Review: "Make The Trend Your Friend" - An essential additional tool for a Day Trader...
Rating: 5 out of 5
Date: 04 10, 2014
This book is a primer on the Dow Theory, which is just a way of thinking about investment markets and rationalizing their moves and long term direction in order to understand how it all works, which is essential to knowing how to invest properly.  It's an important tool for a day trader.  The book is short and simply written but very descriptive, which is why I gave it 5 stars.The book discusses how the theory of the market has three assumptions:  the price trend can't be manipulated (even though individual stocks may be manipulated for a period of time); the market reflects everything; and the theory is not infallible.It goes on to discuss the Dow Theory which posits that there are three types of price movements (primary trends, secondary movements and daily fluctuation) and that recognizing these can help a trader catch the big swings and make big profits.  The book does a good job of describing these movements and makes it clear that unless one recognizes these movements for what they are, one can have big losses (for example, by focussing too much on the daily fluctuations and making poor decisions as a result)!The book also discusses the three stages of each of the bull and bear markets, which helps the reader to understand the market.This is an essential read for an investor or day trader who wants to add to his or her arsenal and get a bigger picture understanding of the market.  It's background, general knowledge that helps one invest well and properly.To boot, it also comes with BONUS MATERIAL:  the free Trading Toolkit, which has so many resources to help out an investor.  Another great read from Michael Young.