Investment and securities Books

Book SynopsisImagine if you had a guide to financial markets and the economy that you could use to make all of the key investment decisions in your life. The Secret Wealth Advantage contains just that a guide for your investment and business decisions, telling you what you need to know, what you need to do, and when.

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Book SynopsisWith the right broker, and just a few hundred dollars or pounds, anyone can become a leveraged trader. The products and tools needed are accessible to all: FX, a margin account, CFDs, spread-bets and futures.But this level playing field comes with great risks. Trading with leverage is inherently dangerous. With leverage, losses and costs the two great killers for traders are magnified.This does not mean leverage must be avoided altogether, but it does mean that it needs to be used safely. In Leveraged Trading, Robert Carver shows you how to do exactly that, by using a trading system. A trading system can be employed to tackle those twin dangers of serious losses and high costs.The trading systems introduced in this book are simple and carefully designed to use the correct amount of leverage and trade at a suitable frequency. Robert shows how to trade a simple Starter System on its own, on a single instrument and with a single rule for opening positions.He then moves on to show how the Starter System can be adapted, as you gain experience and confidence. The system can be diversified into multiple instruments and new trading rules can be added. For those who wish to go further still, advice on making more complex improvements is included: how to develop your own trading systems, and how to combine a system with your own human judgement, using an approach Robert calls Semi-Automatic Trading.For those trading with leverage, looking for a way to take a controlled approach and manage risk, a properly designed trading system is the answer. Pick up Leveraged Trading and learn how.

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Book SynopsisAn intriguing link between a wide range of problems occurring in physics and financial engineering is presented. These problems include the evolution of small perturbations of linear flows in hydrodynamics, the movements of particles in random fields described by the Kolmogorov and Klein-Kramers equations, the Ornstein-Uhlenbeck and Feller processes, and their generalizations. They are reduced to affine differential and pseudo-differential equations and solved in a unified way by using Kelvin waves and developing a comprehensive math framework for calculating transition probabilities and expectations. Kelvin waves are instrumental for studying the well-known Black-Scholes, Heston, and Stein-Stein models and more complex path-dependent volatility models, as well as the pricing of Asian options, volatility and variance swaps, bonds, and bond options. Kelvin waves help to solve several cutting-edge problems, including hedging the impermanent loss of Automated Market Makers for cryptocurrency trading. This title is also available as Open Access on Cambridge Core.

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Book SynopsisDynamic Hedging is the definitive source on derivatives risk. It provides a real-world methodology for managing portfolios containing any nonlinear security. It presents risks from the vantage point of the option market maker and arbitrage operator.Table of ContentsIntroduction Dynamic Hedging 1 Part 1 Markets, Instruments, People 1 Introduction to the Instruments 9 2 The Generalized Option 38 3 Market Making and Market Using 48 4. Liquidity and Liquidity Holes 68 5 Arbitrage and the Arbitrageurs 80 6 Volatility and Correlation 88 Part II Measuring Option Risks 7 Adapting Black-Scholes-Merton: The Delta 115 8 Gamma and Shadow Gamma 132 9 Vega and the Volatility Surface 147 10 Theta and Minor Greeks 167 11 The Greeks and Their Behavior 191 12 Fungibility, Convergence, and Stacking 208 13 Some Wrinkles of Option Markets 222 14 Bucketing and Topography 229 15 Beware the Distribution 238 16 Option Trading Concepts 256 Part III Trading and Hedging Exotic Options 17 Binary Options: European Style 273 18 Binary Options: American Style 295 19 Barrier Options (I) 312 20 Barrier Options (II) 347 21 Compound, Choosers, and Higher Order Options 376 22 Multiasset Options 383 23 Minor Exotics: Lookback and Asian Options 403 Part IV Modules Module A Brownian Motion on a Spreadsheet, a Tutorial 415 Module B Risk Neutrality Explained 426 Module C Numeraire Relativity and the Two-Country Paradox 431 Module D Correlation Triangles: A Graphical Case Study 438 Module E The Value-at-Risk 445 Module F Probabilistic Rankings in Arbitrage 453 Module G Option Pricing 459 Notes 479 Bibliography 490 Index 499

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Book SynopsisThe Five Rules for Successful Stock Investing "By resisting both the popular tendency to use gimmicks that oversimplify securities analysis and the academic tendency to use jargon that obfuscates common sense, Pat Dorsey has written a substantial and useful book. His methodology is sound, his examples clear, and his approach timeless.Table of ContentsForeword. Introduction: Picking Great Stocks Is Tough. Chapter 1. The Five Rules for Successful Stock Investing. Chapter 2. Seven Mistakes to Avoid. Chapter 3. Economic Moats. Chapter 4. The Language of Investing. Chapter 5. Financial Statements Explained. Chapter 6. Analyzing a Company- The Basics. Chapter 7. Analyzing a Company-Management. Chapter 8. Avoiding Financial Fakery. Chapter 9. Valuation- The Basics. Chapter 10. Valuation-Intrinsic Value. Chapter 11. Putting It All Together. Chapter 12. The 10-Minute Test. Chapter 13. A Guided Tour of the Market. Chapter 14. Health Care. Chapter 15. Consumer Services. Chapter 16. Business Services. Chapter 17. Banks. Chapter 18. Asset Management and Insurance. Chapter 19. Software. Chapter 20. Hardware. Chapter 21. Media. Chapter 22. Telecom. Chapter 23. Consumer Goods. Chapter 24. Industrial Materials. Chapter 25. Energy. Chapter 26. Utilities. Appendix. Recommended Readings. Morningstar Resources. Index.

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Book SynopsisFocuses on quantitative trading. This book offers readers an insight into how and why each trading strategy was developed, how it was implemented, and even how it was coded. It is suitable for anyone looking to create their own systematic trading strategies.Table of ContentsPreface ix Chapter 1 Backtesting and Automated Execution 1 Chapter 2 The Basics of Mean Reversion 39 Chapter 3 Implementing Mean Reversion Strategies 63 Chapter 4 Mean Reversion of Stocks and ETFs 87 Chapter 5 Mean Reversion of Currencies and Futures 107 Chapter 6 Interday Momentum Strategies 133 Chapter 7 Intraday Momentum Strategies 155 Chapter 8 Risk Management 169 Conclusion 187 Bibliography 191 About the Author 197 About the Website 199 Index 201

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Book SynopsisOver thirty trading strategies specifically designed for trading futures from experienced and successful professional trader Robert Carver.

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Book SynopsisTable of ContentsAbout the Author xxi PREAMBLE 1 1 Financial Machine Learning as a Distinct Subject 3 1.1 Motivation, 3 1.2 The Main Reason Financial Machine Learning Projects Usually Fail, 4 1.2.1 The Sisyphus Paradigm, 4 1.2.2 The Meta-Strategy Paradigm, 5 1.3 Book Structure, 6 1.3.1 Structure by Production Chain, 6 1.3.2 Structure by Strategy Component, 9 1.3.3 Structure by Common Pitfall, 12 1.4 Target Audience, 12 1.5 Requisites, 13 1.6 FAQs, 14 1.7 Acknowledgments, 18 Exercises, 19 References, 20 Bibliography, 20 Part 1 Data Analysis 21 2 Financial Data Structures 23 2.1 Motivation, 23 2.2 Essential Types of Financial Data, 23 2.2.1 Fundamental Data, 23 2.2.2 Market Data, 24 2.2.3 Analytics, 25 2.2.4 Alternative Data, 25 2.3 Bars, 25 2.3.1 Standard Bars, 26 2.3.2 Information-Driven Bars, 29 2.4 Dealing with Multi-Product Series, 32 2.4.1 The ETF Trick, 33 2.4.2 PCA Weights, 35 2.4.3 Single Future Roll, 36 2.5 Sampling Features, 38 2.5.1 Sampling for Reduction, 38 2.5.2 Event-Based Sampling, 38 Exercises, 40 References, 41 3 Labeling 43 3.1 Motivation, 43 3.2 The Fixed-Time Horizon Method, 43 3.3 Computing Dynamic Thresholds, 44 3.4 The Triple-Barrier Method, 45 3.5 Learning Side and Size, 48 3.6 Meta-Labeling, 50 3.7 How to Use Meta-Labeling, 51 3.8 The Quantamental Way, 53 3.9 Dropping Unnecessary Labels, 54 Exercises, 55 Bibliography, 56 4 Sample Weights 59 4.1 Motivation, 59 4.2 Overlapping Outcomes, 59 4.3 Number of Concurrent Labels, 60 4.4 Average Uniqueness of a Label, 61 4.5 Bagging Classifiers and Uniqueness, 62 4.5.1 Sequential Bootstrap, 63 4.5.2 Implementation of Sequential Bootstrap, 64 4.5.3 A Numerical Example, 65 4.5.4 Monte Carlo Experiments, 66 4.6 Return Attribution, 68 4.7 Time Decay, 70 4.8 Class Weights, 71 Exercises, 72 References, 73 Bibliography, 73 5 Fractionally Differentiated Features 75 5.1 Motivation, 75 5.2 The Stationarity vs. Memory Dilemma, 75 5.3 Literature Review, 76 5.4 The Method, 77 5.4.1 Long Memory, 77 5.4.2 Iterative Estimation, 78 5.4.3 Convergence, 80 5.5 Implementation, 80 5.5.1 Expanding Window, 80 5.5.2 Fixed-Width Window Fracdiff, 82 5.6 Stationarity with Maximum Memory Preservation, 84 5.7 Conclusion, 88 Exercises, 88 References, 89 Bibliography, 89 Part 2 Modelling 91 6 Ensemble Methods 93 6.1 Motivation, 93 6.2 The Three Sources of Errors, 93 6.3 Bootstrap Aggregation, 94 6.3.1 Variance Reduction, 94 6.3.2 Improved Accuracy, 96 6.3.3 Observation Redundancy, 97 6.4 Random Forest, 98 6.5 Boosting, 99 6.6 Bagging vs. Boosting in Finance, 100 6.7 Bagging for Scalability, 101 Exercises, 101 References, 102 Bibliography, 102 7 Cross-Validation in Finance 103 7.1 Motivation, 103 7.2 The Goal of Cross-Validation, 103 7.3 Why K-Fold CV Fails in Finance, 104 7.4 A Solution: Purged K-Fold CV, 105 7.4.1 Purging the Training Set, 105 7.4.2 Embargo, 107 7.4.3 The Purged K-Fold Class, 108 7.5 Bugs in Sklearn’s Cross-Validation, 109 Exercises, 110 Bibliography, 111 8 Feature Importance 113 8.1 Motivation, 113 8.2 The Importance of Feature Importance, 113 8.3 Feature Importance with Substitution Effects, 114 8.3.1 Mean Decrease Impurity, 114 8.3.2 Mean Decrease Accuracy, 116 8.4 Feature Importance without Substitution Effects, 117 8.4.1 Single Feature Importance, 117 8.4.2 Orthogonal Features, 118 8.5 Parallelized vs. Stacked Feature Importance, 121 8.6 Experiments with Synthetic Data, 122 Exercises, 127 References, 127 9 Hyper-Parameter Tuning with Cross-Validation 129 9.1 Motivation, 129 9.2 Grid Search Cross-Validation, 129 9.3 Randomized Search Cross-Validation, 131 9.3.1 Log-Uniform Distribution, 132 9.4 Scoring and Hyper-parameter Tuning, 134 Exercises, 135 References, 136 Bibliography, 137 Part 3 Backtesting 139 10 Bet Sizing 141 10.1 Motivation, 141 10.2 Strategy-Independent Bet Sizing Approaches, 141 10.3 Bet Sizing from Predicted Probabilities, 142 10.4 Averaging Active Bets, 144 10.5 Size Discretization, 144 10.6 Dynamic Bet Sizes and Limit Prices, 145 Exercises, 148 References, 149 Bibliography, 149 11 The Dangers of Backtesting 151 11.1 Motivation, 151 11.2 Mission Impossible: The Flawless Backtest, 151 11.3 Even If Your Backtest Is Flawless, It Is Probably Wrong, 152 11.4 Backtesting Is Not a Research Tool, 153 11.5 A Few General Recommendations, 153 11.6 Strategy Selection, 155 Exercises, 158 References, 158 Bibliography, 159 12 Backtesting through Cross-Validation 161 12.1 Motivation, 161 12.2 The Walk-Forward Method, 161 12.2.1 Pitfalls of the Walk-Forward Method, 162 12.3 The Cross-Validation Method, 162 12.4 The Combinatorial Purged Cross-Validation Method, 163 12.4.1 Combinatorial Splits, 164 12.4.2 The Combinatorial Purged Cross-Validation Backtesting Algorithm, 165 12.4.3 A Few Examples, 165 12.5 How Combinatorial Purged Cross-Validation Addresses Backtest Overfitting, 166 Exercises, 167 References, 168 13 Backtesting on Synthetic Data 169 13.1 Motivation, 169 13.2 Trading Rules, 169 13.3 The Problem, 170 13.4 Our Framework, 172 13.5 Numerical Determination of Optimal Trading Rules, 173 13.5.1 The Algorithm, 173 13.5.2 Implementation, 174 13.6 Experimental Results, 176 13.6.1 Cases with Zero Long-Run Equilibrium, 177 13.6.2 Cases with Positive Long-Run Equilibrium, 180 13.6.3 Cases with Negative Long-Run Equilibrium, 182 13.7 Conclusion, 192 Exercises, 192 References, 193 14 Backtest Statistics 195 14.1 Motivation, 195 14.2 Types of Backtest Statistics, 195 14.3 General Characteristics, 196 14.4 Performance, 198 14.4.1 Time-Weighted Rate of Return, 198 14.5 Runs, 199 14.5.1 Returns Concentration, 199 14.5.2 Drawdown and Time under Water, 201 14.5.3 Runs Statistics for Performance Evaluation, 201 14.6 Implementation Shortfall, 202 14.7 Efficiency, 203 14.7.1 The Sharpe Ratio, 203 14.7.2 The Probabilistic Sharpe Ratio, 203 14.7.3 The Deflated Sharpe Ratio, 204 14.7.4 Efficiency Statistics, 205 14.8 Classification Scores, 206 14.9 Attribution, 207 Exercises, 208 References, 209 Bibliography, 209 15 Understanding Strategy Risk 211 15.1 Motivation, 211 15.2 Symmetric Payouts, 211 15.3 Asymmetric Payouts, 213 15.4 The Probability of Strategy Failure, 216 15.4.1 Algorithm, 217 15.4.2 Implementation, 217 Exercises, 219 References, 220 16 Machine Learning Asset Allocation 221 16.1 Motivation, 221 16.2 The Problem with Convex Portfolio Optimization, 221 16.3 Markowitz’s Curse, 222 16.4 From Geometric to Hierarchical Relationships, 223 16.4.1 Tree Clustering, 224 16.4.2 Quasi-Diagonalization, 229 16.4.3 Recursive Bisection, 229 16.5 A Numerical Example, 231 16.6 Out-of-Sample Monte Carlo Simulations, 234 16.7 Further Research, 236 16.8 Conclusion, 238 Appendices, 239 16.A.1 Correlation-based Metric, 239 16.A.2 Inverse Variance Allocation, 239 16.A.3 Reproducing the Numerical Example, 240 16.A.4 Reproducing the Monte Carlo Experiment, 242 Exercises, 244 References, 245 Part 4 Useful Financial Features 247 17 Structural Breaks 249 17.1 Motivation, 249 17.2 Types of Structural Break Tests, 249 17.3 CUSUM Tests, 250 17.3.1 Brown-Durbin-Evans CUSUM Test on Recursive Residuals, 250 17.3.2 Chu-Stinchcombe-White CUSUM Test on Levels, 251 17.4 Explosiveness Tests, 251 17.4.1 Chow-Type Dickey-Fuller Test, 251 17.4.2 Supremum Augmented Dickey-Fuller, 252 17.4.3 Sub- and Super-Martingale Tests, 259 Exercises, 261 References, 261 18 Entropy Features 263 18.1 Motivation, 263 18.2 Shannon’s Entropy, 263 18.3 The Plug-in (or Maximum Likelihood) Estimator, 264 18.4 Lempel-Ziv Estimators, 265 18.5 Encoding Schemes, 269 18.5.1 Binary Encoding, 270 18.5.2 Quantile Encoding, 270 18.5.3 Sigma Encoding, 270 18.6 Entropy of a Gaussian Process, 271 18.7 Entropy and the Generalized Mean, 271 18.8 A Few Financial Applications of Entropy, 275 18.8.1 Market Efficiency, 275 18.8.2 Maximum Entropy Generation, 275 18.8.3 Portfolio Concentration, 275 18.8.4 Market Microstructure, 276 Exercises, 277 References, 278 Bibliography, 279 19 Microstructural Features 281 19.1 Motivation, 281 19.2 Review of the Literature, 281 19.3 First Generation: Price Sequences, 282 19.3.1 The Tick Rule, 282 19.3.2 The Roll Model, 282 19.3.3 High-Low Volatility Estimator, 283 19.3.4 Corwin and Schultz, 284 19.4 Second Generation: Strategic Trade Models, 286 19.4.1 Kyle’s Lambda, 286 19.4.2 Amihud’s Lambda, 288 19.4.3 Hasbrouck’s Lambda, 289 19.5 Third Generation: Sequential Trade Models, 290 19.5.1 Probability of Information-based Trading, 290 19.5.2 Volume-Synchronized Probability of Informed Trading, 292 19.6 Additional Features from Microstructural Datasets, 293 19.6.1 Distibution of Order Sizes, 293 19.6.2 Cancellation Rates, Limit Orders, Market Orders, 293 19.6.3 Time-Weighted Average Price Execution Algorithms, 294 19.6.4 Options Markets, 295 19.6.5 Serial Correlation of Signed Order Flow, 295 19.7 What Is Microstructural Information?, 295 Exercises, 296 References, 298 Part 5 High-performance Computing Recipes 301 20 Multiprocessing and Vectorization 303 20.1 Motivation, 303 20.2 Vectorization Example, 303 20.3 Single-Thread vs. Multithreading vs. Multiprocessing, 304 20.4 Atoms and Molecules, 306 20.4.1 Linear Partitions, 306 20.4.2 Two-Nested Loops Partitions, 307 20.5 Multiprocessing Engines, 309 20.5.1 Preparing the Jobs, 309 20.5.2 Asynchronous Calls, 311 20.5.3 Unwrapping the Callback, 312 20.5.4 Pickle/Unpickle Objects, 313 20.5.5 Output Reduction, 313 20.6 Multiprocessing Example, 315 Exercises, 316 Reference, 317 Bibliography, 317 21 Brute Force and Quantum Computers 319 21.1 Motivation, 319 21.2 Combinatorial Optimization, 319 21.3 The Objective Function, 320 21.4 The Problem, 321 21.5 An Integer Optimization Approach, 321 21.5.1 Pigeonhole Partitions, 321 21.5.2 Feasible Static Solutions, 323 21.5.3 Evaluating Trajectories, 323 21.6 A Numerical Example, 325 21.6.1 Random Matrices, 325 21.6.2 Static Solution, 326 21.6.3 Dynamic Solution, 327 Exercises, 327 References, 328 22 High-Performance Computational Intelligence and Forecasting Technologies 329 Kesheng Wu and Horst D. Simon 22.1 Motivation, 329 22.2 Regulatory Response to the Flash Crash of 2010, 329 22.3 Background, 330 22.4 HPC Hardware, 331 22.5 HPC Software, 335 22.5.1 Message Passing Interface, 335 22.5.2 Hierarchical Data Format 5, 336 22.5.3 In Situ Processing, 336 22.5.4 Convergence, 337 22.6 Use Cases, 337 22.6.1 Supernova Hunting, 337 22.6.2 Blobs in Fusion Plasma, 338 22.6.3 Intraday Peak Electricity Usage, 340 22.6.4 The Flash Crash of 2010, 341 22.6.5 Volume-synchronized Probability of Informed Trading Calibration, 346 22.6.6 Revealing High Frequency Events with Non-uniform Fast Fourier Transform, 347 22.7 Summary and Call for Participation, 349 22.8 Acknowledgments, 350 References, 350 Index 353

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Book SynopsisThis revised edition unifies and brings the science of asset pricing up to date for advanced students and professionals.Trade ReviewCo-Winner of the 2001 Paul A. Samuelson award "This is a brilliant and useful book, well-deserving of the TIAA-CREF Samuelson Award... The clever intuition and informal writing style make it a joy to read. Like a star athlete does with the sport, Cochrane makes it look easier than it really is."--Journal of Economic Literature

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Book SynopsisDrawing on interviews from the first 150 episodes of the Capital Allocators podcast, Ted Seides presents the best of the knowledge, practical insights, and advice of the world's top professional investors.

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Book SynopsisTable of ContentsPreface xv Chapter 1 Introduction 1 The Expanding Role of Technical Analysis 1 Convergence of Trading Styles in Stocks and Futures 3 Professional and Amateur 5 Random Walk 6 Deciding on a Trading Style 7 Measuring Noise 9 Maturing Markets and Globalization 12 Background Material 14 System Development Guidelines 15 Objectives of This Book 16 Profile of a Trading System 17 A Word about the Notation Used in This Book 20 A Final Comment 20 Chapter 2 Basic Concepts and Calculations 21 A Brief Word About Data 22 Simple Measures of Error 23 On Average 24 Price Distribution 28 Moments of the Distribution: Mean, Variance, Skewness, and Kurtosis 32 Choosing Between Frequency Distribution and Standard Deviation 37 Measuring Similarity 38 Standardizing Risk and Return 40 The Index 45 An Overview of Probability 50 Supply and Demand 56 Chapter 3 Charting 67 Finding Consistent Patterns 68 What Causes the Major Price Moves and Trends? 70 The Bar Chart and Its Interpretation by Charles Dow 71 Chart Formations 80 Trendlines 81 One-Day Patterns 89 Continuation Patterns 101 Basic Concepts in Chart Trading 105 Accumulation and Distribution: Bottoms and Tops 106 Episodic Patterns 118 Price Objectives for Bar Charting 119 Implied Strategies in Candlestick Charts 126 Practical Use of the Bar Chart 131 Evolution in Price Patterns 134 Chapter 4 Charting Systems 137 Dunnigan and the Thrust Method 138 Nofri’s Congestion-Phase System 141 Outside Days and Inside Days 143 Pivot Points 145 Action and Reaction 146 Programming the Channel Breakout 153 Moving Channels 155 Commodity Channel Index 156 Wyckoff’s Combined Techniques 157 Complex Patterns 158 Computer Recognition of Chart Patterns 160 Chapter 5 Event-Driven Trends 167 Swing Trading 167 Point-and-Figure Charting 176 The N-Day Breakout 195 Chapter 6 Regression Analysis 207 Components of a Time Series 207 Characteristics of the Price Data 208 Linear Regression 210 Linear Correlation 218 Nonlinear Approximations for Two Variables 222 Transforming Nonlinear to Linear 225 Multivariate Approximations 228 ARIMA 233 Basic Trading Signals Using a Linear Regression Model 238 Measuring Market Strength 241 Chapter 7 Time-Based Trend Calculations 243 Forecasting and Following 244 Price Change over Time 247 The Moving Average 248 The Moving Median 255 Geometric Moving Average 255 Accumulative Average 256 Drop-off Effect 256 Exponential Smoothing 257 Plotting Lags and Leads 267 Chapter 8 Trend Systems 269 Why Trend Systems Work 269 Basic Buy and Sell Signals 274 Bands and Channels 280 Choosing the Calculation Period for the Trend 290 A Few Classic Single-Trend Systems 291 Comparison of Single-Trend Systems 295 Techniques Using Two Trendlines 307 Three Trends 314 Comprehensive Studies 318 Selecting the Trend Speed to Fit the Problem 318 Moving Average Sequences: Signal Progression 319 Early Exits from a Trend 322 Projecting Moving Average Crossovers 323 Early Identification of a Trend Change 323 Chapter 9 Momentum and Oscillators 325 Momentum 326 Adding Volume to Momentum 339 Divergence Index 342 Visualizing Momentum 343 Oscillators 345 Double-Smoothed Momentum 364 Velocity and Acceleration 369 Hybrid Momentum Techniques 375 Momentum Divergence 377 Some Final Comments on Momentum 385 Chapter 10 Seasonality and Calendar Patterns 387 Seasonality Never Disappears 388 The Seasonal Pattern 389 Popular Methods for Calculating Seasonality 390 Classic Methods for Finding Seasonality 408 Weather Sensitivity 420 Identifying Seasonal Trades 422 Seasonality and the Stock Market 439 Common Sense and Seasonality 449 Chapter 11 Cycle Analysis 451 Cycle Basics 451 Uncovering the Cycle 465 Maximum Entropy 481 Short Cycle Indicator 489 Phasing 491 Chapter 12 Volume, Open Interest, and Breadth 495 Futures Volume and Open Interest 496 Extended Hours and 24-Hour Trading 497 Variations from the Normal Patterns 498 Standard Interpretation 502 Volume Indicators 506 Breadth Indicators 518 Is One Volume or Breadth Indicator Better than Another? 524 More Trading Methods Using Volume and Breadth 525 An Integrated Probability Model 533 Intraday Volume Patterns 534 Filtering Low Volume 537 Market Facilitation Index 538 Chapter 13 Spreads and Arbitrage 541 Dynamics of Futures Intramarket Spreads 542 Carrying Charges 543 Spreads in Stocks 546 Spread and Arbitrage Relationships 547 Risk Reduction in Spreads 548 Arbitrage 549 The Carry Trade 580 Implied Versus Historic Volatility 584 Changing Spread Relationships 589 Intermarket Spreads 591 Chapter 14 Behavioral Techniques 607 Measuring the News 608 Event Trading 614 Commitment of Traders Report 627 Opinion and Contrary Opinion 635 Fibonacci and Human Behavior 642 Elliott’s Wave Principle 646 Price Target Constructions Using the Fibonacci Ratio 656 Fischer’s Golden Section Compass System 657 W. D. Gann: Time and Space 662 Financial Astrology 668 Chapter 15 Short-Term Patterns 683 Projecting Daily Highs and Lows 684 Time of Day 686 Opening Gaps 699 Weekday, Weekend, and Reversal Patterns 707 Computer-Based Pattern Recognition 729 Artificial Intelligence Methods 732 Chapter 16 Day Trading 735 Impact of Transaction Costs 736 Slippage and Liquidity 738 Key Elements of Day Trading 741 Trading Using Price Patterns 748 Intraday Breakout Systems 752 High-Frequency Trading 769 Intraday Volume Patterns 773 Intraday Price Shocks 773 Chapter 17 Adaptive Techniques 777 Adaptive Trend Calculations 777 Adaptive Variations 787 Other Adaptive Momentum Calculations 792 Adaptive Intraday Breakout System 795 An Adaptive Process 797 Chapter 18 Price Distribution Systems 799 Accuracy is in the Data 799 Use of Price Distributions and Patterns to Anticipate Moves 803 The Importance of the Shape of the Distribution 808 A Purchaser’s Inventory Model 819 A Producer’s Selling Model 823 Steidlmayer’s Market Profile 824 A Fast Version of Market Profile 833 Chapter 19 Multiple Time Frames 835 Tuning Two Time Frames to Work Together 836 Displaying Two or Three Time Frames 837 Elder’s Triple Screen Trading System 838 Robert Krausz’s Multiple Time Frames 841 Martin Pring’s KST System 845 Chapter 20 Advanced Techniques 849 Measuring Volatility 849 The Price-Volatility Relationship 856 Using Volatility for Trading 860 Liquidity 869 Trends and Price Noise 871 Trends and Interest Rate Carry 874 Fuzzy Logic 874 Expert Systems 880 Game Theory 885 Fractals, Chaos, and Entropy 890 Genetic Algorithms 897 Neural Networks 905 Machine Learning and Artificial Intelligence 915 Replication of Hedge Funds 917 Chapter 21 System Testing 919 Expectations 920 Selecting the Test Data 921 Testing Integrity 927 Identifying the Parameters 929 Searching for the Best Result 931 Too Large to Test Everything 935 Visualizing and Interpreting Test Results 937 The Impact of Costs 950 Refining the Strategy Rules 951 Arriving at Valid Test Results 952 Comparing the Results of Two Trend Systems 959 Retesting to Stay Current 962 Profiting from the Worst Results 963 Testing Across a Wide Range of Markets 965 Price Shocks 970 Anatomy of an Optimization 972 Summarizing Robustness 976 Chapter 22 Adding Reality 983 Some Computer Basics 983 The Abuse of Power 988 Final Steps before Launch 989 Extreme Events 992 Gambling Techniques: The Theory of Runs 1000 Selective Trading 1008 System Trade-Offs 1008 Silver and Amazon: Too Good to Be True 1013 Similarity of Systematic Trading Signals 1014 Chapter 23 Risk Control 1021 Mistaking Luck for Skill 1021 Risk Aversion 1022 Liquidity 1027 Measuring Return and Risk 1028 Position Sizing 1041 Individual Trade Risk 1046 Kaufman on Stops and Profit-Taking 1050 Entering a Position 1053 Leverage 1058 Compounding a Position 1060 Selecting the Best Markets 1064 Probability of Success and Ruin 1072 Managing Equity Risk 1075 Ideal Leverage Using Optimal f 1078 Comparing Expected and Actual Results 1081 Chapter 24 Diversification and Portfolio Allocation 1089 Diversification 1090 Types of Portfolio Models 1095 Classic Portfolio Allocation Calculations 1097 Finding Optimal Portfolio Allocation Using Excel’s Solver 1100 Kaufman’s Genetic Algorithm Solution to Portfolio Allocation (GASP) 1103 Volatility Stabilization 1129 About the Companion Website 1134 Index 1135

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Book SynopsisDiscover the ins and outs of Wall Street with the 2nd edition to the engaging, informative, and easy-to-navigate guide to investing with all-new entries and updates throughout.Investing for the first time can be intimidating. In easy-to-understand language, Stock Market 101, 2nd Edition provides the groundwork needed to begin building knowledge on the stock market. It cuts out the boring explanations of basic investing, and instead provides hands-on lessons that keep you engaged as you learn how to build a portfolio and expand your wealth. Full of basic definitions and real-life examples, Stock Market 101, 2nd Edition alleviates any uneasy or overwhelmed feelings during your first steps toward your investment goals. From bull markets to bear markets to sideways markets, this primer is packed with hundreds of entertaining tidbits and concepts that you won’t be able to get anywhere else. So whether you’re looking to master the major princi

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Book SynopsisDiscover the ins and outs of the economy with this engaging, informative, and easy-to-navigate 2nd edition guide with all-new entries and updates.Too often, textbooks turn the noteworthy details of economics into tedious discourse that would put even Joseph Stiglitz to sleep. This new edition of Economics 101 cuts out the boring explanations and instead provides a hands-on lesson that keeps you engaged as you explore how societies allocate their resources for maximum benefit. From quantitative easing to marginal utility, this primer is packed with hundreds of entertaining tidbits and concepts that you won’t be able to get anywhere else. You’ll learn the basics on terms such as monopolies and oligopolies, game theory, inflation, price ceilings, and so much more. Have you ever wondered about the origin of banking or how banks create money? This book has all the answers. Whether you’re looking to master major principles of finance or

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Book SynopsisWe are all stuck in a money cage. Money isn't the most important thing, but it is a thing and you can't get away from it. Birth costs money and death costs money. So even if you hate talking about money, you need to know the basics, the same way you need to know how to cook yourself a simple meal. The problem with most money books is that they are not written by practitioners and avoid hard truths. What a weathered investor knows is that stocks are not always good for the long run. They know that being stingy helps accure wealth. They know the big thing when you buy property has nothing to do with the property. They know the big thing is less what happens to the markets in a day than if the entire system holds together. And they know what to look for if it's time to pull out. That's what this book will teach you, a lifetime of money learnings distilled to a thin volume, like a basic cooking recipe you can follow.

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Book SynopsisREVISED PAPERBACK EDITION WITH NEW MATERIAL IN EVERY CHAPTERJack D. Schwager has returned to the traders to ask them how they navigated the unprecedented markets of 20202022, including the pandemic bear market, an abrupt reversal to new highs, rising inflation, and the emergence of another bear market. All chapters updated with exclusive new interviews with the Unknown Market Wizards. The Market Wizards are back! Unknown Market Wizards continues in the three-decade tradition of the hugely popular Market Wizards series, interviewing exceptionally successful traders to learn how they achieved their extraordinary performance results. The twist in Unknown Market Wizards is that the featured traders are individuals trading their own accounts. They are unknown to the investment world. Despite their anonymity, these traders have achieved performance records that rival, if not surpass, the best professional managers. Some of the stories include: - A trader who turned an initial account of $2,500 into $50 million. - A trader who achieved an average annual return of 337% over a 13-year period. - A trader who made tens of millions using a unique approach that employed neither fundamental nor technical analysis. - A former advertising executive who used classical chart analysis to achieve a 58% average annual return over a 27-year trading span. - A promising junior tennis player in the UK who abandoned his quest for a professional sporting career for trading and generated a nine-year track record with an average annual return just under 300%. World-renowned author and trading expert Jack D. Schwager is our guide. His trademark knowledgeable and sensitive interview style encourages the Wizards to reveal the fascinating details of their training, experience, tactics, strategies, and their best and worst trades. There are dashes of humour and revelations about the human side of trading throughout. The result is an engrossing new collection of trading wisdom, brimming with insights that can help all traders improve their outcomes.

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Book SynopsisIn My Life as a Quant, Emanuel Derman relives his exciting journey as one of the first high-energy particle physicists to migrate to Wall Street. Page by page, Derman details his adventures in this field-analyzing the incompatible personas of traders and quants, and discussing the dissimilar nature of knowledge in physics and finance.Trade Review"There are few "gentlemen bankers" left these days. Nor is there much room in the great financial houses for anything that smacks of the amateur spirit. That is why Emanuel Derman's memoirs are so compelling…Derman's wry humour and sense of irony are apparent throughout the book." - Financial Times "That sense of being an intruder in outlaw territory lends an intriguing mood to Derman's My Life As a Quant, a literate and entertaining memoir." -Business Week "engaging" --(CFO Europe, October 2005) "Not only a delightful memoir, but one full of information, both about people and their enterprise. I never thought that I would be interested in quantitative financial analysis, but reading this book has been a fascinating education." –Jeremy Bernstein, author of Oppenheimer: Portrait of an Enigma "This wonderful autobiography takes place in that special time when scientists discovered Wall Street and Wall Street discovered them. It is elegantly written by a gifted observer who was a pioneering member of the new profession of financial engineering, with an evident affection both for finance as a science and for the scientists who practice it. Derman’s portrait of how the academics brought their new financial science to the world of business and forever changed it and, especially, his descriptions of the late and extraordinary genius Fischer Black who became his mentor, reveal a surprising humanity where it might be least expected. Who should read this book? Anyone with a serious interest in finance and everyone who simply wants to enjoy a good read."–Stephen Ross, Franco Modigliani Professor of Finance and Economics, Sloan School, MITTable of ContentsPrologue The Two Cultures 1 Chapter 1 Elective Affinities 17 Chapter 2 Dog Years 29 Chapter 3 a Sort of Life 53 Chapter 4 A Sentimental Education 65 Chapter 5 the Mandarins 77 Chapter 6 Knowledge of the Higher Worlds 85 Chapter 7 in the Penal Colony 95 Chapter 8 Stop-time 117 Chapter 9 Transformer 129 Chapter 10 Easy Travel to other Planets 143 Chapter 11 Force of Circumstance 175 Chapter 12 a Severed Head 191 Chapter 13 Civilization and Its Discontents 203 Chapter 14 Laughter in the Dark 225 Chapter 15 The Snows of Yesteryear 251 Chapter 16 the Great Pretender 265 Acknowledgments 271 About the Author 272 Index 273

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Book SynopsisA timely update to the book on using the Market Profile method to trade Emerging over twenty years ago, Market Profile analysis continues to realize a strong following among active traders.Table of ContentsPreface xiii Acknowledgments xvii Chapter 1 Introduction 1 Chapter 2 Novice 7 Laying the Foundation 9 The Auction 9 Organizing the Day 10 Challenging the Rules 15 The Role of the Marketplace 16 Going with the Crowd 17 Introduction to Day Timeframe Structure 19 Normal Day 19 Dynamics 19 Structural Characteristics 21 Normal Variation of a Normal Day 21 Dynamics 21 Structural Characteristics 23 Trend Day 23 Dynamics 23 Structural Characteristics 23 Double-Distribution Trend Day 25 Dynamics 25 Structural Characteristics 25 Nontrend Day 27 Dynamics 27 Structural Characteristics 27 Neutral Day 27 Dynamics 27 Structural Characteristics 28 Day Type Summary 31 Chapter 3 Advanced Beginner 33 Building the Framework 34 The Big Picture: Market Structure, Trading Logic, and Time 34 A Synthesis: Structure, Time, and Logic 35 Ease of Learning 36 Amount of Information 36 Recognition Speed 37 Trade Location 37 Confidence Level 37 Summary 38 Evaluating Other Timeframe Control 38 Other Timeframe Control on the Extremes 40 Tails (or Extremes) 40 Range Extension 40 Other Timeframe Control in the Body of the Profile 40 TPO 41 Initiative versus Responsive Activity 45 Trending versus Bracketed Markets 49 Key Elements—A Brief Discussion 51 Trending Markets 54 Bracketed Markets 54 The Two Big Questions 56 Chapter 4 Competent 59 Doing the Trade 59 Section I 60 Day Timeframe Trading 60 Day Timeframe Directional Conviction 61 Opening Call 61 The Open 62 The Open as a Gauge of Market Conviction 63 Open-Drive 63 Open-Test-Drive 65 Open-Rejection-Reverse 68 Open-Auction 69 Open-Auction in Range 70 Open-Auction out of Range 71 Summary 73 Opening’s Relationship to Previous Day—Estimating Daily Range Potential 74 Open within Value—Acceptance 75 Rejection (Breakout) 79 Open outside of Value but within Range—Acceptance 80 Rejection (Breakout) 83 Open outside of Range—Acceptance 84 Rejection 85 Summary 85 April 13,1989 86 Crude Oil 87 S&P 500 87 Gold 90 Japanese Yen 92 Soybeans 92 Treasury Bonds 92 Summary 95 Day Timeframe Auction Rotations 96 Two-Timeframe Markets 97 One-Timeframe Markets 97 Using Auction Rotations to Evaluate Other Timeframe Control 97 Structure 99 Half-Hour Auctions 100 Extremes 100 Range Extension 101 Time 101 Identifying Timeframe Transition 102 December Swiss Franc, October 12, 1987 103 Y to E: One-Timeframe Buying 104 E: Time 104 Y to F: Auction Test 104 G: Transition Confirmation 104 E to H: One-Timeframe Selling 105 H: Auction Test 105 I: Transition Confirmation 105 H-J: One-Timeframe Buying 105 Summary 105 Auction Failures 105 Excess 110 Signs of Excess 111 The Rotation Factor 112 Monitoring the POC or Fairest Price 115 9:30 a.m. Figure 4.30 116 10:00 a.m. Figure 4.31 118 10:30 a.m. Figure 4.32 119 Noon Figure 4.33 119 2:00 p.m. Figure 4.34 119 The Close 120 Day Timeframe Visualization and Pattern Recognition 122 Short-Covering Rallies 123 Long-Liquidation Breaks 127 Summary of Short Covering and Long Liquidation 128 Ledges 129 Summary 130 High- and Low-Volume Areas 131 High-Volume Areas 131 Identifying High-Volume Levels 132 High-Volume Examples 134 Low-Volume Areas 138 Low-Volume Examples 140 Summary 144 Summary—Day Timeframe Trading 145 Section II 145 Long-Term Trading 145 Long-Term Directional Conviction 146 Attempted Direction: Which Way is the Market Trying to Go? 146 Auction Rotations 147 Range Extension 147 Long-Term Excess 150 Island Days 152 Long-Term Tails 152 Gaps 155 Summary 155 Buying/Selling Composite Days 155 Summary 157 Directional Performance: is the Market Doing a Good Job in its Attempts to Get There? 157 Volume 158 Evaluating Changes in Volume 158 Volume as a Measure of Directional Performance 158 Value-Area Placement 159 Evaluating Directional Performance through Combined Volume and Value-Area Placement 160 Value-Area Width 169 Summary: Long-Term Activity Record 171 Long-Term Auction Rotations 183 Brackets 183 Trade Location in a Bracketed Market 188 Rule 1: Monitor Market Direction and Location within the Current Bracket 189 Rule 2: Markets Generally Test the Bracket Extreme More Than Once 190 Rule 3: Markets Fluctuate within Bracketed Regions 190 Rule 4: Monitor Activity Near the Bracket Extremes for Acceptance/Rejection 192 Transition: Bracket to Trend 192 Trends 193 Trade Location in a Trending Market 193 Monitoring Trends for Continuation 196 Transition: Trend to Bracket 197 Detailed Analysis of a Developing Market 201 Bracket Reference Points 201 Region A (Figure 4.87) 203 Region B (Figure 4.88) 205 Region C (Figure 4.89) 207 Region D (Figure 4.90) 208 Long-Term Auction Failures 210 Long-Term Short Covering and Long Liquidation 214 Applications 224 Corrective Action 225 The Function of Corrective Action 226 Summary 228 Long-Term Profiles 228 Using Long-Term Profiles 229 The Long-Term Profile in Action 229 Region A (Figures 4.98 and 4.99) 231 Region B (Figures 4.100 and 4.101) 235 Summary 238 Special Situations 238 3 to I Days 239 Neutral-Extreme Days 241 The Value-Area Rule 244 Summary 246 Spikes 247 Acceptance versus Rejection 247 Openings within the Spike 247 Openings outside the Spike 249 Bullish Openings 249 Bearish Openings 252 Spike Reference Points 252 Balance-Area Breakouts 252 Gaps 260 Day Timeframe Significance of Gaps 260 Summary 265 Markets to Stay Out Of 265 Nontrend Days 266 Nonconviction Days 266 Long-Term Nontrend Markets 267 News-Influenced Markets 269 Summary 269 News 269 Summary 274 Beyond the Competent Trader 275 Chapter 5 Proficient 277 Self-Understanding: Becoming a Successful Trader 279 Self-Observation 281 The Whole-Brained Trader 282 The Left Hemisphere 283 The Right Hemisphere 283 Combining the Two Hemispheres 283 Strategy 284 A Business Strategy 285 Capital 285 Location 286 Timing 286 Information 287 Know Your Competition 287 Know Yourself 288 Consistent, Daily Execution 288 Inventory 288 Risk 289 Goals 290 Record Keeping and Performance 290 Dedication 290 Applications 291 Summary 292 Chapter 6 The Expert Trader 295 Chapter 7 Experience 297 Set Aside Your Expectations 297 Mind over Markets in Profile 298 Market-Understanding and Self-Understanding 300 Perfect Practice Makes Perfect 300 Blinded by Price 300 Be Prepared 301 Perspective 302 Overnight Inventory 305 Gaps Can Be Gold 307 Gaining an Edge 308 The Fairest Price Revealed 309 Thinking Statistically 311 The Trader’s Dilemma 311 The Most Important Omission from the First Printing in 1990 312 Emotional Markets 313 A Landscape View of the Market 314 Personal Evolution 315 Hierarchy of Information 316 Timeframe Control—Who is Dominating the Current Session? 317 Markets are Visual 318 Destination Trades 319 The Opening 319 Trends 320 Daily Perspective 322 Cognitive Dissonance 322 Imagination 325 False Certainty 326 Anomalies 326 Market Logic 328 We are All Day Traders 329 Appendix 1 Value-Area Calculation 331 Volume Value-Area Calculation 331 TPO Value-Area Calculation 332 Appendix II TPO versus Volume Profiles 335 Single Price Level Distortions 336 End of Day Total Volume versus Ongoing Volume throughout the Day 337 Anomalies 337 Too Focused on Volume 339 Conclusion 339 Suggested Readings 341 About the Authors 343 Index 345

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Book SynopsisJohn Bogle is a revolutionary pioneer of championing better funds at lower costs to investors. This Second Edition is updated to fully reflect structural and regulatory changes in the industry since he published his first edition of Common Sense on Mutual Funds.Trade Review"As founder of the giant mutual fund company, Vanguard Group, Bogle writes what he knows: how to steer one’s way through mutual funds and the numbing variety of investment alternatives available today. His is a clear and readable style, and Bogle helps make still somewhat-arcane terms such as quantitative investing understandable."(SmartMoney.com) "Common Sense on Mutual Funds," by John Bogle, inventor of the retail index fund and founder of the Vanguard Group. It’s the best book ever on fund investing, just updated for new investors. The case for indexing is rock solid, as you’ll see here. It’s the only strategy that works, long term." —Jane’s Book Club, http://janebryantquinn.com "Never before [have] I seen a book that so openly and successfully juxtaposed that which was said against that which actually happened over the period of a decade. . . As a long-time believer in low cost indexing, I didn’t think I’d learn much from this book. I was wrong! Reading this book offers investors a glimpse of the perspective and lessons learned from recent years that were anything but normal. . . This book, of course, is even more valuable to those that aren’t a believer in indexing. It may be a hard read if you’re among those who still believe that 90 percent of investors can all be above average. Consider the effort well worth it because the common sense in this book may save your retirement. Reading this book might also help you realize, as I have, that common sense really is pretty uncommon." —Allan Roth, CBS Moneywatch.com "The definitive book on index fund investing. It explains why index fund investing is the best way — no, the only way — for people to invest their savings. . . [Bogle] does something few in the investing world would dare to do. He stands by what he said 10 years ago. The original text is presented unchanged. New data is added to reveal what happened over the past 10 years." —Scott Burns, The Austin American Statesman A worthwhile addition to one’s library, particularly as a reference publication. . . This . . revision of a book written ten years ago . . . with the original text still present in the book, and an analysis of the predictions that were made ten years ago. . . makes fascinating reading. The analysis of the predictions on their own makes the book worth a read, even if all one does is look at the coloured sections which contain the updated material.” (Australian Investors Association) “More Common Sense from Jack Bogle. Jack’s back and he’s unbowed. . . The tome holds up well after a decade. Bogle hasn’t altered a word of the original text, just added color coded data and text boxes to show where he was on or off the mark. Guess what? Jack doesn’t offer many mea culpas. . . The book is still essential reading for investors. Whether you think indexing is the best way to investor not, it’s filled with simple, powerful advice that can help stack the odds of long-term financial success in your favor. Reading it then helped shape me as an investor and analyst. Here are the most important lessons (besides the obvious one: that indexing works) that I’ve drawn from the pages of both editions, as well as a couple of points where I, and many of my colleagues, dare to differ from St. Jack.” (Morningstar)Table of ContentsForeword for the 10th Anniversary Edition ix Foreword for the Original Edition xiii Preface to the 10th Anniversary Edition xv Preface to the Original Edition xix Acknowledgments for the 10th Anniversary Edition xxvii Acknowledgments for the Original Edition xxix About the Author xxxi Part I: On Investment Strategy 1 Chapter 1 On Long-Term Investing 3 Chance and the Garden Chapter 2 On the Nature of Returns 45 Occam’s Razor Chapter 3 On Asset Allocation 77 The Riddle of Performance Attribution Chapter 4 On Simplicity 109 How to Come Down to Where You Ought to Be Part II: On Investment Choices 143 Chapter 5 On Indexing 145 The Triumph of Experience over Hope Chapter 6 On Equity Styles 191 Tick-Tack-Toe Chapter 7 On Bonds 217 Treadmill to Oblivion? Chapter 8 On Global Investing 251 Acres of Diamonds Chapter 9 On Selecting Superior Funds 277 The Search for the Holy Grail Part III: On Investment Performance 303 Chapter 10 On Reversion to the Mean 305 Sir Isaac Newton’s Revenge on Wall Street Chapter 11 On Investment Relativism 329 Happiness or Misery? Chapter 12 On Asset Size 347 Nothing Fails Like Success Chapter 13 On Taxes 373 The Message of the Parallax Chapter 14 On Time 401 The Fourth Dimension—Magic or Tyranny? Part IV: On Fund Management 423 Chapter 15 On Principles 425 Important Principles Must Be Inflexible Chapter 16 On Marketing 445 The Message Is the Medium Chapter 17 On Technology 465 To What Avail? Chapter 18 On Directors 483 Serving Two Masters Chapter 19 On Structure 503 The Strategic Imperative Part V: On Spirit 533 Chapter 20 On Entrepreneurship 535 The Joy of Creating Chapter 21 On Leadership 549 A Sense of Purpose Chapter 22 On Human Beings 567 Clients and Crew Afterword 585 Appendix I Some Thoughts about the Current Stock Market as 2010 Begins 591 Appendix II Some Thoughts about the Current Stock Market as 1999 Begins 599 Notes 607 Index 613

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Book SynopsisHow to trade the markets by integrating Chaos Theory with market sentiment In the first edition of Trading Chaos, seasoned trader and psychologist Bill Williams detailed the potential of Chaos Theory-which seeks to make the unpredictable understandable-in trading and it revolutionized financial decision-making. The Second Edition of Trading Chaos is a cutting edge book that combines trading psychology and Chaos Theory and its particular effect on the markets. By examining both of these facets in relation to the current market, readers will have the best of all possible worlds when trading. Bill Williams, PhD, CTA (Solana Beach, CA), is President of Profitunity.com, a leader in the field of education for traders and investors. Justine Gregory-Williams (Solana Beach, CA) is President of the Profitunity Trading Group and a full-time trader.Table of ContentsPreface. Acknowledgements. Introduction. CHAPTER 1: The Market Is What You Think It Is. CHAPTER 2: Chaos Theory. CHAPTER 3: Defining Your Underlying Structure—and How That Affects Winning and Losing. CHAPTER 4: Gearing Up for Trading. CHAPTER 5: What Type of Trader Are You? CHAPTER 6: Super-Natural Trade/Vesting. CHAPTER 7: Navigating the Markets. CHAPTER 8: The Mighty Alligator. CHAPTER 9: The First Wise Man. CHAPTER 10: The Second Wise Man. CHAPTER 11: The Third Wise Man. CHAPTER 12: What Happens When the Wise Men Get Together? CHAPTER 13: How to Get Out of a Hole Once You Are In. EPILOGUE. APPENDIX 1: Checklists for Trade/Vesting in the Markets. APPENDIX 2: Frequently Asked Questions. APPENDIX 3: How to Control Your Mind While Trading. APPENDIX 4: Setting Up Investor’s Dream for Profitunity Signals. APPENDIX 5: Setting Up CQG. APPENDIX 6: Setting Up MetaStock Professional 8.0. APPENDIX 7: Setting Up TradeStation 2000i. Bibliography. Index.

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Book SynopsisUnknown to most modern-day investors and traders who cherish Reminiscences of a Stock Operator as one of the most important investment books ever written, the material first appeared in the 1920s as a series of articles and illustrations in the Saturday Evening Post.Table of ContentsForeword v Introduction vii I. The Biggest Plunger Wall Street Ever Saw: June 10, 1922 1 II. The Boy Trader Beats the Bucket Shops: June 17, 1922 23 III. I Was Dead Right—I Lost Every Cent I Had: July 1, 1922 45 IV. The Quarter Million Dollar Hunch: July 15, 1922 67 V. My Day of Days: August 12, 1922 89 VI. No Man Living Can Beat the Stock Market: Sept. 2, 1922 111 VII. Playing Another Man's Game: Sept. 16, 1922 133 VIII. $1 Million in Debt; $1 Million Repaid: Oct. 7, 1922 153 IX. Black Cats and Irresistible Impulses: Oct. 21, 1922 171 X. The Coffee Corner and the Price Fixing Committee: Dec. 16, 1922 193 XI. Why the Public Always Loses: May 19, 1923 217 XII. Kings, Paupers, and the Hazards of the Game: May 26, 1923 235 Publisher’s Postscript 255

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Book SynopsisThe Warren Buffett Way provided the first look into the strategies that the master uses to pick stocks. A New York Times bestseller, it is a valuable and practical primer on the principles behind the remarkable investment run of the famed oracle of Omaha.Table of ContentsFocus Investing. The High Priests of Modern Finance. The Superinvestors of Buffettville. A Better Way to Measure Performance. The Warren Buffett Way Tool Belt. The Mathematics of Investing. The Psychology of Investing. The Market as a Complex Adaptive System. Where Are the .400 Hitters? Appendices. Notes. Acknowledgments. Index.

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Book SynopsisThe definitive book on adapting the classic work of Richard Wyckoff to today's markets Price and volume analysis is one of the most effective approaches to market analysis. It was pioneered by Richard Wyckoff, who worked on Wall Street during the golden age of technical analysis.Table of ContentsForeword xi Acknowledgments xiii Introduction 1 Chapter 1 Where to Find Trades 7 An Overview Chapter 2 Drawing Lines 11 Chapter 3 The Story of the Lines 27 Chapter 4 The Logic of Reading Bar Charts 47 Chapter 5 Springs 73 Chapter 6 Upthrusts 95 Chapter 7 Absorption 107 Chapter 8 Chart Studies 117 Chapter 9 Tape Reading Part I 127 Chapter 10 Tape Reading Part II 163 Chapter 11 Point & Figure and Renko 179 About the Author 199 Index 201

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Book SynopsisA practical guide to making more informed investment decisions Investors often buy or sell stocks too quickly. When you base your purchase decisions on isolated facts and don't take the time to thoroughly understand the businesses you are buying, stock-price swings and third-party opinion can lead to costly investment mistakes.Table of ContentsPreface xi Acknowledgments xix Chapter 1 How to Generate Investment Ideas 1 How Investment Opportunities Are Created 1 How to Filter Your Investment Ideas 14 Using a Spreadsheet to Track Potential and Existing Holdings 19 Chapter 2 Understanding the Business—The Basics 21 1. Do I want to spend a lot of time learning about this business? 22 2. How would you evaluate this business if you were to become its CEO? 23 3. Can you describe how the business operates, in your own words? 26 4. How does the business make money? 28 5. How has the business evolved over time? 29 6. In what foreign markets does the business operate, and what are the risks of operating in these countries? 30 Chapter 3 Understanding the Business—from the Customer Perspective 39 7. Who is the core customer of the business? 41 8. Is the customer base concentrated or diversified? 42 9. Is it easy or difficult to convince customers to buy the products or services? 43 10. What is the customer retention rate for the business? 44 11. What are the signs a business is customer oriented? 46 12. What pain does the business alleviate for the customer? 49 13. To What degree is the customer dependent on the products or services from the business? 49 14. If the business disappeared tomorrow, what impact would this have on the customer base? 50 Chapter 4 Evaluating the Strengths and Weaknesses of a Business and Industry 53 15. Does the business have a sustainable competitive advantage and what is its source? 54 16. Does the business possess the ability to raise prices without losing customers? 68 17. Does the business operate in a good or bad industry? 73 18. How has the industry evolved over time? 77 19. What is the competitive landscape, and how intense is the competition? 79 20. What type of relationship does the business have with its suppliers? 89 Chapter 5 Measuring the Operating and Financial Health of the Business 97 21. What are the fundamentals of the business? 98 22. What are the operating metrics of the business that you need to monitor? 100 23. What are the key risks the business faces? 105 24. How does inflation affect the business? 111 25. Is the business’s balance sheet strong or weak? 113 26. What is the return on invested capital for the business? 123 Chapter 6 Evaluating the Distribution of Earnings (Cash Flows) 137 27. Are the accounting standards that management uses conservative or liberal? 138 28. Does the business generate revenues that are recurring or from one-off transactions? 146 29. To what degree is the business cyclical, countercyclical, or recession-resistant? 148 30. To what degree does operating leverage impact the earnings of the business? 152 31. How does working capital impact the cash flows of the business? 162 32. Does the business have high or low capital-expenditure requirements? 167 Chapter 7 Assessing the Quality of Management—Background and Classification: Who Are They? 173 33. What type of manager is leading the company? 176 34. What are the effects on the business of bringing in outside management? 180 35. Is the manager a lion or a hyena? 183 36. How did the manager rise to lead the business? 186 37. How are senior managers compensated, and how did they gain their ownership interest? 192 38. Have the managers been buying or selling the stock? 202 Chapter 8 Assessing the Quality of Management—Competence: How Management Operates the Business 209 39. Does the CEO manage the business to benefit all stakeholders? 210 40. Does the management team improve its operations day-to-day or does it use a strategic plan to conduct its business? 213 41. Do the CEO and CFO issue guidance regarding earnings? 219 42. Is the business managed in a centralized or decentralized way? 222 43. Does management value its employees? 225 44. Does the management team know how to hire well? 239 45. Does the management team focus on cutting unnecessary costs? 247 46. Are the CEO and CFO disciplined in making capital allocation decisions? 248 47. Do the CEO and CFO buy back stock opportunistically? 250 Chapter 9 Assessing the Quality of Management—Positive and Negative Traits 255 48. Does the CEO love the money or the business? 256 49. Can you identify a moment of integrity for the manager? 264 50. Are managers clear and consistent in their communications and actions with stakeholders? 268 51. Does management think independently and remain unswayed by what others in their industry are doing? 275 52. Is the CEO self-promoting? 276 Chapter 10 Evaluating Growth Opportunities 281 53. Does the business grow through mergers and acquisitions, or does it grow organically? 281 54. What is the management team’s motivation to grow the business? 282 55. Has historical growth been profitable and will it continue? 283 56. What are the future growth prospects for the business? 284 57. Is the management team growing the business too quickly or at a steady pace? 296 Chapter 11 Evaluating Mergers & Acquisitions 305 58. How does management make M&A decisions? 305 59. Have past acquisitions been successful? 310 Appendix A Building a Human Intelligence Network 323 Evaluating Information Sources 324 How to Locate Human Sources 324 How to Contact Human Sources—and Get the Information You Want 328 Create a Database of Your Interviews for Future Reference 329 Appendix B How to Interview the Management Team 331 Ask Open-Ended Questions 332 Be Aware of the Danger of Face-to-Face Assessments of Managers 333 Appendix C Your Investment Checklist 335 Notes 339 About the Author 351 Index 353

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Book SynopsisFrom the "Father of Candlesticks"--penetrating new Japanese techniques for forecasting and tracking market prices and improving market timing Steve Nison has done it again.Table of ContentsCANDLES. The Basics. The Patterns. Candles and the Overall Technical Picture. THE DISPARITY INDEX AND NEW PRICE CHARTS. How the Japanese Use Moving Averages. Three-Line Break Charts. Renko Charts. Kagi Charts. Practice Session for the Kagi Chart. Conclusion. Glossary. Bibliography. Index.

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Book SynopsisThe guide technicians turn to for answers--tuned up to provide an advantage in today's global economy The face of investing has significantly changed in the 30 years since this book's first publication, but one essential component of the markets has not--human behavior. Whether you're trading cornerstone commodities or innovative investment products, observing how investors responded to past events through technical analysis is your key to forecasting when to buy and sell in the future. This fully updated fifth edition shows you how to maximize your profits in today's complex markets by tailoring your application of this powerful tool. Tens of thousands of individual and professional investors have used the guidance in this book to grow their wealth by understanding, interpreting, and forecasting significant moves in both individual stocks and entire markets. This new edition streamlines its time-honored, profit-driven approach, while updating every chapter with new examples, tables, charts, and comments that reflect the real-world situations you encounter in everyday trading. Required reading among many professionals, this authoritative resource now features: Brand-new chapters that analyze and explain secular trends with unique technical indicators that measure investor confidence, as well as an introduction to Pring's new Special K indicator Expanded coverage on the profit-making opportunities ETFs create in international markets, sectors, and commodities Practical advice for avoiding false, contratrend signals that may arise in short-term time spans Additional material on price patterns, candlestick charts, relative strength, momentum, sentiment indicators, and global stock markets Properly reading and balancing the variety of indicators used in technical analysis is an art, and no other book better illustrates the repeatable steps you need to take to master it. When used with patience and discipline, Technical Analysis Explained, Fifth Edition, will make you a better decision maker and increase your chances of greater profits.Table of ContentsPreface ixPart I: Trend-Determining Techniques1. The Definition and Interaction of Trends 32. Financial Markets and the Business Cycle 173. Dow Theory 294. Typical Parameters for Intermediate Trends 415. How to Identify Support and Resistance Zones 556. Trendlines 707. Basic Characteristics of Volume 978. Classic Price Patterns 1159. Smaller Price Patterns and Gaps 16610. One- and Two-Bar Price Patterns 18611. Moving Averages 20912. Envelopes and Bollinger Bands 23313. Momentum I: Basic Principles 24614. Momentum II: Individual Indicators 27915. Momentum III: Individual Indicators 31116. Candlestick Charting 34017. Point and Figure Charting 37318. Miscellaneous Techniques for Determining Trends 38319. The Concept of Relative Strength 40120. Putting the Indicators Together: The DJ Transports 1990–2001 423Part II: Market Structure21. Price: The Major Averages 43122. Price: Sector Rotation 45523. Time: Analyzing Secular Trends for Stocks,Bonds, and Commodities 47124. Time: Cycles and Seasonal Patterns 49925. Practical Identification of Cycles 52526. Volume II: Volume Indicators 53127. Market Breadth 560Part III: Other Aspects of Market Analysis28. Indicators and Relationships That Measure Confidence 59329. The Importance of Sentiment 61030. Integrating Contrary Opinion and Technical Analysis 63531. Why Interest Rates Affect the Stock Market 65332. Using Technical Analysis to Select Individual Stocks 67333. Technical Analysis of International Stock Markets 69434. Automated Trading Systems 71335. Checkpoints for Identifying Primary StockMarket Peaks and Troughs 739Epilogue 753Appendix: The Elliott Wave 755Glossary 761Bibliography 767Index 773

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Book SynopsisJoint Gold medallist of the Axiom Business Book Award 2019 - Personal Finance/Retirement Planning/InvestingHow does money figure into a happy life?In The Geometry of Wealth, behavioral finance expert Brian Portnoy delivers an inspired answer, building on the critical distinction between being rich and being wealthy. While one is an unsatisfying treadmill, the other is the ability to underwrite a meaningful life, however one chooses to define that. Truly viewed, wealth is funded contentment.At the heart of this groundbreaking perspective, Portnoy takes readers on a journey toward wealth, informed by disciplines ranging from ancient history to modern neuroscience. He contends that tackling the big questions about a joyful life and tending to financial decisions are complementary, not separate, tasks.These big questions include:- How is the human brain wired for two distinct experiences of happiness? And why can money buy one but not the other?- What are the touchstones of a meaningful life, and are they affordable?- Why is market savvy among the least important sources of wealth but self-awareness is among the most?- How does one strike a balance between striving for more while being content with enough?This journey memorably contours along three basic shapes: A circle, triangle and square help us to visualize how we adapt to evolving circumstances, set clear priorities, and find empowerment in simplicity. In this accessible and entertaining book, Portnoy reveals that true wealth is achievable for many including those who despair it is out of reach but only in the context of a life in which purpose and practice are thoughtfully calibrated.Trade Review"Managing one's money is an emotionally fraught job, and comes with a confusing lexicon to boot. Is it any wonder so many individuals devote less time to their personal finances than they do planning their next vacation? Brian Portnoy's The Geometry of Wealth makes a bracing assertion: it doesn't have to be this way. In this elegant and insightful volume, he imparts the crucial message that building "wealth" isn't strictly about money, but finding the intersection between our life's purpose and the funds needed to achieve it. It's essential reading for serious and novice investors alike." -Christine Benz, Morningstar, Director of Personal Finance ; "In the Geometry of Wealth, Brian Portnoy has done something wholly unique and framed the conversation around money in a manner never before previously considered. Using a simple framework to make profound points, Dr. Portnoy has crafted a work that is simultaneously educational and poignant. For those looking to revolutionize their approach to money and even life, this book receives my highest recommendation." -Dr. Daniel Crosby, NYT bestselling author of The Laws of Wealth ; "In The Geometry of Wealth, Brian Portnoy has used his incredible talent for translating financial drudgery into simple, accessible, and entertaining prose to help us re-define our satisfaction with money. He has written a book that will leave you truly wealthier for reading it." -Corey Hoffstein, Chief Investment Officer, Newfound Research ; "The Geometry of Wealth walks you through what really matters in our relationship with money. In clear language, simple enough for my kids to understand and sophisticated enough for professionals, Portnoy gets to the heart of the issue. And that's the point - our relationship with money is about what's in our heart and what troubles our mind. Geometry brings it all together in a framework that every reader can follow to live a more contented life." -Ted Seides, Managing Partner, Hidden Brook Investments ; "Good books about money are few and far between. Great books about money - which provide useful investment analysis and helpful personal insight presented powerfully and engagingly - are as rare as a bad investment by Warren Buffett, largely because the universe of terrific writers with the academic power and practical experience to write such a book is vanishingly small. The Geometry of Wealth is a great book about money because of who Brian Portnoy is, what he knows, and how well he writes. Don't miss it." -Bob Seawright, Chief Investment Officer, Madison Avenue Securities ; "The Geometry of Wealth is told in three parts, with each part matched with a shape that represents a journey from purpose to priorities to tactics. At each respective step, we adapt to life’s evolving circumstances, set clear and actionable priorities, and render difficult decisions easier through the act of simplification. Creating a seamless narrative, not accomplished elsewhere, as money tends to be addressed either in broad philosophical terms or wonky technical details and Portnoy is considered an expert at simplifying the complex world of money." -Brian Tramuel, Contributor for Retirement Savvy

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Book SynopsisHarriman Classics with a new foreword by James P. O''ShaughnessyIf 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.The 12 major and 16 minor Zurich Axioms contained in this book are a set of principles providing a practical philosophy for the realistic management of risk, which can be followed successfully by anyone, not merely the ''experts''. Several of the Axioms fly right in the face of the traditional wisdom of the investment advice business - yet the enterprising Swiss speculators who devised them became rich, while many investors who follow the conventional path do not.Max Gunther, whose father was one of the original speculators who devised the Axioms, made his first capital gain on the stock market at the age of 13 and never looked back. Now the rest of us can follow in his footsteps. Startlingly straightforward, the Axioms are explained in a book that is not only extremely entertaining but will prove invaluable to any investor, whether in stocks, commodities, art, antiques or real estate, who is willing to take risk on its own terms and chance a little to gain a lot.

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Book SynopsisIn The Little Book of Behavioral Investing , expert James Montier takes you through some of the most important behavioral challenges faced by investors. Montier reveals the most common psychological barriers, clearly showing how emotion, overconfidence, and a multitude of other behavioral traits, can affect investment decision-making.Table of ContentsForeword xi Introduction This Is a Book About You 1 Chapter One In the Heat of the Moment 15 Chapter Two Who’s Afraid of the Big Bad Market? 21 Chapter Three Always Look on the Bright Side of Life 31 Chapter Four Why Does Anyone Listen to These Guys? 41 Chapter Five The Folly of Forecasting 57 Chapter Six Information Overload 73 Chapter Seven Turn off That Bubblevision! 87 Chapter Eight See No Evil, Hear No Evil 93 Chapter Nine In the Land of the Perma-Bear and the Perma-Bull 103 Chapter Ten The Siren Song of Stories 117 Chapter Eleven This Time Is Different 129 Chapter Twelve Right for the Wrong Reason, or Wrong for the Right Reason 145 Chapter Thirteen The Perils of ADHD Investing 153 Chapter Fourteen Inside the Mind of a Lemming 167 Chapter Fifteen You Gotta Know When to Fold Them 181 Chapter Sixteen Process, Process, Process 199 Conclusion The Road to Hell Is Paved with Good Intentions 213

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Book SynopsisConquer the markets and become a successful day trader Day trading is a fast-paced, sometimes risky form of investment. Day Trading For Dummies gives you the information you need to get started with this quick-action form of trading for income and maintain your assets. Learn how the market works, how to read and predict price movements, and how to minimize your loss potential, so you can manage your money strategically and create your day trading plan. Expert author Ann Logue will set you on the path to success, showing you the techniques successful day traders use to profit. This new edition covers crypto, AI, meme stocks, new trading options, and the latest strategies. By following market indicators and doing the essential research, you can avoid making critical mistakes and instead make smart trades that earn money. Learn the basics of how the stock market works and master the concepts specific to day trading Understand the risks involved in fas

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Book Synopsis"Investing is a simple activity, which an entire industry strives to make complicated to justify its existence." At a time when a record number of people are investing in the stock market, this book by award-winning financial writer Nicolas Berube reveals how any investor can get rich and beat the professionals at their own game by investing less than an hour a year of their time. Admitting that he felt like a "zero" after his first mistakes as a beginner investor, Nicolas has never stopped trying to understand what separates the winners from the losers. He has observed how the greatest investors around the world think and act, meeting and interviewing many of them, and going on to include the revealing results here. He also uses little-known examples, such as the forgotten theft of the Mona Lisa, Isaac Newton's stock market disaster, and the mistake made by one of the world's greatest investors, to make learning about investing a compelling journey through history, psychology, and finance. Finally, using the latest research, he identifies proven and accessible ways to invest, and offers concrete advice on how to get started or take control of your investments today. From Zero to Millionaire gives you the tools to understand the stock market, and the skills to better manage your investments.

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Book SynopsisWhy just be contrarian when you can bet against consensus and be right? Through a meta-analysis of what moves markets and what drives human behavior, New York Times bestselling author and founder of Verdad Advisers, Daniel Rasmussen cuts through the 60/40 portfolio, exposing where empirical evidence shows the best opportunities—and where projections, models, and experts often fail—to create an asset allocation that can withstand the tests of time. In this exploration of intellectual truths in investing, Dan’s research shows that the investor’s edge lies in fundamentals over forecasts, humility over hubris, and demonstrated rules over dogma.

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Book SynopsisReal Estate Finance & Investments prepares readers to understand the risks and rewards of financing and investing in residential and commercial real estate. Concepts and techniques included in the chapters and problem sets are used in many careers related to real estate. These include investing, development financing, appraising, consulting, managing real estate portfolios, leasing, managing property, analyzing site locations, corporate real estate, and managing real estate investment funds. This material is also relevant to individuals who want to understand real estate better when making their own personal investment and financing decisions.? Real estate markets are impacted by many local, national, and international economic and demographic trends. This is coupled with new technology that impact different sectors of these markets. It is more important than ever to be able to evaluate how these trends will impact the risk and return for both lenders and investors.

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Book Synopsis'Tony Robbins returns with another must-read financial book revealing the strategies of many of the world’s greatest investors'RAY DALIO, founder of Bridgewater and author of PrinciplesTony Robbins, who has coached more than fifty million people from 100 countries, is the world’s #1 life and business strategist. In this new book, he teams up with Christopher Zook, a renowned financial investor who draws from thirty years of experience to round out the trilogy of #1 New York Times bestselling financial books. Together they reveal how, for decades, trillions of dollars of smart money­ – think of large institutions, sovereign wealth funds, individuals with ultra-high-net worth – have been making outsized returns using alternative investments in private equity, private credit, private real estate, energy and venture capital. Until recently, the vast majority of investors – those of us without insidTrade Review'Tony Robbins returns with another must-read financial book revealing the strategies of many of the world’s greatest investors' -- RAY DALIO, founder of Bridgewater and author of Principles'Robbins is the best economic moderator that I've ever worked with. His mission to bring insights from the world's greatest financial minds to the average investor is truly inspiring' -- ALAN GREENSPAN, former Federal Reserve chairman under four sitting presidents'Tony Robbins needs no introduction. He is committed to helping make life better for every investor' -- CARL ICAHN, billionaire activist and investor'Tony has a way of empowering the human soul to say "I will" rather than "I can" realise my best self. For the private wealth channel, this book unlocks the vast potential of alternatives' -- ROBERT F. SMITH, founder, chairman and CEO of Vista Equity Partners

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Book SynopsisExplains the fundamental and technical aspects you need to use to get the right balance in your market analysis. This book shows how to put these into practice with examples from real-life market action.

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Book SynopsisThis is not just another book with yet another trading system. This is a complete guide to developing your own systems to help you make and execute trading and investing decisions. It is intended for everyone who wishes to systematise their financial decision making, either completely or to some degree. Author Robert Carver draws on financial theory, his experience managing systematic hedge fund strategies and his own in-depth research to explain why systematic trading makes sense and demonstrates how it can be done safely and profitably. Every aspect, from creating trading rules to position sizing, is thoroughly explained. The framework described here can be used with all assets, including equities, bonds, forex and commodities. There is no magic formula that will guarantee success, but cutting out simple mistakes will improve your performance. You'll learn how to avoid common pitfalls such as over-complicating your strategy, being too optimistic about likely returns, taking excessive risks and trading too frequently. Important features include: - The theory behind systematic trading: why and when it works, and when it doesn't.- Simple and effective ways to design effective strategies.- A complete position management framework which can be adapted for your needs.- How fully systematic traders can create or adapt trading rules to forecast prices.- Making discretionary trading decisions within a systematic framework for position management.- Why traditional long only investors should use systems to ensure proper diversification, and avoid costly and unnecessary portfolio churn.- Adapting strategies depending on the cost of trading and how much capital is being used.- Practical examples from UK, US and international markets showing how the framework can be used.Systematic Trading is detailed, comprehensive and full of practical advice. It provides a unique new approach to system development and a must for anyone considering using systems to make some, or all, of their investment decisions.Trade Review"A remarkable look inside systematic trading never seen before, spanning the range from small to institutional traders. This isn't only for algorithmic traders, it's valuable for anyone needing a structure - which is all of us. Carver explains how to properly test, apply constant risk, size positions and portfolios, and my favorite, his "no rule" trading rule, all explained with scenarios. Reading this will benefit all traders." - Perry Kaufman, author of Trading Systems and Methods, 5th Edition (Wiley, 2013);Table of ContentsPreamble Preface - Systematic trading and investing - Who should read this book - Overview - what is coming Introduction - September 2008: The Billion Dollar Day - January 2009: Why (most) humans make poor traders - The black box is simpler than you think - An open source revolution - An open source systematic framework PART ONE: THEORY The good, the bad and the ugly of systematic trading - Humans should be great traders - in theory -- The death of rational economic man -- Why we run losses and stop out profits - Introducing a systematic rule for trading -- Stick to the rules and don't meddle -- Overcoming instinct - why 'contra' instinctive behaviour works -- Why subjective 'systems' don't work - Commitment mechanisms - how do we stop ourselves 'meddling'? -- Automation - the use of dogs in finance and engineering - Systematic trading in financial institutions The commitment problem does not go away... -- . but there are benefits - The ideal systematic trading shop - Two more tricks to reduce meddling -- Abstraction -- Ignorance - Designing systems to discourage meddling - the three virtues -- Trust your system -- Understand the limits of your ignorance -- Sleep at night: Position size is as important than position sign - When is meddling acceptable? -- Unacceptable meddling -- Acceptable meddling - Irrationality in trading system development - the three sins -- Overfitting -- Overtrading -- Overbetting Systematic strategies - Why do strategies 'work'? -- Risk premia -- Frictions and barriers to entry -- Information less trading -- Returns to effort and cost -- Behavioural effects -- Pure alpha:skill - What makes a good strategy? -- Intuitive -- Well motivated -- As simple as possible -- Can be systematised - Categorising the strategy universe -- Static versus Dynamic -- Buying and selling insurance -- Technical vs fundamental -- Fast vs Slow -- Directional vs cross sectional -- Low versus high leverage -- Many positions vs few positions -- Crowd following vs contrarian PART TWO: THE TOOLBOX - Model selection, calibration and fitting -- The perils of overfitting -- Distinguishing dud models from good models -- Fitting and overfitting - Four rules for effective fitting -- Start with a small number of ideas, not with data -- Save real data for a rainy day; use artificial data -- Don't fit unless there is a gun to your head -- If you must fit to real data, be very, very careful - Portfolio allocation -- Anecdote: When smart people make stupid decisions -- The bad news: Portfolio optimisation is hard -- A simple fix: bootstrapping -- 'Handcrafting' the weights: The heuristic method -- Some problems -- The good news PART THREE: THE FRAMEWORK An 'open source' framework for systematic trading and investing - Why an open source framework? -- Parallels with open source software -- Flexibility -- Individual seperable components with well defined interface -- Underlying logic exposed a+' easily modified - The elements of the framework -- Instruments to trade -- One or more signals -- Forecasts - combinations of signals -- Scaled positions -- Portfolios of positions -- Total capital scaling - money management -- Risk measurement and control - Modifying and extending the 'open source' framework Instruments - the building blocks - Asset classes: Stocks, bonds, ETF's, futures, CFD's ... - The character of different instruments - Portfolios as instruments - Spreads - a special kind of portfolio instrument - Summary - key points Signals - looking under the hood - What is a signal? - What properties should signals have? -- A signal is a scaled quantity -- But what scale -- Why it makes sense to have a unit variance signal -- Are jumpy signals okay? -- Should we allow signals to be as large as possible? -- Three signals in detail -- Summary From signals to forecast - Combination -- Linear versus non linear -- Choosing the weights - we need portfolio optimisation -- The diversification multiplier - Mapping function -- Binary -- Linear -- Linear with cutoffs (recommended) -- Linear with flat spot - Summary - the default system does... Position scaling - The magic number - Position is signal over standard deviation - Expected volatility -- How do we measure expected volatility? -- Dangers of low volatility -- A rule for low volatility - Summary - the default system position scaling is... Instrument weights - more portfolio allocation - Linear weighting for portfolios - Portfolio optimisation amongst instruments -- Which grouping for the heuristic? -- Multiple dimensions -- Portfolios of spreads - The diversification multiplier, part two - Summary Total capital scaling: Risk appetite and money management - How much can you lose? - A brief primer on the Kelly Criteria - From Sharpe to Kelly - The total capital scaling rule -- Low risk target, high worst loss; or high risk target, low worst loss? -- Upside ratcheting and downside adjustment - Special cases: Interest paying, living off the proceeds and principal protection - Summary Risk measurement and risk control - Some risk management issues -- What is risk and how do we measure it? -- Risk that's hard to measure -- Two key flavours of system for risk management - Built in risk management -- Risk managing at a signal level -- Risk managing at an instrument level - System level risk management -- Maximum estimated risk -- Correlation risk - the perfect storm -- Jump risk redux - low volatility -- Combining them - the worst case scenario multiplier -- The clipping problem - Outside the system - the risk envelope -- The risk envelope exists to avoid meddling -- Measuring the envelope -- Applying the envelope - Buying an insurance against poor performance - Summary Tailoring - Speed of trading -- Calculating the damage from trading too quickly -- Decomposing and calculating the cost of trading -- Applying the brakes - how to slow down -- Costs and calibration -- Some subtleties - Trading with more or less capital -- Trading with more capital -- Trading with less capital PART FOUR: PRACTICE Example one: Systematic trading for discretionary traders - Why use a systematic framework with discretionary decisions? -- Instruments -- Signals -- Forecasts -- Position scaling -- A 'portfolio' of trades - Total capital scaling - Risk control - Worked portfolio example - Extensions Example two: Systematic asset allocation; a long only risk parity portfolio - A risk parity system - Instruments to trade - World's dullest signal and forecast - Position scaling - Portfolio construction - the difficult part -- Bootstrap method -- Heuristic method - Total capital scaling - Risk control - Worked portfolio example - Extensions Example three: Fully systematic futures trading system - A futures system - Instruments - Signals -- Momentum -- Carry - Combining signals to get forecasts -- Cost estimation -- Heuristic -- Bootstrapping - Position scaling - A portfolio of instruments -- Heuristic -- Bootstrap - Total capital scaling - the dangers of easy leverage - Risk measurement and control - Worked portfolio example - Extensions Appendices Appendix A: Resources Further reading Data sources Brokers and platforms Coding Appendix B: Formulas Backtesting - Accounting - Costs - Judging the results -- Sharpe ratio -- T- test -- Skew Fitting Iterative binary grid search Portfolio construction - Markowitz portfolio optimisation - Bootstrapped portfolio optimisation - By hand portfolio optimisation -- Means -- Costs - specific case of means - Linear portfolio weighting and calculating the diversification effect - Nearest portfolio Signals - Random entry stop loss - Flip flop stop loss - Basic moving average crossover - Exponetial moving average crossover - Raw carry signal for generic asset - Raw carry signal futures contracts - Smoothed carry signal From signal to forecast - Individual signal scaling - Linear signal combination and calculating the diversification effect - Forecast mapping functions - Linear with cap -- Binary -- Cutoff - Position scaling -- Volatility estimation - Minimum volatility rule - Final position calculation - Portfolios of instruments - Total capital scaling -- Establishing the initial scalar -- The auto ratchet down -- The manual ratchet up - Risk measurement and control -- Natural risk scalar -- Vol shock risk scalar - Correlation shock scalar - Total risk scalar - System performance envelope

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Book SynopsisPraise For Damn Right! From the author of the bestselling WARREN BUFFETT SPEAKS Charlie Munger, whose reputation is deep and wide, based on an extraordinary record of brilliantly successful business strategies, sees things that others don't. There is a method to his mastery and, through this book, we get a chance to learn about this rare individual. MICHAEL EISNER, Chairman and CEO, The Walt Disney Company Janet Lowe uncovers the iconoclastic genius and subtle charm behind Charlie Munger's curmudgeonly facade in this richly woven portrait of our era's heir to Ben Franklin. With a biographer's detachment, an historian's thoroughness, and a financial writer's common sense, Lowe produces a riveting account of the family, personal, and business life of this idiosyncratically complex and endlessly fascinating figure. LAWRENCE A. CUNNINGHAM, Cardozo Law School, Author of The Essays of Warren Buffett: Lessons for Corporate AmericaTrade ReviewShe's Bullish on the Lifestyles of the Rich and Famous Money talks - in an astonishing number of languages. Janet Lowe' s books on business and finance have been translated into 17 tongues, including Thai, Hebrew, Slovenian and three different kinds of Chinese. President of the San Diego Press Club, former financial editor of the San Diego Tribune and the author of 16 books, Lowe' s writing focuses on the leaders of specific industries. Her latest work, "Damn Right! Behind the Scenes With Berkshire Hathaway Billionaire Charlie Munger," gives further evidence of Lowe' s expertise on money-related success. The very rich, she observes, seem to have one particular thing in common. "The people that I have written about all earned their own wealth. They are not inheritors. They did not fall by it accidentally," she said. "It came about as the result of having a particular talent that they recognized very early in their lives, and they concentrated on it." She says that Warren Buffett was fascinated by investing even as a child, that Oprah Winfrey began working in radio and television while still in high school, that Ted Turner, although a "wild child," was always someone who saw big ideas and took big risks. Lowe challenges the stereotype of the wealthy as dishonest and ruthless. Money talks - but it talks straight. "People usually do not rise to this level unless they' re very smart, good communicators, and ethical," she explained. "You may not agree with the philosophy of a Warren Buffett or a Jack Welch (the head of General Electric) and with what they do or how they feel, but they are honest and true to themselves and they follow an ethical course. They'll tell you that if you' re not a straight shooter and an honest dealer, people will see that and not work with you." The San Diego Union-Tribune Online (By Sarah Sabalos LaSpaluto, October 29, 2000 "Janet Lowe's extensive access to Charlie Munger, his family, friends and business partners has ensured a perceptive look at the man and his business methods." (Lloyd's List, 9th December 2000) "This is a well-written, fascinating, cautionary tale which examines the seductive nature of power, and people's willingness to believe in these latter-day icons." (International Wealth Management, October 2000)Table of ContentsAn Extraordinary Combination of Minds. The Lake--A PLace That Defines Munger. The Nebraskans. Surviving the Wars. Putting Together a New Life. Munger Makes His First Million. A Combination of Big Ideas. Pound-for-Pound, the Best Law Firm. Operating Wheeler, Munger Out of a Utility Room. Blue Chip Stamps. See's Candy Teaches a Lesson. The Belous Case. The Buffalo Evening News. Charles Munger Goes to War with the Savings and Loan Industry. The Blossoming of Berkshire Hathaway. Berkshire in the 1990s--Power Building. Salomon Brothers. The Daily Journal Corporation--A Modest Media Empire. Doing Good at Good Samaritan Hospital. Elder Statesman and Conscience of the Investment World. A Time to Reap Rewards. Appendices. Notes. Index.

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Book SynopsisIn The Little Book That Builds Wealth, author Pat Dorsey-the Director of Equity Research for leading independent investment research provider Morningstar, Inc.Trade Review"A detailed exploration of Warren Buffet's "wide economic moat" concept - how to find companies with a true in-built competitive advantage." (Financial Times, Tues 26th February) "Pat Dorsey...discusses in an easy to read style why economic moats are such great indicators of long term performance." (Pensions World, October 2008)Table of ContentsForeword xi Acknowledgments xvii Introduction The Game Plan 1 Chapter One Economic Moats 7 Chapter Two Mistaken Moats 15 Chapter Three Intangible Assets 29 Chapter Four Switching Costs 43 Chapter Five The Network Effect 57 Chapter Six Cost Advantages 75 Chapter Seven The Size Advantage 91 Chapter Eight Eroding Moats 103 Chapter Nine Finding Moats 115 Chapter Ten The Big Boss 133 Chapter Eleven Where the Rubber Meets the Road 143 Chapter Twelve What’s a Moat Worth? 159 Chapter Thirteen Tools for Valuation 171 Chapter Fourteen When to Sell 187 Conclusion More than Numbers 197

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Book SynopsisScott Carney, President and Founder of HarmonicTrader.com, has defined a system of price pattern recognition and Fibonacci measurement techniques that comprise the Harmonic Trading approach. He has named and defined harmonic patterns such as the Bat pattern, the ideal Gartley pattern, and the Crab pattern. He is the author of three books: The Harmonic Trader (1999), Harmonic Trading of the Financial Markets: Volume One (2004), and Harmonic Trading of the Financial Markets: Volume Two (2007). In 2005, Carney joined A.I.G. Financial Advisors as a Registered Investment Advisor. He has since left A.I.G. Financial Advisors after two years to start his own firm. In addition, Carney is a full member of the Market Technicians Association (www.mta.org) and the American Association of Professional Technical Analysts (www.aapta.us). He has been a regular columnist on several well-known websites, such as StockCharts.com, TradingMarkets.com, and eSignaTrade Review"To be useful, a trading methodology must be understood. Simplicity is a bonus. Harmonic Trading: Profiting from the Natural Order of the Financial Markets, Vol. 1 by Scott M. Carney succeeds on both counts. This first volume of a promising series on harmonic trading will benefit traders seeking to improve their models." --George A. Schade Jr., CMT, Stock Futures and Options, January 2011.Table of ContentsIntroduction 1 Chapter 1 Harmonic Trading 7 Chapter 2 Fibonacci Numbers 11 Chapter 3 Pattern Identification 35 Chapter 4 The AB=CD Pattern 41 Chapter 5 The Bat Pattern 71 Chapter 6 The Gartley Pattern 97 Chapter 7 The Crab Pattern 121 Chapter 8 The Ideal Butterfly Pattern 149 Chapter 9 Trade Execution 171 Chapter 10 Price Action in the Potential Reversal Zone (PRZ) 185 Chapter 11 The Harmonic Trade Management System 203 Chapter 12 Pattern Violations 233 Conclusion 251 Bibliography 253 Index 255

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Book SynopsisThe Warren Buffett Way Workbook consists of over 500 questions and answers to help readers of The Warren Buffett Way reinforce and cement their knowledge of Buffett s hugely successful investment approach.Table of ContentsPreface ix Part I Questions Chapter One A Five-Sigma Event: The World’s Greatest Investor 3 Multiple-Choice Questions 3 Essay Questions 8 Chapter Two The Education of Warren Buffett 9 Multiple-Choice Questions 9 Essay Questions 17 Chapter Three Buying a Business: The Twelve Immutable Tenets 19 Multiple-Choice Questions 19 Essay Questions 31 Chapter Four Common Stock Purchases: Nine Case Studies 35 Multiple-Choice Questions 35 Essay Questions 48 Chapter Five Portfolio Management: The Mathematics of Investing 53 Multiple-Choice Questions 53 Essay Questions 64 Chapter Six The Psychology of Investing 67 Multiple-Choice Questions 67 Essay Questions 73 Chapter Seven The Value of Patience 77 Multiple-Choice Questions 77 Essay Questions 82 Chapter Eight The World’s Greatest Investor 85 Multiple-Choice Questions 85 Essay Questions 95 Part II Answers Chapter One A Five-Sigma Event: The World’s Greatest Investor 99 Answers to Multiple-Choice Questions 99 Essay Answers 102 Chapter Two The Education of Warren Buffett 107 Answers to Multiple-Choice Questions 107 Essay Answers 112 Chapter Three Buying a Business: The Twelve Immutable Tenets 119 Answers to Multiple-Choice Questions 119 Essay Answers 127 Chapter Four Common Stock Purchases: Nine Case Studies 139 Answers to Multiple-Choice Questions 139 Essay Answers 148 Chapter Five Portfolio Management: The Mathematics of Investing 163 Answers to Multiple-Choice Questions 163 Essay Answers 170 Chapter Six The Psychology of Investing 181 Answers to Multiple-Choice Questions 181 Essay Answers 186 Chapter Seven The Value of Patience 193 Answers to Multiple-Choice Questions 193 Essay Answers 196 Chapter Eight The World’s Greatest Investor 201 Answers to Multiple-Choice Questions 201 Essay Answers 207 About the Authors 213

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Book SynopsisA self study exam preparatory guide for financial technical analysis certifications Written by the course director and owner of www. tradermasterclass.Table of ContentsForeword xiii Preface xv Acknowledgments xxi About the Author xxiii Chapter 1 Introduction to the Art and Science of Technical Analysis 1 1.1 Main Objective of Technical Analysis 1 1.2 Dual Function of Technical Analysis 3 1.3 Forecasting Price and Market Action 3 1.4 Classifying Technical Analysis 11 1.5 Subjectivity in Technical Analysis 16 1.6 Basic Assumptions of Technical Analysis 30 1.7 Four Basic Assumptions in the Application of Technical Analysis 39 1.8 Market Participants 40 1.9 Chapter Summary 42 Chapter 1 Review Questions 43 Chapter 2 Introduction to Dow Theory 45 2.1 Origins and Proponents of Dow Theory 45 2.2 Basic Assumptions of Dow Theory 46 2.3 Challenges to Dow Theory 62 2.4 Chapter Summary 64 Chapter 2 Review Questions 64 Chapter 3 Mechanics and Dynamics of Charting 65 3.1 The Mechanics and Dynamics of Charting 65 3.2 Gap Action: Four Types of Gaps 72 3.3 Constant Chart Measures 73 3.4 Futures Contracts 89 3.5 Chapter Summary 97 Chapter 3 Review Questions 98 Chapter 4 Market Phase Analysis 99 4.1 Dow Theory of Market Phase 99 4.2 Chart Pattern Interpretation of Market Phase 104 4.3 Volume and Open Interest Interpretation of Market Phase 112 4.4 Moving Average Interpretation of Market Phase 115 4.5 Divergence and Momentum Interpretation of Market Phase 116 4.6 Sentiment Interpretation of Market Phase 118 4.7 Sakata’s Interpretation of Market Phase 119 4.8 Elliott’s Interpretation of Market Phase 120 4.9 Cycle Analysis Interpretation of Market Phase 122 4.10 Chapter Summary 124 Chapter 4 Review Questions 124 Chapter 5 Trend Analysis 125 5.1 Definitions of a Trend 125 5.2 Quality of Trend: 16 Price Characteristics Impacting Future Price Action and Trend Strength 132 5.3 Price and Trend Filters 144 5.4 Trend Participation 145 5.5 Price Inflection Points 148 5.6 Trendlines, Channels, and Fan Lines 155 5.7 Trend Retracements 166 5.8 Gaps and Trends 166 5.9 Trend Directionality 168 5.10 Drummond Geometry 169 5.11 Forecasting Trend Reversals 170 5.12 Chapter Summary 171 Chapter 5 Review Questions 171 Chapter 6 Volume and Open Interest 173 6.1 The Mechanics of Volume Action 173 6.2 Volume Oscillators 203 6.3 Chapter Summary 208 Chapter 6 Review Questions 208 Chapter 7 Bar Chart Analysis 209 7.1 Price Bar Pattern Characteristics 209 7.2 Price Bar Pattern Characteristics 211 7.3 Popular Bar Reversal Patterns 218 7.4 Volatility‐Based Breakout Patterns 230 7.5 Chapter Summary 233 Chapter 7 Review Questions 233 Chapter 8 Window Oscillators and Overlay Indicators 235 8.1 Defining Indicators and Oscillators 235 8.2 Eight Ways to Analyze an Oscillator 240 8.3 Cycle Period, Multiple Timeframes, and Lagging Indicators 252 8.4 Input Data 253 8.5 Trend Trading Using Oscillators 255 8.6 Window Oscillators 255 8.7 Overlay Indicators 262 8.8 Chapter Summary 266 Chapter 8 Review Questions 266 Chapter 9 Divergence Analysis 267 9.1 Definition of Divergence 268 9.2 General Concept of Divergence 272 9.3 Standard and Reverse Divergence 291 9.4 Price Confirmation in Divergence Analysis 323 9.5 Signal Alternation between Standard and Reverse Divergence 337 9.6 More Examples of Divergence 338 9.7 Chapter Summary 354 Chapter 9 Review Questions 355 Chapter 10 Fibonacci Number and Ratio Analysis 357 10.1 The Fibonacci Number Series 357 10.2 Fibonacci Ratios 359 10.3 Fibonacci Retracements, Extensions, Projections, and Expansions 363 10.4 Fibonacci (Φ‐Based) Percentage Retracement Levels within an Observed Price Range 368 10.5 Fibonacci (Φ‐Based) Percentage Extension Levels beyond an Observed Price Range 375 10.6 Fibonacci (Φ‐Based) Percentage Expansion Levels beyond an Observed Price Range 379 10.7 Fibonacci (Φ‐Based) Percentage Projection Levels from a Significant Peak or Trough 384 10.8 Why Should Fibonacci Ratios or Numbers Work at All? 388 10.9 Geometrically versus Numerically Based Fibonacci Operations 389 10.10 The Fibonacci Trader’s Technical Toolbox 392 10.11 Area of Application 394 10.12 Selecting Effective Inflection Points for Fibonacci Operations 396 10.13 Fibonacci, Dow, Gann, and Floor Trader’s Pivot Point Levels 397 10.14 Probability of Continuation and Reversal in Fibonacci Retracements and Extensions 400 10.15 Fibonacci‐Based Entries, Stoplosses, and Minimum Price Objectives 400 10.16 Fibonacci Two‐ and Three‐Leg Retracements 402 10.17 Fibonacci Fan Lines 409 10.18 Fibonacci Channel Expansions 412 10.19 Fibonacci Arcs 414 10.20 Supportive and Resistive Fibonacci Clusters 415 10.21 Potential Barriers in Fibonacci Projections 417 10.22 Fibonacci Time and Ratio Projection Analysis on Elliott Waves 417 10.23 Chapter Summery 431 Chapter 10 Review Questions 431 Chapter 11 Moving Averages 433 11.1 Seven Main Components of Moving Averages 433 11.2 Nine Main Applications of Moving Averages 451 11.3 Chapter Summary 462 Chapter 11 Review Questions 463 Chapter 12 Envelopes and Methods of Price Containment 465 12.1 Containing Price Action and Volatility about a Central Value 465 12.2 Adjusting Bands for Effective Price Containment 475 12.3 Methods of Price Containment 477 12.4 Chapter Summery 492 Chapter 12 Review Questions 492 Chapter 13 Chart Pattern Analysis 495 13.1 Elements of Chart Pattern Analysis 495 13.2 Preconditions for Reliable Chart Pattern Reversals 499 13.3 Popular Chart Patterns 502 13.4 Chapter Summery 540 Chapter 13 Review Questions 540 Chapter 14 Japanese Candlestick Analysis 541 14.1 Elements of Candlestick Analysis 541 14.2 Popular Candlestick Patterns and Their Psychology 555 14.3 Integrating Candlestick Analysis 578 14.4 Filtered Candlesticks 583 14.5 Trading with Candlesticks 584 14.6 Chapter Summary 588 Chapter 14 Review Questions 588 Chapter 15 Point‐and‐Figure Charting 589 15.1 Basic Elements of Point‐and‐Figure Charts 589 15.2 Basic Point‐and‐Figure Chart Patterns 600 15.3 Point‐and‐Figure Minimum Price Objectives 619 15.4 Bullish Percent Index and Relative Strength 623 15.5 Chapter Summary 624 Chapter 15 Review Questions 624 Chapter 16 Ichimoku Charting and Analysis 627 16.1 Constructing the Five Ichimoku Overlays 627 16.2 Functional Aspect of Ichimoku Overlays 633 16.3 Advantages and Disadvantages of Using Ichimoku Charting 643 16.4 Time and Price Domain Characteristics of Ichimoku Overlays 644 16.5 Basic Ichimoku Price‐Projection Techniques 649 16.6 Chapter Summary 649 Chapter 16 Review Questions 650 Chapter 17 Market Profile 651 17.1 The Search for Fair Price or Value 651 17.2 The Daily Profile Formations 665 17.3 Chapter Summary 671 Chapter 17 Review Questions 671 Chapter 18 Basic Elliott Wave Analysis 673 18.1 Elements of Elliott Wave Analysis 673 18.2 Rules and Guidelines 676 18.3 Motive Waves 676 18.4 Corrective Waves 678 18.5 Wave Extensions and Truncation 682 18.6 Alternation 683 18.7 Wave Equality 683 18.8 Fibonacci Ratio and Number Analysis of Elliott Waves 684 18.9 Chapter Summary 684 Chapter 18 Review Questions 684 Chapter 19 Basics of Gann Analysis 687 19.1 Techniques of W. D. Gann 687 19.4 Chapter Summary 710 Chapter 19 Review Questions 711 Chapter 20 Cycle Analysis 713 20.1 Elements of Cycle Analysis 713 20.2 Principles of Cycle Analysis 720 20.3 Additional Cyclic Characteristics 724 20.4 Tuning Oscillator and Overlay Indicators to the Dominant Cycle Period 725 20.5 Identifying Price Cycles 726 20.6 Chapter Summary 731 Chapter 20 Review Questions 731 Chapter 21 Volatility Analysis 733 21.1 The Concept of Change and Volatility 733 21.2 Some Statistical Measures of Price Volatility 743 21.3 Other Measures of Market Volatility 754 21.4 Chapter Summary 757 Chapter 21 Review Questions 757 Chapter 22 Market Breadth 759 22.1 Elements of Broad Market Action 759 22.2 Components of Market Breadth 762 22.3 Market‐Breadth Indicators in Action 765 22.4 Chapter Summary 777 Chapter 22 Review Questions 777 Chapter 23 Sentiment Indicators and Contrary Opinion 779 23.1 Assessing the Emotion and Psychology of Market Participants 779 23.2 Price‐Based Indicators versus Sentiment Indicators 783 23.3 Assessing Participant Actions 784 23.4 Assessing Participants’ Opinions 788 23.5 Chapter Summary 791 Chapter 23 Review Questions 791 Chapter 24 Relative Strength Analysis 793 24.1 Measuring Relative Performance 793 24.2 Chapter Summary 811 Chapter 24 Review Questions 811 Chapter 25 Investor Psychology 813 25.1 General Behavioral Aspects 813 25.2 Behavioral Elements Associated with Chart Patterns 815 25.3 Behavioral Elements Associated with Market Trends 817 25.4 Behavioral Aspects of Market Consolidations 820 25.5 Behavioral Aspects of Market Reversals 821 25.6 Chapter Summary 823 Chapter 25 Review Questions 823 Chapter 26 Trader Risk Profiling and Position Analysis 825 26.1 Fulfilling Client Objectives and Risk Capacity 826 26.2 Aggressive and Conservative Market Participation 827 26.3 Categorizing Clients according to Term Outlook and Sentiment 835 26.4 The Seven Participatory Options 838 26.5 Triggers, Signals, Price Targets, and Stoplosses 838 26.6 Confirming and Non‐Confirming Price Action and Filters 841 26.7 Collecting, Categorizing, and Organizing Technical Data 843 26.8 Multi‐Timeframe Confirmation 845 26.9 Reconciling Technical Outlook with Client Interest 846 26.10 Hedging Positions with Derivatives 847 26.11 Chapter Summary 847 Chapter 26 Review Questions 847 Chapter 27 Integrated Technical Analysis 849 27.1 The Integrated Components of Technical Analysis 849 27.2 Classification of Clusters and Confluences 854 27.3 Chapter Summary 877 Chapter 27 Review Questions 877 Chapter 28 Money Management 879 28.1 Elements of Money Management 879 Chapter 28 Review Questions 912 Chapter 29 Technical Trading Systems 913 29.1 Conceptualizing a Trading System 913 29.2 Basic Components of a Trading System 915 29.3 System Testing and Optimization 915 29.4 Performance Measurement 919 29.5 Chapter Summary 920 Chapter 29 Review Questions 920 Appendix A Basic Investment Decision Making Based on Chart Analysis 923 Appendix B Official IFTA CFTe, STA Diploma (UK), and MTA CMT Exam Reading Lists 933 About the Test Bank and Website 937 Index 939

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Book SynopsisProven currency--specific trading strategies from one of todaya s top currency analysts "If you trade currency, then you need to have this book on your desk. Ita s the only book you need for technical analysis of the fastest--moving market on the planet. " --Rob Booker, Currency Trader, W.R.Table of ContentsChapter 1: FX 101. Chapter 2: Is It All Just Random? Chapter 3: The Secret to Trading. Chapter 4: Show Me the Data! Chapter 5: Trend Is Your Friend? Chapter 6: Gauging Range. Chapter 7: Fibs Don’t Fib. Chapter 8: Patterns and Antipatterns: Know Your Mark. Chapter 9: Know Yourself, Know Your Setup. Chapter 10: Setups! Setups! Setups! Glossary. Index.

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Book SynopsisApproaches trading from the viewpoint of market makers and the part they play in pricing, valuing and placing positions. Covers option volatility and pricing, risk analysis, spreads, strategies and tactics for the options trader, focusing on how to work successfully with market makers.Table of ContentsEconomics of Option Market Making. Options. Option Risks. Position Risk Profiles. Synthetic Option Market Making. Calendar Spread Risk. On Strategy. Market-Making Tactics. Observations from the Floor. Appendix. References and Suggested Reading. Index.

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Book SynopsisProvides the blueprint necessary for sound and profitable short-term trading in a post-market meltdown economy. This book highlights the advantages and disadvantages of what can be a very fruitful yet potentially dangerous endeavor.Table of ContentsAcknowledgments xi Introduction You Are Already a Commodity Trader 1 My Most Important Market Belief 4 The Beginning of My Career as a Speculator 5 The Ride of a Lifetime 8 Chapter 1 Making Order Out of Short-Term Chaos 9 How I Learned about the Market 9 Charting the Market 11 The Nonrandom Market 13 Understanding Market Structure 15 Market Structure Will Never Change 21 Short-Sell Pattern 27 Target Time and Trailing Stops 28 Recap 32 Chapter 2 It’s a Question of Price and Time 33 All You Will Ever Need to Know about Cycles 33 The Natural Cycle of Range Change 39 Where the Trend Is with You—The Second Power-Play Price Pattern 50 Recap 54 Chapter 3 The Real Secret to Short-Term Trading 59 It’s All about Time 61 Bankrolling Hotshot Traders 62 Proving the Point 65 How to Make the Most Money 68 Recap 70 Chapter 4 Volatility Breakouts—The Momentum Breakthrough 71 Simple Daily Range Breakouts 76 A Look at Volatility in the S&P 500 80 Separating Buyers from Sellers to Find Volatility Using Market Swings 95 Results 96 One Step Further 97 Recap 98 Chapter 5 The Theory of Short-Term Trading 99 What Is Wrong about the Information Age 103 E H Harriman’s Rule of Making Millions 104 Recap 105 Chapter 6 Getting Closer to the Truth 107 The Market Is Not a Coin Flip: Random Walk or Cootner versus Cohen (Cohen Wins) 108 Gold TDOM Study 117 Bond TDOM Study 118 Monthly Road Maps 120 Recap 123 Chapter 7 Patterns to Profit 125 The Common Element 126 The Questions to Ask 131 My Smash Day Patterns 132 How to Use Smash Day Patterns 136 Specialists’ Trap 137 A Vital Note—This Works on Shorter Time Frames as Well 141 Oops! This Is Not a Mistake 145 S&P Oops! Trading 151 Recap 152 Chapter 8 Separating the Buyers from the Sellers 153 Greatest Swing Value 155 Stock Index Trading with Greatest Swing Value 156 Some Pointers 160 Recap 161 Chapter 9 Short-Term Trading from a Quote Screen 163 How a Quote-Screen Trader Makes Money 165 Swing Points as Trend Change Indication 166 The Three-Bar High/Low System 167 A New Indicator for Short-Term Traders: Willspread 170 Willspread and the S&P 500 Stock Index 174 Recap 180 Chapter 10 Special Short-Term Situations 181 Month-End Trading in Stock Indexes 181 Target Months 184 Making It Better 184 Month-End Trading in the Bond Market 186 Getting Specific 187 Better and Better 188 A Time to Sell 191 Recap 193 Chapter 11 When to Get Out of Your Trades 195 Chapter 12 Thoughts on the Business of Speculation 197 Exits before Entries 197 What Speculation Is All About 200 It’s about Time 201 Essential Points about Speculation 202 Recap 215 Chapter 13 Money Management—The Keys to the Kingdom 217 Most Traders Use a Hit-and-Miss Approach 218 Approaches to Money Management—One Is Right for You 218 The Good, the Bad, and the Ugly of Money Management 219 Looking in New Directions, Drawdown as an Asset 222 Back to Ralph: 2011 Money Management Breakthrough 228 The Kelly Ratio Mirage 229 Recap 233 Chapter 14 From Kennedy to Obama, Thoughts from 50 Years of Trading 235 Trading and Collecting Honey 236 Low-Hanging Fruit 237 Look before You Leap 238 Remember the Game Called Pick Up Sticks 238 And It Can Get Worse by Far 239 Lock-Up Time 240 Enough on Greed Now Let’s Deal with Fear 241 Running, Trading, and Losing 242 Doing the Wrong Thing It’s So Easy, Isn’t It? 242 It’s Not the Trade, It’s the Battle 243 The Art of Fly-Fishing Revisited 244 Fear and Greed, Looking Them in the Face Again 245 Why Most Traders Lose Most of the Time 246 A Review of Losing Trades Showed That 247 The Number One Reason We Lose Money Trading 247 The Most Important Trading Belief You Have 248 The Worst Dog I Ever Had Cost Me the Most 249 Athletics Are Such a Parallel to Trading 251 What Causes Stock and Commodity Market Trends 251 How to Measure the Public versus the Pros 253 Folks, It Just Can’t Be Done 254 The Rush of Trading 255 Beating Them to the Punch 257 It’s Just Over My Head 259 I Looked Fear and Greed in the Face 259 The Show Must Go On 260 Broken Noses, Cauliflower Ears, and Bad Trades 261 Learning How to Lose Money 262 Hillary, High Hopes, and Heartaches 263 Nervous Nellies—Heaven Bound 264 Secrets of System Developing and Trading 265 The Difference between Winners and Losers 266 Recap 268 Chapter 15 Just What Does Make the Stock Market Rally? 269 Logic 101 270 These Words Are My Bond 270 A Look at Data A and Data B 270 Let’s Break Some Bad Habits 273 How to Break Bad Habits 273 Comments on Setting Stops—Dollar Loss and Unpredictability 275 An Overview of How I Trade 278 My Trading Strategy How It Works 282 Recap 285 Chapter 16 Hard Facts about a Very Hard Game to Win 287 It Is Just Like Life 289 Maybe You Are Not Cut Out for This 292 You Are in a Tough Spot 293 But There’s a Little Bit More 294 In Closing 295 Index 297

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