indeed ‘so far so good’.

Trading Psychology (Mindset) - 3/5

Aside from being logical and sensible, Neuberger also comes across as being pragmatic and realistic. Here’s how he describes his thought during the big market panic of 1929.

“Even during the Panic, I never regretted my decision to go to Wall Street. Quite the opposite. I learned a lot in 1929. I studied the market and learned fast that something was wrong. Perhaps because I wasn't on Wall Street (or even in America) earlier in the 1920s, I was able to see trouble looming – while others with more hands-on experience lulled themselves into thinking the market would continue to rise indefinitely.

As the time, I was using all of the life experience I had acquired by age 26, particularly common sense, a commodity sometimes in short supply on Wall Street. I considered the Panic to be the signal of a disease in our economic environment. I also felt that we were heading for a bear market, and I acted on that judgement.

In many ways, the Panic shaped my current approach to the market: I am prematurely bearish when the market experiences a prolonged ascent, when everybody is pleased because they’re growing richer. And, conversely, I'm very bullish when the markets drops perceptibly because I feel it has already discounted any troubles we are going to have.”

Longevity - 2/5

I felt his biography is worth a read-through, just to get a sense of how the market environment was back in the 1920s. And like he mentioned in his book, he is probably the only trader who has experienced personally both the markets in the 1920s through to the markets now. In a way, reading the book made me feel the markets have changed dramatically since then, and yet remain very much the same as then.

Value - 2/5

For a trader looking for specific market related information, the most helpful would probably be the ten principles of successful trading he listed in the book. That, and along with some of his observations relating to the market, are probably the most market-related bits. It is also interesting that Neuberger knew personally the great investors, names like Ben Graham, Warren Buffett, Peter Lynch, George Soros and a couple of others. It was fun to read his brief description about each of them.

Things to Watch Out For -

It is obvious from the book his love of the arts, and in fact, the second half of the book is almost solely devoted to his endeavours in the arts. Readers who are not interested in the arts may find the parts of the books where he talks about art overwhelming.

Overall - 3/5

A pretty enjoyable book, and a very quick read-through. I wished he could have shared more specifics on how he trades the market though. If you have some free time over the weekends, this would be a nice and easy book to spend your time with.

Score Recap:

Packaging - 3/5

Writing Style - 3/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 2/5

Trading Psychology (Mindset) - 3/5

Longevity -2/5

Value - 2/5

Overall - 3/5

Where to Buy:

It's an old book, so I doubt most bookstores would carry it now. Amazon and Books Depository both have it in stock though, with free worldwide shipping for Books Depository. If you want to buy the book, please do consider buying it from my affiliate links below. It really goes a long way in supporting this site. Thank you!

        

Thank you for reading!
Do check back soon for new reviews!

The Power of your Subconscious Mind | By Joseph Murphy

BOOK REVIEW

By Cam R

Title: The Power of your Subconscious Mind

Author: Joseph Murphy

The saying that ‘winning in sports is 90 percent mental and 10 percent physical’ can pretty much be carried over to trading too. And it’s not only important to have the correct trading mindset, anyone who wants to be a successful trader needs to have the correct money mindset too.

Recall Ed Seykota’s interview in Market Wizards. In it, he talks about the trader who inevitably gets in at the start of every bull move, turning his ten thousand into a couple of hundred thousands and then back to ten thousand again. From my vantage point, it seems the trader does not have a trading mindset problem; he has a money mindset problem. Try the following paragraph below.

“I like money. I love it. I use it wisely, constructively, and judiciously. Money is constantly circulating in my life. I release it with joy, and it returns to me multiplied in a wonderful way. It is good and very good. Money flows to me in avalanches and abundance. I use it for good only, and I am grateful for my good and for the riches of my mind.”

What do you think and feel immediately after reading it? If there’s any conflict in your mind, I believe this book would probably be of help, for open minds.

Packaging - 2/5

A flexible paperback, if slightly on the narrow side in its width. I presume it’s meant to be easy to carry around in your bag and taken out for a quick browse. The paper is the thin and non-white stock type, so just be careful not to spill water on it. The cover is plain but functional, with just the title in bold print. The absence of a picture is understandable since I highly doubt any graphic can capture the essence of the ‘subconscious mind’.

Writing Style - 3/5

Divided into topics, each chapter in the book actually deals with a specific issue, such as wealth, health, success, marriage, basically the most common of the roadblocks faced by most of the human population. It makes going straight to the specific topic you are interested in very easy, instead of having to read through the whole book from front to back. Convenient and clear-cut design here.

Trading Methods (Specifics) - 3/5

Let’s get back to the statement about money in the introduction, and to the specific topic of wealth, since this is a market-related review. I'm sure you know men or women who work for a few hours a week and make a tremendous amount of money. Conversely, I'm sure you know people who slave hard and yet always do not seem to have enough and are struggling to make ends meet. The difference, as this book explains, is due to a wealth consciousness.

“Wealth is ultimately nothing more than a subconscious conviction on the part of the individual. You will grow into a wealth consciousness by building into your mentality the idea of wealth and abundance.”

And how is how the book gives an example of building it.

“This is what you do: Repeat to yourself for about five minutes three or four times a day, 'Wealth, Success'. These words have tremendous power. They represent the inner power of the subconscious mind. Anchor your mind on this substantial power within you, then the conditions and circumstances corresponding to their nature and quality will be manifested in your life.”

To keep it related to trading. If you are having trouble keeping your gains from trading, just sincerely give the above a try. And if you find that it works, the rest of the books has more techniques and methods for other topics too, trading and non-trading related.

Trading Management (Soft Skills) - 3/5

The book also mentions something which is common-sense, but not obvious at the start, and ties in to the statement at the beginning of the book.

“What you condemn takes wings and fly away.”

The author puts forth a very logical case for not condemning money. After all, what is the purpose of trading but the accumulation of money. Not making money, but keeping the money you make. If you have a healthy money mindset, then all the money you have made is an indication of how much you value yourself (an idea taken from The Disciplined Trader), and the converse is also true. After all, as the book succinctly states “When your blood is circulating freely in your body, you are healthy. When money is circulating freely in your life, you are economically healthy.”

Trading Psychology (Mindset) - 4/5

The essence basically is this: Whatever you think will take root in your mind. Think of it like planting a seed (the equivalent of a thought) in your mind. And just like how a seed planted in the ground attracts whatever it needs to grow, a seed planted in the mind will also attract whatever it needs to grow, whether it is a good thought or a bad thought. And just like how a huge tree is hard to uproot, so are the persistent thoughts in your mind, which will have taken root and become your habits. So to link it back to the market, the important thing is probably to be honest and realize whether thoughts of wealth and abundance circulate happily in your mind, or whether is it overgrown with the weeds of lack and poverty. 

Longevity - 3/5

I actually found myself going back to specific chapters when I feel my thoughts slipping, so I found this very useful to have at hand actually.

Value - 3/5

The value of the book probably lies in how much you are willing to open your mind and consider the ideas and concepts in the book. The mind is really a lot like a parachute, it’s useless unless it’s open. If the concept mentioned about money in the above part sounds alien, then this book probably won’t be of much value. But if you read it with an open mind, you might be pleasantly surprised.

Things to Watch Out For -

While reading it, I was struck by the strong reference to the bible in this book. This is probably because the author is a Christian, so he references quotes from the bible throughout the book. But I feel the main concepts of the book are pretty universal and non-religious in nature, whatever your religious or non-religious affiliations are, just take note of this aspect when reading this book.

Overall - 3/5

Although I would suggest most people to give this book a try, the book to read ahead of this book would be Think and Grow Rich by Napoleon Hill. The Power of Your Subconscious Mind is more akin to an expansion of one of the main concepts in Think and Grow Rich. If you have not as yet read Think and Grow Rich (which I am planning to review shortly), read it first and then read this. It will be much more logical.

Score Recap:

Packaging - 2/5

Writing Style - 3/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 3/5

Trading Psychology (Mindset) - 4/5

Longevity -3/5

Value - 3/5

Overall - 3/5

Where to Buy:

This should be available in most physical bookstores. Or you can also search online for a cheap copy. Amazon also has it for less than five dollars the last I checked. It's about the price of a fast food meal, and probably does more good to your health than a fast food meal will be in any case.

If you found the above review helpful, do consider buying it from my affiliate link below. I really appreciate it, and any purchase goes a long way in supporting this site too. Thank you!

       

Thanks much for reading!

And do check back in for new reviews to come! Have a wonderful day! :)

The Disciplined Trader: Developing Winning Attitudes | By Mark Douglas

BOOK REVIEW

By Cam R

  

Title: The Disciplined Trader: Developing Winning Attitudes

Author: Mark Douglas

This is the first book by Mark Douglas, author of Trading in the Zone - one of the most recommended books for anyone keen on trading psychology. I really found Trading in the Zone an excellent book on tuning your mindset for trading, and decided to read The Disciplined Trader as well. So on to the review below.

Packaging - 3/5 (Hardcover)

A solid and study hardcover, with a green theme. Most books have a predominantly black colour theme, so having a different colour here is a refreshing and welcome change. The paper is of good quality and can withstand frequent handling. I found the cover design appropriate, with the allusion of a trader who is keenly contemplating something.

Writing Style - 3/5

The writing style is clear, and easy to digest. There are bullet points for key ideas when necessary, and each chapter is further divided into subsections with its own subtopic. It really invites bite-sized consumption. This also makes the book easy to navigate and sections easily remembered. All is fine and good here.

Trading Methods (Specifics) - 3/5

Douglas spends a fair portion of the book going into lengths explaining why anyone who wants to be a successful trader needs to develop a trading methodology, and he makes an extremely compelling (if slightly repetitive) argument for the reason it is so. How he dissects the unique environment that is trading further adds to the case.

Here's a tiny snippet of how he makes the case of traders giving themselves exactly what they deserve:

“Traders put on trades and then take them off when they choose. That decision-making process is the result of the sum total of all the mental components interacting with one another. If we were to inventory all these components, measure the energy they hold, and then balance the components that contribute to a positive sense of self-valuation against the components that contribute to a negative sense of self-valuation, what would be left is a net amount that we value ourselves. This net amount will correspond directly with how much money we give ourselves out of what is available in any given trade, in any day, month, or year, or by the same token how much of our money we give away.”

What he says rings pretty true. I can think of one trader I know, who trades for a proprietary firm. This trader has pretty decent skills and usually makes a decent sum of money by the afternoon. But he somehow manages to give back his gains by night. It doesn't happen all the time, but you can count on it happening most of the time. (I really think he should just not trade at night, but he continues to do so, so…) When talking to him, phrases like ‘I don’t deserve the money’ or ‘I am just lucky’ just seems to drop out of his mouth. He's like the unfortunate poster boy that drives home the point that Douglas makes here.

Trading Management (Soft Skills) - 3/5

Douglas gives a ten steps to success manual at the concluding part of the book, with details for each step. It is pretty good, but I think for a comprehensive walkthrough, his subsequent book Trading in the Zone would be a much better guide. 

Trading Psychology (Mindset) - 4/5

The basic idea is that your beliefs are what drives your action, and subsequently is what leads to your own trading results, good or bad. The strength of The Disciplined Trader lies in how he presents the case of why you need to have a new trading methodology. He does it well so that by the end of the book, you are probably convinced that you need a new methodology, or at least, your mind should be open to seeing the trading environment in a different light. Whereas the strength of Trading in the Zone is that he lets you know how you can get a new trading methodology and walks you through the change process.

Longevity - 4/5

I could definitely see the usefulness of going back perhaps annually to this book, in order to keep the principles of successful trading fresh and in mind.

Value - 3/5

Pretty good value, and one of books on trading psychology that most traders should ought to read.

Things to Watch Out For -

It’s slightly repetitive, so a little patience is needed in going through the book.

Overall - 3/5

Great book on trading psychology, and is definitely a book most traders should at least read through once, if not a few times. After reading this, I would really recommend following it next with Trading in the Zone.

Score Recap:

Packaging - 3/5

Writing Style - 3/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 3/5

Trading Psychology (Mindset) - 4/5

Longevity -4/5

Value - 3/5

Overall - 3/5

Where to Buy:

If you found the above review helpful and want to buy the book, please do consider buying it from my Amazon affiliate link below. The prices are competitive, and any purchase goes a long way in supporting this site. Thank you!

Thank you for reading!

And do check back for new and updated reviews, cheers! :)

Soros: The World’s Most Influential Investor | By Robert Slater

BOOK REVIEW

By Cam R

Title: Soros: The World’s Most Influential Investor

Author: Robert Slater

I picked up this book along with Staying Ahead of the Curve (Review Here), as I was fascinated by George Soros. He’s a master trader after all, and if you’re going to learn, you might as well learn from one of the best. In any case, this is a biography of Soros, taking us on a journey from his youth in Nazi-overrun Hungary, to his adult years America, and then to his later philanthropic endeavours. But does it reveal more of his trading insights and methods? We’ll see below.

Packaging - 2/5 (Hardcover)

A nice typical hardcover, about B5 size. The paper quality is good and should not succumb to wear or age easily. The font and spaciousness of the text are easy on the eyes. The title is fine, no arguments from me there. The biggest minus is with the picture used though. Soros looks displeased here. This picture certainly does not convey any aura of him being the world’s most influential investor. In fact, he looks like he has just gotten news of a trade gone wrong. I dropped the score to a 2 from a 3 because of the inappropriate picture choice.

Writing Style - 4/5

The writing style is engaging, and the tone is lively and manages to flow at a brisk pace. An unexpected plus is how Slater describes Soros’s trade in the British Pound, in a time by time breakdown. It reads a little like an action thriller and injects a bit of suspense in the book, which I really enjoyed. Biographies in general can be (really) dull, like a monotonous history book, so something different and engaging should be credited.

Trading Methods (Specifics) - 3/5

This is an unauthorized biography, though the author did do extensive research and also interviews with a number of people who were close to Soros. Some of their comments were really interesting and shed a little more light on his workings.

Soros’s friend Byron Wien on his laid-back approach to life:

“He feels, that he should not be dependent upon other people. Some people spend all day talking to brokers. He doesn't feel that that’s the way to spend all your time. Instead, he prefers to talk to a few people who can be really helpful and to think and read and reflect.

He once said something to me that was very useful: ‘The trouble with you, Byron, is that you go to work every day and you think that because you go to work every day, you should do something. I don’t go to work every day. I only go to work on the days that make sense to go to work… And I really do something on that day. But you go to work and you do something every day and you don’t realize that it’s a special day.’”

How Soros thinks about the positions of his fund managers:

According to Allan Raphael, who worked with him from 1984 to 1988, “if you liked something, he wanted you to talk to someone who didn't like it. He always wanted an intellectual rub there. He always rethinks a position. You always had to rethink it and rethink it and rethink it. Things change. The prices change. Conditions change. It was up to you as a fund manager to constantly rethink your position.”

Trading Management (Soft Skills) - 3/5

There seems to be a strong emphasis on how Soros uses his survival instincts during trading. I suppose this is logical given that we were introduced at the beginning of the book to his childhood, which was shaped in large part by the experience of his family eluding capture by the Nazis.

The book does shed light on one of Soros’s supposedly favourite strategy though.

As recounted by James Marquez, a Soros associate from the 1980s:

“George always used to say, ‘Invest first and investigate later.’ That meant, form a hypothesis, take a toehold position to test the hypothesis, and wait for the market to prove you right or wrong.”

In essence, this favourite Soros strategy could be called “getting a feel” for the market. Soros used this technique only occasionally; when the two worked together in the 1980s, Soros would sometimes tell Marquez that he had this strategy in mind for a particular deal that they were working on.

In those situations, the scenario would sometimes go like this:

After much decision, the two men would finally decide to take a plunge. 
Marquez would then design a staged effect, setting aside a certain amount of the fund for the position.

“All right,” Soros would say, “I want to buy $300 million of bonds, so start by selling $50 million.”

“I want to buy $300 million,” Marquez would remind Soros.

“Yes,” Soros would reply, “but I want to see what the market feels like first. I want to see how I feel as a seller. If it comes very easily, then I want to be even more of a buyer. But if those bonds are really hard to sell, I'm not sure I should be a buyer.”

Trading Psychology (Mindset) - 2/5

I can get a sense of his humour and wit during his casual encounters, but there is not much substance here.

Longevity - 2/5

This book is a thorough and fascinating account of his life, but it is not something that I feel I would reread again. A once-over is sufficient.

Value - 2/5

As a biography of Soros, this book does a fine job taking you walking you through his life from the lens of an outsider. However, if you are interested in trading related stuff, there is not too much here that you can pick up.

Things to Watch Out For -

This is an unauthorized biography, so many of the accounts of his life are culled from external sources like his friends, previous associates and other acquaintances. While I found it mostly genuine, they are still recollections and accounts of the man from people close to Soros, but not from Soros himself.

Overall - 3/5

I enjoyed reading this biography, and it offered a deeper insight into the life of this influential investor. Trading insights wise, it’s relatively sparse, but it accomplishes its goal to give a picture of his life. It’s an easy biography to read on a lazy weekend.

Score Recap:

Packaging - 2/5

Writing Style - 4/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 3/5

Trading Psychology (Mindset) - 2/5

Longevity -2/5

Value - 2/5

Overall - 3/5

Where to Buy:

If you found the above review helpful and want to buy the book, do consider buying it through my affiliate link below. I really appreciate it, and any purchase truly goes a long way in supporting this site. Thank you!

Related Books
If you are interested to find out more about Soros's insights on investing and trading, I really recommend reading his book Staying Ahead of the Curve. Check out my review for more information. (Review Here)


Thanks for reading!

And do check often, I will have new reviews up! :)

Soros on Soros: Staying Ahead of the Curve | By George Soros

BOOK REVIEW

By Cam R

Title: Soros on Soros: Staying Ahead of the Curve

Author: George Soros with Byron Wien and Krisztina Koenen

It’s hard not to have heard of George Soros if you are not involved in the market, being the famous man who made a cool profit of one billion dollars in one day. It’s especially harder not to be awed by his phenomenal trading skills if you are involved in the markets. How many traders can genuinely claim to be in his league?

My first introduction to the man was from an indirect source however. I had picked up The New Market Wizards book and had really liked the interview with Stanley Druckenmiller. And I was intrigued (and admittedly wide-eyed) when reading the famous phrase that Soros uttered when Druckenmiller told him he had a position of a billion dollars on a trade. “You call that a position?” Soros said dismissively, and urged him to double it.” Boldness is certainly admirable.

So I was looking forward to reading Staying Ahead of the Curve, because unlike a biography, this was more akin to a conversation with Soros himself. So did it shed more light on the man and his methods? Let’s find out below.

Packaging - 5/5 (Hardcover)

A nice hardcover about B5 size. The paper quality is relatively thick and of good quality, though it felt slightly rough to the touch. Not something that will yellow much. I particularly liked the cover design. It’s simple, clean, with the Soros name in big muted gold print (hinting of the midas touch yes?) and a simple white serif font for the title. The picture of George Soros is very appropriately chosen too. He’s leaning back, confident, relaxed and very engaged in a conversation, which is exactly what the book is. Full marks here!

Writing Style - 4/5

The whole book is divided into two parts, one geared more towards investing and the second part towards his philanthropy, with each part consisting of a couple of chapters. Structured as an interview, questions were asked by Krisztina Koenen/Byron Wien, and then answered by Soros. The writing is crisp, straight-forward and there is very little fluff. No complains here.

Trading Methods (Specifics) - 3/5

I guess that most people who are interested in George Soros would mainly be keen to learn more about how he trades. Imagine you had an audience with Roger Federer, I suspect he would be flooded with tennis related questions and not marketing or other non tennis related subjects. And so it is here.

The bulk of it is found in the section “The Theory of Investing”, in which he shares his theory of reflexivity. A bonus is that his explanations and answers are very concise here. This is infinitely more accessible than The Alchemy of Finance. Soros has obviously had the benefit of time to refine his ideas, and he presents it succinctly now. I would in fact recommend reading this first, ahead of The Alchemy of Finance.

Here are some short excerpts:

Soros on the framework he uses in his investing:

“The main idea is that our understanding of the world we live in is inherently imperfect. The situations we need to understand in order to reach our decisions are actually affected by those decisions. There is an innate divergence between the expectations of the people taking parts in events and the actual outcome of those events. Sometimes the divergence is so small that it can be disregarded, but at other times it is so large that it becomes an important factor in determining the course of events. That is not an easy idea to communicate.”

Soros on his general theory of reflexivity:

“Essentially, it has to be with the role of the thinking participant, and the relationship between his thinking and the events in which he participates. I believe a thinking participant is in a very difficult position, because he is trying to understand a situation in which he is one of the actors. Traditionally, we think of understanding as essentially a passive role, and participating is an active role. In truth, the two roles interfere with each other, which makes it impossible for the participant to base any decisions on pure or imperfect knowledge.”

I really wish the interviewer had gone more into more depth in regards to his trading. And with specific examples of some past trades he has done, along with a dissection of them. Reverting back to the tennis analogy, there are plenty of compilation videos on YouTube celebrating the greatest shots of Roger Federer, so I was hoping for something similar in this regards too. It seems such a waste to keep his other great trades (aside from the Pound trade) unknown and buried in the dark.

Trading Management (Soft Skills) - 4/5

The general idea that he is a trend follower comes across very clearly. It is also quite clear that he knows he is a trend follower. Most importantly, he knows the pros and cons of being a trend follower – when to go with the herd and when to step aside. This reminds me of Sun Tzu’s saying in The Art of War: “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” It’s probably why Soros is known as one of the best loss takers in the business, he is supremely confident in his own ability to win.

Here’s a short snippet on how he views being a contrarian:

“Being so critical, I am often considered a contrarian. But I am very cautious against going against the herd; I am liable to be trampled on. According to my theory of initially self-reinforcing, but eventually self-defeating trends, the trend is your friend most of the way; trend followers only get hurt at inflection points, where the trend changes. Most of the time I am a trend follower, but all the time I am aware I am a member of the herd and I am on the lookout for inflection points.

The prevailing wisdom is that markets are always right. I take the opposite position. I assume that markets are always wrong. Even if my assumption is occasionally wrong, I use it as a working hypothesis. It does not follow that one should always go against the prevailing trend. On the contrary, most of the trend prevails; only occasionally are the errors corrected. It is only on those occasions that one should go against the trend. This line of reasoning leads me to look for the flaw in every investment thesis. My sense of insecurity is satisfied when I know what the flaw is. It doesn't make me disregard the thesis. Rather I can play it with greater confidence because I know what is wrong with it while the market does not. I am ahead of the curve.”

Indeed, he is.

Trading Psychology (Mindset) - 4/5

Everything seems to boil down to his theory of his infallibility. But he is very honest about his own failings, which I found very refreshing. It is most certainly useful to understand how he thinks, for any one who is or aspires to be a trader. It does take a confident man to not only know his weaknesses but to freely admit them.

A small part in which Soros discusses his strengths and weaknesses:

“I think my analytical abilities are rather deficient, but I do have a very strong critical faculty. I am not a professional security analyst. I would rather call myself an insecurity analyst. I recognize that I may be wrong. This makes me insecure. My sense of insecurity keeps me alert, always ready to correct my errors. I do this on two levels. On the abstract level, I have turned the belief in my own infallibility into the cornerstone of an elaborate philosophy. On a personal level, I am a very critical person who looks for defects in myself as well as others. But, being so critical, I am also quite forgiving. I couldn't recognize my mistakes if I couldn't forgive myself. To others, being wrong is a source of shame; to me, recognizing my mistakes is a source of pride. Once we realize that imperfect understanding is the human condition, there is no shame in being wrong, only in failing to correct our mistakes.”

Soros on risk-taking:

“What is there to say? Risk taking is painful. Either you are willing to bear the pain yourself or you try to pass it on to others. Anyone who is in a risk taking business but cannot face the consequences is no good.”

Longevity - 4/5

I actually found this book very enlightening, and really like the interview format. It makes flipping back to certain sections very easy. Unlike a biography, there are no superfluous stories or descriptions to distract from the key ideas he presents in the book. If you are receptive to his ideas and his thoughts, this is definitely a book to have on your shelf.

Value - 2/5

It’s a very big picture book. There are no specifics, and you probably need some experience, and also interest, in basic economics as well as finance to really get what the book is offering. For anyone who has an interest in the mindset and philosophy of George Soros though, this book is fantastic value. If you have no interest in George Soros, I doubt this book would be of much interest.

Things to Watch Out For -

This is really very much a big picture book, think broad macro-economics and fundamentals. There is little to none on technical analysis, so don’t expect anything on technical analysis here. Also, I'm not sure how relevant is the portion of his philanthropy to actual trading itself, so it’s just something to keep in mind. It might be better if he had a single book dedicated solely to his philanthropic efforts.

Overall - 3/5

The book does do what it sets out to do, which is to have a conversation with George Soros. It was very educational in some aspects, and surprisingly, it was a very accessible read. I enjoyed it very much and would recommend this book to anyone interested in having a greater insight into the man.

Score Recap:

Packaging - 5/5

Writing Style - 4/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 4/5

Trading Psychology (Mindset) - 4/5

Longevity -4/5

Value - 2/5

Overall - 3/5

Where to Buy:

If you found the above review helpful and want to buy the book, please do consider buying it from my Amazon affiliate link below. The prices are competitive, and any purchase goes a long way in supporting this site and as a small motivation for me to continue working on this resource for you. Thank you!

Related Books
If you are interested to find out more about Soros's life, the biography titled Soros: The World’s Most Influential Investor is a pretty good account of it. Here's the link to my review of it. (Review Here)

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Tap Dancing to Work: Warren Buffett on Practically Everything | By Carol Loomis

BOOK REVIEW

By Cam R

Title: Tap Dancing to Work: Warren Buffett on Practically Everything

Author: Carol Loomis

Warren Buffett really needs no introduction. In any case, I was browsing the list of newly released books and picked up this book as the cover design grabbed me. It shows a genuinely happy Buffett in a casual polo against a nice blue sky. A refreshing change from the ubiquitous suit and tie he is wearing on most occasions.

I didn’t harbour much expectation for it to contain anything new about trading though, since the book already says, it’s Warren Buffett on ‘Practically Everything’. Everything could be anything. Who knows if he'll be talking about the weather. Anyway, let's read on and find out.

Packaging - 4/5 (Hardcover)

A compact hardcover, slightly larger than B5 size. Paper is thick and of relatively good quality. It feels strangely light in terms of its weight in my hands though. I did kept getting the feeling the pages might fall out if I flatten the book too strongly, though hopefully it won't. I love the cover packaging – clever title, appropriate picture, very well designed. This is really me nitpicking, but I am used to seeing recent hardcover business books having that tiny braided cloth strip at the top edge that lines over the binding. Pretty odd it is not present in this book, especially one I suspect is expected to sell well.

Writing Style - 3/5

The book is like an archive of most of the previous articles in Fortune magazine on Buffett, with the majority from Carol Loomis supplemented by a few other Fortune writers. There is new material in the form of a new commentary by Loomis at the introduction of most of the articles though. The writing style is very much like a feature report, just imagine you are reading Fortune magazine and you will get the sense of the style here.

Trading Methods (Specifics) - 2/5

I was hoping that this book would be a fun and pleasant read, but I was quite disappointed after finishing it. For one, the title held the promise that there would be some new commentary by Buffett himself, or at least, a compilation of some of his own musings or comments. Instead, the book should really be titled “A Compilation of Previously Published Fortune Articles on Warren Buffett”.  There were some articles I found interesting, such as the one where Buffett talks about inheritances, as well as the really sincere piece that Bill Gates penned.

Trading Management (Soft Skills) - 3/5

As expected, there is nothing trading related. However, there are some nuggets of wisdom buried throughout the book in relation to pursuing a passion or career. Below is one I liked, and which if you stretch your imagination a little, can no doubt be applied to managing yourself in your trading journey.

“How I got here is pretty simple in my case. It’s not IQ, I’m sure you’ll be glad to hear. The big thing is rationality. I always look at IQ and talent as representing the horsepower of the motor, but that the output – the efficiency with which the motor works – depends on rationality. A lot of people start out with 400-horsepower motors but only get a hundred horsepower of output. It’s way better to have a 200-horsepower motor and get it all into output.

Why do smart people do things that interfere with getting the outcome they’re entitled to? It gets into the habits and character and temperament, and behaving in a rational manner. Not getting in your own way. As I said, everybody here has the ability to do anything I do and much beyond. Some of you will, and some of you won’t. For the ones who won’t, it will be because you get in your own way, not because the world doesn't allow you.

So I have one little suggestion for you: Pick out the person you admire the most, and then write down why you admire them. You’re not to name yourself in this. And then put down the person that, frankly, you can stand the least, and write down the qualities that turn you off in that person. The qualities of the one you admire are traits that you, with a little practice, can make your own, and that, if practised, will become habit-forming.

The chains of habit are too light to be felt until they are too heavy to be broken. At my age, I can’t change any of my habits. I'm stuck. But you will have the habits 20 years from now that you decide to put into practice today. So I suggest that you look at the behaviour that you admire in others and make those your own habits, and look at what you really find reprehensible in others and decide that those are things you are not going to do. If you do that, you’ll find that you convert all of your horsepower into output.”  

Sage like words of wisdom, it should be a mandatory exercise in schools actually.

Trading Psychology (Mindset) - 2/5

It’s probably more of a general mindset in being happy in whatever you have chosen to do.
The saying “Success is getting what you want, and Happiness is wanting what you get” is really apt here.

Longevity - 2/5

I don’t envision myself reading this book again, but it is probably a good book for people who are interested in the various articles that Fortune magazine has published previously on Buffett, since they are more or less conveniently all in one place.

Value - 2/5

To be honest, I don’t really see much value in buying this book. If you are a follower of Buffett’s comings and goings, most of the material would in all aspects be familiar.

Things to Watch Out For -

Anyone looking for new commentary by Buffett himself should really look elsewhere.

Overall - 2/5

For anyone looking for any market insights by Buffett, this is not the book for you. But for any Buffett fans, this may be a book you might want to have, since it’s a convenient one-stop access to most of the articles about him (and some by him) over the years.

Score Recap:

Packaging - 4/5

Writing Style - 3/5

Trading Methods (Specifics) - 2/5

Trading Management (Soft Skills) - 3/5

Trading Psychology (Mindset) - 2/5

Longevity -2/5

Value - 2/5

Overall - 2/5

Where to Buy:

If you found the above review helpful and want to buy the book, please consider buying it through my Amazon affiliate link below. The prices are competitive, and any purchase really goes a long way to support this site. Thank you!

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