Stan Weinstein's Secrets For Profiting in Bull and Bear Markets Paperback – January 1, 1988

Below are key excerpts from the book that I found particularly insightful:1- "After having mad plenty of mistakes, I've learned how to decipher the very obvious clues that the market gives us and then tactically respond to a given situation. I'm going to teach you a new set of stock market rules that will make the market much less stressful and far more profitable for you. These rules won't have you pouring over balance sheets or listening to some company spokesman drone on about his firm's progress toward higher returns on shareholders' equity. These rules will require that you do two things: control your own greed and fear, and find and decipher the obvious clues that the market tosses your way."2- "Therefore, your philosophy should be simple: 1. Never buy or sell a stock without checking the chart. 2. Never buy a stock when good news comes out, especially y if the chart shows a significant advance prior to the news release. Never buy a stock because it appears cheap after getting smashed. When it sells off further, you'll find out that cheap can become far cheaper! 3. Never buy a stock because it appears cheap after getting smashed. When it sells off further, you'll find out that cheap can become far cheaper! 4. Never buy a stock in a downtrend on the chart (I'll soon show you specifically how to define a downtrend). 5. Never hold a stock that is in a downtrend no matter how low the price/earnings ratio. Many weeks later and several points lower, you'll find out why the stock was going down. 6. Always be consistent. If you find that you're sometimes buying. sometimes selling in practically identical situations, then there is something terribly wrong with your discipline."3- "Any stock has to be in one of four market stages, and the trick to be able to identify each one. The four stages of a major cycle. as illustrated in Chart 2-1 are: (1) The basing area, (2) the advancing stage, (3) the top area, and (4) the declining stage."4- "There is never an investment—whether it be stocks gold, real estate, gems, or Naugahyde futures—that is a "buy it and forget it" situation. All investments go through cycles, and When you hold through the down part of the cycle (Stage 4) you suffer both financially and emotionally."5- "After years of observing and studying market cycles, there is absolutely no doubt in my mind that sector analysis is just as important as overall market timing. In fact, in certain markets it is even more important."6- "There definitely is! While no system will ever be a perfect forecaster of the future, we can learn some simple rules that will put the probabilities of success strongly in a our favor...THE LESS RESISTANCE THE BETTER...THE IMPORTANCE OF VOLUME..never trust a breakout that isn't accompanied by a significant increase in volume...IT'S ALL RELATIVE The next important factor to check out when narrowing down our list of potential buys is the relative strength (RS). This is a measure of how a stock is acting in relation to the overall market...If the relative strength is n good shape and improving and all other criteria are positive, then go for it. But absolutely never buy a stock, no matter how good the other factors, if the relative strength is in negative territory and it remains in poor shape."7- "QUICK REFERENCE GUIDE ON BUYING...Check the major trend of the overall market. • Uncover the few groups that look best technically. Make a list of those stocks in the favorable groups that have bullish patterns but are now in trading ranges. Write down the price that each would need to break out. • iNarrow down the list. Discard those that have overhead resistance nearby. Narrow the list further by checking relative strength. Put in your buy-stop orders for half of your position for those few stocks that meet our buying criteria. Use buy-stop orders on a good-'til-canceled (GTC) basis. If volume is favorable on the breakout and contracts on the decline, buy your other half position on a pullback toward the initial breakout. If the volume pattern is negative (not high enough on breakout), sell the stock on the first rally. If it fails to rally and falls back below the breakout point, immediately dump it."8- "STAN'S DON'T COMMANDMENTS...Don't buy when the overall market trend is bearish. * Don't buy a stock in a negative group. Don't buy a stock below its 30-week MA. Don't buy a stock that has a declining 30-week MA (even if the stock is above the MA). • No matter how bullish a stock is, don't buy it too late in an advance, when it is far above the ideal entry point. • Don't buy a stock that has poor volume characteristics on the breakout. If you bought it because you had a buy-stop order in, sell it quickly. Don't buy a stock showing poor relative strength. •Don't buy a stock that has heavy nearby overhead resistance. • Don't guess a bottom. What looks like a bargain can turn out to be a very expensive Stage 4 disaster. Instead, buy on breakouts above resistance."9- "DON'TS FOR SELLING 1. Don't base your selling decision on tax considerations...2. Don't base your selling decision on how much the stock is yielding...3. Don't hold onto a stock because the price/earnings (PIE) ratio is low...4. Don't sell a stock simply because the PIE is too high...5. Don't average down in a negative situation...6. Don't refuse to sell because the overall market trend is bullish...7. Don't wait for the next rally to sell...8. Don't hold onto a stock simply because it is of high quality."10- "This increased volatility in the stock market is a two-edged sword. On the positive side, it gives us a chance to make money even faster. The downside is that when a reversal occurs, your stock can move from Stage 2 into Stage 3 far more quickly. This is especially true if it's one of the overly loved institutional favorites. These issues can really change direction in a hurry when bad news comes out and the institutional herd starts to panic. The way to protect yourself is by using a sell-stop order."11- "Don't waste your time trying to determine if trading or investing is the best way to make money. There is no one best way; either approach can lead to success if skillfully applied. Instead, give some thought to understanding the kind of person you are and which approach you'd be comfortable with. Use a little introspection to find out what cloth you're cut from, and then become the best damned investor or trader that you can be! It leads to disaster if you decide to invest, but then get so angry because your stock dropped six or seven points that you end up dumping it just before the next upleg. So have an honest talk with yourself. If you obviously belong in one area or the other, then get there. Interestingly, there really are a number of market players who are in the middle ind can adopt either approach. If you fall into this category, I suggest a mixed approach."12- "SUMMARY OF SHORT-SELLING DON'TS Don't sell short because the P/E is too high. Don't sell short because the stock has run up too much. • Don't sell short a sucker stock that everyone else agrees must crash. • Don't sell short a stock that trades thinly. Don't sell short a Stage 2 stock. Don't sell short a stock in a strong group. Don't sell short without protecting yourself with a buy-stop order."13- "When a truly one-sided opinion really grabs the Street, it becomes so heavy you can almost cut it with a knife. One other word caution: I disagree with those who believe that contrary opinion alone is enough. Not true. I view CO as a psychological potential. just as the price/dividend ratio represents a value potential. Neither one should ever make you buy or sell stocks if all the timing gauges disagree. When CO gets the agreement of the other technical tools, then get set, because a big market move is getting ready to unfold."14- "Here are the proper ways to increase your probability of success (Options)...Buy a call option only on a stock that is in Stage 2 or is moving into Stage 2...2. Buy only an option that has big potential...3. Give yourself a reasonable amount of time before expiration...4. Buy an option that is close to the striking price and, if possible, in the money...5. Use a very tight protective stop on your option positions."

Very great informative book for trading on longer time frames.

If your a trader or investor this is a must have on you bookshelf, I have read it 3x just to keep my eye on the prize.

Of course! Here’s a polished review for Stan Weinstein's book that reflects your positive experience:Review: A Masterclass in Trading from Stan WeinsteinStan Weinstein's "Secrets for Profiting in Bull and Bear Markets" is nothing short of a masterclass in trading. This book dives deep into the art of market analysis, presenting stage-specific strategies that are crucial for both buying and selling. Weinstein’s explanations on identifying the right points to enter and exit the market are delivered with exceptional clarity, making complex concepts accessible to traders at all levels.Beyond the practical trading strategies, this book stands as a paragon of educational material in the trading world, packed with actionable insights that empower the reader to discern and capitalize on market trends effectively. Whether you're a novice hoping to make your first foray into the markets or a seasoned trader aiming to refine your strategy, Weinstein’s work is indispensable.I highly recommend this book to anyone eager to master trading. It’s a standout resource that promises to educate and transform one's approach to navigating both bull and bear markets.

Fine book for the beginning stock trader/investor, but it has many tiny charts hard to decipher without adding color coding. I have thus far collected close to 20 highly rated books on the stock market, so I am able to make some comparisons.Some very good things about this book is that this is the ONLY book that teaches like a good school teacher would teach: with questions and answers at the end of EACH chapter. Also, helpful FOOTNOTES are provided at the bottoms of the pages.But after carefully plowing though half of this book, I switched over to a better book: Mark Minervini's : Trade Like A Stock Market Wizard.Another book that Amazon recommends for purchase along with Stan Weinstein's book, namely: William J. Oneil's book: "How To Make Money In Stocks" - contains alot of valuable info BUT it is not well presented, and therefore it can be frustrating to try to plow through this. [ But see James J. Oneil's wonderful WEBSITE: Investor's Business Daily which provides an INCREDIBLY VALUABLE free research web page entitled:"IBD Stock Checkup." I use this free resource every day. But it requires a $20./month subscription which is WELL worth it.]

You won’t find a successful pro trader who hasn’t read this book. It’s the baseline knowledge needed to be consistently profitable.

Just as timely today as in the 1980’s or earlier. A book worth rereading regularly if you truly want to master stock markets

Bought first one when I was 20 and has made me millions since the purchase. Still use many of the Charting Principals in my Trading.