Pounce: How to Seize Profit in Today's Chaotic Markets

by Ken Stern

As Seen on Public Television EAT OR BE EATEN In turbulent markets you need to become an investment predator. Investment predators create a plan for capturing their prey (prime investment opportunities) while risk is fairly low, and spit the bones out (sell the investment) before they become prey themselves. "Pounce "describes a system that is neither frantic day trading nor passive buy-and-hold investing. You set up a three-pronged strategy based...

• Format: Hardcover
• Language: English
• ISBN: 0312551061
• ISBN13: 9780312551063
• Release Date: March 2009
• Publisher: St. Martin's Press
• Length: 304 Pages
• Weight: 0.95 lbs.
• Dimensions: 1.1" x 5.6" x 8.5"

Customer Reviews

Current material, systematic approach

This book is a current and timely guide to investing with a simple basis -- to monthly examine 3 indicators to determine the direction of the market, and to adjust your behaviour to the situation. The strategy uses common stock screens without complex analysis to place the odds in your favor for any situation -- bull market, bubble, bear market, sector rotation, or news event are all potential windows of opportunity. I like that the book gives you choices. The author describes possible measures and their strengths and weaknesses in each of the three areas, (such as price-to-earnings versus price-to-sales versus cash flow,) and says that the system is based on the movement so whichever you choose the important thing is to stick with that measure and to understand it. Similarly when it gets to ways to use the knowledge, you have choices in how to take action too. I also like that the author explains where and how to easily get measures at many websites such as MSN, Yahoo, Morningstar, BLS, chartfilter, etcetera. I did feel a bit *too* many choices were offered, that the author got a bit enthused showing too many aspects or stock market jargon seems to go off the main message for the common audience. And the "pounce" hunting metaphor gets a bit old after a while. Overall though, very very good ideas and very doable approach to investing ! Contents: Book One : READY - Gather Your Resources 1. Assess Your Kingdom 2. Run with the Bulls, Pounce on the Herd 3. Animal Instincts Book Two: AIM - Master Your three indicators 4. The Power of Three 5: Valuation 6. Economic Direction 7. Investor Psyche/ Market Direction 8. Bulls, Bears, and More Foolishness 9. Bubbles and Predators Book Three: POUNCE - The personal Pounce platform 10. Core: Rising Stars and Pounce for Income and Growth 11. Tactical Investing: Top Gun 12. Hedge for All the Right Reasons: Uncorrelated/Hedge 13. Personal Pounce Platform 14. Pouncing into the Future 15. Pounce Rules

Solid Investment Model

I found the investment model very compelling and within my reach as a beginning investor. The book requires some study but it is understandable. Adding a glossary with explanations of terms, especially terms that are used interchangeably, would have lifted this book a solid 5-star rating in my opinion.

All market conditions are covered

Having just finished the book, I have implimented the first of the three systems laid out in here. I have turned a profit, so far. The best part of the book is having the systems explained in easy terms. The reasons for what, when, why and how much are, for EACH system, laid out in a step by step approach. You will know based on the current market condition, bullish, bearish or neutral, how to procede. There are also simple rules to follow like "Don't out smart your system, Don't allow your profits to erode, Stick to your sell discipline, Keep it simple, Manage system 1 once a month, Manage system 2 every quarter" and so on. You are never left guessing. You are guided in such a way that this will not take up your whole life. You are not going to be stuck looking at a screen for hours a day or per week. The point of having a system like this is to allow you to work the system only when you are told (monthly, quarterly etc.)and to get on with your life. We all have other areas that need our attention, kids, work, family, other obligations and so on. This book will allow for all of that. A revewer had commented "there are no tools available for running the screens as written'. The EXACT screening tools for "Rising Stars" can be found at Zacks. Zacks is mentioned in the book on page 188. Yes, it should have been listed ahead of MSN and Yahoo (and more often). It has everything, word for word, to run your screen.