Review of The Small Stock Trader

Post by **Seetha E** » 20 Sep 2024, 10:23

[Following is a volunteer review of "The Small Stock Trader" by Mika.]

4 out of 5 stars

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The Small Stock Trader by Mika is a book for stock traders, particularly tailored for self-taught retail stock traders with a trading capital of no more than one million dollars. He incorporates the learning from poker, martial arts, and Chinese philosophy. This book is not for hedge fund traders or market makers with experience.

I ventured into this arena with half-baked knowledge and tips from supposedly reliable and experienced sources, and my experience was unfavorable. Hence, the title drew me to the book. I am glad I read this one. I now understand what I could have done differently.

The book has three parts. The first part deals with the traits of a small stock trader. He addresses the various aspects of individual trading, like self-knowledge and passion. Here, he explains the importance of understanding our strengths and weaknesses and having a passion for stock trading. With these under the belt, he addresses the need for practice and cautions about the luck factor. I concur with his recommendation of keeping things simple by focusing on five stocks with little money, time, discipline, and knowledge about competitors, to name a few. I admire how his suggestions offer flexibility and complete control over risk management. It will eventually help gain confidence with the trades picked.

The second part deals with fundamental analysis. The author rightly states that the stock market is an analytical and psychological game. To summarize, he suggests refraining from depending merely on figures and ratios. He explains the need for understanding the dynamics between the market, the industry, and the particular stock rather than focusing only on one company's details. None of the companies can function in isolation. Umpteen factors can impact a company's performance. I understand why he stresses keeping things small by choosing five stocks and working on studying everything about their behavior for at least five years. This practice will equip the small trader with the requisite wholesome knowledge of the stock, the factors impacting them, and their behavior.

The final part addresses the psychological aspect. This section beautifully convinces the reader to work on the general attitude towards life, which will automatically translate into all walks of life, including his decisions, discipline, and success as a trader. This part may seem inconsequential to many readers. But I agree with the author that having the correct frame of mind, balanced approach, and discipline are crucial to becoming a successful trader.

Although I admit that I could not grasp all the topics in the fundamental analysis in the first reading, I can confidently state that I realized where I lacked. This section could be made more convincing with a few examples. This reading has inspired me to venture into stock trading again.

A few takeaways were the importance of research, patience, and avoidance of shortcuts. A small trader must understand that tips from random sources can kill your entire trading capital. There are bound to be losses, and a trader must have a well-researched strategy for picking trades and a risk management strategy to protect the trading capital. At the same time, a trader's disciplined approach at all times is defining.

I must mention that there were minor errors, and the book could benefit from another round of editing. With abundant practical and unavoidable stages and strategies to ensure steady progress on the path of stock trading and numerous words of wisdom strewn all over the book, I rate this book four out of five stars. I have deducted one star for the errors and the absence of dated examples in the fundamental analysis section. There is nothing else that I can think of that needs to be done to improve this book.

The above summary is just a fraction of what the book offers. The US-China impact will interest traders. Hence, I urge you to pick up your copy, read, and implement the valuable and insightful suggestions to see the difference.

******
The Small Stock Trader
View: on Bookshelves | on Amazon

Post by **Sarah Zain** » 25 Oct 2024, 15:40

I'm not really a stock person. I may follow the news from time to time, so I agree that it is a risk and its results are double-edged. Your review detailed the book well Seetha.

Gerry Steen · Post by **Gerry Steen** » 30 Oct 2024, 21:26

Seetha E wrote: ↑20 Sep 2024, 10:23 [Following is a volunteer review of "The Small Stock Trader" by Mika.]

4 out of 5 stars
Share This Review

The Small Stock Trader by Mika is a book for stock traders, particularly tailored for self-taught retail stock traders with a trading capital of no more than one million dollars. He incorporates the learning from poker, martial arts, and Chinese philosophy. This book is not for hedge fund traders or market makers with experience.

I ventured into this arena with half-baked knowledge and tips from supposedly reliable and experienced sources, and my experience was unfavorable. Hence, the title drew me to the book. I am glad I read this one. I now understand what I could have done differently.

The book has three parts. The first part deals with the traits of a small stock trader. He addresses the various aspects of individual trading, like self-knowledge and passion. Here, he explains the importance of understanding our strengths and weaknesses and having a passion for stock trading. With these under the belt, he addresses the need for practice and cautions about the luck factor. I concur with his recommendation of keeping things simple by focusing on five stocks with little money, time, discipline, and knowledge about competitors, to name a few. I admire how his suggestions offer flexibility and complete control over risk management. It will eventually help gain confidence with the trades picked.

The second part deals with fundamental analysis. The author rightly states that the stock market is an analytical and psychological game. To summarize, he suggests refraining from depending merely on figures and ratios. He explains the need for understanding the dynamics between the market, the industry, and the particular stock rather than focusing only on one company's details. None of the companies can function in isolation. Umpteen factors can impact a company's performance. I understand why he stresses keeping things small by choosing five stocks and working on studying everything about their behavior for at least five years. This practice will equip the small trader with the requisite wholesome knowledge of the stock, the factors impacting them, and their behavior.

The final part addresses the psychological aspect. This section beautifully convinces the reader to work on the general attitude towards life, which will automatically translate into all walks of life, including his decisions, discipline, and success as a trader. This part may seem inconsequential to many readers. But I agree with the author that having the correct frame of mind, balanced approach, and discipline are crucial to becoming a successful trader.

Although I admit that I could not grasp all the topics in the fundamental analysis in the first reading, I can confidently state that I realized where I lacked. This section could be made more convincing with a few examples. This reading has inspired me to venture into stock trading again.

A few takeaways were the importance of research, patience, and avoidance of shortcuts. A small trader must understand that tips from random sources can kill your entire trading capital. There are bound to be losses, and a trader must have a well-researched strategy for picking trades and a risk management strategy to protect the trading capital. At the same time, a trader's disciplined approach at all times is defining.

I must mention that there were minor errors, and the book could benefit from another round of editing. With abundant practical and unavoidable stages and strategies to ensure steady progress on the path of stock trading and numerous words of wisdom strewn all over the book, I rate this book four out of five stars. I have deducted one star for the errors and the absence of dated examples in the fundamental analysis section. There is nothing else that I can think of that needs to be done to improve this book.

The above summary is just a fraction of what the book offers. The US-China impact will interest traders. Hence, I urge you to pick up your copy, read, and implement the valuable and insightful suggestions to see the difference.

******
The Small Stock Trader
View: on Bookshelves | on Amazon

I have always wanted to get involved in trading stocks but did not know where to start and how to start. This book by Mika, appears to be a good place to learn where and how to start according to your review. I am attracted to the idea of starting out with 5 stocks for five years. I am adding this book to my bookshelves. Great review!

Post by **Seetha E** » 30 Oct 2024, 21:35

Gerry Steen wrote: ↑30 Oct 2024, 21:26 I have always wanted to get involved in trading stocks but did not know where to start and how to start. This book by Mika, appears to be a good place to learn where and how to start according to your review. I am attracted to the idea of starting out with 5 stocks for five years. I am adding this book to my bookshelves. Great review!

I began stock trading with limited information, which taught me valuable lessons. This book provides helpful tips that identify my mistakes. The author consistently emphasizes the word "small," guiding us to approach trading in a careful and informed manner. Thank you for taking the time to read the review and share your thoughts.

Post by **Priya Murugesan** » Yesterday, 11:47

Like you, I too tried stock trading with not much knowledge. I have to read this book to know what I missed. Thanks for introducing this book, Seetha!