Investor's Library

Review of
Better Good than Lucky: How Savvy Investors Create Fortune
with the Risk-Reward Ratio

By Charles Rotblut

Reviewed by Karris Golden, President and COO, Wasendorf & Associates Inc.
(Traders Press Inc.®, W&A Publishing, SFO magazine)

A great library is the key to becoming a great trader.

There are many great texts from which you can glean useful information and develop your personal mindset and system.

But, as author Charles Rotblut notes, there's a lot of trading information and investing out there. The best of the best have written well-respected classics. There also is trading literature that isn't great. It seems everyone has an opinion about how, when and what you should trade.

Until recently, the problem was that no one had distilled the good information into an easily digestible volume. In Better Good than Lucky, Rotblut does just that. Building on a strong foundation -- diversification, a strong business model, good financials and attractive valuation -- Rotblut combs through the concepts and philosophies presented by top professionals.

As a result, this book offers an easy-to-understand course in trading, helping you avoid "lucky" mistakes in favor of sound decisions.

In addition, Rotblut outlines the "Risk-Reward Ratio", which measures the probability that a stock will decrease in price -- risk -- versus the probability that the stock will increase in price -- reward. As he explains, the lower the amount of risk and the greater the potential for reward, the higher the probability you will make money.

A prolific financial writer, Rotblut currently serves as senior market analyst for Zacks.com and vice president of the American Association of Individual Investors. He's among the best in the field to provide this sound trading education.

Using examples, history and good sense, he shows how to use the Risk-Reward Ratio to maximum advantage. He points out that traders reap rewards when they learn to identify bargain stocks.

"Limiting risk is about avoiding stocks likely to decrease in price," he writes. "Often these are companies trading at excessive valuations. You have heard about many of these companies; their stock is the hot stock of the day and everybody is buying shares because investors are convinced the share price is going to keep rising. Business will only get better…Yet, when the company finally stumbles or fails to exceed expectations by as much as everyone thought, shares of the stock become a hot potato. Everyone cannot wait to sell the stock, and, consequently, the share price tumbles."

More information and full details on this book are available at:
https://www.traderspress.com/detail.php?PKey=824