Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are primarily a function of liquidity—the amount of shares available for purchase and the amount of money available to buy them—rather than fundamental value. Finally, it outlines the building blocks of liquidity theory and explains how you can use them to predict the direction of the stock market. “Charles Biderman, a savvy and battle-scarred veteran of the investment wars, has fashioned an intriguing approach to making money in the stock market that adroitly avoids both heavy-breathing speculation and the standard Wall Street practices that enable investors, big and small, to lose money in good markets as well as bad. Aimed at the sophisticated investor (which may or may not be an oxymoron), the book is written in blessedly straightforward prose and is a worthwhile read for anyone with an urge to have a fling at investing.--Alan Abelson Barron’s “Since the days of Joseph and Pharaoh, it has been axiomatic that the size of the grain harvest affects the level of grain prices; but today’s investors have been slow to appreciate the fact that the supply of stock shares significantly determines the level of stock prices. Biderman’s long overdue book outlines the theory and evidence behind ‘Trading Float,’ the actual—and exploitable—power behind major moves in the stock market. --Paul Montgomery CEO and CIO of Montgomery Capital Management “‘Trade as corporate execs do, not as they say.’ Charles Biderman has built an impressive list of hedge fund clients from this essential insight, and this book does a great job explaining exactly how retail investors can incorporate it into their investing.” --Eric Zitzewitz Assistant Professor of Economics, Stanford Graduate School of Business “Charles Biderman is a smart thinker, clear writer—and he offers here some very interesting ideas. This book is for the little guy who enjoys reading about money and economics, even if he doesn’t adopt the strategies offered here; and for the professional or sophisticated investor, who, to a greater or lesser degree, just might.--Andrew Tobias author of The Only Investment Guide You'll Ever Need</i

lgli/F_Finance/FK_Markets/Biderman C. TrimTabs investing.. using liquidity theory to beat the stock market (Wiley, 2005)(ISBN 0471697206)(209s)_FK_.pdf

lgrsnf/F_Finance/FK_Markets/Biderman C. TrimTabs investing.. using liquidity theory to beat the stock market (Wiley, 2005)(ISBN 0471697206)(209s)_FK_.pdf

nexusstc/TrimTabs Investing: Using Liquidity Theory to Beat the Stock Market/549b13401b1a97e25779e200f8a3e20c.pdf

zlib/Business & Economics/Investing/Charles Biderman, David Santschi/TrimTabs investing: using liquidity theory to beat the stock market_445611.pdf

Biderman, Charles, Santschi, David

Jossey-Bass, Incorporated Publishers

John Wiley & Sons, Incorporated

WILEY COMPUTING Publisher

John Wiley & Sons, Inc. (trade), Hoboken, N.J., 2005

Wiley finance series, Hoboken, N.J, ©2005

Wiley finance series, Hoboken, N.J, c2005

United States, United States of America

New York, New York State, 2005

1, 2005-04-15

May 2, 2005

1, PS, 2005

Kolxo3 -- 22

lg9274

{"edition":"1","isbns":["0471697206","0471726389","9780471697206","9780471726388"],"last_page":209,"publisher":"Wiley"}

Annotation Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are primarily a function of liquidity & mdash;the amount of shares available for purchase and the amount of money available to buy them & mdash;rather than fundamental value. Finally, it outlines the building blocks of liquidity theory and explains how you can use them to predict the direction of the stock market. & ldquo;Charles Biderman, a savvy and battle & ndash;scarred veteran of the investment wars, has fashioned an intriguing approach to making money in the stock market that adroitly avoids both heavy & ndash;breathing speculation and the standard Wall Street practices that enable investors, big and small, to lose money in good markets as well as bad. Aimed at the sophisticated investor (which may or may not be an oxymoron), the book is written in blessedly straightforward prose and is a worthwhile read for anyone with an urge to have a fling at investing. & ndash; & ndash;Alan AbelsonBarron & rsquo;s & ldquo;Since the days of Joseph and Pharaoh, it has been axiomatic that the size of the grain harvest affects the level of grain prices; but today & rsquo;s investors have been slow to appreciate the fact that the supply of stock shares significantly determines the level of stock prices. Biderman & rsquo;s long overdue book outlines the theory and evidence behind & lsquo;Trading Float, & rsquo; the actual & mdash;and exploitable & mdash;power behind major moves in the stock market. & ndash; & ndash;Paul MontgomeryCEO and CIO of Montgomery Capital Management & ldquo; & lsquo;Trade as corporate execs do, not as they say. & rsquo; Charles Biderman has built an impressive list of hedge fund clients from this essential insight, and this book does a great job explaining exactly how retail investors can incorporate it into their investing. & rdquo; & ndash; & ndash;Eric ZitzewitzAssistant Professor of Economics, Stanford Graduate School of Business & ldquo;Charles Biderman is a smart thinker, clear writer & mdash;and he offers here some very interesting ideas. This book is for the little guy who enjoys reading about money and economics, even if he doesn & rsquo;t adopt the strategies offered here; and for the professional or sophisticated investor, who, to a greater or lesser degree, just might. & ndash; & ndash;Andrew Tobiasauthor of The Only Investment Guide You & prime;ll Ever Need

TrimTabs Investing 5
Contents 9
Acknowledgments 11
Introduction 15
BEATING THE STOCK MARKET CASINO 15
PROMOTING GLOBAL PROSPERITY 17
HONORING MY PARENTS 21
Part I: Introducing Liquidity Theory 23
Chapter 1: A Tale of Fortune Lost 25
A FAMILIAR TALE 28
LIQUIDITY THEORY: A NEW PARADIGM 30
AN OVERVIEW 34
Chapter 2: The Genesis of Liquidity Theory 37
FROM B-SCHOOL TO BARRON'S 37
RIDING THE REAL ESTATE WAVES 38
THE FOUNDING OF TRIMTABS 40
SOME LESSONS OF LIFE 41
Chapter 3: The Principles of Liquidity Theory 43
THE STOCK MARKET CASINO 44
SUPPLY AND DEMAND IN ACTION: ORANGES 46
PLAYING ON THE SIDE OF THE HOUSE 50
Chapter 4: The Building Blocks of Liquidity Analysis 55
CHANGE IN THE NET TRADING FLOAT OF SHARES (L1) 55
U.S. EQUITY MUTUAL FUND FLOWS (L2) 59
MARGIN DEBT (L3) 60
THE ANATOMY OF BULL AND BEAR MARKETS 61
CONCLUSION 62
Part II: Inside Liquidity Theory 65
Chapter 5: Demolishing the Cult of Earnings 67
THE EARNINGS MYTH 67
VALUE VERSUS PRICE 69
GAPS IN THE CHINESE WALL 76
COUNTING THE BEANS 77
LIQUIDITY THEORY: A BETTER WAY TO INVEST 81
Chapter 6: The House: Secret Corporate Power 83
SECRET CORPORATE POWER 83
CASH TAKEOVERS 84
STOCK BUYBACKS 86
NEW OFFERINGS 89
INSIDER SELLING 91
SHORT-TERM LIQUIDITY FORECASTS 93
WHERE TO FIND THE DATA 94
Chapter 7: The Players: Buying, Selling, and Borrowing 97
MUTUAL FUNDS FLOWS 97
FOREIGN PURCHASES AND SALES OF U. S. SECURITIES 103
MARGIN DEBT (L3) 105
Part III: Looking Back 109
Chapter 8: The Bull Market and the Bubble 111
THE BULL MARKET OF THE LATE 1990s 111
THE RIDE UP: JANUARY 1999 TO SEPTEMBER 1999 114
THE FRENZY: OCTOBER 1999 TO APRIL 2000 117
THE BEGINNING OF THE LONG RIDE DOWN: MAY 2000 TO DECEMBER 2000 120
Chapter 9: The Aftermath 123
2001: THE LONG RIDE DOWN CONTINUES 123
2002: THE BEAR DIGS IN 127
2003: THE BULL RETURNS 130
EARLY 2004: THE BUBBLE DEFLATES 133
Part IV: Liquidity Theory in Action 137
Chapter 10: Swinging for Singles: Lower-Risk Strategies 139
INVESTMENT APPROACH 139
CONCLUSION 151
Chapter 11: Swinging for the Fences: More Aggressive Strategies 153
LEVERAGE 153
CONCLUSION 162
Part V: Looking Ahead 163
Chapter 12: Managing Difficulties 165
INCOMPLETE AND DELAYED INFORMATION 165
INVESTOR PSYCHOLOGY 168
EXOGENOUS SHOCKS 169
MANAGING WHAT WE DO NOT KNOW WE DO NOT KNOW 170
A WORK IN PROGRESS: PART ART AND PART SCIENCE 171
Chapter 13: New Applications 175
PERSONAL INCOME 175
CORPORATE INCOME 178
EMPLOYMENT GROWTH 179
ONLINE JOB POSTINGS 181
TRIMTABS PERSONAL INCOME AND TRIMTABS U.S. EMPLOYMENT UPDATE 183
Chapter 14: How Liquidity Could Save the Markets 185
SOME MODEST PROPOSALS 185
BENEFITS OF IMPROVED LIQUIDITY DATA 188
Appendix: Historical Liquidity Data 195
About the Authors 199
Index 201

<p>Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are primarily a function of liquidity—the amount of shares available for purchase and the amount of money available to buy them—rather than fundamental value. Finally, it outlines the building blocks of liquidity theory and explains how you can use them to predict the direction of the stock market.<br></p><p>"Charles Biderman, a savvy and battle-scarred veteran of the investment wars, has fashioned an intriguing approach to making money in the stock market that adroitly avoids both heavy-breathing speculation and the standard Wall Street practices that enable investors, big and small, to lose money in good markets as well as bad. Aimed at the sophisticated investor (which may or may not be an oxymoron), the book is written in blessedly straightforward prose and is a worthwhile read for anyone with an urge to have a fling at investing.--Alan Abelson<br> Barron's<br></p><p>"Since the days of Joseph and Pharaoh, it has been axiomatic that the size of the grain harvest affects the level of grain prices; but today's investors have been slow to appreciate the fact that the supply of stock shares significantly determines the level of stock prices. Biderman's long overdue book outlines the theory and evidence behind 'Trading Float, ' the actual—and exploitable—power behind major moves in the stock market. --Paul Montgomery<br> CEO and CIO of Montgomery Capital Management<br></p><p>"'Trade as corporate execs do, not as they say.' Charles Biderman has built an impressive list of hedge fund clients from this essential insight, and this book does a great job explaining exactly how retail investors can incorporate it into their investing." --Eric Zitzewitz<br> Assistant Professor of Economics, Stanford Graduate School of Business<br></p><p>"Charles Biderman is a smart thinker, clear writer—and he offers here some very interesting ideas. This book is for the little guy who enjoys reading about money and economics, even if he doesn't adopt the strategies offered here; and for the professional or sophisticated investor, who, to a greater or lesser degree, just might.--Andrew Tobias<br> author of The Only Investment Guide You'll Ever Need<br></p>

Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are primarily a function of liquidity - the amount of shares available for purchase and the amount of money available to buy them - rather than fundamental value. Finally, it outlines the building blocks of liquidity theory and explains how you can use them to predict the direction of the stock market." Charles Biderman, a savvy and battle-scarred veteran of the investment wars, has fashioned an intriguing approach to making money in the stock market that adroitly avoids both heavy - breathing speculation and the standard Wall Street practices that enable investors, big and small, to lose money in good markets as well as bad. Aimed at the sophisticated investor (which may or may not be an oxymoron), the book is written in blessedly straightforward prose and is a worthwhile read for anyone with an urge to have a fling at investing. -- Alan AbelsonBarron's "Since the days of Joseph and Pharaoh, it has been axiomatic that the size of the grain harvest affects the level of grain prices; but today's investors have been slow to appreciate the fact that the supply of stock shares significantly determines the level of stock prices. Biderman's long overdue book outlines the theory and evidence behind 'Trading Float, ' the actual - and exploitable - power behind major moves in the stock market. -- Paul Montgomery, CEO and CIO of Montgomery Capital Management"' Trade as corporate execs do, not as they say.' Charles Biderman has built an impressive list of hedge fund clients from this essential insight, and this book does a great job explaining exactly how retail investors can incorporate it into their investing."--Eric Zitzewitz, Assistant Professor of Economics, Stanford Graduate School of Business "Charles Biderman is a smart thinker, clear writer - and he offers here some very interesting ideas. This book is for the little guy who enjoys reading about money and economics, even if he doesn't adopt the strategies offered here; and for the professional or sophisticated investor, who, to a greater or lesser degree, just might. -- Andrew Tobias, author of The Only Investment Guide You'll Ever Need

<p><P>TrimTabs Investing introduces a well-researched, market-proven technique to improve your investment returns by following the smart money in the stock market. But first, you must forget nearly everything you've ever been taught by stockbrokers, financial advisors, and investment pundits. You must learn to ignore P/E ratios, changes in expected future earnings, and other widely <P>followed fundamental measures. Why? Because their impact on stock price movements is negligible. What really makes stock prices rise or fall is liquidity&#8212;the relationship between the amount of shares available for purchase and the amount of cash available to buy them. <P>In TrimTabs Investing, veteran investment consultant Charles Biderman details his completely original TrimTabs methodology. You will learn to&#58;<P><ul><P><li>Recognize that the design purpose of the stock market is essentially the same as the design purpose of a casino&#58; to separate the players from their money, yet leave them with a smile so they come back for more<P><li>Use liquidity analysis to determine whether the smart money (public companies and the insiders who run them) and the dumb money (individual investors) are net buyers or net sellers in the stock market<P><li>Boost returns while reducing risk by selling when liquidity is bearish and buying when liquidity is bullish<P></ul> <P>From December 2000 through December 2004, when millions of individual investors saw their portfolios slashed by half or more and the S&P 500 declined 8 percent, the TrimTabs model portfolio rose 100 percent. <P>Charles Biderman uses liquidity theory every day to generate market-beating returns for his clients, which include leading hedge fund <P>and portfolio managers. Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing will show you how to achieve similar results in your portfolio. Filled with in-depth insight and practical advice, this book will give you the tools you need to beat the market averages with less risk by showing you how to invest like the smart money in bull markets and bear markets alike.</p>

Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing shows you how to beat the major stock market averages with less risk. This groundbreaking book begins by comparing the stock market to a casino in which the house (public companies and the insiders who run them) buys and sells shares with the players (institutional and individual investors). TrimTabs Investing argues that stock prices are primarily a function of liquidity—the amount of shares available for purchase and the amount of money available to buy them—rather than fundamental value. Finally, it outlines the building blocks of liquidity theory and explains how you can use them to predict the direction of the stock market.

"Charles Biderman uses liquidity theory every day to generate market-beating returns for his clients, which include leading hedge fund and portfolio managers. Whether you are an investment professional managing billions of dollars or an individual investor with a small nest egg, TrimTabs Investing will show you how to achieve similar results in your portfolio. Filled with in-depth insight and practical advice, this book will give you the tools you need to beat the market averages with less risk by showing you how to invest like the smart money in bull markets and bear markets alike."--Jacket

2009-07-20