Rule the Freakin' Markets: How to Profit in Any Market, Bull or Bear

In a nutshell, Michael Parness went from living on a park bench in Brooklyn to a summa cum laude degree from Hunter College in New York City to founding a successful sports memorabilia company. After making $150,000 in that business, he followed his broker's advice in 1998 and ended up losing virtually his entire nest egg. Since then, he has invested carefully after studying media reports and understanding "market psychology." Now a broker-averse multimillionaire, he shares with readers a number of strategies that have worked for him in both bull and bear markets.

Augmented with exercises that truly help readers determine their own level of risk aversion, this guide shows online traders and, particularly, investment clubs exactly how market psychology drives daily and cyclical market moves. As Parness says, "I'm not mechanical, and I'm not good at figuring out technical stuff like computers or plumbing or chain saws, but I can figure out how things measure up in terms of probability. And probability is what trading is all about."

A few too many ka-chingos and wowsas mar an otherwise informed writing style, but nevertheless the book offers some excellent insight into how the market actually works, and how one can make money using that insight. Those looking for a serious study of economic trends and forecasts may want to look elsewhere, but readers interested in a breezy, anecdotal read about market bubbles and bursts will be entertained and more than likely enlightened. --Charles Decker

Product Description

If the author did manage to achieve the gains he claims, it would have been during the very end of the biggest bull market in history, a speculative bubble that will probably never repeat itself in our lifetimes. Many of the "trends" which are the basis of his trading strategy no longer exist. For example, IPO and stock-split plays. In this current market, how many IPOs or stock splits have you heard of recently? Although the book discusses many solid trading rules such as always using stops on every trade, these rules can be found in a thousand other books on trading.

The most important part of trading, the mental and psychological barriers that need to be overcome in order to be successful are really not discussed at all, or are simply assumed. Ultimately, the book is irresponsible because it does not ever disclose how difficult it is to succeed at trading. For example, Massachusetts regulators seized the records of one day-trading firm in the late '90s. They found that the firm had 68 traders, and 67 of them were losing money. This works out to be close to the typical failure rate of 97% for individuals who attempt to trade for a living. Do I think the author is one of the 3% who made it? Nope. It's much easier to write books on how to trade than to actually do it.


A must read for the "buy and hold" ...   March 5, 2002
James E. OBrien (Mira Loma, CA United States)
68 out of 84 found this review helpful

Finally a real book about stock market trading in the post-bubble era. Street smart Mike Parness is a refreshing antidote to the simple minded buy and hold complacency of Motley Fool, Suzy Orman and the endless parade of supply side used-car salesman on CNBC.

The author comes from the Mean Streets of New York and his awareness of danger is an obvious asset in rough and tumble markets. Parness cites Freud, and he understands the dark, aggressive side of Wall Street as well as inner destructiveness that exists within traders...How refreshingly honest--just look at their records. I don't think most Americans, raised comfortably in the suburbs, can understand just how corrupt the market is. Even after Enron, the typical investor remains astonishingly trusting and optimistic.

Waxie will set you straight, and takes the novice into the intricacies of short selling, which is a necessary skill for anyone serious about making money. He is not a permabear by any means, and will also teach you how to ride rallies without getting caught at the top.

Do yourself a favor and turn off Bubblevision and the sociopaths selling while you are buying. Waxie GETS IT. You cannot make money by following the crowd or listening to touts on TV who are only trying to leave you holding the bag.


More than just luck - Great Book   March 25, 2002
41 out of 44 found this review helpful

The author tells how he was down to $33,000 after taking a beating in the markets and then turned that around to make over $7.7 Million in the next 18 months. This is a great book on the psychology of trading and advice that many could have benefitted from circa March 2000.Anyone who thinks the author was lucky or that anyone who made money during the last bull market was lucky, ask any Compaq or Lucent shareholder how they felt as their stocks tanked during the biggest bull market in history.This is a great book and a must read for any serious investor. I also recommend Wall Street Money Machine #3 and Retire Young, Retire Rich.


Does the word "infomercial" mean anything to you?   December 29, 2002
Raoul Duke (The Owl Farm)
41 out of 49 found this review helpful

Consider the word "infomercial." What does this mean to you? Do you think of Don Lapre, who allegedly made millions from mysterious "tiny classified ads" and subsequently filed for bankruptcy (his claims apparently were as greasy as his spiky hair)? Miss Cleo, the "faka from Jamaica" who couldn't foresee an FTC indictment in her future? Or the granddaddy of them all, Ron Popeil, who brought the world hair in an aerosol can (enough said)? Have you, or anyone you know, ever purchased a product or service from an infomercial and had it live up to the claims made in that half hour on the air at three AM on your local UHF channel? If not, why would you seek advice from someone who promises to show you how to "rule the freakin' markets" via an infomercial?

Think of all the financial "gurus" who have taken to the early morning airwaves in recent years, promising riches with their "guaranteed" or "can't fail" systems for buying stocks, real estate, commodities or what have you. Where are they now? Wade Cook's company is a penny stock, Tom Vu is reportedly selling Prepaid Legal plans, Carleton Sheets no longer speculates in real estate (preferring to make his money in the lucrative infomercial market) and William J. McCorkle is in jail. Do you see the pattern? If so, you should have enough intelligence not to subscribe to Michael Parness' pseudo investment "advice;" instead, read "Security Analysis" by Benjamin Graham and David Dodd, Graham's "The Intelligent Investor," Philip Fisher's "Common Stocks And Uncommon Profits," "The Warren Buffett Way" by Robert Hagstrom or similar texts that will teach you how to invest, rather than gamble.

And if you don't see the pattern...well, I'm sure that no one will be able to tell that your hair came from an aerosol can.


A very good book on trading stocks.   April 29, 2002
fred petersen (USA)
33 out of 33 found this review helpful

Use this book to avoid making mistakes typical of so many investors.I enjoyed the exercises on how to trade, when to short stocks and why.The author shows that it doesn't matter what the market does, you can still make money if you know what to do. This book shows you the how.I also recommend Red Light, Green Light as a excellent study and how to read the markets and play market trends that are predictible.