The Wall Street Investment Bible: Stock Selection & Investment Management

In order to become a great investor you also need to develop consistency. The only way to do well consistently in the stock market is to create a viable system. Whether you re a trader or an investor, you ll need to develop a system that works for you. Your system won t be some trading software that promises to transform a moron into a millionaire. And it won t be delivered to you by some investment guru. I ll guarantee it.

Your system will be one you create. It will be a system based upon how you re best able to analyze information and respond to change. It will be centered on your investment objectives, experience and financial resources. Your system will take many years to develop. In the process, you ll make many mistakes, so you must proceed slowly and conservatively. Once you develop some consistent success, you ll become more confident. But you must also recognize when to fine-tune your system because everything changes.

In order to develop your system, you ll need to stay clear of distractions. You ll need to spend your time wisely, educating yourself and listening only to those who know what s really going on; not the guys who have been predicting Dow 30,000 or doom for twenty years. These guys are plastered all over television and the print media. But they have no credibility. They take extreme positions in order to market their services. But extremists never make money. Things change, and you must recognize change before the herd if you want to win at the investment game. Unfortunately, you will never get any valuable guidance from the financial media.

When the stock market is doing well, the Wall Street hacks pump it up more, spreading delusions of grandeur. This brings in the sheep at the height of the bubble. And only after the house of cards comes tumbling down does the media interview the guys who have predicting doom for twenty years; the guys with no credibility. In both cases, viewers get hosed. They end up buying high and selling low. And Wall Street loves it because that s how they clean you out. They always win at your expense.

Most investors think they re on equal footing with the best pros because information is now widely available. This rational is flawed. Information is a cheap commodity. And it can become a deadly weapon if you don t know how to use it. The key is to know how to interpret information. You ll need to learn how to differentiate between reality and smoke screens. In short, you ll need to develop good judgment.

After reading this book and following the concepts and insights I ve provided, if you decide it didn t help you, I ask that you read it again; but not cover-to-cover. Focus on the material that applies to your current maturity level. Study this book and reference it as your investment experience progresses. Over time, more of the material will make sense. After that, if you still don t think it helped, there s a good chance you were looking for instant gratification and easy money. Most likely, you ll be another victim of infomercial scams and manipulative ads by online brokerage firms. Most likely, you ll be one of millions of sheep who watch CNBC, FBN, Bloomberg and other networks, thinking you re getting valuable content. Most likely, you ll eventually lose it all.

This book was meant to be an educational resource. It wasn t meant to provide you with entertainment. If you want to read entertaining investment books with all of the rah-rah, the feel good messages, and it s so easy themes, there are thousands you can chose from. But this is not one of them. In this book I ve covered what I feel to be the most important topics rather than focusing on a few because I wanted to provide you with a broad perspective. This is the foundation of my own investment methodology.