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“I BEYOND HIGHLY RECOMEND Bob Prechter’s new book “The Socionomic Theory of Finance,” and believe it is a MUST READ for anyone who wants to truly have their eyes opened as to how the market really works.

Bob does a masterful job in the first two chapters of completely debunking the entire exogenous causation theory of market analysis. These first two chapters alone are worth the cost of the book, in my humble opinion.

I look forward to the day when analysts realize the folly in the Newtonian-based analysis primarily utilized today, and recognize this work as a truly groundbreaking masterpiece which will take market analysis into the future. Again, this is a must read for anyone that is serious about understanding how our non-linear financial markets really works.

I personally owe a tremendous debt of gratitude to Bob Prechter for opening my mind and my eyes as to the true realities of market dynamics.”

– Avi Gilburt

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An instant Classic

“Bob begins his fascinating tome by sequentially debunking in graphical detail virtually everything you have been taught was a rationale for the seemingly erratic behavior of markets. From there he moves to the crux of his theory of market movement, namely that there are substantive rules of market behavior that are based on internal market dynamics.

Make no mistake. This is not a simple book, but the intriguing aspect of it is that there is a simplicity and straightforwardness in Bob’s description of his theory of socionomics as related to finance that should appeal to those who have been struggling to understand financial markets.

Those who like to chew their food well before swallowing will be well rewarded by the thoroughness of Prechter’s explications. For those who wish to move at a more rapid pace to the gist of socionomics as related to finance, Bob has accommodated you by suggesting a selection of particular chapters. In either case, you will be well rewarded. It is not an exaggeration to speculate that Bob’s book will be judged historically as a revelation in regard to financial markets.”

– Peter Eliades

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Prechter is a modern Copernicus

“Copernicus changed everything by placing the Sun and not the Earth at the center of our solar system. Prechter has accomplished an equally massive game-changing shift in perspective for financial markets, the economy and even broader social causality. In this book you will discover how changes in financial markets are the result of internally driven social moods rather than rational reactions to external events such as terrorist attacks, regional wars, oil shortages and so forth. Prechter argues that social moods are regulated by unconscious coordination among limbic systems, which are evolutionarily detached enough from the brain’s higher rational processes as to be able to create, as scientist Paul MacLean put it, “intense free-floating feelings of what is real, true, or important” (MacLean, 1975, p.218) regardless of external reality. Prechter offers substantial evidence that mood-sharing and the impulsive herding that results from it are a primary cause of humans’ social decisions and actions. In short, they explain the social past and shape the social future.”

– Larry Vandervert, Ph.D.

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Wow and wow.

“Exciting stuff for a finance book and really written for the ‘layperson.’ I was a total skeptic at first thinking this was all voodoo BS – but I was convinced by page 50 and enthralled by page 70 as it reads like a crime novel – imagine that from a finance book – this is the real deal and i was so sold on this I bought a second copy to mark up and write notes all over it to test the theories and then review my notes.

Required reading for any serious trader.”

– S. Weinstein

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The only market theory I have found that does not eventually say ‘and then a miracle happens.’

“This work takes a lot of the mystery out of how the stock market actually works. A must read for those wanting to understand and not just gamble.”

– Joan L.

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Economics, finance and psychology.

“The Socionomic Theory of Finance is the most fascinating book I have ever read. It gives answers to almost every questions I had concerning financial market and most importantly it makes sense. Prechter shoots down the mainstream theories of finance and has included plenty of evidence to support his point.

I think that the gore points of STF is to separate economics and finance as well as the psychology and human behavior behind those two.

This bring to my mind metaphor from ancient times with geocentric world view, where the proponents build complicated mechanical hassles to prove their point and at the same time imprisoned or at least expelled those from community, who saw the beauty and simplicity of heliocentrism.

STF is the new way of seeing the financial markets, that few see and those who should, ignore, fearing expulsion from their tribe.”

– Timo P.

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“Wonderful book, for both the layperson and the professional. It’s an epic tome, but is broken up into easily digestible parts. You don’t have to read in order either (though I did). Socionomics and the Elliot Wave Theory have real value to add to the uncertainty of the world. Once you wrap your head around it, it makes perfect sense. It’s the same concept that can transform your day to day life, applied to finance: I create my reality and my world experience (whether consciously or not), just as cultures and society create the social mood which then sets the tone for the stock market (and many other things that trend in waves). Get the cause right, and everything flows from there…”

– emrm

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Socionomics Forecasting is the Wave of the future.

“If you are interested in an effective alternative to the economist’s typical “hindcasting”, this book is a must read. You need to readjust your thinking about causation of events and market actions, but over time (I have been using this method for over 30 years) you will become convinced that this is a superior method of social and market forecasting to traditional econometric models and daily “news” explanations.”

– Hawaii Customer

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“This is one of the all-time great books of our time! Awesome! I am only 3/4 way through this epic journey from the pen of Robert Prechter but it already ranks as one of the all time non fiction books on my reading list of some 55 years.”

– Howard

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“The book explains everything in modern finance and economic issues… Read the book and forget about any MBA degree which just wastes you money and time.”

– Andrei

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“When I was presented with a copy of his tome “The Socionomic Theory of Finance”, I sighed because the book is over 800 pages long. So I delved into chapters that immediately interested me. The insights that Mr Prechter shares with us is mind blowing.”

– Book Lover

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“THE SOCIONOMIC THEORY OF FINANCE blends sociology, economics and finance from a unique perspective. At the outset, Prechter and contributing authors demonstrate that exogenous causes, such as oil prices, trade balances, employment trends, and central bank policies “have no reliable effect on financial market prices.” The book then turns to detailing Prechter’s “socionomic hypothesis,” which is that “endogenous waves of social mood, impelled by unconscious herding impulses…determine the tenor and character of social attitudes and actions in contexts of uncertainty,” such as in fads, fashions and financial markets. This approach allows a measure of prediction on the basis that social mood fluctuates in fractal waves, and knowledge of them allows one “to achieve some measure of success in forecasting the direction, extremity, and character of financial, social, political, cultural and economic trends.” Several chapters contrast real-time fractal forecasting to standard supply-demand forecasting and linear extrapolation. Neoclassical economics has never come close to matching socionomics’ real-world consistency. While this is a pricey book, it is worth every bit of time, energy, and money devoted to understanding this new field.

Highly recommended to anyone trying to make sense of the financial and social world.”

– Inman F.

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Stock Market Prices may be Due to Social Mood and Resultant Herding. Precther Masterfully Explains Why.

“Robert Prechter and his associate authors with empirical evidence wipe away the notion that the stock market is priced rationally. Prechter doesn’t see the pricing of stocks from the same perspective as an economist who might attribute the pricing of products and services to supply and demand. He doesn’t consider the news to be a primary explanation for any lasting destabilization of stock market equilibrium.

As an author myself of a stock market technical analysis book and a retired host of a TV financial news program, I can testify that with little success I fought the desire of news writers and producers to explain all stock market movements through matters appearing in the news.

Instead Prechter argues that stock market prices are primarily determined by social mood that results in a herding effect, and that the continuations or turns in mood and prices can best be predicted through the analysis of Elliott waves. I have found this often to be the case. I highly recommend this book.”

– Curt R.

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Culmination of Inconclast Bob Precther’s Endless Pursuit to Refute Conventional Thinking

“For decades Bob Prechter has been at the forefront of social economic research and of the influence trends in society have had upon not only financial markets but also politics and the economy. His theories contradict the widely accepted belief stock market movement alone anticipates the direction of the economy and society. His book advances his theory regarding the interrelationship between crowd psychology and market price behavior. He dispels the notion markets behave randomly and cannot be quantified. It is a must read for market timers and fundamentalists as well those who want to understand and appreciate how social mood affects all aspects of life– political, economic, and social. Bob dispels the notion market movement and life are random.”

– Nande

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“Am delighted with the book. Chapter one could be a chronicle of my own early love/hate reaction to a daily dose of the Wall Street Journal front page for over twenty years. What saved me was my earlier training as a professional magician, else I would not have seen through the ruse being perpetuated by the “journalists” who wrote the headline stock market articles. Alas, I was not clever enough to develop an acceptable substitute as has Prechter.

I am also struck by his methodical approach to each topic and his careful practice of giving exact definitions to key terms. I fully expect to encounter new insights with each chapter of this exceptional book.”

– Stephen A.

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“Incredible! The interaction of collective social psychological moods with Elliott wave functions, is, in my mind brilliant and unprecedented. As a psychologist interested in collective behavior, I find the socionomic theory of finance is as indispensable an element in understanding market behavior as any I have ever read.”

—Jerry Kroth, Ph.D., Associate Professor Emeritus, Graduate Division Counseling Psychology, Santa Clara University

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Hard to put down once you start reading.

“This book is brilliant. It’s must reading for any one who is a serious student of the market and economics. Robert glides you through topics in an easy and delightful way. We wouldn’t be surprised it this book becomes a text book for a master’s program. We take our hats off to him. It’s a classic and it’s fascinating.“

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Professional Opinion.

“I read this book cover to cover. It is as close to a scientific discussion of a non-scientific subject as one could hope for.”

– A. Norwak

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Entertaining to read and enlightened when finished reading.

“I was wrong when I presumed that reading this book is hard work; the title suggests that it could be a serious academic writing. What I discovered was the exact opposite – the book is both entertaining and fun to read. After reading the first page, I could not put the book down. The author has a very engaging writing style, using an easy-to-understand English, backed by a deep understanding of his subject matter. It is a thoroughly enjoyable reading experience; it offers a very fascinating journey into a brand new field of science. On completing the reading, you will feel both enlightened and amused. Well worth taking your journey into this masterpiece…written by one of the intellectual giants of this century who has established himself as great thinker on analysing the underlying driver that shape stock market, human psychology and civilisation as a whole.”

– B. T.

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Theory makes a lot of sense but be mindful of the application.

“Great book and I agree with all theoretical conclusions. Experience simply shows there must be something else driving markets but news. I would only add that Prechter – unfortunately- has been too pessimistic on the markets generally (occasionally he has been right obviously and he did forecast the beginning of the bull market in the 1980s). There are other Elliott Wave practitioners who have had a more balanced and correct view on the markets In the recent past and are actually more optimistic about the next few years. This is an obvious difficulty of applying EW: The interpretation is quite subjective and opinions differ like for other forms of stock market analysis. At least though, it should tell you early enough when your view is wrong or right if you follow the rules and guidelines correctly.”

– Gregor R.

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Exceedingly eye-opening and thought provoking!

“This book is up there with with 2 or 3 others which significantly changed how of I think of our world in general and financial markets in particular. I would welcome a second edition which weeds out much of the last third of the book, which is not written by Prechter himself and which lacks the readability and storytelling quality level of the first two thirds of the book.”

– Fred en Beaujolais

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This is ground breaking

“I’ve read 200 pages and I’m completely enthralled. It’s at such a depth it’s amazing. World altering. Must read”

– J. Crosby

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Superb.

“Very interesting ideas about how financial markets work (as opposed to traditional economic markets). It is a life time effort to push frontier of knowledge further which I encourage to read each of its 800 pages (is taking me some time..)”

– Emiliom

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“Great. Every Trader should read this, especially if they use Elliott Wave in their trading.”

– Mr. K