Product Description

Did you know that you can generate substantial amounts of cash on stocks without buying or selling them? Are you aware that you can recover losses of 90% or more on stocks using simple " outside the box strategies" that require little or no out of pocket cash. Would you like to turn any stock you own into a winner?

In this book Dr. Samir Elias will show you how you can use a low risk highly effective system to accomplish these goals and more. After reading this book you will learn how to:

* Generate thousands in cash on your losing stock without having to sell and take losses. The author shows you how you can generate thousands of dollars on the same stock in a single month using actual examples. In one real life example, the author shows how he reduced his cost basis from $10 to $5 while raising over $26,000 and making a 500% profit on selling the stock
* Reduce your cost basis on stocks you own without out of pocket cash. Watch how an investor buys a stock at $93 and comes out a winner as it drops to $30 while raising $21,000 in cash.
* Increase your profits on winning stocks by getting a premium to the market price when you sell. Watch how in one example the author achieves a $14,000 premium over market when selling the stock.
* Generate cash on stocks you do not own before buying them. Follow play by play how an investor raised $20,000 on a stock as he is in the process of buying it. This is an actual example that took place between June and August 2001.
* In a special chapter you can also learn how use other peoples money to generate thousands on stocks below $5. The amounts of cash you can raise by implementing this strategy will amaze you.
* The author describes simple but powerful timing techniques including: the 102030 test, Tell tale spikes (especially important for stocks below $5), the principle of Fading Momentum and the 75% rule to help you maximize your cash generation. In one of the chapters the author shows 6 real life examples with charts on how to successfully implement these principles.

The author's objective is to show you how to use the tools in the book to make money, so he focuses on applying each and every concept in the book to real life situations with trades that he executed himself.

"You may not have the power to control the wind but you can control your sails." This book will show you how to adjust your strategy to be profitable no matter what this crazy market throws at you.

Product Details

• Amazon Sales Rank: #859973 in Books
• Published on: 2002-05-31
• Original language: English
• Number of items: 1
• Binding: Perfect Paperback
• 112 pages

From the Author
You purchased 1000 shares of Lucent at $40/share. The stock is now at $0.90. Your loss $39,100. How Can you Recover this loss?

Choice 1: Wait until the stock gets back to $40. May take Years!!

Choice 2: Throw in another $18,000 to buy 20,000 more shares. Your average is $2.76/share.

What if you do not have the $18,000 or the stock drops further to $0.50 after you buy? Better than 1 but Not a good choice

Best choice: Without spending any of your own cash sell someone the option to sell you 20,000 shares of Lucent at $2.50 within 2 years. You will receive $40,000 immediately . you will get to keep the cash if the stock reaches $2.50 at any time in 2 years. You will not lose any cash even if the stock drops to $0.50.

If the stock has bottomed, (A simple test in the book will show you how) you could use part of the cash ($18,000) to buy 20,000 shares of Lucent and have $22,000 cash left.

On 11/29/2002 LU closed at $1.76 and the option you sold for $2.00 are now at $1.40 . You could buy the option back for a profit of $0.60/share or $12,000 total profit and sell the 20,000 shares you just purchased for $0.80/share profit or $16,000 total profit. You have now recovered $28,000 of your $39,100

In fact this is just one of the techniques described in this book that will help you recover your losses while generating cash.

About the Author
Samir Elias has a Doctorate in Engineering from the University of Massachusetts and a Masters in economics from the University of Technology in the UK. He worked as a research engineer developing new products at two different private companies in the US. In 1994 he raised venture capital to start his own engineering company which was sold to an international company in 1999. Between 1994 and 1997 he was involved in a real estate investment partnership in Ohio and Massachusetts. During that period he was intrigued by stock and option trading and how mathematical principles can be aplied to enhancing trading and investment profits. In 1997 , using his experience in computer modeling of multiphase dynamic systems which was the focus of his doctorate dissertation, he developed a mathematical approach using convergence divergence charts to model long term stock movements .This model was simplified enought to obtain effective results using hand drawn charts once a week. With the proliferation of the internet and increased interest and accessibilty of short term trading he developed unique combinations of technical indicators to predict short term stock movements with over 75% accuracy. In 1997 , he sold his real estate partnership and started trading part time at Insight Securities in Wichita KS until they closed in late 1998. Presntly , he is a full time option and stock trader and investor.

Customer Reviews

Better ideas for greater profits
I have been making a living exclusively trading stocks and options for several years so I am what you would consider an experienced trader. While it is true that most traders lose money, the ones that are successful make a nice living at it. In my opinion the reason why most fail is that they follow the herd and refuse to change their style.
This is where this book comes in; many of the techniques are innovative and different in addition to the fact that they work.
To give one example is a contrarian approach employing sentiment and price movement to profit on low priced stocks without buying them or spending any of your own cash. Using a simple twist on this strategy, the author shows you how to recover losses of more than 50%, this alone is a worthwhile reason to read this book. The new techniques in the latter chapters of the book made me a sizable profit on xmsr, amr,ntes,askj, and several others in the last few months.
Of course, it is a personal choice whether one keeps doing the same thing and getting the usual results or they open their mind to new concepts and reap their benefits. I chose the latter .

Made a lot of $$$ with this book.
I was able to triple my trading account in the past 18 months with this book. Although, I did own the first and second editions, it is the third edition that gave me these remarkable results. How did I do this? I followed the stepwise procedure below:

(1) I programmed the scan suggested by the author on pages 357-383 into my stock scanning software to find long trades reversing from a bottom. I also adapted the scan to search for short trades reversing from a top. This is quite easy to do by reversing the stated conditions.
(2) I used the market timing indicator discussed on pages 179-185 to decide whether the general market is turning up or down. The indicators in the book are best used to detect an inflection point in the market which is critical to catch moves early in the trend.
A down signal was given by this indicator in Nov 2007.
(3) When the general market is turning up I run the scan that searches for long trades. I focused only on two high profit setups discussed in the book: VPV reversal and the highly profitable falling rectangle. My reason for focusing on these setups is that not only they have high profit potential, they get you in early in the trend thus reducing the possibility of being stopped out of the trade and keeping drawdown at a minimum.
While VPV reversals are not hard to find, the highly explosive falling rectangles do not come by more than few times a year , but once you find them you can get profits upwards of 50% in a short time.
(4) If the general market is turning down I ran the scan that searched for stocks to short. In this case, however I looked for a rising rectangle pattern which is essentially the opposite of afalling rectangle. I also required that the break below the rectangle be accompanied by a volume spike. Knowing that markets and stocks fall much faster than they rise I would buy puts on the stock at the next strike below the current price. Once that strike price is reached and if the downtrend is still intact I will sell the puts I hold and buy puts at a lower strike and so on.
To show the explosive profits you can get using this technique, I will give a specific example: On 8/21/08 my short search program identified JDSU as a stock falling with a heavy volume spike. On examining the chart a break below a rising rectangle was evident. By buying $7.5 puts when the stock was at $10+ and then selling them when the stock hit $7.5 and buying $5 strike puts and so on until the stock hit $2.5 , my small investment grew by 20 times.
I have taken the advice of the author in my trading "to specialize in specific setups and get good at them to the point where they can be recognized by a glance at the chart".
I waited this long before writing the review since I had read many reviews and even written reviews myself on books without addressing the critical question: did the reviewer make money with ideas in the book. In most cases it is difficult to answer that question, however is this case it was possible since I followed a specific approach suggested in the book and it worked.
My actual rating for the book though is slightly shy of 5 (around 4.75) stars mainly because the author does not discuss record keeping in detail. He touches on psychology and does discuss money management and risk control by setting stops out of congestion areas, so you do not get run over by market makers and using specific option strategies to control risk.
I do not believe this is a major drawback since there are many books that discuss trading psychology and record keeping.
A personal note regarding trading psychology: When I was not doing so well trading I started reading books that focus mainly on trading psychology , record keeping , followed their advice and got little improvements.
However , a successful trading system changed my psychology by making me more confident, and thus willing to pull the trigger when I see a setup that falls within my specialty. Since most trades were profitable it was easy to cut losses on the ones that were not, thus following the saying cut your losses and let profits run was much easier to do.

Fantastic Book for Serious option traders
This book is well written and very understandable....The author uses real life trading examples to present his strategies....