TrimTabs Investing: Using Liquidity Theory to Beat 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
“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
PART ONE: INTRODUCING LIQUIDITY THEORY.
Chapter 1. A Tale of Fortune Lost.
Chapter 2. The Genesis of Liquidity Theory.
Chapter 3. The Principles of Liquidity Theory.
Chapter 4. The Building Blocks of Liquidity Analysis.
PART TWO: INSIDE LIQUIDITY THEORY.
Chapter 5. Demolishing the Cult of Earnings.
Chapter 6. The House: Secret Corporate Power.
Chapter 7. The Players: Buying, Selling, and Borrowing.
PART THREE: LOOKING BACK.
Chapter 8. The Bull Market and the Bubble.
Chapter 9. The Aftermath.
PART FOUR: Liquidity Theory in Action.
Chapter 10. Swinging for Singles: Lower-Risk Strategies.
Chapter 11. Swinging for the Fences: More Aggressive Strategies.
PART FIVE: LOOKING AHEAD.
Chapter 12. Managing Difficulties.
Chapter 13. New Applications.
Chapter 14. How Liquidity Could Save the Markets.
Appendix: Historical Liquidity Data.
About the Authors.
DAVID SANTSCHI is an editorial consultant and copy editor with TrimTabs Investment Research. Born in Cincinnati, he earned an AB in history magna cum laude from Davidson College and an MA in history from the University of WisconsinMadison. Currently, he is a doctoral candidate in early modern European history at the University of WisconsinMadison.
For more information, please visit: www.TrimTabs.com