The Pros And Cons Of The Book
I'm not going to waste your time talking too much about the book at this moment. So, I'll just make a list of the pros and cons of this book right below. Later I will go into more detail into it.
Here are the pros:
Very well written, easy to understand.
A step by step approach to help you understand how to find great stocks
Lots of chart examples.
The system is based on very detailed data and analysis of great stocks.
Good for those who wish to invest for the long term.
Combines technical analysis with fundamental analysis.
An easy to understand system, how to enter, manage the investment and cut loss.
Has a website and suite of tools to help you find investment opportunities.
Here are the cons:
Not suitable for people who wish to swing trade or day trade, basically you invest using this system.
You need to be very patient in holding your investments, sometimes it may take a few years.
New investors will need the tools on their website, which costs a monthly fee.
They teach you a great way to do fundamental analysis but I find detailed technical analysis education is lacking
They tell you to spot market tops and be aware of market direction but lack the detailed information to analyze the market direction
In summary, IMHO I believe this book is superior when it comes to filtering companies that have the fundamental characteristics of a winning stock. However, when it comes to technical analysis knowledge, you need to learn it from somewhere else.
To be fair to William O'Neil and IBD, they did a great job in condensing a winning formula into a 450 plus page book. You obviously can't put every single knowledge into a book otherwise it will be too thick.
I learnt a lot from this book hope you will also gain valuable insights.