October 2008
A Trader's Money Management System: How To Ensure Profit And Avoid The Risk Of Ruin
A Trader's Money Management System: How To Ensure Profit And Avoid The Risk Of Ruin (210 pages, $70 hardcover, 2008, ISBN 978-0-470-18771-5) by Bennett A. McDowell, published by John Wiley & Sons.
Traders and investors need to develop discipline, a strong financial psychology, and a sound money management system to maximize profits and keep themselves out of financial danger. This guide offers an expert's views of the most important elements of money management in trading. He identifies the six types of risk to consider, and covers each in detail. The author breaks down his system into five key elements and explains them in understandable terms. The appendix has instructions for downloading some trial software to help with your money management calculations.
Charles Dow's first 11-stock index had nine railroads. A dozen years later -- 1896 -- saw the first Dow Jones Industrial Average of 12 companies. He saw the movement of the stock market as an indicator of business activity. More than a hundred years later, "Dow's theory" is still relied on in today's markets. This book expands on that theory and brings it into the new millennium. This book discusses patterns, buy and sell signals, bull and bear markets, and the details of why they still work and will continue to do so, with some reformulation, into the future.
This book provides what is needed for investors to successfully make commodities a part of their portfolios. It is filled with comprehensive information from experts in commodities, and explains the mechanics of the commodity market. The editors begin with a primer of the basics, then provide information on risk and the seven principles for risk management of commodity portfolios. They offer advice on how commodity products can be implemented into an investors' asset allocation. This is an invaluable guide for individuals, institutional investors, and academics who wish to include commodities into a portfolio, with the insights needed to understand the fundamentals and volatility of these markets.
Some people think business journalism is all about balance sheets, income statements, and earnings per share. The really interesting questions are about heroes and hucksters, visionaries and madmen, and other larger-than-life characters. For more than 25 years, author Joe Nocera has shed light on the giants of the business world. The work collects his best articles and updates them with fresh context and insights. He shows the qualities of some of the biggest bad guys, and the bad side of some of those known as good guys (and you'll find out why he was not first in line to buy an iPhone).
Participation in the foreign exchange market has grown substantially. The amount of technical and fundamental foreign exchange information available has exponentially increased, but the area of sentiment has failed to receive the same kind of attention. Tops occur when most traders are bullish, bottoms when most are bearish. Traders who understand when markets are extremely bullish or bearish have an edge over those who follow only technical and fundamental analysis. The author examines how to use the Commitment Of Traders and other important indicators, like news coverage, to locate sentiment extremes. You can make more money in forex if you understand sentiment, and this book shows you how. (Jamie Saettele is the STOCKS & COMMODITIES interview subject of the month.)
In 1995, when Wall Street's pros insisted that investors buy domestic mutual funds that invest overseas, the author ignored their advice. He opened bank and brokerage accounts from New Zealand to Hong Kong to buy the stocks that he wanted to own, not those chosen by some fund manager. As hundreds of millions of people strive to join the middle class, the companies that meet their basic needs are becoming great investment opportunities. How to find these companies is the heart of this book. You can make the world your oyster by diversifying your portfolio, and this is the guide to show you how to research and track those companies, and how to set up bank and brokerage accounts, handle taxes, convert currencies, and more. If you are ready to take advantage of the opportunities for investing overseas, this is where you'll find out how best to do so.
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Originally published in the October 2008 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2008, Technical Analysis, Inc.
