If you're looking at the title of Joe Terranova's book and thinking "I thought the adage was 'Buy low, sell high'," you're not alone. What he's proposing is a bit counterintuitive.
Terranova has a different take on trading, "When you buy low and sell high, you might be right four out of five times - if you are really lucky. However, its the fifth time, that one time out of five, when you buy a stock that really tanks, when you lose all of your gains plus some. That's why I urge investors to stay away from the 'buy low, sell high' strategy."
If you're into following the stock market, this book might be a fun read for you.
About the book:
Terranova teaches investors why the buy-low/sell-high model is broken, and instead shows them how to manage their portfolio based on a series of key metrics that determine whether the market is confident or pessimistic about a stock. The book mixes trading floor wisdom ("Never trade on a Monday morning") with specific, actionable tips that will help the reader to build a winning portfolio.
To read an excerpt, click here.
To view the book website, click here.
Click here to see the book trailer.
About the author:
Joe Terranova is a series regular on CNBC's Fast Money and the Chief Market Strategist for Virtus Investment Partners, a $25 billion Hartford-based asset management firm. Prior to joining Virtus, he spent 18 years at MBF Clearing Corp., where he was the director of trading and managed more than 300 traders. Earlier in his career, he held positions at Swiss Banking Corp. and JP Morgan Securities. He earned a bachelor's degree in finance from the Peter J. Tobin College of Business at St. John's University in New York.
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