From the Bookshelf
“Investing for Income: Grow Your Income Through Smarter Investing” (Financial Times/Prentice Hall, 2011) gives readers an extensive overview of income-producing investments and portfolio strategies. Novice investors will learn about the role savings accounts, annuities, bonds, stocks and funds play in an investment strategy. Advanced topics, including adjusting allocations with age and rebalancing, make the book appealing to more experienced investors.
Financial journalist David Stevenson strikes a good balance between giving thorough explanations and not shying away from more complex subjects. Third-party research, charts and tables are interwoven seamlessly. He does mix British and American financial products throughout the book, though the investment management concepts apply equally to both sides of the Atlantic.
A common theme in the book is that no investment is without risk, whether from inflation or a decline in price. To that end, Stevenson includes tables that compare and contrast suggested investment options for investors with low, moderate and high risk tolerances.
“The StockTwits Edge: 40 Actionable Trade Setups From Real Market Pros” (John Wiley & Sons, 2011) is a collection of essays covering various aspects of trading and investing. The subjects include charting, valuation, options, currency and sentiment.
Each chapter is fairly brief and is written by a different author. This approach makes the book a quick read and exposes readers to a variety of ideas. The downside is that no single methodology is discussed in depth. Readers are also left to decide which, if any, strategies they want to follow. Twitter aliases are provided throughout the book, which does make it easier for readers to follow up on a particular strategy. (StockTwits is a social network that aggregates investment-related twitter posts (aka “tweets”).
There is a bias toward charts and short-term trading, which is not surprising given that the book is primarily written by people who engage in active trading. It is a good and interesting book for those who want to see how others approach the market; however, it may disappoint those who are looking for in-depth instruction on how to invest or trade.