Something Interesting to Read November 2016 - page 2

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Muhammad Syamil Bin Abdullah
1533
Muhammad Syamil Bin Abdullah  

Fibonacci Analysis by Constance Brown

 

Only someone who is both a successful trader and a successful writer could pull off what Constance Brown has accomplished in this book: distilling Fibonacci analysis to two hundred or so comprehensive, clearly written, eminently practical pages.

Brown knows exactly what a professional trying to come up to speed on a new trading tool needs and she provides it, covering what Fibonacci analysis is, how it works, where it comes from, pitfalls and dangers, and, of course, how to use it. Basic trading strategies are touched upon in virtually every chapter.

Fibonacci analysis is one of the most popular technical analysis tools, yet it is often used incorrectly. Brown quickly clears up common misconceptions and moves on to show, step by step, the correct way to apply the technique in any market.

Those with Fibonacci analysis software will learn how to use it with maximum effectiveness; those without will chart the market the old-fashioned way. All will find answers to the trader's most important questions:

  • Where is the market going?
  • At what level should my stop be entered?
  • Based on the size of my trading account, how much should I leverage into a trading position?
  • Can I tell if I am in trouble before my stop is hit?
  • How much should I buy or sell if given a second or third opportunity?

Occasional references to other tools--including Elliott Wave, W.D. Gann, and candlestick charts--and an extensive bibliography make this book richer for accomplished technical analysts without confounding the less experienced. Plentiful real-life examples and dozens of carefully annotated charts insure every reader will get maximum value from every minute spent with this book.

 

About the Author

Constance Brown, CMT, is on the accreditation board of the Market Technicians Association. Her book, Technical Analysis for the Trading Professional, is required reading for the Level III Chartered Market Technician certification exam. She founded Aerodynamic Investments to advise and offer research to financial institutions and banks worldwide. Clients include Credit Suisse, Merrill Lynch, Morgan Stanley, Bundesbank, and Bank of Tokyo as well as clients in Kuwait, South Africa, Australia, Russia, and Indonesia. Previously, she worked as an institutional trader in New York City. She now lives and works in South Carolina. She is the author of six other books.

Muhammad Syamil Bin Abdullah
1533
Muhammad Syamil Bin Abdullah  

The Economic Indicator Handbook: How to Evaluate Economic Trends to Maximize Profits and Minimize Losses by Richard Yamarone


The Economic Indicator Handbook: How to Evaluate Economic Trends to Maximize Profits and Minimize Losses

 

Analyze key indicators more accurately to make smarter market moves

 

The Economic Indicator Handbook helps investors more easily evaluate economic trends, to better inform investment decision making and other key strategic financial planning. Written by a Bloomberg Senior Economist, this book presents a visual distillation of the indicators every investor should follow, with clear explanation of how they're measured, what they mean, and how that should inform investment thinking. The focus on graphics, professional application, Bloomberg terminal functionality, and practicality makes this guide a quick, actionable read that could immediately start improving investment outcomes. Coverage includes gross domestic product, employment data, industrial production, new residential construction, consumer confidence, retail and food service sales, and commodities, plus guidance on the secret indicators few economists know or care about.

 

Past performance can predict future results – if you know how to read the indicators. Modern investing requires a careful understanding of the macroeconomic forces that lift and topple markets on a regular basis, and how they shift to move entire economies. This book is a visual guide to recognizing these forces and tracking their behavior, helping investors identify entry and exit points that maximize profit and minimize loss.

            Quickly evaluate economic trends

            Make more informed investment decisions

           Understand the most essential indicators

           Translate predictions into profitable actions

Savvy market participants know how critical certain indicators are to the formulation of a profitable, effective market strategy. A daily indicator check can inform day-to-day investing, and long-term tracking can result in a stronger, more robust portfolio. For the investor who knows that better information leads to better outcomes, The Economic Indicator Handbook is an exceptionally useful resource.

Muhammad Syamil Bin Abdullah
1533
Muhammad Syamil Bin Abdullah  

Equity Markets and Portfolio Analysis


In recent years, changes have swept through the investment industry like wildfire. Academia has followed along and provided new lenses for viewing this transformation, as well as new strategies for gaining a true understanding and knowledge of investment and financial markets. Now, Equity Markets and Portfolio Analysis has been created to further inform investment professionals and finance students on the basic concepts and strategies of investments, and to provide more detailed discussions on advanced strategies and models. The concepts covered in this book will help readers gain a better understanding of the markets and uses for an increasing number of securities, strategies, and methodologies.

Equity Markets and Portfolio Analysis is the only core investment book that covers the functionality of Bloomberg terminals, increasingly critical tools both in the classroom and on the trading floor. As Bloomberg terminals now play a key role in the research, teaching, and managing of student investment funds, understanding the system's information and analytical functions has become more important than ever.

  • In-depth coverage of fundamentals through more detailed concepts for students and professionals who want to better understand the evaluation, selection, and management of securities
  • One-of-a-kind training and instructional course, introduction to Bloomberg investment subjects, and reference for CFA preparation
  • Bloomberg material provided in an appendix accompanying each chapter, a useful option for professors
  • Ideal for finance practitioners, investment bankers, and academics

This unique resource will give readers both the foundational knowledge and the analytical tools necessary for investment success, both in the classroom and in the real world.

Table of Contents

Preface ix

Acknowledgments xiii

CHAPTER 1 Overview of the Financial System 1

CHAPTER 2 Overview and Guide to the Bloomberg System 29

CHAPTER 3 Stock and Bond Valuation and Return 73

CHAPTER 4 Equity Securities, Markets, and Trading 131

CHAPTER 5 Investment Funds, Intermediate Securities, and Global Equity Markets 179

CHAPTER 6 Expected Rate of Return and Risk—Stock 221

CHAPTER 7 Portfolio Evaluation 267

CHAPTER 8 Portfolio Selection—Markowitz Model 303

CHAPTER 9 The Capital Asset Pricing Model 347

CHAPTER 10 The Arbitrage Pricing Theory 365

CHAPTER 11 The Financial Anatomy of a Company—Fundamental Analysis 385

CHAPTER 12 Applied Fundamental Analysis 437

CHAPTER 13 Market and Industrial Analysis: Top-Down Approach 487

CHAPTER 14 Technical Analysis 537

CHAPTER 15 Efficient Markets 581

CHAPTER 16 Options Markets 623

CHAPTER 17 Futures Markets 669

Index 695


Author Information

R. STAFFORD JOHNSON is Professor of Finance at the Williams College of Business, Xavier University. He is the author of five books: Options and Futures, Introduction to Derivatives, two editions of Bond Evaluation, Selection, and Management, and Debt Markets and Analysis. He has also written articles appearing in journals such as Applied Economics, Journal of Financial Education, International Review of Economics & Business, Journal of Economics, The Financial Review, and the Review of Quantitative Finance and Accounting.



Sergey Golubev
Moderator
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Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read August 2014

Muhammad Syamil Bin Abdullah, 2014.08.24 13:55

Following The Trend : Diversified Managed Futures Trading


During bull and bear markets, there is a group of hedge funds and professional traders which have been consistently outperforming traditional investment strategies for the past 30 odd years. They have shown remarkable uncorrelated performance and in the great bear market of 2008 they had record gains.  These traders are highly secretive about their proprietary trading algorithms and often employ top PhDs in their research teams. Yet, it is possible to replicate their trading performance with relatively simplistic models. These traders are trend following cross asset futures managers, also known as CTAs.  Many books are written about them but none explain their strategies in such detail as to enable the reader to emulate their success and create their own trend following trading business, until now. 
Following the Trend explains why most hopefuls fail by focusing on the wrong things, such as buy and sell rules, and teaches the truly important parts of trend following. Trading everything from the Nasdaq index and T-bills to currency crosses, platinum and lean hogs, there are large gains to be made regardless of the state of the economy or stock markets. By analysing year by year trend following performance and attribution the reader will be able to build a deep understanding of what it is like to trade futures in large scale and where the real problems and opportunities lay.
Written by experienced hedge fund manager Andreas Clenow, this book provides a comprehensive insight into the strategies behind the booming trend following futures industry from the perspective of a market participant. The strategies behind the success of this industry are explained in great detail, including complete trading rules and instructions for how to replicate the performance of successful hedge funds. You are in for a potentially highly profitable roller coaster ride with this hard and honest look at the positive as well as the negative sides of trend following.


Muhammad Syamil Bin Abdullah
1533
Muhammad Syamil Bin Abdullah  

How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life



Foreign exchange is the most traded instrument in the world. It's not hard to understand why. Nobody needs to buy stocks, but because of today's extensive global trade we must all deal directly or indirectly with the forex world. Yet, while trading foreign exchange is one of the most exciting and potentially lucrative activities in the world, about 90 percent of traders lose money. In How to Make a Living Trading Foreign Exchange, Courtney D. Smith provides a concrete and comprehensive approach to becoming a profitable forex trader.

Smith first explains all the basic information you need to know to get started in trading forex. He then introduces the tested, profitable techniques that will help you make money in the forex market, offering a variety of different methods to use over different time horizons—from those that look at the market from the perspective of days and weeks to those that hold positions for less than one day. Smith describes, for instance, a system that monitors the market from three different time perspectives and doesn't enter the market until all three are calling for an entry into the market.

He also details a new way to filter trades that eliminates about half of all losing transactions. And he tells how to sidestep the usual traps that drain money from your account using his method to identify short-term turning points and, more important, to identify major turning points. Smith concludes by showing you how all the techniques in the book fit together into a coordinated program for creating profits.

Throughout the book, the author stresses the two most important aspects of trading: risk management and trader psychology. How to Make a Living Trading Foreign Exchange shows how to take risk management one step beyond and use it as an offensive weapon for enhancing profits. And perhaps, most important, it tells how to overcome the biggest block against making money in the markets: your own psychology. Whether you're a novice or a pro, says Smith, following the techniques in this book will turn forex trading into your ticket to financial freedom.

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Nice sharing
Sergey Golubev
Moderator
118406
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read March 2016

Sergey Golubev, 2016.03.02 08:27

Technical Analysis for the Trading Professional: Strategies and Techniques for Today's Turbulent Global Financial Markets
by Constance Brown


"Now in its second decade, Technical Analysis for the Trading Professional is the number-one go-to guide for market technicians seeking to improve their market timing skills with the most up-to-date tools and techniques. This second edition provides an updated look at unique formulas and key indicators, while retaining all the foundational material that made the previous edition an instant classic.

Technical Analysis for the Trading Professional has been enhanced and expanded to bring you fully up to date on all the essentials, including:

  • Dominant trading cycles
  • Moving averages
  • Fibonacci projections
  • Gann Analysis
  • Relative Strength Index and stochastics
  • Dominant trend lines
  • Price projections
  • Elliott Wave Principle
  • Volatility bands
  • Composite Index"

Constance Brown's Derivative Oscillator was published in her this book. The oscillator uses a 14-period RSI . The RSI is then double smoothed with exponential moving averages . The default settings for the smoothing periods are 5 and 3. In a second step a signal line is generated from the smoothed RSI by calculating a simple moving average with a period of 9. The Derivative Oscillator is calculated as the difference between the smoothed RSI and the signal line and displayed as histogram.

The formula is:

EMA(EMA(RSI(14), 5)), 3) - MVA(EMA(EMA(RSI(14), 5)), 3), 9)



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