The Value and Momentum Trader: Dynamic Stock Selection Models to Beat the Market
Stock market trading, says Grant Henning, can be both highly rewarding and extremely dangerous to your financial health. It is clear that not every person should get involved in stock trading, and no one should rush into it without thorough preparation. In a dynamic stock market, winning stock trading systems must undergo continual refinement?and adapt to changing market conditions.From the various investment approaches, including momentum, value, growth, and fundamental and technical analysis, Henning has chosen the best elements of each and fine-tuned a trading system—grounded in Excel-based research methods he has developed—that works in turbulent markets. In The Value and Momentum Trader, he reveals his statistical trading systems and shows you how best to execute winning trades with them.As an experienced statistical researcher, Henning rejects the random walk theory of stock market behavior. Instead, he sees a trading system not unlike a race car that is designed to outperform the competition. In such a race, driving the race car is equally as important as design efficiency in determining outcomes.?Over the past twenty years, Henning has developed a unique and integrated approach, that is built on two stock selection systems he developed—a growth-momentum technical system and a value-earnings fundamental system. Drawing from years of research and experience, he demonstrates how the fundamental variables can provide value information, while the technical variables offer timing information. Most importantly, Henning shows how it is possible to realize an average gain of ten percent per month through the skillful implementation of these systems. He covers all you need to know to be a successful trader, from the basics of buying and selling stock, portfolio management, and market timing to constructing mathematical models for stock selection and using a trading system with an Excel spreadsheet.The methods outlined inThe Value and Momentum Traderhave been tried and tested over many months and years of market warfare in both bull and bear markets. Learning to use the tools shared in this invaluable guide will help you to achieve trading success—regardless of stock market conditions.