Books For Traders

December 2010


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The Blank Swan: The End Of Probability
(476 pages, $39.95 hardcover, 2010, ISBN 978-0-470-72522-1) by Elie Ayache, published by John Wiley & Sons.

October 19, 1987, was a day of huge change for the global finance industry. That day the stock market crashed, the Black-Scholes formula failed, and volatility smiles were born. It was a set of circumstances that cannot be reproduced or represented in a theoretical framework. This is a treatise on the financial markets that presents a rethinking of derivative pricing and technology. It is critical of the whole background or framework of predictable and unpredictable events. This book will change the way we think about derivatives and the market. Derivatives should be renamed contingent claims, where contingency is now absolute and no longer derivative, and the market is simply its medium.

Additional information: www.wiley.com

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Chart Your Way To Profits, 2nd Edition
(519 pages, $75, hardcover, 2010, ISBN 978-0-470-62002-1) by Tim Knight, published by John Wiley & Sons.

Technical analysis is the study of past price movement for the purpose of predicting future price movement. This revised edition offers many new technical tools for tracking individual stocks. It introduces the ProphetCharts application that allows you to perform your own analysis with the help of hundreds of real-world examples. You will also find rules of sound trading. No matter what you trade, technical analysis can make you a better trader. Price charts will consistently provide the most complete representation of the supply and demand behind any financial instrument. Technical criteria and charting allow traders to be objective in their assessment of price action while leaving emotion out of the decision-making process.

Additional information: www.wiley.com

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Guide To Financial Markets, 5th Edition
(250 pages, $29.95 hardcover, 2010, ISBN 978-1-57660-343-7) by Marc Levinson, published by Bloomberg Press, an imprint of John Wiley & Sons.

Financial markets have been around for a long time and they take many different forms and operate in many different ways. But all of them, organized or highly informal, serve the same basic functions, which range from providing a way of setting prices and valuing assets, through raising capital or investing it, to managing exposure to risk. The credit crunch and ensuing financial crisis brought home the enormous influence that financial markets exercise and highlighted the pace of innovation in them and the instruments they trade. This book explains why financial markets exist, how they work, and who trades them, and gives a rundown of the factors that affect prices and rates.

Additional information: www.wiley.com/go/bloombergpress

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How To Take Money From The Markets: Creating Profitable Strategies
(287 pages, $99 hardcover, 2010, ISBN 978-1-59280-412-2) by Steve Palmquist with a foreword by Chuck LeBeau, published by Marketplace Books.

Trading is a statistical business. To be profitable requires a variety of tools. This guide puts the stats in your favor with trading systems based on thousands of hours of research. The author uses the results of his extensive backtesting techniques to smash many of today’s popular trading myths and get down to the truth. He gives six complete trading systems and tells how and when to use them. He shares all of his research and results with you to reveal the design, development, and testing that goes into creating profitable trading strategies. Smart traders will realize that making predictions about the market is a losing battle. Learn to observe and determine market conditions and then select the tool you know works best, to see how profitable this kind of trading can be.

Additional information: www.marketplacebooks.com

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Iron Condor: Neutral Strategy For Uncommon Profit
(209 pages, $19.95 paperback, 2010, ISBN 978-1-59280-392-7) by Ernie Zerenner and Michael Phillips, published by Marketplace Books.

Sure, there are peaks and troughs, but most of the time the market is making very slight deviations from the previous day, week, month, and year. You need a strategy that generates returns in the most common market conditions, when the market is trading sideways. The iron condor is that strategy, and this book will teach you how to master it. The iron condor will enable you to generate income because it is a combination of two popular leverage options strategies — the bull-put credit spread and the bear-call credit spread — one of which will always be profitable. The book goes beyond theory and concept to bring you real-world examples. With profit & loss diagrams, fact-based statistics and probability, and actual calculations, this book gives you the knowledge you need to put the iron condor to work.

Additional information: www.marketplacebooks.com

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