Hi Steve, Mr. Lichello's book ("How to make $1MM in the Stock Market - Automatically") sounds much like a book of hype when in fact it's an interesting business model for inventory control in mathematical format. The book is a curious blend of interesting theory and story telling. The story telling sometimes gets in the way of the facts.
If you were to read his book, I'd suggest skimming Chapt. 6 and probably 15 first. Then, if still interested, go back and skim the entire book. It's written in the time frame of 1977 looking back at the massive bear market between 1969 and 1974. Considering the current situation, this perspective isn't a bad one to understand.
Since that time frame was when I first put money into the stock market, it is possibly of even greater interest to me. It wasn't until I put pencil to paper that the method described really started to make sense. It's very contrary - buys into weakness and sells into strength.
I modeled his method during 1987 against my own "method." Starting in January, 1988 I switched to the Lichello model and have used it ever since (with tweaking, of course!). I use it with income investments as well as growth. Over the years I was mostly an individual company stock investor, but since ETFs emerged, I've moved more to index ETFs and given up the hobby of stock picking for the most part. (old age or experience?)
Yes, anything called a "learning experience" seems to have a price, even when self inflicted!
Best regards, Tom |
