TrimTabs Investing: Using Liquidity Theory to Beat the Stock Market

Beat the Market by Following the Money—Not the News

TrimTabs Investing introduces a radically different yet powerfully effective way to outperform the stock market: by tracking liquidity flows, not earnings forecasts or economic indicators. Charles Biderman and David Santschi, pioneers in liquidity-based market analysis, show how stock prices are driven primarily by supply and demand for shares, not by fundamentals.

Instead of following noisy earnings reports or Wall Street narratives, the authors teach you to focus on three essential liquidity metrics: corporate float shrinkage/expansion, wage and salary growth, and new equity offerings. These insights help identify when the market is being flooded with cash—or drained dry—allowing you to time entries and exits with far greater precision.

If you’re looking for an edge that most investors ignore, and a strategy backed by real-world historical testing, this book delivers.

✅ What You’ll Learn:

• Why liquidity—not earnings—is the real driver of stock prices
• How to track share creation/destruction from buybacks, IPOs, and secondaries
• Using wage and salary data as a leading indicator of market health
• How to identify bullish vs. bearish liquidity conditions
• A complete strategy based on liquidity flows, tested over multiple decades

💡 Key Benefits:

• Avoid traps of traditional valuation-based investing
• Use public data to forecast market direction with better odds
• Gain insights institutional investors rely on, but rarely share
• Learn how to stay out of bubbles and front-run institutional behavior
• Apply a strategy that adapts to macro and monetary cycles

👤 Who This Book Is For:

• Intermediate to advanced investors and traders
• Macro analysts and quantitative investors
• Fund managers and portfolio strategists
• Anyone tired of relying on lagging indicators and Wall Street noise

📚 Table of Contents:

1. Why Liquidity Matters
2. Flaws in Traditional Investing Models
3. The Power of Float Shrinkage
4. The Role of Wages and Salaries
5. Equity Offerings and Market Tops
6. Testing the Liquidity Strategy
7. Real-World Applications
8. Trading Rules and Timing Signals
9. Avoiding Market Traps and Manias
10. Putting It All Together: The TrimTabs Approach