TrimTabs Investing: Using Liquidity Theory to Beat the Stock Market

“Charles Biderman, a savvy and battle-scarred veteran of the investment wars, has fashioned an intriguing approach to making money in the stock market that adroitly avoids both heavy-breathing speculation and the standard Wall Street practices that enable investors, big and small, to lose money in good markets as well as bad. Aimed at the sophisticated investor (which may or may not be an oxymoron), the book is written in blessedly straightforward prose and is a worthwhile read for anyone with an urge to have a fling at investing.--Alan Abelson
Barron’s

“Since the days of Joseph and Pharaoh, it has been axiomatic that the size of the grain harvest affects the level of grain prices; but today’s investors have been slow to appreciate the fact that the supply of stock shares significantly determines the level of stock prices. Biderman’s long overdue book outlines the theory and evidence behind ‘Trading Float,’ the actual—and exploitable—power behind major moves in the stock market. --Paul Montgomery
CEO and CIO of Montgomery Capital Management

“‘Trade as corporate execs do, not as they say.’ Charles Biderman has built an impressive list of hedge fund clients from this essential insight, and this book does a great job explaining exactly how retail investors can incorporate it into their investing.” --Eric Zitzewitz
Assistant Professor of Economics, Stanford Graduate School of Business

“Charles Biderman is a smart thinker, clear writer—and he offers here some very interesting ideas. This book is for the little guy who enjoys reading about money and economics, even if he doesn’t adopt the strategies offered here; and for the professional or sophisticated investor, who, to a greater or lesser degree, just might.--Andrew Tobias
author of The Only Investment Guide You'll Ever Need

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All Customer Reviews
Average Customer Review:
3 of 3 people found the following review helpful:

Fresh ideas, 2006-01-30
The author claims to have altruistic motives and does present some new ideas, which likely work. Unfortunately, it is difficult to collect all the data by oneself. The subscription service is expensive. If Mr.Biderman is truly altruistic, he will keep his subscription cost low.


4 of 4 people found the following review helpful:

Predicting the short term direction of market, 2005-08-03
Charles Biderman thinks about the stock market differently. In his book, he uses liquidity analysis to very effectively predict the short term direction of market. He does it in a clear, simple and concise way. Is it a silver bullet? Of course not. There is no silver bullet! However, I have been an independent sales contractor selling TrimTabs Investment Research for nearly ten years and I can tell you that 29 of the largest over $1-5 billion hedge funds buy TrimTabs research. Why? Because it is original and unique research. I have come across no other similar research in all my years selling it. The book is worth reading for this reason alone.



Michael Alexander






7 of 10 people found the following review helpful:

Started off great, ended poorly, 2005-06-16
I was riveted to the first several chapters because I came to the same conclusions concerning the "Stock Market Casino" that the author did. As the book went on, I learned about liquidity theory and was all excited that I was "on to something". As I read the recommendations for dollar cost averaging Vanguarg Mutual Funds and ETF's, I started to disconnect with the author. And then the author explained that it is difficult to compute liquidity theory because the data supplied to the public is delayed by at least a month making the data unreliable for timely investment decisions. I was also disappointed at the explanation of why the liquidity theory would have you getting out of the market during the big bull run of mid 2003 - 2004. He mentioned that the theory can sometimes be an art.... So, now I believe in the liquidity theory but I'll have to figure my own strategies to use it.


6 of 7 people found the following review helpful:

A Bargain Price for an Inside Look at Investing, 2005-06-03
This book is really different for the world of finance because it is frank and down-to-earth without making a lot of grandiose claims. As an individual investor, I am not interested in tracking company earnings but want to time my buy, move and rebalance decisions.

I could relate to the character in the first chapter. I was not as interested in the looking back section as much as the liquidity in action and the looking ahead sections. So, it's about reading the chapters that pertain to your investment goals.

There, I confess to skipping the more aggressive strategies but the point is that Biderman makes these strategies available. The view of supply and demand in the market is intriguing. This liquidity view seems to be an important piece of the puzzle. The author's voice is loud and clear. I like his candor. I think it's irrelevant what his company charges for research because this book gives me a rare inside look at how professional money managers might operate. Biderman sounds like someone I'd like to sit down with for a consultation.



29 of 33 people found the following review helpful:

Save your money!, 2005-06-01
I spent almost 20 bucks for this e-book that was written to pump their website and service.
Biderman claims altruistic intent to help the investor win the "stock market casino" against the corporate "house".

He charges $6,000 a year for his Trimtabs.com newsletters for "mostly institutional" investors but this 6K a year is the 60% off sub rate for individual investors. Some altruistic intent huh?

He does collest information but I found a website that gives away for free most of the info he collects and wants to sell for 6K a year. http://www.capital-flow-analysis.com/

Most of the information he talks about in his book is freely available if you want to dig for it. On the the flip side he gives an interesting account of the rise and fall of the stock market in the 90's and early 00's in regards to "liquidity" theory.

In a nutshell, bet with the corporations and against the individual investor they are usually wrong. Like in 1929, 1987 and 2000, when the individual investor is hyped about the market, buy bonds. When everyone thinks the market sucks, buy stocks. There, you saved $20 to $30 bucks.

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