Investment and securities Books

Book SynopsisA comprehensive overview of trading and risk management in the energy markets Energy Trading and Risk Management provides a comprehensive overview of global energy markets from one of the foremost authorities on energy derivatives and quantitative finance.Table of ContentsPreface xiii Acknowledgments xxv About the Author xxvii About the Contributors xxix Chapter 1 Energy Markets Fundamentals 1 1.1 Physical Forward and Futures Markets 3 1.2 Spot Market 5 1.3 Intraday Market 10 1.4 Balancing and Reserve Market 10 1.5 Congestion Revenue Rights, Financial Transmission Rights, and Transmission Congestion Contracts 11 1.6 Chapter Wrap-Up 12 References 13 Chapter 2 Quant Models in the Energy Markets: Role and Limitations 15 2.1 Spot Prices 17 2.1.1 Random Walk Jump-Diffusion Model 19 2.1.2 Mean Reversion: Ornstein-Uhlenbeck Process 23 2.1.3 Mean Reversion: Schwartz Type 1 Stochastic Process 25 2.1.4 Mean Reversion with Jumps 25 2.1.5 Two-Factor Model 26 2.1.6 Negative Prices 27 2.2 Forward Prices 28 2.2.1 Forward and Futures Markets 28 2.2.2 Contango and Backwardation 30 2.3 Chapter Wrap-Up 31 References 31 Chapter 3 Plain Vanilla Energy Derivatives 33 3.1 Definition of Energy Derivatives 34 3.2 Global Commodity Exchanges 35 3.3 Energy Derivatives Pricing Models 36 3.4 Settlement 37 3.5 Energy Derivatives Quant Models: Role and Limitations 38 3.6 Options 40 3.6.1 Volatility 42 3.7 Vanilla Options 43 3.7.1 Option Style 44 3.7.2 Exchange-Traded and Over-the-Counter Options 44 3.7.3 In-the-Money, At-the-Money, and Out-of-the-Money Options 45 3.7.4 Put-Call Parity 46 3.8 European Options 47 3.9 American Options 50 3.10 Swaps 52 3.11 Swaps to Futures 54 3.12 Chapter Wrap-Up 54 References 54 Chapter 4 Exotic Energy Derivatives 59 4.1 Asian Options 60 4.1.1 Classes of Asian Options 61 4.1.2 Payoffs of Asian Options 62 4.1.3 Solutions to Asian Options 63 4.1.4 Asian Options in the Energy Markets 63 4.2 Barrier Options 63 4.2.1 Eight Types of Barrier Options 64 4.2.2 Partial Barrier Options 65 4.2.3 Solutions to Barrier Options 66 4.2.4 Barrier Options in the Energy Markets 66 4.3 Digital Options 66 4.3.1 Types of Digital Options 67 4.3.2 Solutions to Digital Options 69 4.3.3 Digital Options in the Energy Markets 69 4.4 Real Options 71 4.4.1 Real Options in the Electric Power Markets 71 4.4.2 Case Study: Real Options in the Oil Markets 72 4.4.3 Limitations of the Real Options Valuation Paradigm 73 4.5 Multiasset Options 74 4.5.1 Pricing Multiasset Options 74 4.6 Spread Options 75 4.6.1 Crack Spreads 76 4.6.2 Spark Spreads 82 4.6.3 Dark Spreads 85 4.7 Perpetual American Options 86 4.7.1 Perpetual American Options in the Power Industry 87 4.8 Compound Options 87 4.8.1 Tolling Agreements: Example of Compound Options in Power Markets 89 4.9 Swaptions 90 4.9.1 Energy Swaptions 91 4.10 Swing Options 92 4.11 Chapter Wrap-Up 94 References 94 Chapter 5 Risk Management and Hedging Strategies 99 5.1 Introduction to Hedging 102 5.2 Price Risk 104 5.3 Basis Risk 107 5.3.1 Basis Risk Case Study 108 5.3.2 Metallgesellchaft Case: Stack and Roll Hedging Disaster 109 5.4 The Option “Greeks” 110 5.5 Delta Hedging 111 5.6 Gamma Hedging 113 5.7 Vega Hedging 115 5.8 Cross-Hedging Greeks 116 5.9 Quant Models Used to Manage Energy Risk: Role and Limitations 116 5.9.1 Regression Analysis 117 5.9.2 Stress Test 120 5.9.3 Value at Risk 123 5.10 Chapter Wrap-Up 124 References 124 Chapter 6 Illustrations of Hedging with Energy Derivatives 127 6.1 Hedging with Futures Contracts 129 6.1.1 Case Studies and Examples: Hedging with Futures Contracts 130 6.1.2 Risks Associated with Hedging with Futures Contracts 138 6.2 Hedging with Forward Contracts 141 6.3 Hedging with Options 143 6.3.1 Case Study: Call Options Used to Set a “Cap” on Gasoline Prices 143 6.3.2 Example: How Power Generators Use Options on Futures to Hedge 144 6.3.3 Example: How End Users Utilize Options on Futures to Hedge 145 6.3.4 Example: How Power Marketers Use Options on Futures to Hedge 145 6.4 Hedging with Swaps 146 6.4.1 Example: Fuel Swap 148 6.4.2 Example: Electricity Swap 149 6.4.3 Case Study: Natural Gas Basis Swap 150 6.5 Hedging with Crack Spread Options 151 6.5.1 Case Study: Hedging with Crack Spread Options 153 6.6 Hedging with Spark Spreads 154 6.6.1 Case Study: Power Producer Uses Spark Spread to Protect Margin 154 6.7 Hedging with Other Energy Derivatives 157 6.8 Chapter Wrap-Up 158 References 158 Chapter 7 Speculation 161 7.1 Convergence of Energy and Financial Markets 162 7.2 Trading Terminology 167 7.3 Energy Products Trading Codes 169 7.4 Futures Trading Symbols: Month Code Abbreviation 170 7.5 Fundamental and Technical Analyses 171 7.6 Trading Tools: Charts and Quotes 173 7.7 Energy Trading Market Participants 176 7.8 Speculation in the Oil Markets 182 7.9 Speculation in the Electricity Markets 184 7.10 Speculation in the Natural Gas Markets 185 7.11 Chapter Wrap-Up 187 References 187 Chapter 8 Energy Portfolios 191 8.1 Modern Portfolio Theory 192 8.2 Energy Portfolio Management 196 8.3 Optimization of Electricity Portfolios 197 8.3.1 Case Study: Economic Load Dispatch of a Portfolio of Gas-fired Power Plants 199 8.4 Optimization of Gas Portfolios 201 8.5 Other Energy Portfolio Management Models 203 8.6 Chapter Wrap-Up 203 References 204 Chapter 9 Hedging Nonlinear Payoffs Using Options: The Case of a New Subsidies Regime for Renewables 207 9.1 Renewable Energy, Options Pricing, and Government Subsidies 209 9.1.1 Power Assets Modeled as a Vanilla Call Option 210 9.1.2 Strike Price of a Wind Turbine 211 9.1.3 Levelized Cost Price of Electricity 211 9.1.4 Wind Turbines’ Competitiveness on the Electricity Market 213 9.2 Government Subsidies as a Stochastic Process 216 9.3 Impact of Embedded Options and Stochastic Subsidies on Pricing and Risk Management 219 9.3.1 Pricing of a Wind Turbine and Subsidies as an Embedded Option 219 9.3.2 Tail Risk and Hedging Options with Options 222 9.4 Chapter Wrap-Up 224 References 225 Chapter 10 Case Study: Hydro Power Generation and Behavioral Finance in the U.S. Pacific Northwest 227 10.1 An Overview of Behavioral Finance 229 10.2 Behavioral Finance in Energy Economics 231 10.3 Power Generation in the Pacific Northwest 232 10.4 Behavioral Financing of Projects in the Pacific Northwest 235 10.5 Northwest Power Planning 239 10.5.1 Resource Availability 239 10.5.2 Resource Cost 239 10.5.3 System Flexibility 240 10.5.4 Cost Effectiveness 241 10.5.5 Transmission 241 10.6 Chapter Wrap-Up 241 Reference 242 Bibliography 243 Index 259

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Book SynopsisSays Bill Ackman of Pershing Square Capital Management about The Art of Value Investing: "I learned the investment business largely from the work and thinking of other investors. The Art of Value Investing is a thoughtfully organized compilation of some of the best investment insights I have ever read.Trade Review“John Heins and Whitney Tilson, co-founders of the Value Investor Insight newsletter, have done a thorough job of explaining how to look for stocks that are trading at significant discounts to what they are worth — the concept known as the value style of investing.…the authors present a clear framework for ferreting out undervalued companies.” —The New York Times “[The Art of Value Investing] is packed with invaluable insights and is relevant to both the novice and the experienced investor. …This book provides a valuable contribution to the industry literature on value investing. It is well written, well organized, and quite enjoyable. The Art of Value Investing should be read by all investors who are seriously interested in enhancing their understanding of this important field.” —CFA Institute Book ReviewTable of ContentsIntroduction 1 Chapter 1 “All Sensible Investing Is Value Investing” 5 What It Means to Be a Value Investor 6 Does Quality Matter? 13 The Value of Growth 19 The Value Mindset 25 Part One Field of Play 33 Chapter 2 Circle of Competence 35 The Right Size 36 Industry Preference 45 Where in the World? 57 Chapter 3 Deficient Market Hypothesis 65 The Human Element 66 It’s a Matter of Time 74 Chapter 4 Fertile Ground 81 In Search of Uncertainty 82 Special Situations 86 Operating Turnarounds 93 Chapter 5 Generating Ideas 99 Behind the Screen 99 Follow the Lead 106 Reliable Sources 111 Part Two Building the Case 115 Chapter 6 Cutting Through the Noise 117 Second-Level Thinking 118 Macro versus Micro 120 Business First 127 What Quality Means 131 Crunching the Numbers 135 What Could Go Wrong? 139 From the Top 147 How Important Is Management? 147 Handicapping the Jockeys 149 Red Flags 157 Catalysts 164 Getting It Done 169 Organizing Principles 174 Chapter 7 Getting to Yes 183 Cash (Flow) Is King 184 Multiple Angles 190 The Informed Buyer 192 Model Behavior 194 Playing the Odds 199 Theories of Relativity 202 Pulling the Trigger 206 Part Three Active Management 213 Chapter 8 The Portfolio 215 Concentration versus Diversification 215 The Size That Fits 222 Cognizance of Correlation 227 Chapter 9 Playing the Hand 233 Trading Mentality 233 Dealing with Adversity 239 Taking a Stand 248 Attracting Activists’ Attention 251 Chapter 10 Guarding Against Risk 257 Margin of Safety 258 Building a Position 261 Cash Management 263 Midas Touch 267 Hedging Bets 268 To Short or Not to Short? 268 Value Destroyers 271 Portfolio Hedging 276 Is Shorting Inherently Evil? 277 Chapter 11 Making the Sale 281 Why to Sell 282 Selling by the Numbers 286 Getting the Timing Right 290 Sale Process 293 Part four Of Sound Mind 297 Chapter 12 Of Sound Mind 299 Competitive Spirit 300 Independent Thought 303 Perpetual Student 306 To Err Is Human 309 Be Ever So Humble 312 The Final Word 315 About the Authors 317 Index 319

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Book SynopsisEvery futures, options, and stock markets trader operates under a set of highly suspect rules and assumptions.Table of ContentsThe Empirical Techniques. Characteristics of Fixed Fractional Trading and SalutaryTechniques. Parametric Optimal f on the Normal Distribution. Parametric Techniques on Other Distributions. Introduction to Multiple Simultaneous Positions Under theParametric Approach. Correlative Relationships and the Derivation of the EfficientFrontier. The Geometry of Portfolios. Risk Management. Appendices. Bibliography and Suggested Reading. Index.

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Book SynopsisThe classic book that introduced the investment industry to the concept of trading psychology.   With rare insight based on his firsthand commodity trading experience, author Mark Douglas demonstrates how the mental matters that allow us function effectively in society are often psychological barriers in trading. After examining how we develop losing attitudes, this book prepares you for a thorough “mental housecleaning” of deeply rooted  thought processes. And then it shows the reader how to develop and apply attitudes and behaviors that transcend psychological obstacles and lead to success.   The Disciplined Trader helps you join the elite few who have learned how to control their trading behavior (the few traders who consistently take the greatest percentage of profits out of the market) by developing a systematic, step-by-step approach to winning week after week, month after month.   The book is divided into three parts

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a huge range and FREE tracked UK delivery on ALL orders.

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Book SynopsisDiscover a structured, applied approach to behavioral finance with the first academic text of its kind--Ackert/Deaves' BEHAVIORAL FINANCE: PSYCHOLOGY, DECISION MAKING, AND MARKETS. This comprehensive text--ideal for today's behavioral finance elective--links finance theory and practice to human behavior.The book begins by building upon the established, conventional principles of finance before moving into psychological principles of behavioral finance, including heuristics and biases, overconfidence, emotion and social forces. Readers learn how human behavior influences the decisions of individual investors and professional finance practitioners, managers, and markets.The book clearly explains what behavioral finance indicates about observed market outcomes as well as how psychological biases potentially impact the behavior of managers. Readers see, first-hand, the implications of behavioral finance on retirement, pensions, education, debiasing, and client management. This book spends a significant amount of time examining how behavioral finance can be used by practitioners today.Readers utilize theory and applications in every chapter with a wide variety of end-of-chapter exercises, discussion questions, simulations and experiments that reinforce the book's applied approach.Table of ContentsIntroduction. Introduction. SECTION I: CONVENTIONAL FINANCE, PROSPECT THEORY AND MARKET EFFICIENCY. 1: Foundations of conventional finance: Expected utility. 2: Foundations of conventional finance: Asset pricing theory and market efficiency. 3: Prospect theory, framing and mental accounting. 4: Limits to arbitrage, anomalies and investor sentiment. SECTION II: BEHAVIORAL SCIENCE FOUNDATIONS. 5: Heuristics and biases. 6: Overconfidence. 7: Emotion. SECTION III: INVESTOR BEHAVIOR. 8: Investor behavior stemming from heuristics and biases. 9: The impact of overconfidence on investor decision-making. 10: Emotion-based investor behavior. SECTION IV: SOCIAL FORCES. 11: Social forces: Selfishness or altruism? 12: Social forces and behavior. SECTION VI: MARKET OUTCOMES. 13: Behavioral explanations for anomalies. 14: Aggregate stock market puzzles. SECTION V: CORPORATE FINANCE. 15: Irrational markets. 16: Irrational managers. SECTION VII: RETIREMENT, PENSIONS, EDUCATION, DEBIASING AND CLIENT MANAGEMENT. 17: Understanding retirement saving and investment behavior and improving DC pensions. 18: Debiasing, education, and client management. SECTION VIII: MONEY MANAGEMENT. 19: Money management and behavioral investing. 20: Neurofinance and trading.

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Book SynopsisMichael Edleson first introduced his concept of value averaging to the world in an article written in 1988. He then wrote a book entitled Value Averaging in 1993, which has been nearly impossible to finduntil now. With the reintroduction of Value Averaging, you now have access to a strategy that can help you accumulate wealth, increase your investment returns, and achieve your financial goals.Table of ContentsForeword by William J. Bernstein ix Preface to the 2006 Edition xiii Preface to the 1993 Edition xix Introduction 1 1 Market Risk, Timing, and Formula Strategies 3 Risk and Market Returns 3 Market Returns over Time 3 Distribution of Market Returns 9 Risk and Expected Return 13 Market Timing and Formula Strategies 20 Timing the Market 20 Automatic Timing with Formula Strategies 21 Endnotes 23 2006 Note 24 2 Dollar Cost Averaging Revisited 25 Dollar Cost Averaging: An Example 26 Short-term Performance 28 Over One-Year Periods 30 Over Five-Year Periods 32 Long-term Problems with Dollar Cost Averaging 34 Growth Equalization 35 Summary 36 Endnotes 37 3 Value Averaging 39 Value Averaging: An Introduction 39 Short-term Performance 43 Long-term Performance and Value Averaging 47 Linear, or Fixed-Dollar, Strategies 47 Adjusting Strategies for Growth 51 Summary 53 Endnotes 54 2006 Notes 55 4 Investment Goals with Dollar Cost Averaging 57 Background 57 Lump-Sum Investments 57 Using the Formula 59 Annuities: Periodic Investments 60 Dollar Cost Averaging and Annuities 63 Readjusting the Investment Plan 63 The Readjustment Process 64 Flexibility 66 Down-Shifting Investment Risk 69 Growth-adjusted Dollar Cost Averaging 71 Exact Formula 72 Approximate Formula 74 Readjusting the DCA Plan 75 Summary 80 Endnotes 80 Appendix to Chapter 4: Constructing a DCA Readjustment Spreadsheet 83 5 Establishing the Value Path 87 Value Averaging Value Paths 87 The Value Path Formula 88 Flexible Variations on the Value Path Formula 89 Readjusting the VA Plan 92 A Cautionary Note 93 An Alternate Method 93 Summary 94 Endnotes 95 Appendix to Chapter 5: Constructing a VA Readjustment Spreadsheet 97 6 Avoiding Taxes and Transaction Costs 101 Tax Considerations with Value Averaging 101 The Advantage of Deferred Gains 101 Deferring Capital Gains Taxes: An Example 102 A Compromise: No-Sell Value Averaging 107 Reducing Transaction Costs 111 Limiting Taxes 111 Limiting Costs 112 Summary 113 Endnotes 114 7 Playing Simulation Games 117 Why Simulations? 117 What and How? 118 Parameters 118 Expected Return 119 Expected Variability 120 Randomness 120 Constructing the Simulation 121 An Example 122 Endnotes 126 Appendix to Chapter 7: Constructing a Simulation 129 2006 Note 131 Endnotes to Appendix to Chapter 7 133 2006 Note 134 8 Comparing the Strategies 135 Five-year Simulation Results 135 Using Growth Adjustments 139 No-Sell Variation 142 Volatility 143 Twenty-year Simulation Results 145 Summary 146 Endnotes 147 9 Profiting from Overreaction 149 Tiring of a Random Walk 149 Mean Reversion and Overreaction 150 A Brief Look at the Data 151 Why Does This Matter? 160 Timing 161 Endnotes 164 2006 Note 167 10 Details: Getting Started 169 Using Mutual Funds 169 The Fund versus Stock Choice 169 Index Funds 171 Information on Specific Funds 172 Working Out the Details 175 Using a Side Fund 176 Operating Within a Retirement Account 177 Establishing a Value Path 178 2006 Note 180 Setting Up a VA Value Path: An Example 181 Other Important Considerations 184 Using Guidelines and Limits 185 Notes for Financial Planners 186 Advanced Methods 187 Summary 189 Endnotes 189 2006 Note 191 11 Examples: Strategies at Work 193 The Goal and Investment Environment 194 Choosing an Investment 194 Setting the Goal (Dealing with Inflation) 197 How Much Should He Invest? 199 Investment Return & Taxes 200 Expected Return 200 Taxes 200 Implementing Dollar Cost Averaging 202 1981: Setting Up DCA 203 1982–1983 Investment Results 205 1983: Reassessment and Readjustment 205 The 1985 Readjustment 211 And So On and So On 212 Wrapping It Up: 1991 Results 214 Implementing Value Averaging 215 Establishing the Value Path 215 1983: Readjusting the VA Plan 217 Future VA Readjustments 219 VA Investments 220 Summary 225 Key Formulas 226 Endnotes 227 12 A Final Word 229 Index 231

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Book SynopsisAcclaim for Trader''s Tales I have rarely gone through a day without hearing a joke about WallStreet. Ron Insana captures the essence of the culture that createsthose jokes with one hilarious tale after another. This book isgreat fun. -Stanley Druckenmiller Managing Director, Soros FundManagement. Ribald tales and outrageous jokes are as much a part of WallStreet as subordinated debentures, and Ron Insana has siftedthrough years of financial lore to collect the best of them. Afunny, funny book, certain to draw a chuckle and a wry smile ofrecognition from even the stiffest Masters of the Universe. -BryanBurrough Coauthor, Barbarians at the Gate. You can''t beat Wall Street for witty and outrageous behavior. RonInsana captures it. -Michael Steinhardt Managing Partner,Steinhardt Partners. Having worked on Wall Street for 20 years, I thought I had heardand seen it all. The secrets revealed in this book, however, areabsolutely shocking. -Elaine GarzarelliTable of ContentsAn Early Tale. The Floor Trader. Life in the Pits. The Trading Desk. Women on Wall Street. Greed, Gaming, and Trickery. Investors' Tales. Crash Tales. Street Talk. Constellations and Calender Quirks. Name Index.

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Book SynopsisPrivate equity is more economically significant than ever, as institutions hunt for high returns in a risky world. Private Equity 4. 0 examines the role, workings and contribution of this important industry in a straightforward yet revealing manner. Dr. Josh Lerner Jacob H.Table of ContentsList of case studies ix About the authors xi Professional acknowledgments xiii Personal acknowledgments xv Foreword xvii Introduction xxi Private equity at the crossroads xxi An historical perspective to gain insights for the future xxi Private equity: all about people xxiii The best capitalism has to offer? The conceptual groundings xxiv Empowering and incentivizing: partnering for mutual success xxiv Focus, focus, focus xxv Strategy is cheap; operationalizing is key xxv Alignment brings cohesion xxvi Flexibility as strategic value xxvi Carrots and sticks: the value of discipline xxvi Leverage… at all levels xxvii The cash flow paradox xxvii The buy-and-sell approach: capitalism on speed xxviii Believers, sceptics and cynics xxviii 1 Private equity: from “alternative” to “mainstream” asset class? 1 Moving into mainstream 3 A brief history 6 An increasingly global industry 8 Private equity in North America 10 Private equity in Europe 11 Private equity in Asia 12 Emerging private equity players 13 An industry in the limelight 18 2 Private equity as a business system 25 Setting the stage 27 The raison d’être of private equity funds 27 Private equity’s market segments 29 The fuel behind private equity: investors 37 Portfolio allocations by investors 39 The (apparent) madness of private equity fees 42 Management fee 43 Carried interest 43 General partner interest 46 Commitments versus investments 50 Distributions in cash, please! 51 Due diligence, leverage, focus and… incentives 53 Superior information 54 Active ownership 54 Financial leverage 55 Alignment of interests 55 Mitigating possible confl icts of interest 56 Illiquidity… and new ways to cope with it 58 Secondaries market 58 Publicly listed private equity vehicles 60 3 Value creation in private equity 69 The art of private equity 71 Sourcing deals 74 Creating value in private equity 78 Operational value 79 Exiting investments 95 The economic impact of private equity 96 4 Private equity performance 103 Performance metrics 106 Valuing realized and unrealized investments 108 Reporting fund performance 109 Membership and self-reporting biases 109 Performance by segments 112 Performance by fund size 113 The persistence effect 114 The timing effect 116 Comparison against benchmarks 117 Correlation to other asset classes 121 5 The main characters in private equity 125 Size matters: fund sizes, deal sizes and other dimension issues! 127 Global alternative asset managers 132 Example: The Carlyle Group 133 Example: Bain Capital 138 Regional, domestic and multi-country funds 142 Example: EQT Partners 143 Mid-market funds 146 Example: H.I.G. Capital 148 Venture capital funds 152 Example: TVM Capital 154 Distressed private equity 157 Example: Cerberus Capital Management LP 159 Secondary funds 162 Example: Coller Capital 163 Funds-of-funds 165 Example: Pantheon 166 Example: AlpInvest Partners 169 Institutional limited partners 171 Example: CalPERS (California Public Employees Retirement System) 171 6 The supporting cast 173 London as European centre of gravity 176 The private equity ecosystem: follow the fees 177 Investment banks 178 M&A advisory fees 179 Arrangement fees 180 Securitization fees, or the price of turning frogs into princes 180 Fund management fees, or how to compete with your best clients 182 Lending banks 183 Accountancy firms 184 Law firms 185 Due diligence specialist providers 186 Strategy consultants 187 Placement agents 189 Fund administrators 190 Recruitment consultants 191 Public relations agencies 192 7 Investing in a fund 195 The private equity game 197 The decision to invest 198 Choice of investment vehicle 203 Direct fund investments 204 Indirect fund investments 204 Diversification in a rich marketplace 209 Stages of investment 210 Geographic focus 210 Sector and size of investments 210 Strategic approach 210 Types of private equity firms 211 Timing 211 The pitch 212 Manager selection 214 Due diligence 216 Terms, conditions and fee structures 221 Subscription to a fund 228 Capital calls 228 Monitoring 229 Distributions 230 Reporting 232 Fund liquidation 233 8 The future of private equity 235 Reports of private equity’s death were highly premature 237 Private equity in a changing world 239 Conclusion 244 Index 247

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Book SynopsisA guide to mastering powerful trading methods inspired by stock market legend William O'Neil. It delivers trading techniques based on the O'Neil model that you can put to work in your own portfolio.Table of ContentsAcknowledgments xiii Introduction xv Disciple Boot Camp xvii Pocket Pivot Buy Points xviii Buyable Gap‐Ups xxi Moving Average Violations xxiv The seven‐Week Rule xxv As You Begin xxvi Chapter 1 the OWL ethos 1 Quick Quiz 2 Chart Exercises 7 Identifying Bases 7 The Line of Least Resistance 9 Answers to Quick Quiz 14 Answers to Chart Exercises 19 Identifying Bases 19 The Line of Least Resistance 24 Summary 32 Chapter 2 Mind Games and Mazes 33 Embracing Uncertainty 33 The Psychology of Follow‐Through Days 34 Lockheed‐Martin: An opportunity Derived from Uncertainty 37 Silver: A Crystalline trend amid the Uncertain and Murky Waters of 2011 40 The Uncertainty of Company Earnings Announcements 42 You Must Lose to Win 44 The Need for Labels as a Heuristic Achilles’ Heel 46 Price Bias 48 Find Experts You Can Learn From, Not Have to Rely On 51 Paper Trading versus Real Trading 52 Awareness and Preparation 53 In Summary: Know Thyself 56 Chapter 3 2011: A Postmortem for the New Millennium 59 Reviewing the 2011 Trade Blotter 62 Using Spreadsheet Analysis with Chart Mark‐Ups 63 Three Swings, Three Strikes 64 The Window of Opportunity Has a Silver Lining 68 More Roads to Nowhere in 2011 74 Summarizing the Lessons of 2011 80 Chapter 4 Developing Your “Chart Eye” 85 What is a Chart Eye? 86 The Visual Effect of X‐ and Y‐axis Scaling 88 Linear versus Logarithmic Charts 90 Bars or Candles? 92 Moving Average Stress Syndrome (MASS) 95 Indicators: Useful or Useless? 102 Are Intraday Charts Useful? 105 Monitor Color and Formatting Schemes 108 What You See is What You Get 111 Chapter 5 Pocket Pivot Exercises 113 Conclusion 195 Chapter 6 Buyable Gap-Up Exercises 197 Conclusion 263 Chapter 7 A Trading Simulation 265 First Solar (FSLR) 2007–2008 266 Acme Packet (APKT) 2010–2011 318 Conclusion 340 Chapter 8 Frequently Asked Questions 341 Pocket Pivot Buy Points 341 Buyable Gap‐Ups 354 Stops and General Selling Rules 355 General Topics 359 Short‐Selling 367 Market Timing Model Building 370 Appendix List of Companies (with Ticker Symbols) Referenced in the Book 375 About the Authors 379 Index 381

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Book SynopsisSir John Templeton, legendary investor, was famous for saying, "The four most dangerous words in investing are, 'This time it's different. '" He knew that though history doesn't repeat, not exactly, history is an excellent guide for investors.Table of ContentsPreface ix Acknowledgments xvii Chapter 1 The Plain-Old Normal 1 Yes Sir, Sir John 1 The Normal Normal 5 The Jobless Recovery 14 The Always Feared, Rarely Seen Double Dip 23 Chapter 2 Fooled by Averages 31 Bull Markets Are Inherently Above Average 32 Viva the V 36 Normal Returns Are Extreme, Not Average 47 The Pause That Refreshes (and Confuses) 49 Getting Average Returns Is Hard—Really Hard 53 Chapter 3 Volatility Is Normal—and Volatile 57 What the Heck Is Volatility? 58 Volatility Is Volatile 61 The Daily Grind 65 Stocks Are Less Volatile Than Bonds? 67 Economic Volatility—Also Normal 69 Volatility Isn’t Inherently Bad 71 Never a Dull Moment 74 Chapter 4 Secular Bear? (Secular) Bull! 81 Seeing the World Through Bear- Colored Glasses 82 Two Secular Bear Markets? 84 Stocks—Up Vastly More Than Down 90 Chapter 5 Debt and Deficient Thinking 101 Deficits Aren’t Bad, but Surpluses Will Kill You 105 The History of Big Government Debt 110 Just Who Is at Default Here? 116 Chapter 6 Long- Term Love and Other Investing Errors 123 No One Category Is Best for All Time 124 Long- Term Love Is Like Long- Term Forecasting— Both Wrong 129 It’s Still Heat Chasing Even When It Seems Safe 134 Use History to Your Advantage 146 Chapter 7 Poli-Ticking 151 Enter the Ideology- Free Zone 152 Your Party Isn’t Better 153 Presidents and Risk Aversion 155 Perverse Inverse—It’s Four and One 160 Poli- Tics Go Global 170 Poli- Tics Versus Entrepreneurs 172 Chapter 8 It’s (Always Been) a Global World, After All 177 It’s Always Been a Small World 179 Seeing the World Right 186 Conclusion 194 Appendix 197 Notes 201 Index 211

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Book SynopsisA Dozen Lessons for Entrepreneurs shows how the insights of leading venture capitalists can teach readers to create a unique approach to building a successful business. By better understanding the views and experiences of a wide range of entrepreneurs, readers can discern which of many possible paths will lead to success.Trade ReviewWhen I first came to Silicon Valley, I was struck by how much people teach and learn from one another. In this book, Tren continues that spirit by sharing his own learning from others-and explains how investment judgments and decisions are made in the world of tech start-ups. -- Marc Andreessen, cofounder of Netscape and Andreessen Horowitz The book is among a select few to categorize the key learnings of leading VCs. -- Chris GoulakosTable of ContentsConcept DirectoryForeword, by Scott BelskyIntroductionI. The Founder Coaches1. Steve Blank2. Bill Campbell3. Eric RiesII. The Venture Capitalists4. Sam Altman: Y Combinator5. Steve Anderson: Baseline Ventures6. Marc Andreessen: Andreessen Horowitz7. Rich Barton: Expedia, Glassdoor, Zillow8. Roelof Botha: Sequoia Capital9. Jim Breyer: Breyer Capital10. Chris Dixon: Andreessen Horowitz11. John Doerr: Kleiner Perkins Caufield & Byers12. Peter Fenton: Benchmark13. Jim Goetz: Sequoia Capital14. Paul Graham: Y Combinator15. Kirsten Green: Forerunner Ventures16. Bill Gurley: Benchmark17. Reid Hoffman: Greylock Partners18. Ben Horowitz: Andreessen Horowitz19. Vinod Khosla: Khosla Ventures20. Josh Kopelman: First Round Capital21. Jenny Lee: GGV Capital22. Doug Leone: Sequoia Capital23. Dan Levitan: Maveron24. Jessica Livingston: Y Combinator25. Mary Meeker: Kleiner Perkins Caufield & Byers26. Michael Moritz: Sequoia Capital27. Chamath Palihapitiya: Social Capital28. Keith Rabois: Khosla Ventures29. Andy Rachleff: Wealthfront30. Naval Ravikant: AngelList31. Heidi Roizen: Draper Fisher Jurvetson32. Mark Suster: Upfront Ventures33. Peter Thiel: Founders Fund34. Fred Wilson: Union Square Ventures35. Ann Winblad: Hummer Winblad Venture PartnersConclusionGlossary

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Book SynopsisThe market in listed options and non-equity option products provides investors and traders with a wealth of new, strategic opportunities for managing their investments. This updated and revised Fifth Edition of the bestselling Options as a Strategic Investment gives you the latest market-tested tools for improving the earnings potential of your portfolio while reducing downside risk—no matter how the market is performing. Inside this revised edition are scores of proven techniques and business-tested tactics for investing in many of the innovative new options products available. You will find: •Buy and sell strategies for Long Term Equity Anticipation Securities (LEAPS) •A thorough analysis of neutral trading, how it works, and various ways it can improve readers’ overall profit picture •Detailed guidance for investing in Preferred Equity Redemption Cumulative Stocks (PERCS) and how to hedge them with common and regular options •An extensive overview of futures and futures options Written especially for investors who have some familiarity with the option market, this comprehensive reference also shows you the concepts and applications of various option strategies -- how they work, in which situations, and why; techniques for using index options and futures to protect one’s portfolio and improve one’s return; and the implications of the tax laws for option writers, including allowable long-term gains and losses. Detailed examples, exhibits, and checklists show you the power of each strategy under carefully described market conditions.

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Book SynopsisDescribes two straight forward trading plans that eschew complicated indicators and focus on probable outcomes. This book is based around ten different daily situations that can occur in the futures market.

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Book SynopsisThis innovative text presents the theoretical foundations of security analysis and investment strategy, and explores the practical applications of these theories. After establishing an historical foundation, the book examines fixed income securities, equity analysis and investment strategy.Trade Review“What sets Poitras’ book apart is not only the comprehensive and rigorous treatment of the subject of investments and security analysis but also the way in which he cradles it in its philosophy, history and core theory. I strongly recommend this text for those serious enough to seek an advanced study of the field.” Andrew Karolyi, OhioStateUniversity “Poitras's new investments textbook is a tour de force. Unlike most investments texts it breaks new ground in putting 'modern' finance into perspective and linking what we as academics think we know with the views on the street. In this it develops those most elusive commodities: wisdom and judgment.” Lawrence Booth, Rotman School of Managment, University of TorontoTable of ContentsDetailed Contents. List of Figures. List of Tables. Notes for Instructors. Preface. Acknowledgments.. Part 1. Philosophy, History and Core Theory. The Philosophy of Investment. The History of Security Analysis. Theoretical Developments in Modern Finance.. Part 2. Fixed Income Valuation. Basics of Fixed Income Valuation. Convexity, Time Value and Immunization. Bonds with Embedded Options.. Part 3. Equity Valuation and Investment Strategy. Fundamental Analysis and Value Investing. Valuation Techniques for Equity Securities. Technical Analysis Demystified. Investment Strategy. References. Index.

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Book SynopsisRalph Birchmeier argues that an optimal portfolio-building strategy means patiently waiting for the few investments worthy of capital allocation. He outlines the principles required for success then examines specific reasons to pass on investments, detailing behavioral biases that disrupt optimal decision making.Trade ReviewRalph Birchmeier covers extensive territory, expanding on Graham’s fundamental principles as well as Warren Buffett and Charlie Munger's ideals to offer new perspectives on investing wisely. Readers will greatly benefit from his insights on accounting and valuation. -- Jean-Marie Eveillard, trustee emeritus, First Eagle FundsWhile most investment books tell you what to look for in an investment, more importantly, Reasons to Pass tells you what to avoid. Ralph Birchmeier has distilled his decades of hands-on experience into a book that offers a comprehensive and entertaining introduction to core investing principles for the aspiring investor. -- Paul D. Sonkin, coauthor of The Enduring Value of Roger Murray and Pitch the Perfect InvestmentRalph Birchmeier presents a unique and comprehensive survey of investment opportunities in global equity capital markets, elegantly demonstrating why good investments are hard to find. -- Joel Lusman, Lusman Capital ManagementTable of ContentsPart I. Principles and MoreIntroduction1. Reasons to Pass: Investment Principles2. Main Street Versus Wall Street: A Rigged Market?3. Fundamental Analysis in the Digital Age4. Indexing: A Viable OptionPart II. Reasons to PassIntroduction5. Minimum Market Capitalization6. Financial Leverage: The Ultimate Killer7. High–Fixed Cost Businesses8. Accounting9. Regulatory Uncertainty10. Corporate Governance11. Asset Liability Mismatch12. Deep Cyclical Companies Near Cycle Peak13. High-Cost Commodity Businesses14. Cash Flow and Earnings Disconnect15. Structurally Declining Businesses16. Obsolescence Risk17. Valuation: A Critical Protector of Capital and Returns18. Lollapalooza EffectPart III. Reasons to BuyIntroduction19. Screening20. Growth Stocks21. Core Characteristics of Successful Investors22. Viable, and Buyable, Investment Opportunities23. Selling DisciplineConclusionIndex

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Book SynopsisThe derivative practitioner's expert guide to IFRS 9 application Accounting for Derivatives explains the likely accounting implications of a proposed transaction on derivatives strategy, in alignment with the IFRS 9 standards. Written by a Big Four advisor, this book shares the author's insights from working with companies to minimise the earnings volatility impact of hedging with derivatives. This second edition includes new chapters on hedging inflation risk and stock options, with new cases on special hedging situations including hedging components of commodity risk. This new edition also covers the accounting treatment of special derivatives situations, such as raising financing through commodity-linked loans, derivatives on own shares and convertible bonds. Cases are used extensively throughout the book, simulating a specific hedging strategy from its inception to maturity following a common pattern. Coverage includes instruments such as forwards, swaps, crTable of ContentsPreface xxi Chapter 1 The Theoretical Framework – Recognition of Financial Instruments 1 1.1 Accounting Categories for Financial Assets 2 1.2 The Amortised Cost Calculation: Effective Interest Rate 11 1.3 Examples of Accounting for Fixed Rate Bonds 14 1.4 Accounting Categories For Financial Liabilities 16 1.5 The Fair Value Option 19 1.6 Hybrid And Compound Contracts 19 Chapter 2 The Theoretical Framework – Hedge Accounting 23 2.1 Hedge Accounting – Types of Hedges 23 2.2 Types of Hedges 25 2.3 Hedged Item Candidates 30 2.4 Hedging Instrument Candidates 36 2.5 Hedging Relationship Documentation 37 2.6 Hedge Effectiveness Assessment 39 2.7 The Hypothetical Derivative Simplification 48 2.8 Rebalancing 49 2.9 Discontinuation of Hedge Accounting 53 2.10 Options And Hedge Accounting 57 2.11 Forwards and Hedge Accounting 70 Chapter 3 Fair Valuation – Credit and Debit Valuation Adjustments 71 3.1 Fair Valuation – Overview of Ifrs 13 71 3.2 Case Study – Credit Valuation Adjustment of an Interest Rate Swap 80 3.3 Overnight Index Swap Discounting 95 Chapter 4 An Introduction to Derivative Instruments 97 4.1 FX Forwards 97 4.2 Interest Rate Swaps 99 4.3 Cross-Currency Swaps 102 4.4 Standard (Vanilla) Options 105 4.5 Exotic Options 118 4.6 Barrier Options 119 4.7 Range Accruals 121 Chapter 5 Hedging Foreign Exchange Risk 123 5.1 Types of Foreign Exchange Exposure 123 5.2 Introductory Definitions 124 5.3 Summary of Ias 21 Translation Rates 125 5.4 Foreign Currency Transactions 126 5.5 Case Study: Hedging A Forecast Sale and Subsequent Receivable with an Fx Forward (Forward Element Included in Hedging Relationship) 128 5.6 Case Study: Hedging a Forecast Sale with an Fx Forward 141 5.7 Case Study: Hedging a Forecast Sale and Subsequent Receivable with a Tunnel 163 5.8 Case Study: Hedging A Forecast Sale and Subsequent Receivable with a Participating Forward 180 5.9 Case Study: Hedging a Highly Expected Foreign Sale with a Knock-In Forward (Introduction) 222 5.10 Case Study: Hedging a Forecast Sale And Subsequent Receivable with a Knock-In Forward (Splitting Alternative) 226 5.11 Case Study: Hedging A Forecast Sale and Subsequent Receivable with a Knock-In Forward (Instrument In Its Entirety) 238 5.12 Case Study: Hedging A Forecast Sale and Subsequent Receivable with a Knock-In Forward (Rebalancing Approach) 246 5.13 Case Study: Hedging A Highly Expected Foreign Sale with a Kiko Forward 257 5.14 Case Study: Hedging A Forecast Sale and Subsequent Receivable with a Range Accrual (Part 1) 270 5.15 Case Study: Hedging A Forecast Sale and Subsequent Receivable with a Range Accrual (Designation In Its Entirety) 272 5.16 Case Study: Hedging Forecast Sale and Subsequent Receivable with a Range Accrual (Splitting Approach) 282 5.17 Hedging On A Group Basis – The Treasury Centre Challenge 287 5.18 Hedging Forecast Intragroup Transactions 292 Chapter 6 Hedging Foreign Subsidiaries 295 6.1 Stand-Alone Versus Consolidated Financial Statements 297 6.2 The Translation Process 298 6.3 The Translation Differences Account 300 6.4 Special Items That Are Part of a Net Investment 301 6.5 Effect Of Minority Interests on Translation Differences 303 6.6 Hedging Net Investments In Foreign Operations 303 6.7 Case Study: Accounting for Net Investments In Foreign Operations 304 6.8 Case Study: Net Investment Hedge with a Forward 311 6.9 Case Study: Net Investment Hedge Using Foreign Currency Debt 322 6.10 Net Investment Hedging With Cross-Currency Swaps 328 6.11 Case Study: Net Investment Hedge with a Floating-To-Floating Cross-Currency Swap 329 6.12 Case Study: Net Investment Hedge with a Fixed-To-Fixed Cross-Currency Swap 336 6.13 Case Study: Hedging Intragroup Foreign Dividends 344 6.14 Case Study: Hedging Foreign Subsidiary Earnings 353 6.15 Case Study: Integral Hedging of an Investment in a Foreign Operation 364 Chapter 7 Hedging Interest Rate Risk 371 7.1 Common Interest Rate Hedging Strategies 371 7.2 Separation Of Embedded Derivatives in Structured Debt Instruments 373 7.3 Interest Accruals 375 7.4 Most Common Interest Rate Derivative Instruments 376 7.5 Case Study: Hedging a Floating Rate Liability With an Interest Rate Swap 376 7.6 Case Study: Hedging A Floating Rate Liability With a Zero-Cost Collar 385 7.7 Implications of Interest Accruals and Credit Spreads 397 7.8 Case Study: Hedging a Fixed Rate Liability With an Interest Rate Swap 401 7.9 Case Study: Hedging A Future Fixed Rate Issuance with an Interest Rate Swap 416 7.10 Case Study: Hedging A Future Floating Rate Issuance with an Interest Rate Swap 426 7.11 Case Study: Hedging A Fixed Rate Liability with a Swap In Arrears 436 7.12 Case Study: Hedging A Floating Rate Liability with a Kiko Collar 448 Chapter 8 Hedging Foreign Currency Liabilities 469 8.1 Case Study: Hedging a Floating Rate Foreign Currency Liability with a Receive-Floating Pay-Floating Cross-Currency Swap 469 8.2 Case Study: Hedging a Fixed Rate Foreign Currency Liability with a Receive-Fixed Pay-Floating Cross-Currency Swap 493 8.3 Case Study: Hedging A Floating Rate Foreign Currency Liability with a Receive-Floating Pay-Fixed Cross-Currency Swap 515 8.4 Case Study: Hedging A Fixed Rate Foreign Currency Liability with a Receive-Fixed Pay-Fixed Cross-Currency Swap 538 Chapter 9 Hedging Equity Risk 563 9.1 Recognition of Equity Investments In Other Companies 563 9.2 Debt Versus Equity Classification of Own Instruments 565 9.3 Hybrid Securities – Preference Shares From an Issuer’s Perspective 567 9.4 Convertible Bonds – Issuer’s Perspective 569 9.5 Convertible Bonds – Investor’s Perspective 572 9.6 Derivatives on Own Equity Instruments 572 9.7 Case Study: Accounting For A Stock Lending Transaction 573 9.8 Case Study: Accounting for a Mandatory Convertible Bond from an Issuer’s Perspective 578 9.9 Case Study: Accounting for a Convertible Bond from an Issuer’s Perspective 583 9.10 Case Study: Hedging Step-Up Callable Perpetual Preference Shares 590 9.11 Case Study: Base Instruments Linked To Debt Instruments 596 9.12 Case Study: Parking Shares Through a Total Return Swap 596 9.13 Case Study: Hedging an Equity Investment with a Put Option 601 9.14 Case Study: Selling A Forward on Own Shares 610 Chapter 10 Hedging Stock-Based Compensation Plans 617 10.1 Types And Terminology of Stock-Based Compensation Plans 617 10.2 Accounting for Equity-Based Compensation Plans 619 10.3 Case Study: ABC’s Share-Based Plans 624 10.4 Main SOP/SAR Hedging Strategies 632 10.5 Case Study: Hedging a Stock Option Plan with an Equity Swap 641 10.6 Case Study: Hedging an SAR Plan with a Call 647 Chapter 11 Hedging Commodity Risk 655 11.1 Main Commodity Underlyings 655 11.2 Lease, Derivative and Own-Use Contracts 655 11.3 Categorisation According to Settlement Terms 658 11.4 Case Study: Hedging Gold Production with a Forward – Own-Use Application 659 11.5 Case Study: Raising Financing Through a Gold Loan 662 11.6 Case Study: Hedging a Silver Purchase Firm Commitment with a Forward – Fair Value Hedge 664 11.7 Case Study: Hedging Commodity Inventory with Futures 672 11.8 Case Study: Hedging a Highly Expected Purchase Of Oil With Futures and an FX Forward – Cash Flow Hedge 680 11.9 Case Study: Airline Jet Fuel Consumption Hedge With Jet Fuel and Crude Oil – Risk Component 691 Chapter 12 Hedging Inflation Risk 709 12.1 Inflation Markets – Main Participants and Indices 709 12.2 Inflation-Linked Bonds 714 12.3 Inflation Derivatives 716 12.4 Inflation Risk Under IFRS 9 725 12.5 Case Study: Hedging Revenues Linked To Inflation 727 12.6 Matching An Inflation-Linked Asset with a Floating Rate Liability 738 Chapter 13 Hedge Accounting: A Double-Edged Sword 741 13.1 Positive Influence on The Profit or Loss Statement 742 13.2 Substantial Operational Resources 743 13.3 Limited Access to Hedging Alternatives 744 13.4 Risk of Reassessment of Highly Probable Transactions 744 13.5 Low Compatibility With Portfolio Hedging 745 13.6 Final Remarks 746 Index 749

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Book SynopsisThe foreign exchange market is the largest and most liquid financial market in the world. In recent years its volatility has been especially pronounced, which has posed problems for investors, companies and governments attempting to manage their economies. The management of exchange rates has become integral to economic performance and to the political landscape. 'Foreign Exchange, The Complete Deal', part of Harriman House's Applied Essentials series, is a comprehensive guide to this broad and exciting market, and how it is traded. James Sharpe, a foreign exchange practitioner with more than 30 years' experience, unravels the important features of the Forex market to give a clear understanding of the issues and processes involved in foreign exchange transactions. This book begins with an exploration of the historical and theoretical background to the markets as they exist today. The transition from a fixed exchange rate system to a floating system is examined and insight is given on the processes that determine exchange rates and how the system employed impacts government policy.There is also a detailed section about the influence interventions by central banks have on the market.The focus then moves to foreign exchange in practice, the core of the book. Topics covered include: - The range of foreign exchange transactions available - including spot, forward, broken date, non-deliverable forwards (NDFs), swaps and options - and how they can be used, with clear worked examples - How foreign exchange prices are quoted; bid-offer spreads; pips - How foreign exposures are hedged - How banks and dealers cover their exposure in the market and make profits - A discussion of tools that are used to analyse the market, including technical analysis - Factors that influence foreign exchange prices on a daily basis including a detailed look at liquidity - How professional traders analyse markets and provide a blueprint for professional trading - How best to choose and manage the relationship with foreign exchange providers This is an indispensable guide for those who need to understand more about the commercial realities of currency trading and hedging, providing a clear and thorough explanation of the complete world of foreign exchange.Table of ContentsPreface 1. Exchange Rate Systems: From Fixed to Floating, and Chaos - Fixed exchange rates - Floating exchange rates - Conclusion - Foreign exchange and the UK - 1960 to the 2000s 2. Central Banks and Foreign Exchange Intervention - What is foreign exchange intervention? - Intervention and monetary policy - The efficacy of intervention - Conclusion 3. The Basics of Foreign Exchange - A definition of foreign exchange - The foreign exchange market 4. The Theory of Foreign Exchange: How Exchange Rates are Determined - Exchange rates and supply and demand - The effect of exchange rates on an economy - Interest rate parity (IRP) - Purchasing power parity (PPP) - Currencies overshooting their expected levels - Rudiger Dornbusch 5. Foreign Exchange in Practice - Price quotations - How dealers cover their exposure - Orders - How to calculate trading profits and losses - Recording a trade - Rules when making foreign exchange transactions 6. Types of Foreign Exchange Transactions 1. Spot 2. Forward outright 3. Broken date contracts 4. Non-deliverable forward (NDF) 5. Swap 6. Forward/forwards 7. Algorithmic trading 8. Options 7. Predicting the Future: Technical Analysis and FX Forecasting - Technical analysis and the foreign exchange markets - Forecasting the foreign exchange markets 8. Psychology and Foreign Exchange - Group behaviour - Overconfidence - Overreaction - Attitude to risk - Attitude to rules 9. Influences on Foreign Exchange Markets - Economic data - Impact of central bank intervention - Breach of technical levels - Seasonal price analysis - Dramatic events - Market intelligence 10. A Blueprint for Trading - Before, during and after the trade - Managing losses - Investment vs. Speculation 11. Liquidity - Assessing liquidity - When liquidity disappears - The carry trade and Torschlusspanik (door shut panic) 12. Hedging Currency Exposure - Overview of hedging - Sources of exposure - The hedging process - Impact of hedging - Currency overlay - Conclusion 13. The Management of Dealing - Risks - Dealing limits at banks - Monitoring forward foreign exchange exposure 14. Dealing with Banks and Financial Institutions - The provider should be financially strong - The provider should be operationally strong - Check the bank can supply the product and service you require - Dealing mandate - Foreign exchange limits - Understanding what is on offer - Agreements - Banks dealing with customers Afterword Appendices Appendix 1. Foreign exchange solutions in brief Appendix 2. A simple guide to technical analysis Glossary Bibliography Index

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Book SynopsisA news-breaking account of the global stock market's subterranean battles, Dark Pools portrays the rise of the bots--artificially intelligent systems that execute trades in milliseconds and use the cover of darkness to out-maneuver the humans who've created them.In the beginning was Josh Levine, an idealistic programming genius who dreamed of wresting control of the market from the big exchanges that, again and again, gave the giant institutions an advantage over the little guy. Levine created a computerized trading hub named Island where small traders swapped stocks, and over time his invention morphed into a global electronic stock market that sent trillions in capital through a vast jungle of fiber-optic cables.  By then, the market that Levine had sought to fix had turned upside down, birthing secretive exchanges called dark pools and a new species of trading machines that could think, and that seemed, ominously, to be slipping the control of their human

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Book SynopsisThis book provides a thorough introduction to the business and valuation of biotechnology stocks for investors. It offers a brief history of the biotechnology industry and the investment waves and dips over the last 30 years of the industry. It examines both the U.S.Table of ContentsAcknowledgements xi 1 Introduction 1 Biotechnology Background 5 2 Traditional Valuation Methods 11 The Value of a Company 11 Accounts – Providing the Data for Valuation Analysis 12 The Income Statement 13 Balance Sheet 17 Cash Flow Statement 20 Income Statement Multiples 22 Balance Sheet Multiples 26 Summary 27 Discounted Cash Flow Analysis 27 Net Present Value 27 Constructing the DCF 28 Projecting the Cash Flow Stream 29 Choosing a Discount Rate 30 Other Thoughts 37 3 The Drug Development Process 39 The Drug Development Process 40 Drug Discovery and Research 44 Pre-Clinical Development 44 Clinical Trials 48 What Investors Should Look For When Analysing Clinical Trials 56 Conclusion 59 The Regulatory Process 59 Regulation in the US 60 Regulation in Europe 63 The Label 64 Timelines for Approval 65 Post Approval 65 Investment Lessons 66 Case Study # 1 66 4 Biotechnology Company Valuation 69 Data Collation 71 NPV of the Pipeline 75 Calculations 80 Sensitivity Analyses 86 DCF of Whole Company 92 EBIT DCF of Products 97 Comparables Valuation 99 NPVs are Additive 101 Using all the Tools Available to Reach a Valuation Conclusion 101 Market Models 104 Conclusion 105 Appendix 1 106 Example 1 106 Example 2 108 Example 3 108 Appendix 2 116 Biosimilar Update 116 5 Decision Trees and Real Options 119 Decision Trees 120 Discount Rate 124 Deriving Scenarios 125 Conclusion 125 Decision Tree Example 126 Real Options 126 Valuing Options 129 Estimation of the Input Variables 138 Conclusions 139 6 Biotechnology Investing 141 Types of Healthcare Investment 141 Biotechnology Sector Evolution 143 Biotechnology Investment Cycles 145 Biotechnology Business Models 152 Focus on People 154 Cash 155 Product Pipeline 155 Commercial Risks 156 Newsflow 158 Lessons from Biotech Investing 160 7 Early-stage Valuation 161 Private Valuation 162 Discounted Cash Flow Method 166 Comparable Valuation 168 Venture Capital Method 170 Discount Rates 173 Conclusion 173 Glossary 175 References 189 Index 193

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Book SynopsisA market master details his proven and profitable approach to trading High Probability Trading Strategies teaches traders step by step a unique and practical approach to analyzing market behavior, identifying profitable trade setups, and executing and managing trades from entry to exit in a way that both preserves and grows one's capital.Trade Review'...teaches in a practical step-by-step manner...skilfully outlines every aspect of a practical trading plan .' (Traders, November 2010).Table of ContentsForeword ix Preface xi PART ONE High Probability Trading Strategies for Any Market and Any Time Frame 1 CHAPTER 1 High Probability Trade Strategies for Any Market and Any Time Frame 3 Any Market, Any Time Frame 4 Conditions with a High Probability Outcome 4 Leading and Lagging Indicators 5 What You Will Learn in This Book and CD 6 Let’s Get Started 8 CHAPTER 2 Multiple Time Frame Momentum Strategy 9 What Is Momentum? 11 Multiple Time Frame Momentum Strategies 12 The Basic Dual Time Frame Momentum Strategy 12 Momentum Reversals 14 Most Price Indicators Represent Rate-of-Change 15 Momentum and Price Trends Often Diverge 16 How Dual Time Frame Momentum Strategies Work 19 Which Indicators to Use for Multiple Time Frame Momentum Strategies 31 What Are the Best Indicator Settings to Use? 36 Dual Time Frame Momentum Strategy Rules 43 Dual Time Frame Momentum Strategy Trade Filter 46 CHAPTER 3 Practical Pattern Recognition for Trends and Corrections 49 Why Is It Important to Identify a Trend or Correction? 50 Simple Pattern Recognition Based On Elliott Wave 52 Trend or Correction: The Overlap Guideline 52 ABC and Away We Go 58 Complex Corrections 64 Overlap Is the Key to Identify a Correction 66 Trends and Five-Wave Patterns 67 Greater in Time and Price 75 Fifth Waves Are the Key 77 Momentum and Pattern Position 79 Momentum and Pattern Not Enough 82 CHAPTER 4 Beyond Fib Retracements 83 Internal Retracements and Corrections 84 Alternate Price Projections Qualify Internal Retracements 89 More Alternate Price Projections 92 External Retracements Help Identify the Final Section of a Trend or Correction 96 Pattern Price Targets 99 Price, Pattern, and Momentum 106 No Excuse 108 CHAPTER 5 Beyond Traditional Cycles 111 Time Retracements and Corrections 112 Alternate Time Projections Narrow the Time Retracement Range 114 More Time Factors 117 The Time Target Zone 118 Time Bands 128 More Time Factors 135 Conclusion 137 CHAPTER 6 Entry Strategies and Position Size 139 Entry Strategy 1: Trailing One-Bar Entry and Stop 140 Entry Strategy 2: Swing Entry and Stop 150 Position Size 158 Conclusion 162 CHAPTER 7 Exit Strategies and Trade Management 163 Multiple-Unit Trading 164 Risk/Reward Ratios 165 Exit Strategies 166 Trade Management 168 Trade Only the High Probability, Optimum Setups 197 PART TWO Trading the Plan 199 CHAPTER 8 Real Traders, Real Time 201 Adam Sowinski (Slorzewo, Poland) 202 Jagir Singh (London, United Kingdom) 206 Cees Van Hasselt (Breda, The Netherlands) 214 Kerry Szymanski (Tucson, Arizona) 218 Derrik Hobbs (Warsaw, Indiana) 222 Carolyn Boroden (Scottsdale, Arizona) 227 Jaime Johnson (Encinitas, California, and Bogata, Columbia) 231 Chapter Summary 234 CHAPTER 9 The Business of Trading and Other Matters 237 Routines and Trading Records 237 Why Traders Win or Lose 239 Technology, Trading Time Frames, Markets to Trade, and Leverage 242 Trade for Points, Not for Ticks 244 You Can’t Buy Success 244 You CAN Be a Successful Trader 245 More Bar-by-Bar Entry to Exit Trade Examples 247 Glossary 249 Bibliography 261 About the Author 263 Index 265

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Book Synopsis2008 American Publishers Awards for Professional and Scholarly Excellence (The PROSE Awards) Finalist/Honorable mention, Business, Finance & Management. The Fundamental Index examines a new approach to indexing that can overcome the structural return drag created by traditional capitalization-based indexing strategies, and in so doing, enhance the performance of your portfolio. Throughout this book, Robert Arnott and his colleagues outline this breakthrough strategy and explain how it can be used to improve investment returns, typically at lower risk and lower cost than most conventional investments.Trade Review2008 American Publishers Awards for Professional and Scholarly Excellence (The PROSE Awards) Finalist/Honorable mention, Business, Finance & Management. In The Fundamental Index, the leading industry thinker, Rob Arnott and his colleagues, present a new indexing method that captures more return for equity investors. In this important new book, the authors explain how passive, market-capitalization-weighted index investing falls short and fails to serve investors by investing too much in overpriced stocks and too little in underpriced shares. In short, Arnott et al.’s innovative and straightforward strategy provides investors with a new tool for achieving excess returns in a projected low-return environment while preserving the many positive attributes of index fund investing.- Financial Markets and Portfolio Management "Rob Arnott and his colleagues have, in The Fundamental Index, produced one of the most controversial books in years in the investment world…Investment professionals would be very well advised to read it."- Financial Times "...one of the most controversial books in years...Investment professionals would be very well advised to read it." (Financial Times, September 15, 2008)Table of ContentsForeword. Preface. Chapter 1. Efficient Indexing for an Inefficient Market. Evidence of Market Efficiency. The Case for Indexing. Evidence of Market Inefficiency. Conclusion. Chapter 2. Origins of the Fundamental Index Concept. The Origins of Research Affiliates Fundamental Index (RAFI). A Series of Aha! Moments Research Affiliates Fundamental Index. Fundamental Index Performance. Concluding Thoughts: A Better Way to Invest. Chapter 3. Investors Greatest Errors. Negative Alpha. Practicing What We Preach. Conclusion. Chapter 4. The Virtues of Index Funds. The Appeal of Equity Investing. Equity Investing Choices. The One Guarantee in Investments—Costs Matter. Index Fund Advantages. Avoiding the Performance Game. Concluding Point. Chapter 5. The Index Fund's Achilles Heel. Market Efficiency: Two Interpretations. Constructing a Well-Functioning Index. The Achilles Heel of Cap-Weighting. The Problems with Equal Weighting. Concluding Thoughts. Chapter 6. A Fundamental(ly) Better Index. Building the Fundamental Index. Adjustments for non-dividend-paying companies. Why Multiple Measures of Company Size? Advantages of a Composite Measure. An Index of the Broad Economy. Capacity and Liquidity. Reconstituting the Fundamental Index: Keeping Turnover Low. Concluding Comments. Chapter 7. Fundamental Index Performance in U.S. Stocks. RAFI US Large Company Performance. Digging Deeper across Market Cycles. Digging Deeper into Different Time Periods. An Equal Comparison: Fundamental Index vs. Equal Weighting. Out-of-Sample Results: Small Companies. Using the Fundamental Index with Style: Growth and Value Applications. Narrowing the Focus: NASDAQ. Narrowing the Focus: REITs. Narrowing the Focus: Sector Performance. Extending the Analysis Back in Time. Conclusion. Chapter 8. Beyond Borders: Fundamental Index Performance in Global Markets. Fundamental Index Performance in Global Markets. Multicountry Portfolios. Emerging Markets. Consistency Counts. Concluding Comments: Lessons Learned From the Global Markets. Chapter 9. Has Theory Led the Profession Astray? Will the Real Active Strategy Please Step Forward? The Origins of Cap Weighting. Apparent Validation of Cap Weighting by Theory. Forty Years Later: Empirical Results of the CAPM. Ockham's Razor Applied. Concluding Comments: Theory and the Profession. Chapter10. The Basic Criticism: Our Style and Size Tilt. Merely a Value Tilt. Small-Cap Bias. Fama and French Factors. Some Big Surprises in Small Companies. Conclusion. Chapter 11. Other Common Critiques: Hits and Misses. Mining the Data? Costs. Is It an Index? Do We Know Which Stocks Are Overvalued? How Long Can It Last? Conclusion. Chapter 12. Why Trust the Fundamental Index Concept? Stock Logic. The Present vs. the Future: How Often Is Wall Street Right? Why Does Wall Street Get It Wrong? Dynamic Style and Size Exposures: When Do We Want Value and Small Cap? Show Me the Numbers. Fundamental Index Strategy vs. the Crystal Ball. Does the Fundamental Index Concept work in Bonds? Conclusion. Chapter 13. The Future for the Fundamental Index: Secular Market Considerations. What Can We (Rationally) Expect from Our Investments? Forecasting Bond Returns. Forecasting Stock Returns. The Fundamental Index Strategy in a Low-Return Environment. The Outlook for Pricing Errors. Could Pricing Errors Actually Increase? Conclusion. Chapter 14. Using the Fundamental Index. Asset Allocation and the Fundamental Index Strategy. Should We Change Our Benchmark? Diversifying the Passive Allocation. Different Markets, Different Investors, Different Needs. Conclusion. Appendix. Notes. References. Index.

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Book SynopsisDerivatives are everywhere in the modern world and it is important for everyone in banking, investment and finance to have a good understanding of the subject. Derivatives Demystified provides a step-by-step guide to the subject, enabling the reader to have a solid, working understanding of key derivative products.Table of ContentsAcknowledgements xix 1 The Origins and Growth of the Market 1 Definitions 1 Derivatives Building Blocks 1 Market Participants 3 Supporting Organizations 4 Early Origins of Derivatives 5 Derivatives in the USA 6 Overseas Developments, Innovation and Expansion 7 An Example of Recent Innovation: Weather Derivatives 7 Temperature-Linked Derivatives 8 The Wild Beast of Finance? 9 Lessons from Recent History 10 Creative Destruction and Contagion Effects 13 The Modern OTC Derivatives Market 13 The Exchange-Traded Derivatives Market 15 Chapter Summary 15 2 Equity and Currency Forwards 17 Introduction 17 Equity Forward Contract 17 The Forward Price 18 The Forward Price and Arbitrage Opportunities 19 The Forward Price and the Expected Payout 20 Foreign Exchange Forwards 21 Managing Currency Risk 22 Hedging with an Outright Forward FX Deal 23 The Forward Foreign Exchange Rate 24 The Forward FX Rate and Arbitrage Opportunities 25 Forward Points 26 FX Swaps 27 Applications of FX Swaps 28 Chapter Summary 28 3 Forward Rate Agreements 31 Introduction 31 FRA Case Study: Corporate Borrower 31 Results of the FRA Hedge 33 The FRA as Two Payment Legs 34 Dealing in FRAs 36 Forward Interest Rates 37 Chapter Summary 37 4 Commodity and Bond Futures 39 Introduction 39 The Margining System and the Clearing House 39 Users of Futures Contracts 40 Commodity Futures 41 Futures Prices and the Basis 42 US Treasury Bond Futures 43 US Treasury Bond Futures: Delivery Procedures 44 Gilt Futures 45 The Cheapest-To-Deliver (CTD) Bond 45 Chapter Summary 46 5 Interest Rate and Equity Futures 47 Introduction 47 Eurodollar Futures 47 Trading Eurodollar Futures 48 Hedging with Interest Rate Futures 50 Interest Rate Futures Prices 50 Equity Index Futures 52 Applications of S&P 500 Index Futures 53 FT-SE 100 Index Futures Contracts 54 Establishing Net Profits and Losses 55 Single Stock Futures (SSFs) 56 Chapter Summary 57 6 Interest Rate Swaps 59 Introduction 59 Interest Rate Swap Structure 59 Basic Single-Currency Interest Rate Swap 60 The Swap as a Package of Spot and Forward Deals 61 Rationale for the Swap Deal 62 Swap Terminology and Swap Spreads 62 Typical Swap Applications 63 Interest Rate Swap Variants 64 Cross-Currency Interest Rate Swaps 65 Net Borrowing Costs Using a Cross-Currency Swap 66 Inflation Swaps 67 Chapter Summary 68 7 Equity and Credit Default Swaps 69 Introduction to Equity Swaps 69 Equity Swap Case Study 69 Other Applications of Equity Swaps 71 Equity Index Swaps 73 Hedging an Equity Index Swap 74 Credit Default Swaps 75 Credit Default Swap: Basic Structure 76 Credit Default Swap Applications 77 Credit Spreads 78 The CDS Premium and the Credit Spread 78 Pricing Models for CDS Premium 80 Index Credit Default Swaps 80 Basket Credit Default Swaps 81 Chapter Summary 82 8 Fundamentals of Options 83 Introduction 83 Definitions 83 Types of Options 83 Basic Option Trading Strategies 84 Long Call: Expiry Payoff Profile 85 Short Call: Expiry Payoff Profile 87 Long Put: Expiry Payoff Profile 88 Short Put: Expiry Payoff Profile 90 Summary: Intrinsic and Time Value 90 9 Hedging with Options 93 Chapter Overview 93 Futures Hedge Revisited 93 Protective Put 93 Hedging with ATM Put Option 96 Covered Call Writing 97 Equity Collar 98 Zero-Cost Equity Collar 99 Protective PUT with a Barrier Option 100 Behaviour of Barrier Options 101 Chapter Summary 102 10 Exchange-Traded Equity Options 103 Introduction 103 Basic Concepts 103 CBOE Stock Options 104 UK Stock Options on NYSE Liffe 106 CME S&P 500 Index Options 107 FT-SE 100 Index Options 109 Chapter Summary 109 11 Currency or FX Options 111 Introduction 111 Users of Currency Options 111 Hedging FX Exposures with Options: Case Study 112 Graph of Hedged and Unhedged Positions 113 Hedging with a Zero-Cost Collar 114 Reducing Premium on FX Hedges 115 Compound Options 116 Exchange-Traded Currency Options 117 Chapter Summary 118 12 Interest Rate Options 119 Introduction 119 OTC Interest Rate Options 119 OTC Interest Rate Option Case Study 120 Hedging a Loan with a Caplet 121 Interest Rate Cap 123 Interest Rate Collar 123 Interest Rate Swap and Swaption 124 Summary of Interest Rate Hedging Strategies 125 Eurodollar Options 126 Euro and Sterling Interest Rate Options 127 Bond Options 127 Exchange-Traded Bond Options 128 Chapter Summary 130 13 Option Valuation Concepts (1) 131 Introduction 131 The Concept of a Riskless Hedge 132 A Simple Option Pricing Model 132 Option Fair Value 134 Extending the Binomial Model 134 Cost of Dynamic Hedging 135 The Black-Scholes Option Pricing Model 136 Historical Volatility 137 Measuring and Using Historical Volatility 139 Chapter Summary 140 14 Option Valuation Concepts (2) 141 Introduction 141 Problems with Historical Volatility 141 Implied Volatility 142 Black-Scholes Model Assumptions 143 Value of a Call Option 143 Value of a Put Option 144 Equity Index and Currency Options 145 Pricing Interest Rate Options 146 Chapter Summary 148 15 Option Sensitivities: The ‘Greeks’ 149 Introduction 149 Delta (Δ or δ) 149 Delta Behaviour 150 Delta as the Hedge Ratio 151 The Effects of Changes in Delta 152 Readjusting the Delta Hedge 153 Gamma (Γ or γ) 153 Gamma and the Spot Price of the Underlying 154 Gamma and Time to Expiry 155 Theta (Θ) 156 Vega or Kappa (κ) 157 Rho (ρ) 158 Summary of Greeks 159 Chapter Summary 160 16 Option Trading Strategies (1) 161 Introduction 161 Bull Spread 161 Bull Position with Digital Options 162 Spot Price and Con Value 163 Bear Spread 164 The Greeks for the Bear Spread 165 Put or Bear Ratio Spread 166 Long Straddle 167 Long Straddle Current Payoff Profile 168 Potential Risks with a Long Straddle 169 Chapter Summary 170 17 Option Trading Strategies (2) 171 Introduction 171 Chooser Option 171 Short Straddle 172 Short Straddle Current Payoff Profile 172 Potential Profits with a Short Straddle 175 Managing the Risk on a Short Straddle 175 Short Strangle 177 New Ways of Trading Volatility 177 Calendar or Time Spread 178 Chapter Summary 179 18 Convertible and Exchangeable Bonds 181 Introduction 181 Investors in Convertible Bonds 181 Issuers of Convertible Bonds 182 CB Measures of Value 183 Conversion Premium and Parity 184 Other Factors Affecting CB Value 185 Convertible Arbitrage 186 Convertible Arbitrage Example 186 Profits and Risks with the CB Arbitrage Trade 187 Mandatorily Convertibles and Exchangeables 188 Structuring a Mandatorily Exchangeable (ME) Bond 189 Chapter Summary 190 19 Structured Securities 193 Introduction 193 Capital Protection Equity-Linked Notes 193 Expiry Value of 100% Capital Protection Notes 195 100% Participation Equity-Linked Notes 196 Capped Participation Equity-Linked Notes 197 Average Price Notes 199 Locking in Interim Gains: Cliquet Options 200 Securitization and CDOs 201 The Basic CDO Structure 202 Rationale for Securitization 203 Synthetic CDOs 203 Chapter Summary 205 20 Clearing, Settlement and Operational Risk 207 Introduction 207 Risk Management in General 207 Settlement of Exchange-Traded Derivatives 208 Major Clearing Houses 209 Confirmation and Settlement of OTC Deals 210 Controlling Counterparty Risk on OTC Derivatives 211 Operational Risk 211 Best Practice in Operational Risk Management 213 Chapter Summary 213 Appendix A: Financial Calculations 215 Appendix B: Exotic Options 235 Appendix C: Glossary of Terms 239 Index 255

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Book SynopsisTrading systems abound, yet many only work for a limited period of time. To get-and maintain-an edge on a regular basis, traders need effective money/risk management strategies. This practical resource provides risk management techniques that are not only accessible, but that will lead to consistent and regular profits.Table of ContentsWhy? What? Where? When? Who? How? Why (Proper) Money Management? Types of Money Management. Practical Facts. Fixed Fractional Trading. Fixed Ratio Trading. Rate of Decrease. Portfolios. Market Weighting. Market Weighting through Money Management, Not before It. Other Profit Protecting Measures. Risk of Ruin. The System. Optimization. Commodity Trading Advisors (CTAs) and Money Management. Money Management Marriage. Putting It All Together. Index.

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Book SynopsisTrading for a Living Successful trading is based on three Ma s: Mind, Method, and Money.Table of ContentsPartial table of contents: Trading--The Last Frontier. The Odds Against You. INDIVIDUAL PSYCHOLOGY. Fantasy Versus Reality. Self-Destructiveness. Trading Lessons from AA. Winners and Losers. MASS PSYCHOLOGY. What Is the Market?. The Market Crowd and You. Managing Versus Forecasting. CLASSICAL CHART ANALYSIS. Support and Resistance. Trendlines. Chart Patterns. COMPUTERIZED TECHNICAL ANALYSIS. Moving Averages. The Directional System. Williams %R. Relative Strength Index. THE NEGLECTED ESSENTIALS. Volume-Based Indicators. Herrick Payoff Index. STOCK MARKET INDICATORS. New High-New Low Index. PSYCHOLOGICAL INDICATORS. Consensus Indicators. NEW INDICATORS. Elder-Ray. TRADING SYSTEMS. Triple Screen Trading System. Channel Trading Systems. RISK MANAGEMENT. Money Management. Afterword. Sources. Index.

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Book SynopsisTrump Strategies for Real Estate offers unbeatable insider advice for every serious real estate investor--beginners and old pros alike. For more than twenty--five years, author George Ross has been one of Donald Trump's chief advisors and intimately involved with many of Trump's biggest real estate deals.Table of ContentsForeword By Donald Trump. Preface. Chapter 1. Sell yourself Like Trump: Five Personal Qualities You Need To Succeed in Real Estate. Chapter 2. Think Big: How Trump Chooses Properties to Invest In. Chapter 3. Principles of Negotiation: How Trump Uses Them. Chapter 4. High-Powered Real Estate Negotiation Techniques and Tactics. Chapter 5. The Trump Touch: Create "Sizzle," Glamour, and Prestige to Get Higher-Than-Market Prices for your Properties. Chapter 6. Raising Money: Tactics for Attracting Lenders and Investors. Chapter 7. Get Help From the Best real Estate Specialists You Can Find. Chapter 8. Why Trump Building Projects Are Always On Time and Under Budget. Chapter 9. Trump Marketing Strategies: Selling the "Sizzle" Sells the Product. Chapter 10. How to Manage Property Like Trump: Treat It As A Customer Service Business. Chapter 11. Holding Strategies and Exit Strategies. Index. About the Author.

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Book SynopsisPraise for Commodity Fundamentals Commodity Fundamentals is THE book for investors looking to enter the commodity markets. This informative guide is a welcome addition on the subject and is a must-read for commodity investors. -Jim Atkinson, President, Guinness Atkinson Funds Ronald Spurga''s Commodity Fundamentals is an illuminating and very useful guide for the subject. A welcome addition to any business library. -Robert F. Himmelberg, PhD, Dean, Fordham''s Graduate School of Business Administration A straightforward introduction crafted for the individual on the mechanics of commodity trading. The author efficiently negotiates the often confusing yet very topical commodity trading world for the individual. -Terence A. Mullervy, Finance Director, Glencore UK Ltd. Commodity Fundamentals provides you with the in-depth insights needed to make commodities trading a profitable, integral component of your overall tradingTable of ContentsPart One Should You Speculate? Chapter 1 Guidelines for Commodity Speculation 3 Chapter 2 The Speculator and the Commodity Exchanges 5 Chapter 3 The Mechanics of Trading 11 Part Two Techniques for Trading Physical Commodities Chapter 4 Technical Analysis 25 Chapter 5 The Risks of Speculation 29 Part Three Speculating in Metals Chapter 6 Gold 33 Chapter 7 Silver 41 Chapter 8 Platinum 47 Chapter 9 Copper 55 Chapter 10 Palladium 59 Part Four Speculating in Energy Chapter 11 Crude Oil 67 Chapter 12 Gasoline 73 Chapter 13 Heating Oil 77 Chapter 14 Natural Gas 81 Part Five Speculating in Tropical Commodities Chapter 15 Cocoa 91 Chapter 16 Coffee 99 Chapter 17 Sugar 107 Chapter 18 Cotton 113 Chapter 19 Orange Juice 121 Part Six Speculating in Agricultural Commodities and Meats Chapter 20 Grain 129 Chapter 21 Cattle 147 Chapter 22 Hogs 153 Chapter 23 A Word about Forecasting Supply and Demand in Meats 159 Part Seven Final Considerations Chapter 24 Commodity Funds 167 Chapter 25 Sources of Market Information 169 Glossary of Common Commodity Trading Terms 175 Index 181

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Book Synopsis“A riveting account that reaches beyond the market landscape to say something universal about risk and triumph, about hubris and failure.”—The New York TimesNAMED ONE OF THE BEST BOOKS OF THE YEAR BY BUSINESSWEEKIn this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein explains not just how the fund made and lost its money but also how the personalities of Long-Term’s partners, the arrogance of their mathematical certainties, and the culture of Wall Street itself contributed to both their rise and their fall. When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Stree

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Book SynopsisA step--by--step, real world guide to the use of Value at Risk (VaR) models, this text applies the VaR approach to the measurement of market risk, credit risk and operational risk. The book describes and critiques proprietary models, illustrating them with practical examples drawn from actual case studies.Trade Review"This book is a clear explanation of the science and art of the Value at Risk approach to risk measurement. There is no better explication of both the theory underlying the approach and its practical implementation. It is an invaluable tool to anyone involved in any type of risk management." Mark Zandi, Economy.comTable of ContentsList of Figures xiv List of Tables xvi Preface xviii List of Abbreviations xx 1 Introduction to Value at Risk (VaR) 1 2 Quantifying Volatility in VaR Models 21 3 Putting VaR to Work 82 4 Extending the VaR Approach to Non-tradable Loans 119 5 Extending the VaR Approach to Operational Risks 158 6 Applying VaR to Regulatory Models 200 7 VaR: Outstanding Research 233 Notes 236 References 257 Index 270

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Book SynopsisThe New Stock Market covers a wide range of issues including the practices of high-frequency traders, insider trading, manipulation, short selling, broker-dealer practices, and trading venue fees and rebates. The book illuminates both the existing regulatory structure of our equity trading markets and how we can improve it.Trade ReviewIn immensely readable fashion, The New Stock Market connects the fundamentals of market structure to new (and old) challenges: insider trading, market manipulation, high-frequency trading. A profoundly important look at how our stock markets have changed and the regulatory first principles necessary to keep them orderly and equitable as these changes continue. -- Donald Langevoort, Georgetown UniversityThe New Stock Market is a truly impressive achievement. It deserves an audience not only among scholars to whom its intellectual framework is already familiar but also among practitioners. Analysts, portfolio managers, risk managers, and C-suite executives who read this book will afterward stand on much firmer ground when opining on prospective securities legislation and regulation. -- Martin Fridson * Enterprising Investor *Integrating the perspectives of information economics and the law for understanding markets for trading equity, this book will be of considerable interest to students of markets and the law, as well as securities lawyers, investment bankers, analysts, economists, and regulators. -- Chester Spatt, Carnegie Mellon Tepper School of Business and MIT Golub Center for Finance and PolicyThe New Stock Market achieves a difficult balance: it is accessible yet sophisticated. The mysterious new terms of market microstructure—"high-frequency trader," "dark pool," "maker-taker" rebates, and "internalization"—are all fluently explained, and this serves as a prelude to the authors' careful weighing of the policy choices. Few books in this area have been this lucid and this rigorous at the same time. -- John C. Coffee, Columbia UniversityEquity capital markets are going through unprecedented change: new technology, new players, new venues, and new trading strategies. How can regulators respond to these developments without impeding market efficiency? These are the issues that Fox, Glosten, and Rauterberg analyze in their outstanding book, providing vital—and novel—insights and recommendations that should be welcomed by both regulators and investors. Highly recommended. -- Edward F. Greene, Cleary Gottlieb Steen & HamiltonTable of ContentsAcknowledgmentsIntroductionPart 1: Foundations1. The Institutions and Regulation of Trading Markets2. The Social Function of Stock Markets3. The Economics of Trading MarketsPart 2: Trading Market Practices4. High Frequency TradingPart 3: Regulation of Traders5. The Economics of Informed Trading6. The Regulation of Informed Trading7. Manipulation8. Short SellingPart 4: Regulation of Broker-Dealers9. Broker-Dealers10. Dark Pools11. Maker-Taker Fees12. Payment for Order FlowConclusionNotesName IndexSubject Index

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Book SynopsisThe price-earnings ratio, or P/E, is the most commonly quoted investment statistic, but have you ever considered what it actually means? This book offers a practical guide to how you can adjust and improve the price-earnings ratio and use it, alongside other financial ratios, to run against the crowd and boost your stock returns.Table of ContentsAbout the Author Foreword by Werner De Bondt Preface Introduction Part I: The P/E Calculation 1. History of the P/E 2. Earnings 3. The Price-Earnings Ratio (P/E) 4. Practical Calculation of EPS and the P/E from Company Accounts Part II: The Value Premium and the P/E 5. Value Investing 6. Efficient Markets and the CAPM 7. Accepting Reality: The Fama and French 3-Factor Model 8. Value Investors Fight Back Part III: Improving the P/E 9. Developing the P/E 10. The PEG Ratio 11. The Long-Term P/E 12. Decomposing the P/E 13. A Cautionary Tale: the Naked P/E 14. Have we Rescued the P/E? Part IV: Beyond the P/E 15. Ben Graham: The P/E and the Margin of Safety 16. Joel Greenblatt: The P/E and Return on Capital 17. Joseph Piotroski: The P/E and the Fscore Conclusion Appendices FTSE 100 EPSs and P/Es Glossary References Index

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Book SynopsisIndex-tracking is a major part of the US mutual fund market - but can it last? In this forthright and compelling book, investment veteran Niels Jensen argues that the economic environment we are entering will be unsuited to index-tracking strategies due to six structural mega-trends that are set to disrupt investors around the globe.Trade ReviewThe lessons learned in the stupendous global bull market of the last 40 years will serve us very poorly in the years ahead. With The End of Indexing, Niels Jensen offers a treasure trove of market insights, presented in a global context, that will help readers reach their goals despite the coming headwinds.--Rob Arnott, founder and CEO of Research Affiliates. Niels Jensen is particularly well versed in not only the trends of the markets, but how to take advantage of them. I have worked closely with Niels for over 15 years and I rank him as one of the most astute investors I know. His book, The End of Indexing, it is not only a remarkable study of market trends and economic reasoning, it is done with his inimitable style and grace in writing that makes everything he writes so readable and immediately come to the front of my reading list when it shows up in my inbox. This is a book you're going to want to read more than once. And every time you do you will learn something new and important.-- John Mauldin, five times bestselling author and chairman of Mauldin Economics. So often, it seems that analysts and investors are aware of important long-term issues but choose to discount them, and focus instead on short-term ones, that seem more concrete - retaining only a vague sense of concern that they might be missing something. Keynes taught us the dangers of being myopic. So, for example, it is important to consider both short-term `momentum' and long-term `value' when investing: they are, as it were, two sides of the same coin. Niels' book, and the approach he takes to separating out key long-term structural issues and hammering home their importance, may help to redress the balance. And it may well help a number of investors to improve upon their own approaches. --Sushil Wadhwani, Founder of Wadhwani Asset Management. How apt that I just finished “The End of indexing” by Niels Jensen in the midst one of those chilling tropical downpours in Asia. It is indeed a highly readable rainy-day read that pours cold water on the future of passive investing. Niels takes the reader on a comprehensive tour of some depressing megatrends affecting the global economy and asset markets. You don’t even need to buy into every aspect of these to sympathise with his intelligent interpretations. Neils’ vast market experience shines through in his clear translation of trends into investment strategies. His conclusion — that passive investment strategies expose investors to the wrong type of risk at the wrong side of the megatrends, is accompanied by some convincing suggestions regarding where to maintain risk exposures. --Gabriel Sterne, Head of Global Macroeconomics, Oxford EconomicsTable of ContentsAbout the author Acknowledgements Preface Introduction 1. The Declining Everything 2. The Big Conundrum 3. The End of the Debt Super-Cycle 4. The Retirement of the Baby Boomers 5. The Declining Spending Power of the Middle Classes 6. The Rise of the East 7. The Death of Fossil Fuels 8. Mean Reversion of Wealth-to-GDP 9. The Perfect Storm 10. How to Improve Productivity 11. What's Next? 12. Why Index Investing Will Dwindle Bibliography

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Book SynopsisIf you want to get rich, no matter how inexperienced you are in investment, this book can help you. Its message is that you must not avoid risk, nor court it foolhardily, but learn how to manage it - and enjoy it too.

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Book SynopsisPraise for How I Became a Quant "Led by two top-notch quants, Richard R. Lindsey and Barry Schachter, How I Became a Quant details the quirky world of quantitative analysis through stories told by some of today's most successful quants.Table of ContentsAcknowledgments. Introduction. Chapter 1. David Leinweber: President, Leinweber & Co. A Series of Accidents. Grey Silver Shadow. Destroy before Reading. A Little Artificial Intelligence Goes a Long Way. How Do You Keep the Rats from Eating the Wires. Stocks Are Stories, Bonds Are Mathematics. HAL’s Broker. Chapter 2. Ronald N. Kahn: Global Head of Advanced Equity Strategies, Barclays Global Investors. Physics to Finance. BARRA’s First Rocket Scientist. Active Portfolio Management. Barclays Global Investors. The Future. Chapter 3. Gregg E. Berman: Strategic Business Development, RiskMetrics Group. A Quantitative Beginning. Putting It to the Test. A Martian Summer. Physics on Trial. A Twist of Fate. A Point of Inflection. A Circuitous Route to Wall Street. The Last Mile. Chapter 4. Evan Schulman: Chairman, Upstream Technologies, LLC. Measurement. Market Cycles. Process. Risk. And Return. Trading Costs. Informationless Trades. Applying it All. Electronic Trading. Lattice Trading. Net Exchange. Upstream. Articles. Chapter 5. Leslie Rahl: President, Capital Market Risk Advisors. Growing Up in Manhattan. College and Graduate School. Nineteen Years at Citibank. Fifteen Years (So Far!) Running Capital Market. Risk Advisors. Going Plural. The Personal Side. So How Did I Become a Quant? Chapter 6. Thomas C. Wilson: Chief Insurance Risk Officer, ING Group. Quantitative Finance: The Means to and End? The Questions. The Early 1990s: The Market Risk Era. The Late 1990s: The Credit Risk Era. The Great Strategy Debate: From the 1990s to Today. Lessons Learned. Chapter 7. Neil Chriss: Former Managing Director of Quantitative Strategies, SAC Capital Management, LLC. The Glass Bead Game. Of Explorers and Mountain Climbers. Computers. College Years. The University of Chicago PhD Program. Academia. The Harvard Mathematics Department. Moving to Wall Street. Quant Research. Quant Research and the Mathematics of Portfolio Trading. Quantitative Portfolio Management. Mathematical Finance Education. Final Thoughts. Chapter 8. Peter Carr: Head of Quantitative Financial Research, Bloomberg. My First Eureka Moment. Accounting for the Future Instead of the Past. Postdoctoral Studies. And in the End… Chapter 9. Mark Anson: CEO, Hermes Pensions Management Ltd. CEO, British Telecommunications Pension Scheme. PhD, Why Not? Legal Arbitrage. Managing the Outcome. Certain Uncertainty. Chapter 10. Bjorn Flesaker: Senior Quant, Bloomberg L.P. Growing Up. Choosing Academics. Heeding the Call of the Street. Becoming a Real Quant Again. Chapter 11. Peter Jäckel. The English Connection. London Calling. Cutting One’s Teeth. All the Models in the World. For Future Reference. To the Front. Chapter 12. Andrew Davidson: President, Andrew Davidson & Co., Inc. Conjecture 1: If It Quacks Like a Quant… Lemma 1: If You Don’t Know Where You Are Going, Any Road Will Get You There. Lemma 2: Pay No Attention to the Man behind the Curtain. Theorem 1: If It May Be True in Theory but It Won’t Work in Practice, Get a Better Theory. Theorem 2: To Thine Own Self Be True. Chapter 13. Andrew B. Weisman: Managing Director, Merrill Lynch. Econometric Voodoo. Trading for Fun and Profit. Tools of the Trade. Lessons Learned. Chapter 14. Clifford S. Asness: Managing and Founding Principal, AQR Capital Management, LLC. Chicago. A Big Decision. On Our Own. Moonlighting. Geeks of the World Unite. Chapter 15. Stephen Kealhofer: Managing Partner, Diversified Credit Investments. A Startup. Practical Defaults. The Entrepreneur. Inventing a Business. Portfolio Management of Credit Risk. A Room with a View. Chapter 16. Julian Shaw: Head Risk Management & Quantitative Research, Permal Group. Gordon Capital. CIBC. Barclays Capital. Fat Tails and Thin Peaks. Adventures in CDO Land. The Strange Evolution of Value at Risk. A Paradox. Permal. What Makes a Good Quant? The Art of Leaving Things Out. The Art of Choosing the Right Tools. Do Quants Lack Business Sense? Tips. Chapter 17. Steve Allen: Deputy Director. Masters Program in Mathematics in Finance, Courant Institute of Mathematical Sciences, New York University. In Which the Author Is Seriously Misled. In Which a Fortuitous Opportunity Appears. In Which Reason Prevails and all Rejoice. Chapter 18. Mark Kritzman: President and CEO, Windham Capital Management, LLC. A Brief Chronology. How I Developed My Quant Skills. How I Applied My Quantitative Training. The Future for Quants. Chapter 19. Bruce I. Jacobs and Kenneth N. Levy: Principals, Jacobs Levy Equity Management. Portraits of Two Investors. New Concepts, Foggy Ideas. The Jacobs Levy Investment Approach. Benefits of Disentangling. Integrating the Investment Process. Relaxing Portfolio Constraints. Integrated Long-Short Optimization. Books and an Ethical Debate. Portfolio Optimization and Market Simulation with Shorting. Chapter 20. Tanya Styblo Beder: Chairman, SBCC. Yale. First Boston. Graduate School. Swaps. Giving Back. Chapter 21. Allan Malz: Head of Risk Management, Clinton Group. How Not to Get a PhD. How Not to Get a PhD, Continued. RiskMetrics’ Salad Days. No More Mr. Nice Guy. Chapter 22. Peter Muller: Senior Advisor, Morgan Stanley. What’s that Smell? Life at BARRA. You Gotta Know When to Fold ’ em. The Call that Change Everything. Chapter 23. Andrew J. Sterge: President, AJ Sterge (a division of Magnetar Financial, LLC). On to the Real World. Cooper Neff. Early Days at Cooper Neff. Active Portfolio Strategies. How I Became a Quant. Chapter 24. John F. (JacK) Marshall: Senior Principal of Marshall, Tucker & Associates, LLC and Vice Chairman of the International Securities Exchange. From Premed to Derivatives. Frustration with Academia and the Birth of a Profession. The IAFE and the Road to MSFE Degrees. Notes. Bibliography. About the Contributors. About the Authors. Index.

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Book SynopsisJohn Stepek pulls together the latest research on behavioural finance, and examples from well-known contrarian investors, to offer practical techniques to help you to spot opportunities in common investment situations, from turnaround plays to bubbles and busts, that others in the market miss.

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Book SynopsisOne of the financial world''s most respected experts on the psychology of risk provides a revolutionary risk management model Over the past three decades investors have adopted all varieties of complex quantitative systems for quantifying and managing risk. Yet, sophisticated investors and money managers continue to suffer record losses in today''s increasingly volatile markets. This book bridges the gap between investor psychology and quantitative risk management with a revolutionary risk management program that virtually any trader or investor can easily adapt to their goals and personalities. Using numerous fascinating real-life case studies, Dr. Kiev illustrates the various psychological and emotional traps to which even the savviest investors can fall victim. He develops a dynamic new risk management model that combines quantitative models and money management techniques. He also provides rigorous guidelines that will help readers answer such crucial questions as: How much sTable of ContentsIntroduction. PART ONE: THE ESSENTIALS OF RISK TAKING. Chapter One: Defining Risk. Considering a New Approach. Understanding the Psychology. Identifying the Problems. Chapter Two: Understanding the Approach. Making the Commitment. Setting a Target. PART TWO: THE PROBLEMS OF RISK. Chapter Three: Handling Your Emotions. Defining the Life Principle. Examining the Emotions of Trading. Understanding the Stress Response. Creating a New Life Principle. Owning Your Responses. Dealing with Anger. Maintaining Your Concentration. Chapter Four: Learning to Let Go. Battling Perfectionism. Overcoming Mental Accounting. Combating Paralysis. Learning to Become Flexible. Hoarding Stub Ends. Considering the Herd. Releasing the Rationalizations. Acting Now. PART THREE: THE PERSONALITIES OF RISK. Chapter Five: Profiling Passive Traders. Cautious Traders. Fearful Traders. Insecure Traders. Committing to a Result. Choosing What You Have. Discovering What Is Missing. Chapter Six: Profiling the High-Risk Trader. The Solutions. Chapter Seven: Recognizing the Master Trader. Defining the Master Trader. Developing Mastery. Assessing Your Progress. PART FOUR: THE PRACTICE OF RISK TAKING. Chapter Eight: Increasing Your Risk. Understanding the Value of Statistics. Using Specialized Techniques. Chapter Nine: Handling Failure . . . and Success. Recognizing a Breakdown. Managing the Emotions of Breakdown. Turning Breakdowns into Breakthroughs. Recreating the Wins. Remembering the Plan. Chapter Ten: Doing the Work. Discerning the Importance of Data Analysis. Determining What Is Relevant. Understanding the Business Model. Paying Attention to the Catalysts. Interpreting the Silent Data. Using Technical Analysis. Chapter Eleven: Coping with Risk: Coaching, Teamwork, Systems. Consult a Coach. Take Advantage of Teamwork. See About a System. Conclusion. Index.

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