Market cycles. How to identify and use patterns for investing. Howard Marks

It has long been known that any market is cyclical; there are periods of active growth and periods of falling prices.

I myself am also an active supporter of a strategy based on price cyclicality, since this trading option is the simplest and least risky.

There is nothing easier than buying a selected asset during certain periods, and entering into sell transactions during periods of decline.

But despite the fact that this trading strategy is quite simple, a whole book has been written about it, which describes in detail all the important points.

“Market Cycles: How to Identify and Use Patterns to Invest” is a book written by Howard Marks, the manager of one of the largest investment funds.

1. Why study cycles - for whom this book will be useful and what knowledge will give about the theory of cyclical price behavior.
2. The nature of cycles - why the market is subject to cyclicality, the essence and nature of this phenomenon.
3. Regularity of cycles - how often trends change, what role the minimums and maximums play in this.
4. Description of various types of cycles - several chapters tell what cycles such as economic, credit, debt, profit and real estate are.
5. Putting it all together - the results of the previous chapters and how psychology influences the behavior of market participants.
6. How to cope with market cycles - the main signs that allow you to determine at what stage of development the current cycle is.
7. The future and the essence of cycles are the main qualities that help us become a rational investor, learning to make a profit from any situation.

I can’t say that the book made a strong impression on me; it is not entirely easy to read; it is more of a textbook on market theory than a practical guide to investing. It will be useful for those who strive to understand the psychology of the market .

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