{"product_id":"the-value-and-momentum-trader-isbn-9780470481738","title":"The Value and Momentum Trader","description":"\u003cb\u003eA winning approach to stock trading based on proprietary statistical research in Excel\u003c\/b\u003e  \u003cp\u003eIn \u003ci\u003eThe Value and Momentum Trader,\u003c\/i\u003e Grant Henning presents a comprehensive approach to stock trading, which centers around Excel-based research methods he has developed. In this book, Henning presents the trading tools he has used to become a successful trader, and discusses some of the greatest challenges facing active market participants. This reliable resource presents both winning trading systems and all the skills necessary to perform as a trader as market conditions change. It also demonstrates how you can turn the successes and failures of any trading system into an interactive feedback loop to discover one's true trading skills.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides a solid understanding of the author's statistical trading system\u003c\/li\u003e \u003cli\u003eExplores how to execute optimal trades under different market conditions\u003c\/li\u003e \u003cli\u003eOutlines a very affordable Excel-based stock analysis method that is easy to implement\u003c\/li\u003e \u003cli\u003eDr. Henning has proven to be a trusted author with other academic publications in the areas of measurement and statistics.\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eThe Value and Momentum Trader\u003c\/i\u003e is an essential guide to trading today's dynamic markets.\u003c\/p\u003e \u003cp\u003eList of Tables and Figures xv\u003c\/p\u003e \u003cp\u003eForeword xvii\u003c\/p\u003e \u003cp\u003ePreface xix\u003c\/p\u003e \u003cp\u003eAcknowledgments xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 A Philosophy of Trading 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAnalogies 1\u003c\/p\u003e \u003cp\u003ePragmatism 3\u003c\/p\u003e \u003cp\u003eGoal-Oriented Behavior 5\u003c\/p\u003e \u003cp\u003eTiming 6\u003c\/p\u003e \u003cp\u003eStocks versus Commodities, Options, Mutual Funds, and Bonds 7\u003c\/p\u003e \u003cp\u003eShort Trading 9\u003c\/p\u003e \u003cp\u003eUse of Margin 10\u003c\/p\u003e \u003cp\u003eTrading and Gambling 11\u003c\/p\u003e \u003cp\u003eBold Passion 12\u003c\/p\u003e \u003cp\u003eSummary 13\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Tools of the Trade 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOnline Access 15\u003c\/p\u003e \u003cp\u003eA Reliable Brokerage Account 16\u003c\/p\u003e \u003cp\u003eInformation 17\u003c\/p\u003e \u003cp\u003eFormal Study 18\u003c\/p\u003e \u003cp\u003eAnalysis Software 20\u003c\/p\u003e \u003cp\u003eProtected Workspace 21\u003c\/p\u003e \u003cp\u003eMathematical Trading Systems 21\u003c\/p\u003e \u003cp\u003eMarket Timing Indicators 22\u003c\/p\u003e \u003cp\u003eSummary 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Constructing Mathematical Models for Stock Selection 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTechnical Approaches to Stock Selection 25\u003c\/p\u003e \u003cp\u003eFundamental Approaches to Stock Selection 26\u003c\/p\u003e \u003cp\u003eHybrid Approaches to Stock Selection 27\u003c\/p\u003e \u003cp\u003eThe Nature of the Stock Selection Challenge 27\u003c\/p\u003e \u003cp\u003eCommon Mistakes in System Design for Decision Making 28\u003c\/p\u003e \u003cp\u003eEarly Beginning Approaches 30\u003c\/p\u003e \u003cp\u003eAdvantages and Disadvantages of Mathematization 32\u003c\/p\u003e \u003cp\u003eSummary 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Stock Selection: A Technical-Momentum System 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eQualifying Variables 35\u003c\/p\u003e \u003cp\u003eSample Recommendation Summary Table 39\u003c\/p\u003e \u003cp\u003eQuestions and Answers 40\u003c\/p\u003e \u003cp\u003eSummary 44\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Stock Selection: A Fundamental-Value System 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eQualifying Variables 45\u003c\/p\u003e \u003cp\u003eFundamental Variables 47\u003c\/p\u003e \u003cp\u003eQuestions and Answers 55\u003c\/p\u003e \u003cp\u003eSummary 57\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Stock Selection: A Technical-Fundamental Hybrid Approach 59\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eQualifying Variables 59\u003c\/p\u003e \u003cp\u003ePoint-and-Figure Analysis 64\u003c\/p\u003e \u003cp\u003eTechnical Ratings 64\u003c\/p\u003e \u003cp\u003eOther Technical Indicators 65\u003c\/p\u003e \u003cp\u003ePrice-to-Earnings (PE) Ratio 66\u003c\/p\u003e \u003cp\u003eBook Value 67\u003c\/p\u003e \u003cp\u003eEarnings Growth 67\u003c\/p\u003e \u003cp\u003eEPS\/PE Divergence 68\u003c\/p\u003e \u003cp\u003eCash Flow and Free Cash Flow 69\u003c\/p\u003e \u003cp\u003eOther Fundamental Indicators 70\u003c\/p\u003e \u003cp\u003eQuestions and Answers 71\u003c\/p\u003e \u003cp\u003eSummary 74\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Buying Stocks 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePreparing the Slate of Candidates 75\u003c\/p\u003e \u003cp\u003eGathering Intel 76\u003c\/p\u003e \u003cp\u003eDemanding Supply 77\u003c\/p\u003e \u003cp\u003eCost Averaging 77\u003c\/p\u003e \u003cp\u003eLimit and Market Orders 78\u003c\/p\u003e \u003cp\u003eAvoiding Purchases with Unsettled Funds 82\u003c\/p\u003e \u003cp\u003eSummary 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Selling Stocks 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSetting Targets 86\u003c\/p\u003e \u003cp\u003eSetting Partial Targets 86\u003c\/p\u003e \u003cp\u003eUsing Stop-Loss Orders 87\u003c\/p\u003e \u003cp\u003eCulling Out Losers 88\u003c\/p\u003e \u003cp\u003eRank Indicators 88\u003c\/p\u003e \u003cp\u003eHolding Limits 89\u003c\/p\u003e \u003cp\u003eBreaking the 50-Day Moving Average 90\u003c\/p\u003e \u003cp\u003eIdentifying Market Downturns 90\u003c\/p\u003e \u003cp\u003eSummary 91\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Portfolio Management 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDiversifying Over Stocks 93\u003c\/p\u003e \u003cp\u003eDiversifying Over Sectors 95\u003c\/p\u003e \u003cp\u003eRecord Keeping 95\u003c\/p\u003e \u003cp\u003eProportionality over Portfolios 96\u003c\/p\u003e \u003cp\u003eProportionality over Individual Stocks 97\u003c\/p\u003e \u003cp\u003eTurnover Ratio 97\u003c\/p\u003e \u003cp\u003eTiming the Market 98\u003c\/p\u003e \u003cp\u003eSummary 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Market Timing 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMythological Indicators 100\u003c\/p\u003e \u003cp\u003eQuasi-Mythological Indicators 101\u003c\/p\u003e \u003cp\u003eReliable Indicators 102\u003c\/p\u003e \u003cp\u003eSummary 108\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 A Performance Record 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePerformance Caveats 109\u003c\/p\u003e \u003cp\u003eHindsight is 20\/20 112\u003c\/p\u003e \u003cp\u003eSummary 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 A Typical Trading Day 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBefore the Bell 115\u003c\/p\u003e \u003cp\u003eThe First Half Hour 117\u003c\/p\u003e \u003cp\u003eMidday Monitoring 118\u003c\/p\u003e \u003cp\u003eAfter the Closing 119\u003c\/p\u003e \u003cp\u003eWeekends 120\u003c\/p\u003e \u003cp\u003eSummary 121\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13 Threats to Success 123\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eActions of the Federal Reserve Board Open Markets Committee 123\u003c\/p\u003e \u003cp\u003eAnalyst Downgrades 129\u003c\/p\u003e \u003cp\u003e\"Pump-and-Dump\" Ploys 130\u003c\/p\u003e \u003cp\u003eMessage Board Panning 131\u003c\/p\u003e \u003cp\u003eMarket Maker Meddling 131\u003c\/p\u003e \u003cp\u003eNegative News Events 132\u003c\/p\u003e \u003cp\u003eLarge Position Dumping 133\u003c\/p\u003e \u003cp\u003eOverhead: Taxes, Commissions, Margin Interest, Spreads 134\u003c\/p\u003e \u003cp\u003eSummary 135\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 14 A Summary of Trading Principles 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNever Follow a Tip without Due Diligence 137\u003c\/p\u003e \u003cp\u003eDon't Get Grounded on Low Volume 138\u003c\/p\u003e \u003cp\u003eNever Buy at the High for the Day 138\u003c\/p\u003e \u003cp\u003eNever Sell at the Low for the Day 138\u003c\/p\u003e \u003cp\u003eRemember Why You Bought 139\u003c\/p\u003e \u003cp\u003eDon't Get Too Attached to Any Stock 139\u003c\/p\u003e \u003cp\u003eMaintain Diversification 140\u003c\/p\u003e \u003cp\u003eDon't Overtrade 140\u003c\/p\u003e \u003cp\u003eDon't Hesitate to Reacquire a Winner 141\u003c\/p\u003e \u003cp\u003eDon't Get Your Guidance from Message Boards 141\u003c\/p\u003e \u003cp\u003eMaintain Your Own Trading Identity 142\u003c\/p\u003e \u003cp\u003eRead Widely 142\u003c\/p\u003e \u003cp\u003eBack Off Periodically 143\u003c\/p\u003e \u003cp\u003eSeldom if Ever Buy with Unsettled Funds 143\u003c\/p\u003e \u003cp\u003eLook to Sell with the Same Level of Zeal That You Look to Buy 143\u003c\/p\u003e \u003cp\u003eMaintain a Trading Journal or Diary 144\u003c\/p\u003e \u003cp\u003eGather Information on Your Holdings Daily 144\u003c\/p\u003e \u003cp\u003eLearn from Your Mistakes 145\u003c\/p\u003e \u003cp\u003eDon't Damage the Environment for Others 145\u003c\/p\u003e \u003cp\u003eDon't Let Yourself Become Discouraged 146\u003c\/p\u003e \u003cp\u003eLearn to Time General Market Trends 146\u003c\/p\u003e \u003cp\u003eDon't Begrudge the Paying of Dues 147\u003c\/p\u003e \u003cp\u003eSet Realistic, Measurable Goals for Trading Gains 147\u003c\/p\u003e \u003cp\u003eDon't Take Advice from Investment Professionals 147\u003c\/p\u003e \u003cp\u003eAvoid Buying a Stock Immediately After It Has Made a Huge Price Run Up 148\u003c\/p\u003e \u003cp\u003eAvoid Selling a Stock Immediately After It Has Had a Huge Loss 148\u003c\/p\u003e \u003cp\u003eMaintain Your Discipline 149\u003c\/p\u003e \u003cp\u003eDon't Hesitate to Sell Good Stocks When Macro Market Indicators Signal a Downturn 149\u003c\/p\u003e \u003cp\u003eFocus More on Avoiding Great Losses than on Making Great Gains 149\u003c\/p\u003e \u003cp\u003eContinually Be Watching for Success Predictors 150\u003c\/p\u003e \u003cp\u003eSummary 150\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 15 Morality in the Marketplace 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntegrity Defined 152\u003c\/p\u003e \u003cp\u003eThe Gravity of the Effects of Declining Integrity 153\u003c\/p\u003e \u003cp\u003eConditions that Can Promote the Erosion of Integrity 155\u003c\/p\u003e \u003cp\u003ePossible Solutions to the Problems that Promote the Erosion of Integrity 161\u003c\/p\u003e \u003cp\u003eSummary 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 16 Random Walk or Rational Wager 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePredictability and Probability 173\u003c\/p\u003e \u003cp\u003eThe Limits of Predictability 174\u003c\/p\u003e \u003cp\u003eFollowing the Numbers or Following the Gurus 176\u003c\/p\u003e \u003cp\u003eThe Accuracy and Use of Mathematical Models 180\u003c\/p\u003e \u003cp\u003ePredictable Market Phenomena 181\u003c\/p\u003e \u003cp\u003eSummary 185\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 17 On the Nature of Risk 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Risks of Risk Management Applied to Market Phenomena 190\u003c\/p\u003e \u003cp\u003eRisk and Variance 191\u003c\/p\u003e \u003cp\u003eRisk and Compassion 191\u003c\/p\u003e \u003cp\u003eRisk and Trust 193\u003c\/p\u003e \u003cp\u003eRisk and Wealth 195\u003c\/p\u003e \u003cp\u003eSummary 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 18 Trading in the Information Age 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Economy of Abundance 197\u003c\/p\u003e \u003cp\u003eA Perspective on Abundance 199\u003c\/p\u003e \u003cp\u003eTaking Advantage of Information-Access Opportunities 201\u003c\/p\u003e \u003cp\u003eSummary 202\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 19 Using a Trading System with an Excel Spreadsheet 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStep 1: Loading the Excel Spreadsheet into Your Computer 203\u003c\/p\u003e \u003cp\u003eStep 2: Recognizing Information on the Spreadsheet 205\u003c\/p\u003e \u003cp\u003eStep 3: Updating Your Spreadsheet 210\u003c\/p\u003e \u003cp\u003eStep 4: Running the Analysis 212\u003c\/p\u003e \u003cp\u003eStep 5: Interpreting the Results 214\u003c\/p\u003e \u003cp\u003eStep 6: Maintaining the Spreadsheet 214\u003c\/p\u003e \u003cp\u003eCautionary Reminders 215\u003c\/p\u003e \u003cp\u003eSummary 215\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 20 Afterthoughts 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTiming 217\u003c\/p\u003e \u003cp\u003eOpportunities 218\u003c\/p\u003e \u003cp\u003eMarket Trends 219\u003c\/p\u003e \u003cp\u003eLessons from History 220\u003c\/p\u003e \u003cp\u003eConclusion 224\u003c\/p\u003e \u003cp\u003eBibliography 225\u003c\/p\u003e \u003cp\u003eAbout the Author 229\u003c\/p\u003e \u003cp\u003eIndex 235\u003c\/p\u003e \u003cb\u003eGrant Henning\u003c\/b\u003e holds a PhD in educational psychology from UCLA, where he specialized in measurement statistics and applied linguistics. He has subsequently served as professor at UCLA, Pennsylvania State University, and several universities in Egypt, Iran, and China. For a number of years, Henning was engaged as senior research scientist at Educational Testing Service, where he conducted evaluative research on university entrance examinations. Henning has authored more than fifty articles, books, and commissioned reports, and has traveled to more than fifty countries over a thirty-year period. In June of 2000, he retired from university service to trade full-time.  \u003cp\u003eStock 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.\u003c\/p\u003e \u003cp\u003eFrom 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.\u003c\/p\u003e \u003cp\u003eAs 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.\u003c\/p\u003e \u003cp\u003eThe methods outlined in \u003ci\u003eThe Value and Momentum Trader\u003c\/i\u003e have 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.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePraise for the \u003ci\u003eValue and Momentum Trader\u003c\/i\u003e\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"Grant Henning's book is a potent combination of statistics, philosophy, and commentary that only a true social scientist could provide. Henning speaks of the 'bold passion' of trading, and the powerful analogies he offers between the world of trading and more familiar environs is a perspective that I think will help any trader. This book provides the tools that subject trading ideas to the rigor of statistical analysis as opposed to the open-ended (and therefore more hazardous) subjective interpretations one often sees. Just as important, the book points you exactly where on the Web you can find the resources you need to put these ideas into action.\"\u003cbr\u003e —\u003cb\u003eTim Knight\u003c\/b\u003e, founder of SlopeOfHope.com and author of Chart Your Way to Profits\u003c\/p\u003e \u003cp\u003e\u003cb\u003eA winning approach to stock trading using proprietarystatistical research in Excel\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eThe Value and Momentum Trader\u003c\/i\u003e, Grant Henning presents a comprehensive approach to stock trading centered around the Excel-based research methods he has developed.\u003c\/p\u003e \u003cp\u003eHenning shares the trading tools he has used to become a successful trader and reveals his winning trading systems along with all the skills necessary to perform as a successful trader in changing market conditions. He discusses some of the greatest challenges facing active market participants and demonstrates how you can turn the successes and failures of any trading system into an interactive feedback loop to discover one's true trading skills.\u003c\/p\u003e \u003cp\u003eThis book provides a solid understanding of the author's statistical trading system, explores how to execute optimal trades under different market conditions, and outlines an affordable, easy-to-implement Excel-based stock analysis method. For anyone who is interested in successful investing, regardless of their background and expertise in the stock market, The Value and Momentum Trader is an essential guide to trading today's dynamic markets.\u003c\/p\u003e \u003cp\u003eIncludes \u003cb\u003ewebsite with Excel Trading System\u003c\/b\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990362177765,"sku":"NP9780470481738","price":80.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470481738.jpg?v=1761787517","url":"https:\/\/k12savings.com\/products\/the-value-and-momentum-trader-isbn-9780470481738","provider":"K12savings","version":"1.0","type":"link"}