Book Description

(Second edition expected to be released December 15, 1999 and will contain substantial enhancements)

This is the definitive book on stock option strategies.STOCK OPTIONS shows holders of compensatory stock options how to make the right choices and avoid costly mistakes.It is the first book to explain, in clear and understandable language, what options are, how they are taxed (including how to prepare IRS Form 1040), and how to maximize their value.

Written for the layperson, and a must read for employees who have employee stock options, STOCK OPTIONS is also used by CPA firms as a reference manual and training course for tax professionals.Michael R. Griesmer, CPA, a former senior tax manager at Arthur Andersen LLP, and now a tax partner at McClintock Accountancy Corporation, says: "STOCK OPTIONS is so comprehensive and insightful that tax professionals, financial planners, and investment advisors must read it or face the risk of embarrassment from clients knowing more about stock options than they do".

After reading STOCK OPTIONS, you will know:

* the differences between an incentive stock option (ISO) and a nonqualified stock option and how tax law treats them differently

* what happens on the date you exercise your option

* what happens on the date you sell the stock

* when to exercise options and hold the stock

* how to convert ordinary income into capital gain

* the significance of disqualifying vs. nondisqualifying dispositions

* that SEC-imposed restrictions may present you with a tax-saving opportunity

* when, why and how to shift taxable income to a different year

* how the alternative minimum tax affects the exercise of ISOs

* how the alternative minimum tax credit changes income tax planning

* how to pay the exercise price, without using cash, in a tax-deferred exchange of stock

* when to buy the stock rather than exercise an option early

* what reload options are and how they work

* what makes one option more valuable than another

* how to compare stock option packages from different employers

* what "substantial risk of forfeiture" means and why it's so important

* what is, and is not, a substantial risk of forfeiture

* the special tax rules when Section 16(b) of the Securities Exchange Act of 1934 applies

* that some optionees may exercise UNVESTED options--both nonqualified and incentive stock options

* when it's wise to exercise an UNVESTED option and why

* the risk involved in exercising an UNVESTED option

* the tax risk involved in merely asking the corporation for permission to exercise UNVESTED incentive stock options

* what a repurchase option is

* that the terms of a repurchase option can result in the stock being subject to a substantial risk of forfeiture

* the adverse tax consequences if the optionee exercises an option, makes a Section 83(b) election, and later forfeits the stock

* that you can make a Section 83(b) tax election after exercising UNVESTED options

* the income tax consequences of exercising an UNVESTED ISO and making a timely Section 83(b) tax election

Audit Proof Your Income Tax Return

Learn how to prepare a complete and accurate income tax return and make it audit proof.STOCK OPTIONS gives readers the upper hand against any IRS challenge. ... Read more

Reviews (33)

One of the few comprehensive accurate resources available
I found Pastore's "Stock Options" book to be an essential resource for any employee or entrepreneur needing to understand this very complex subject. It is one of the few comprehensive accurate resources available on the topic. While my book "Engineering Your Start-up" contains some overlapping material and more specific guidance to the entrepreneur in granting stock options, Pastore's book is an essential supplement. It is more complete in some areas, and is up-to-date on the related tax laws. The financial risk of not optimizing one's tax exposure in deciding when to exercise or sell stock options, for example, far exceeds the cost of this book. I recommended to all my friends who have any stock options at all, to buy, read, and keep this book for future reference.

Excellent, easy to understand guide to stock options
I really enjoyed this book, it is a straighforward guide written in a style for the average person. Reading about taxes is about the last thing I want to do but this book made understanding my "options" regarding my employee stock options easy. I used the knowledge from the book in working out the best tax saving strategy with my CPA. This one actually saved me money.

Helped me
This book helped me greatly with some stock options I got from my work. I had NSO stock and had not idea how the taxes worked out on it and when the best time was to exercise.
Well this book, I made a good decision and made $80,000 on my stock options.

Very informative, technical, and dry.
Just the book I was looking for in 1999. I applaud Pastore's contribution of clear explanations regarding the types of stock options, tax implications, etc. I used the knowledge gained to weed out prospective financial advisors during interviews. You'd be surprised how many of them don't understand tax law when it comes to employee stock options.

Abundance of useful information, Very easy to read
This book is the most efficient piece of writing on the taxation of stock options that I have read. I can extract more useful information with less effort than from any other source. The book explains the taxation of stock options in plain English. Anyone who has been granted stock options or who is an advisor to people with stock options should consider adding this book to his or her library. ... Read more

Book Description

Distills complex theories for the benefit of the average trader with little or no background in finance or mathematics by offering a wide range of valuable, practical strategies for limiting risk, avoiding catastrophic losses and managing the futures portfolio to maximize profits. Numerous topics are explored including: why most traders lose at the futures game most of the time; why most mechanical trading systems are apt to fail; the probabilistic approach to trading; how to make stop-loss orders work for, rather than against you; the pros and cons of options versus futures trading; and how to limit risk through diversification. ... Read more

Reviews (3)

A Complete Insight Into Money Management Strategies for FT
While a large percentage of individuals do not achieve financial success in the futures markets, traders who do succeed possess a solid understanding of risk and exercise a disciplined program of loss containment and money management. Nazer J. Balsara's Money Management Strategies For Futures Traders provides a wealth of materials for futures and stocks traders alike. The book is a must-read and a relatively easy-read for those who wish to enhance their risk management sophistication with complex tools and who believe that the best way to survive and prosper in the markets it to contain your losses, play defensively and let profits ride.

All trading opportunities are not created equally and part of a trader's job is ferreting out the best markets to trade. The chapter on commodity selection presents four approaches to market selection, based largely on the work of J. Welles Wilder, the father of ADX (Average Directional Index Indicator) and RSI (Relative Strength Index). Here, the book is a good review of Wilder's ADX but focuses on the less-known aspect of his work: the commodity selection index. Wilder's approach uses ADX to identify futures yielding the greatest dollar-value price-moves for a given margin investment, in short, getting you in on the most appealing trades. Balsara also shows the utility of Wilder's price movement index when it is it is not possible to determine or estimate reward, thereby enhancing the analysis and return in mechanical trading systems. Sharpe ratios are also considered as a way of measuring risk-adjusted returns.

The text gives useful approaches to managing risk through stop-loss orders by laying out the usage of time stops, dollar-value stops and volatility stops. There is also a presentation on how to survive locked-limit markets by creating synthetic options positions, spreads or offsetting positions in the cash markets.

A studied read of this finance professor's work will help traders develop both the skill and the art of disciplined risk-taking.

NOT FOUND TO BE QUITE USEFUL
The book contains some basic ideas in the earliy chapters. I was expecting to get something more this for one main reason: It has been found that many novices do not know or care much about money management. It is really the experienced trader, especially the one that has lost their stake completely that then goes in search of money management strategies and usually these people would have already covered the basics somewhere already, with the amount of free literature given by the exchanges and brokerage firms. Estimating "risk and reward" by the use of head and shoulders, triangles, channels is very basic to my understanding and to that of most futures traders.

For my personal use, I had found that the chapter on money management found in Larry William's "Definitive Guide To Futures Trading" has been more useful to me than this entire book

Do not enter the futures game/war without this book!
I only wish I had utilized the statistical tools the author provides earlier in my trading career. However, I did find the book in time. Don't let the reference to statistics scare you. The author uses basic alegebra to aid you in trade selection and risk control.

This book may not guarantee you success in trading, but I do believe that if one does not apply the basic money management principles presented by Prof. Balsara, sooner or later, failure in the futures market is almost certain.

If you can't name the 5 basic steps of money management, I suggest you stop trading immediately, get this book with a couple of ticks worth of money you'll not be losing while your not trading. Read it a few times, set up your money management spreadsheet and may you trade with clarity previously unknown in your endeavors in the futures market. ... Read more

Book Description

Praise for Playing for Keeps in Stocks & Futures

"Wise traders seeking to improve their trading knowledge and skills are well advised to learn from the accumulated experience and knowledge of those who have already paid their dues, such as Tom Bierovic. Bierovic is an accomplished trader and an excellent teacher, and he provides indispensable and valuable information in his new book, which every serious trader should acquire and study. I heartily recommend it."
–Edward D. Dobson, President, Traders Press, Inc.

"In Tom’s extraordinary no-nonsense way, he has presented so much more value than almost any reader will ever appreciate. Not only has he provided three solid approaches, he includes an insight into the strategic thinking found in many of the best traders!"
–Glen Ring, President, Glen Ring Enterprises
Analyst and publisher of View on Futures newsletter and Daily Update

"For traders wondering what to do with all those technical indicators that are part of their charting software packages, Tom Bierovic offers three trading systems that use combinations of their inputs to generate specific buy and sell signals. Moreover, Bierovic offers enough variations and trading concepts so that enterprising readers should have no trouble devising their own trading systems based on this compact, but idea-filled, text."
–Jack Schwager, Author of Market Wizards and The New Market Wizards

"A carefully crafted book and well thought-out selection of some of the best techniques. The analytical tools are that much more valuable because the author has employed them in his own trading program and refined them to reflect a good technical analysis foundation on which to build and succeed."
–Timothy Slater, Former Managing Director of Dow Jones Seminars, Computrac Technical Analysis Software Corporation ... Read more

Reviews (5)

Clear and Concrete
First off, I'd like to say that for someone who loves technical indicators like the MACD and Parabolic Sar, I really enjoyed this book. Having read many books where technical indicators are simply described on their individual merits, it was wonderful to find a book where the author actually presented some systems in a concrete and clear manner.

I'm sure you'll find this book very clearly written, with the 3 systems clearly illustrated with examples on the entry method along with a few exit methods.

Before explaining his systems, the author presented some quite introductory materials on the technical indicators used - this is good and systematic, and certainly helps the beginner, but if you are an advanced trader with clear ideas of your own trading system, you may not find this book so useful.

Good
Not without flaws, but a damn good trading book. The author presents 3 methods, which are probably fairly well known, but to have it clarified and presented with examples certainly would help a trader add another tool to their box. I did notice plenty of varied entries and often vague exits, which may have been a result of curve fitting to the examples. However, it is of a minor concern.

EXECELENT INVESTMENT
TOM MADE A VERY HIGH QUAOLITY SMALL AND HONEST BOOK.

HOPE HE MAKES ONE FOR PLAYING FOR KEEPS IN OPTIONS.

Strategies That Work
I anxiously awaited the publication of this book since I am always on the lookout for new trading ideas from Tom Bierovic. I first discovered Tom's work at one of the Futures Magazine Trading Seminars where he was a speaker. What caught my eye was the down to earth, solid, and workable trading principles he presented. I was also impressed that he had, for years, been a full time trader for his own account and was willing to share the ideas and systems that he actually used. "Playing for Keeps" is no exception. Tom lays out in detail three trading strategies that can be used in all markets and timeframes. The strategies are presented with numerous examples. I believe that with all of Tom's background in system research and development (he was head of system development for Omega Research and is currently writing a series of articles for Active Trader magazine), the fact that Tom chose these three strategies to present in his book gives me confidence that these strategies will make money if properly applied. (I would have given the book five stars if it had included Easy Language code)

Simple but Good
An excellent book. Most books on trading will focus on setups, focusing on entry strategies, whilst skimming over aspects of stop placements, and exits. Worst still, some books will give you setups that are completely untestable with well selected examples. This book is a very thin volume. However despite that, it is one step ahead compared to most books. It actually explains the concepts and mechanics behind three trading plans in precise details. All three ideas are testable. No, they dont always work. Only trading plans with 20/20 hindight do. What it offers is more. It emphasizes the minimal elements that are necessary for anyone in constructing a good trading plan.This is of course obvious. But not obvious enough as otherwise, there wont always be a fixed population of 90% of traders who lose money every year. A good enjoyable read. ... Read more

Book Description

Skilled stock traders and investors are increasingly turning to futures trading to augment their overall performance. Mastering Futures Trading introduces these traders to proven and popular Strategies, concepts, and methods for becoming experts in this high-potential, highly leveraged game. Unique in its unflinching look at the realities of futures trading—both the highs and the lows—this clear and accessible book covers how to trade hot new single-stock futures, proven futures trading strategies, blow-by-blow examples of futures trading in action, and more.

Reviews (3)

*** LOOK ELSEWHERE ***
I wasted my money on this book, but I didn't waste my time -- at about page 40, I started to skim thru the rest of it.

The book contains the usual caveats and recommendations concerning money management, except for a "Rule of 10," which
really did not fit in. Basic explananations included are chart patterns, support and resistance, and candlestick reversals.

Then, fully 94 pages are devoted to a self-indulgent log of 6 weeks of trading by the author, listing subjective interpretations of events in making trading decisions. How we are to become "masters of futures trading" by reliving this undisciplined hodgepodge, I do not know.

If you have not already done so, investigate the books of Perry Kaufman, Alexander Elder and Jacob Bernstein, and get your time and your money's worth.

Best I've read...and I've read a few
By far the best trading book I've ever read. Clearly written, well thought out, and to the point. Mr. Yoder seems to be an extremely intelligent guy who has learned how to profitably trade through years of experience. His "units" money management concepts are uniquely his own and worth the price of admission. For the first time, I have a confidence about what I am doing and why...and I'm making money!!!

On a 1* to 5***** scale, I give it 6******!

watch a good trader at work
This book is the best of trading books: First, it has excellent theory about set-ups, trading psychology and identifying good and bad streaks in the market for your individual style.

Second, it follows the author and lets you watch over his shoulder as he executes trades over the course of some days in 2003.

The emphasis is on S&P and treasury futures but the principles apply to any futures trading.

The prose is very readable. The author explains where to place stops, and focuses on his style which is largely swing trading -- selling from support into resistance or from resistance to support.

It has helped me trade better and it will help a lot of people who are getting started in futures trading. ... Read more

Book Description

"Covered Call Writing With Qs And Diamonds: Double-Digit Returns on Ready-Made Portfolios" is not just another new book about covered call writing. It is a highly focused and readily understandable educational tool with a unique easy-to-follow implementation program. It is designed for investors who either do not have the time or the desire to research individual stocks and administer such a portfolio, yet who seek an opportunity to achieve double-digit investment returns by using covered call writing.

Ownership of the ready-made portfolios available to you with the Qs (ticker symbol QQQ: the 100 largest companies on the Nasdaq) and Diamonds (ticker symbol DIA: the stocks composing the Dow Jones Industrial Average) eliminate the need for stock research. And, the call writing choices you have available to you with them are far broader than any individual stocks, making them the perfect equity investment to use in conjunction with covered call writing. The book delves deeply into the subject of how to obtain double-digit returns from both out-of-the-money calls and in-the-money calls. It also provides short-term technical analysis tools to assist in guiding market forecasts and making appropriate call writing decisions.

On May 3, 2003 after the annual meeting of his company, Warren Buffett (Chairman of Berkshire Hathaway) said to Maria Bartiromo of CNBC: "If you own equities, over the next twenty or thirty years you’ll get a reasonable return...maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment." If you believe that "The Oracle of Omaha" is right about a slow-growth market for decades to come, then everything that you need as an investor is here for you in this book to develop and implement a covered call writing program using two of the world’s most liquid, highly diversified equity portfolios.

THE BOOK PROVIDES:

* The case for using the Nasdaq-100 Index Tracking Stock (tracks the top 100 Nasdaq stocks in market capitalization), also known as the "Qs" or "Cubes," and the Diamonds Trust Series 1 (tracks the Dow Jones Industrial Average), known simply as Diamonds, for total or substantial portfolio composition. This allows investors to achieve significantly more equity ownership diversification than from shares in individual stocks. * Details on the unique features of these two highly liquid and popular Exchange Traded Funds (ETFs) that make them ideally suitable for no hassle, easy decision covered call writing to assist in reaching consistent double-digit investment returns in a more conservative way than a buy-and-hold equity strategy.

* A detailed turnkey implementation program for call writing with the QQQ and DIA, including "out-of-the-money" calls and "in-the-money" calls, both of which can yield solid double-digit returns, when and how to effectively use them.

* Discussion on call expiration date selection to fit your needs, including the advantages of shorter-term and longer-term expirations.

* A presentation of technical analysis tools to assist investors in making short-term decisions on when to write calls, and which type of call to write.

* Use of Microsoft® Excel spreadsheets to assist in reviewing covered call writing selection alternatives and tracking your results so that the best decisions for you are reached to achieve your investment return goal.

* Use of margin, if appropriate for you, to potentially almost double the returns from covered call writing on these ready-made portfolios.

* Details about brokerage accounts, with special emphasis on the use of online discount brokerages for quick, very low cost execution of trades. Web sites for brokerages, charting sources and other technical information are provided.

* Presentation of the tax information you need to understand and administer the income tax aspects of covered call writing. This includes deferring taxation of income until a later tax year while enjoying the use of the income now.

With interest rates so low and a scarcity of acceptable investment alternatives available to investors, covered call writing on diversified portfolios such as the Qs and Diamonds may offer one of the best possible opportunities to achieve double-digit investment returns in the slow-growth market we seem sure to encounter ahead. ... Read more

Reviews (1)

VERY USEFUL & PROFITABLE BOOK
A friend of mine who took a college class about covered call writing taught by the author recommended this book. It was a real eye opener for me, as I hadn't had any exposure to covered calls before as is probably true of most people. I have enough assets to comfortably invest in the stock market, but not enough to diversify adequately through individual stocks. The discussion about the Nasdaq-100 Index Tracking Stock (QQQ) and the Diamonds-Dow Jones Average Tracking Stock (DIA)solved this problem for me. At a time when I have no confidence in mutual funds, I was able to use these two Exchange Traded Funds as the foundation for my investment portfolio. They ideally suit my risk profile. The ability to write covered calls on them was icing on the cake. I've written two sets of calls so far, so now I can appreciate the simple beauty of this investment strategy through firsthand experience. It worked out great. I also plan to study the chapter on technical analysis in more detail to help plan timing decisions in the future on whether to write out-of-the-money or in-the-money covered calls. Fortunately the book does an excellent job of making all of this completely intelligible for an investor at any level of understanding about the markets. The covered call feature creates an immediate stream of income and provides protection in case of a downturn in the market. I highly recommend this book for any investor who is looking for a better way to achieve investment goals rather than just owning mutual funds or stocks alone. Owning the Qs and Diamonds is a great way to participate in the stock market and get instant diversification through one or two securities. Also, the income from covered call writing is just what I needed to supplement my other income sources. ... Read more

Book Description

Trading Optures and Futions is a complete course on how to put money in your pocket trading with combinations of futures and options. More than that, it's the trading course you've been hoping for. It gives you explicit, detailed information about an exciting and novel way to win BIG money

In this fascinating course, Joe Ross reveals the innermost secrets of the options traders along with the best of futures trading. He teaches you step-by-step how to win.

You will see: Who the real competition is in the options and futures market and why they don't want you to know the truth about options. What your broker won't tell you and what he can't tell you. ... Read more

Reviews (1)

The Thinking Person's Way to Trade Options
Joe Ross has written the best strategy guide for trading options I have ever seen. This book shows you how to blend the best features of option trading together with the best of futures trading. The book is a classic, and with each reading, I gained more and more understanding of how the markets really work, and how to take advantage of combining options and futures.

If you are an option trader, you need the understanding of the underlying futures as presented by Joe. If you are a futures trader, Joe shows you the simple and most straightforward way to bolster your futures trading by adding to it the world of options.

To say that this book is outstanding is to vastly underrate its contents. A bargain at any price and worth far more than its cost. ... Read more

Book Description

"IMAGINE A SOLID INVESTMENT PORTFOLIO WITHOUT BEING IN THE STOCK MARKET!"

Since the Tech Stocks Crash of 2000, trillions of dollars of investor wealth disappeared from existence. Investors throughout the world saw their investment portfolios and retirement accounts crushed by their holdings of stocks and mutual funds. Simultaneously, investors of residential property continued to see their real estate portfolio appreciate and generate steady returns.

Because of the financial devastation, investors have changed their investment priorities. Speculation and Volatility are Out. Safe and Steady Returns are In.

If you watched your stock portfolio get crushed and want to invest differently, this book will show you ANOTHER WAY! Through the simple acquisition of small houses, safe and steady returns can be generated with the Lease-Options strategy.

You will learn the "TurnKey Investing" philosophy of building, investing and managing your real estate portfolio with Lease-Options.

"WHAT FINANCIAL ADVISORS WILL NEVER TELL YOU!"

You will learn how to:

* Use Lease-Options to simply and safely build your portfolio!

* How to generate steady, spendable cash flow through Lease-Options!

* Find the right real estate market to safely invest in!

* Profitably manage properties without ongoing maintenance expenses!

* Find the right Management Team to build and guard your portfolio!

* Invest in the Lease-Options Strategy without owning property!

TurnKey Investing with Lease-Options is an investment book like no other. It goes against what the traditional financial community sells and sure to upset the establishment. This book is only for independent-minded investors who want to take control of their investments ... not for the conventional "follow the herd" speculators of Wall Street. ... Read more

Book Description

Clear, concise, and practical, The Trading Game shows you how to harness the power of money management for any trading method "The goal of most futures traders is to make a million dollars as fast and as painlessly as possible. Unfortunately, few traders achieve this goal. In The Trading Game, Ryan Jones demonstrates how the proper application of his new money management strategy, Fixed Ratio Trading, can enable an average trading system to earn spectacular profits. My advice? Don’t trade until you’ve spent as much time and effort on money management as you’ve spent on developing your entry and exit rules." —Tom Bierovic, Manager System Trading & Development Education, Omega Research, Inc. "Ryan Jones is on the cutting edge of the most important element in the art of speculation—be it stocks or commodities—money management." —Larry Williams, trader and author Long-Term Secrets to Shot-Term Trading "Money management is the most overlooked part of trading but is the key to building enormous wealth. Ryan Jones first overviews classical methods and then discusses a new paradigm which, combined with a reliable trading method, can lead to financial security." —Murray Ruggiero, President Ruggiero & Associates; contributing editor, Futures magazine "At last—a money management book that is not intimidating or boring. Ryan Jones has made a complex subject easier to understand and follow. I am especially excited for all independent traders." —Glen Ring, President, Glen Ring Enterprises editor of the widely respected View on Futures newsletter "Ryan Jones has always been one of the most innovative traders and creative minds in the industry. With the writing of The Trading Game: Playing by the Numbers to Make Millions, he has taken the science of money management and risk control to another level. I wholeheartedly endorse his efforts and recommend this new work required reading to anyone either just entering the trading arena, or already participating in it." —Ted Tesser, CPA and author, The Trader’s Tax Survival Guide ... Read more

Reviews (24)

This is a phenomenal book
I have been trading,reading, and writing about futures for 11 years. In my journey I was recommended Ryan Jones's book. In his book he details the various methods of money management, then he exposes their flaws, and finally he presents you with his solution for money management. This is a great book for any student that is serious about his success with futures. Ryan has a friendly approachable style to his writing that engrosses you, even though the information is laden down with statistics and mathematics.

It is a nice eye opener to really see how important money management is and how it can work for those that are dedicated and disciplined.

Purchasing this book ... will definitely help you keep more money in your pockets.

A Must Read if You Trade Commodities
This is the best book I have ever read regarding the seldom mentioned topic of money management. Jones gives examples that are easily verified using any spreadsheet package. While I could go on for hours raving about the book's great points, I do want to point out three flaws that he discusses, 2 only in passing comments and the other being the root of his money management technique. In ever so brief statements, Ryan downplays the use of neural nets to assist in trading. He also states in passing that one can only expect to earn $3,000 - $5,000 per contract per year in the T-Bond futures arena. Having just begun my futures trading career two and one-half weeks ago using a neural net I developed to call position trades in the T-Bond market, I have profited $2,700 after commissions and am shooting for $30,000 - $50,000 over the course of a year. The point, don't knock nueral net's ability to discern market inefficiencies. The last point deals with Jones' contention that one can grow $100,000 in profits on a per contract basis to $1,000,000 using his fixed ratio method. This statement is true, but only in a world of zero income taxes! Even accounting for this major overlooked flaw, his money management technique is unmatched by anyone and is one I will follow as I contimue to trade futures.

Finally a system for the little guy!!
I read this book with mixed feelings. First, after looking at some of the reviews, I wondered if we were reading the same book. Now I know why -- the writing is terrible. Some sections I had to read 3 or 4 times before I even began to understood what he was talking abou. It does not surprise me that several reviewers obviously were clueless on what he was talking about. This book desperately needs a re-work.

My second reaction was "Finally a system for the small accounts". Most of the money systems I've seen are designed for major accounts (e.g. "don't risk more than 2% on a trade" -- yeah, right!) The trader with $10,000 or less should find a very workable system to manage his account. His system handles important issues of how to build equity on the way up, and another section on handling downturns, including streaks. He gives a good discussion on other money management techniques as well.

Wow!

It will take several.... several readings for it to make sense, but, believe me, it is well worth the effort. Hopefully we can look forward to a second edition that makes sense.

High grade snake oil.
The author now has a trading website (smarttrading.com) where he offers a course teaching you not only to trade, but to be able teach _others_ how to trade, "mentor" as he puts it. Anybody stupid enough to fall for the rubbish claims of those "selling shovels" to traders deserves the losses that are nigh on certain to occur.

Snake Oil Doctor
Sadly snake oil wins over real value once again. This is very seductive proposition but if you had applied it to real long term systems over the past year you would be BROKE.

All of the books in the "also read this" list are much better. Go there to preserve your capital. ... Read more

Book Description

One of the best-known futures traders explains how to trade for profit in today's global futures marketplace

Look into the bookcase of any successful futures trader, and odds are you’ll find a worn, well-used copy of Mark Powers’s Starting Out In Futures Trading. In this new edition—the best-selling book’s first update since 1993—Powers reflects on the many new forces that are shaping the industry. From new rules and regulations to the emergence of electronic trading and the Internet, Powers’s unquestioned knowledge and experience cover all the key basics in the world of futures trading—and show traders from novice to veteran how to profit in that world.

The perfect starting point for a new trader, and a valuable refresher for anyone, Starting Out In Futures Trading, Sixth Edition, covers:

• How to choose a broker and place an order
• The increased importance of stock indices
• New research, rules, and regulations ... Read more

  Reviews (2)

  Buy the updated version!!
  It is a well written book, but this edition is plagued with print errors, and mistakes in at least one chart. Don't make the same mistake I did; buy the last edition (I bought mine on the store with very little time ...) Anyway, I guess the last version is corrected and updated. I like the fact that mixes personal experience with academic and corporate studies about the market!

  Good Content / Great Value
  For the price this is a great book to learn and help understand the specifics that make up all the basics in trading commodity-futures. After reading this book, I felt as if I had taken a formal college course on the subject of Futures and understood it much better from various angles now. There's no "hype" in the book, no agendas, no further products or services to buy being pitched to you, just plain vanilla (ok, french vanilla) basics being laid out for you in textbook fashion for you to digest in your own terms. I like that - it's refreshing in a way. It is probably like this because it was really written 20+ years ago (don't worry, it's been revised many times to be modernized - 5th edition, 1993). The book was originally written and printed in "Commodities" magazine as a popular mini-course series (before the magazine changed it's name to the modern "Futures" magazine we know it as today). Even though I knew much of the content from personal experience (the most costly way) or from other readings, my CTA, etc, I did not always understand the "why" behind the rules I was following & how the markets work the way they do from both a technical and fundmental perspective (dynamics). Of the some 28 chapters, I really took interest in almost every one. I can't say that about most of the other trading books I've read. Put it this way... if I could keep only 5 trading books, this would be one of them. You'll likely dump more than that on the commissions for 1 trade - or, worse yet, even more than that on 1 bad trade. ** Beginners, I recommend the following: If your goal is to have deeper pockets from trading - then you must first go deeper in your understanding of futures markets & trading them (i.e. Read the book). ... Read more

Book Description

"COVERED CALL WRITING DEMYSTIFIED" is a timely and profitable tutorial investment program written as a novel, primarily for investors who have some knowledge of stock market investing but are new to covered call writing. It is the first work on this subject to simplify, fully explain, and instruct investors on how to use covered call option writing on common stocks.It may offer one of the best opportunities to achieve double-digit investment returns in the slow growth or no growth stock market expected by many experts in the future.This strategy works best in such a market environment.The investment approach of writing covered call options on stocks, a more conservative investment strategy than just owning stocks alone, has been available for decades.Until now, however, it has mostly been unknown or misunderstood by many investors.

Why is "COVERED CALL WRITING DEMYSTIFIED" needed? Many nationally recognized investment experts believe that the U.S. stock market in the future will most certainly produce significantly lower returns than the high returns of the past for many years to come.Some noteworthy examples:

* "The long-term prospects for equities in general is far from exciting." - Warren E. Buffett, The Chairman’s Letter, Berkshire Hathaway, Inc. 2000 Annual Report, Page 3. "If you own equities, over the next twenty or thirty years you’ll get a reasonable return…maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment."- Interview with Warren Buffett by Maria Bartiromo of CNBC TV; May 3, 2003

* "Over the next century you should expect your share prices to average 6% (return) a year. Over the next five years, ten years, I think you’ll be lucky to come out even on share prices." - Sir John Templeton, pioneer in the mutual fund industry, Business Center, CNBC TV Interview; October 1, 2001

* "The Dow has gone absolutely nowhere for three, coming on four years now.I think this will last maybe for another ten years." - John Bollinger, noted technical analyst and creator of the "Bollinger Bands," CNBC TV Interview; October 29, 2001

"It’s wise to have realistic expectations on the overall returns you can expect in the stock market, which over time should clock in at about 6% to 7%. The days of double-digit annual returns are probably over for some time to come." – Suze Orman, "The Financial Connection."

"COVERED CALL WRITING DEMYSTIFIED" is unique because:

(1) A detailed investment program is outlined for personal implementation to assist investors in achieving consistent double-digit returns utilizing covered call writing on common stocks.This investment strategy is most effective in a slow growth or no growth stock market, as is projected in the future by so many investment experts.

(2) The entire subject matter is centered on a focused area of standardized options...covered call writing on stocks an investor owns or acquires in the future.

(3) A complete education on the subject is provided.

(4) Unlike other books about options, it is easy to understand by any investor.The book is written as a novel, which increases reader interest and ease of comprehension.

(5) Numerous easy-to-use Microsoft® Excel templates on a CD/ROM for PC use as well as manual worksheets are provided with the book to assist in making specific investment decisions regarding which covered calls to write on stocks, to effectively track results, and for other planning purposes.

(6) Practical application exercises are included at the end of the chapters to personalize the information provided and assist with profitable planning and execution. ... Read more

Reviews (24)

Covered Call Writing Demystified
If you have an interest in writing covered call options, this book is a "must read". I have been writing covered calls for over ten years. If I had only read this book at the outset, I could have avoided the mistakes and aprehension that go hand in hand with any new process or strategy involving your financial well being.
If not for covered calls, I would not have realized one dime of profit in the market for that last two years. This book will step you through the process better than any stock broker could or would. And remember, it is permissable to write covered calls in your IRA account for those of you suffering through this market. I write them every month in my IRA and most actively in my personal account.
Even with my extensive experience with covered calls, I was able to ascertain pieces of information that came as news to me. The software that comes with the book is worth the price of the book alone.

Finally, note that this book is written by Paul Kadavy, a very accomplished career banker with a national reputation in the financial arena. The book is easy to read and understand.
Everyone with an interest in the equity market should read this book and utilize the strategies setforth.

Most profitable book I've ever purchased!
Like other reviews of this book, it has made me money...in my case, quickly and regularly. What a terrific strategy. I don't agree with some of the nuisance-type criticisms though in some of these reviews. I thought that the conversational, novel type of format not only made the book very readable, but it greatly helped my understanding of the subject material and kept my interest up throughout (I also like the author's sense of humor). I'm pretty new at covered call writing and I'm the kind of investor the book was written for. So, I appreciated the writing style.

Those who said that timing strategies aren't discussed perhaps didn't get to chapter 13, which is titled "Time In The Market vs. Timing The Market." I also found ample discussion of timing and related issues in chapters 6 and 7.

Finally, one reader suggested that the book was primarily written for investors with large portfolios. The author makes it clear that there are cost efficiencies to be obtained by using this strategy with larger portfolios, but that it is equally applicable for smaller portfolios. That's why stress is placed on keeping commissions low in the chapter "All About Brokerage Accounts And Writing Call Options." I also bought the author's book titled "Covered Call Writing With Exchange Traded Funds (ETFs)," which is a great book for those with lesser investable assets that want to use the covered call writing strategy and who desire simple diversification using ETFs.

All in all, a great couple of books that I would recommend to any investor.

Not worth the money
I generally will not trash a book that is targeted at the novice but this will be an exception. First, I am a novice at options investing so should have been right in the middle of the target market for this book. Fact is, I learned more just searching the Internet while I was waiting for the book to arrive than I learned from the book. It is just too simplistic. All the knowledge contained in this book could have been conveyed in a 20 page pamphlet rather than this 300+ page puff piece with its wide margins and large fonts. A true disappointment.

waste money and time
Too simple. Explain simple points in length boring stories. It wastes my money and time.

Low risk strategy only with the right timing tools
I am a professional trader, in other words I have been making a living exclusively trading stocks and options for the past few years.
My experience has been that covered call strategy is low risk only if you have the right timing techniques to alert you to reversals. Unfortunately this book lacks in that area.
Let us take the example where you get a $1 premium on a $20 stock by selling a covered call say at a $20 strike. It is true that if the stock declines to $15 you lose $4. If on the other hand you had the timing techniques that could alert you to a reversal , you should have bought the $20 strike call back with say the stock at $19 for $0.25 making a $0.75 profit and sold a $15 strike call for $4+ which you can then close for a profit when the stock goes to $15. Waiting for the option to expire is not always the right strategy. The issue is how can you tell if there is a pending reversal and this is where timing is critical . Using these strategies you can indeed achieve double digit returns just by taking advantage of the stock short term movements.
While this book is a good introduction;to get the most benefit from this book you need to supplement it with another that focuses more on timing. ... Read more

Book Description

From the basics of open outcry trading to advanced technical indicators, Fundamentals of the Futures Market gives beginning futures traders everything they need to get started. This hands-on workbook walks readers through the entire process to read and understand major reports, track prices, follow the major indicators, and more. In today’s fast-paced futures trading arena, it provides the tools readers need to trade in any commodity market—grains, metals, or financials—and minimize risk as they sharpen their trading skills. ... Read more

Reviews (9)

Sloppy editing
Most "investment advice" books suffer from poor editing, both of the 'grammar & syntax' variety, and, more distressingly for this genre, flat-out incorrect information. Klines's book is no exception- the grammar & syntax are fine, but her book is replete with factual errors and misstatements. For example, on page 207, she defines a synthetic long futures as "sell a call option, buy a put option." Wrong. That is a synthetic short position. Similar errors pervade the book.
One useful feature is chapter 3, which presents futures contract specifications. However, even here, some of the information is occasionally confusing or misleading.
This book is published by McGraw-Hill, a highly reputable house. My surmise is that McGraw-Hill has no financial experts on its editorial staff; otherwise, it wouldn't tolerate the publication of such a sloppily-edited piece. Disappointing!

GREAT BOOK
If you are new to trading, or are interested in learning about the futures markets, then you will not be disappointed with this book. I was definitely impressed with the amount of market information that it covered. The History of the Futures markets, fundamental & technical analysis, mechanics of the trading floor, margins, interpretation of news, are all explained. In addition, it contains a great section on trading techniques for each specific commodity market. This would make a great reference textbook for seasoned traders and brokers as well. I would definitely recommend this book.

Exceptional Futures Market Primer
Utilizing her years of experience as a floor broker and expert futures market commentator (Bloomberg TV), Donna Kline successfully addresses a broad array of futures related topics in a pragmatic and succinct manner that is easy to absorb. Whether you are an experienced trader, or more importantly, a neophyte to the futures market, Donna Kline's "Fundamentals of the Futures Market" is an ideal primer.

"Fundamentals of the Futures Market" is an excellent addition to any intelligent investor's library collection and further validates Donna Kline's status as a maven within a market known for nebulous and sometimes treacherous trading conditions.

The Fundamental "Fudamentals"
Anyone who watches Donna Kline on Bloomberg Television knows she's the authority on futures and credit markets, a knowledge she shares in Fundamentals of the Futures Market. Written for those with some experience in financial markets, Fundamentals of the Futures Market takes the reader step-by-step through the process of evaluating, buying, and selling futures. The book traces the history of financial markets and the development of futures trading, defines the key terms, and outlines the external factors -- from the economy to the weather -- that affect futures prices. Drawing on her years of experience in and around the trading pits, Kline also offers tips for traders and dealers. It's full of practical advice, leavened with humor and clear cautions about the dangers inherent in trading. Buyers, brokers, and those who follow the futures markets should keep this handy reference nearby.

Stunned
what can i say except that i am blown away. never in my life have i encountered anything of such depth, width and girth. am truly humbled. this is one book that must rest on the bed side table for eternity and a day. ... Read more

Book Description

The opportunities for unmatched returns and investment protection in the brave new world of foreign currency investing are second to none. In Foreign Currency Trading, financial executives Russell Wasendorf, Sr., and Russell Wasendorf, Jr., describe foreign currency trading in plain terms, and help you understand the risks, benefits, and operational requirements that you will need to take advantage of this market’s tremendous potential. Look to Foreign Currency Trading for clear explanations on the mechanics of foreign currency trading, in-depth discussion of all pertinent foreign exchange rules and regulations, and a comprehensive glossary with literally hundreds of terms essential to forex trading. With formerly imposing currency trading restrictions having been struck down in recent court rulings, the world of foreign currency trading is an exciting and rapidly-expanding field. Let Wasendorf and Wasendorf’s Foreign Currency Trading be your comprehensive guidebook for effectively taking advantage of this exciting opportunity, not only as a source of unmatched income and profits, but also as a sophisticated hedging instrument in any investment portfolio. ... Read more

Reviews (12)

Rarely have encountered a book this useless.
As others have said clearly, this book is a waste of trees, ink and the time of its reader. The "authors" should be ashamed of such blatant hucksterism and poor description of even the most basic aspects of trading. Even if you are a neophyte, look somewhere else.

save your money ...
... I have no idea what objective these guys had in mind when they sat down to write this book.... This book is just a bunch of information thrown together (probably downloaded from the internet) and they obviously took no time to put any real effort into this book. I was terribly dissappointed with my purchase of this book.....look elsewhere if you are interested in getting started in forex trading.

Not fair
I have been trading futures and options for 11 years. I have written three books on the subject. This is the worst example of authoring that I have ever seen. There are no real insights into the subject of Foreign Currency Trading. Mr.Wasendorf fails dismally at being objective and goes overboard in promoting his company PFG. I was sorely disappointed. I was really looking forward to additional insight into Foreign Currency Trading.

A dishonest sales plug for PFG Inc., NOT a trading book
Do not waste your time and money. The "authors" (much a dignified word for the compilers of this mismatched and unfocused jumble of trivial materials) are the owners of PFG Inc., and the obvious purpose of this book is to get your business. Their main tactics are: a) The tedious description of all conceivable risks associated with broker selection, the implication being that they (PFG Inc.) are the no-risk choice. b)Four chapters grinding the theme of how risky is to do it on your own (chapter 2: "What you don't know may hurt you", chapter 4: "Buyer beware, be very aware", chapter 5: "Are you qualified to invest in Forex?" and chapter 9: "The sensitive question of risk, risk, risk ...") and one (chapter 7) where they tie it all leading you to the grand conclusion: use the services of Currency Investment Managers! (Your choice shoulod be them, of course.) Of the 241 pages, 114 pages are apendices with forms, primitive-looking graphs, and glosaries you can find in a couple minutes for free using a search engine. Voila', there you have it: nothing about trading, much about cover-selling you their services.

To be fair
I started reading this book, but after the first two chapters I returned it to the store so that I could buy a book dealing with what I wanted to know. But, to be fair, this author did write a good book on the basics of futures trading. ... Read more

Book Description

Experts are praising High Performance Options Trading
From OptionVue™ Systems’ Len Yates

"Finally! A book by fellow Boilermaker and option software guru Len Yates! This book is a must-read for anyone interested in a sensibly based, analytical approach to options trading–whether you’re a stock or a future options trader. And the story behind the creation of OptionVue™ is a fascinating bonus."
–Larry McMillan, McMillan Analysis Corp.
author of Profit with Options and McMillan on Options

"An expert on volatility-based trading, Len Yates applies the same practical approach to this book as he has to his highly regarded software. This is not a technician’s white paper, but a thorough, accessible guide that uses his real-life trading history to fully illustrate how you can succeed in the options markets."
–Jim Bittman, Senior Instructor, CBOE’s Options Institute
author of Trading Index Options and Options for the Stock Investor

"For over two decades Len Yates has helped bring options to the masses by way of his groundbreaking software, OptionVue™ 5. Now, his new book offers the same user-friendly style and insight to the world of options investing. I’m sure I speak for thousands of grateful investors when I say, ‘Well done, Len!’"
–Jon "Doctor J" Najarian, PTISecurities.com
author of How I Trade Options

"Len leads the reader through the complex subject of options by recounting his triumphs and defeats and explaining in plain English the essence of each strategy."
–David Krell, President and CEO, International Securities Exchange (ISE)

"A must-read for all options traders."
–Paul Forchione, Opportunities in Options, Inc.

"From a master of options analytics comes this practical guide to options trading. Beginning and advanced traders alike will appreciate Len’s thorough coverage of options strategies and his easy-to-read style."
–Price Headley, President, BigTrends.com
author of Big Trends in Trading ... Read more

Reviews (1)

God helps only hedging
We 6 billion humans on this earth have the same needs. Because we are limited in our lifes in certain ways we hedge the risk to be safe, we speculate to grow out of our limitations. The author says he enjoys winning and at the same time he says his life is in God's hands. I believe God will say the same Dialogs to the author that Dustin Hoffman said in The Messenger: The Story of Joan of Arc (1999) movie. Author says If he wins its because of his greatness, if he looses its because God choose. ... Read more

Book Description

In recent years the growing importance of derivative products financial markets has increased financial institutions' demands for mathematical skills. This book introduces the mathematical methods of financial modelling with clear explanations of the most useful models. Introduction to Stochastic Calculus begins with an elementary presentation of discrete models, including the Cox-Ross-Rubenstein model. This book will be valued by derivatives trading, marketing, and research divisions of investment banks and other institutions, and also by graduate students and research academics in applied probability and finance theory. ... Read more

Reviews (5)

Clear and concise introduction to mathematical finance.
This book, translated from French, is by now a classic graduate textbook on mathematical finance, and provides a clear and concise introduction to the basic and important aspects of the theory. Although one of the first textbooks on the subject, it still remains in my opinion one of the best.

The book has been written for engineering students not mathematicians and avoids the theorem/proof format, going straight to essentials.

Also, while most textbooks on mathematical finance exclusively adopt either a probabilistic (like Baxter & Rennie) or a PDE approach to the theory (Wilmott et al, Wilmott), this book maintains the balance between the two aspects. Moreover, it does not neglect numerical methods and gives details on several algorithms for option pricing ( trees, Finite Difference, Monte Carlo) Finally, and perhaps this point is very important, the book maintains a reasonable volume while treating all these topics AND maintaining a high level of scientific rigor: all statements and notations are precise and oversimplification is avoided. Advanced topics such as variational inequalities for American options and HJM theory of interest rates are also included.

Some drawbacks of the book are: - a complete absence of empirical data/ real life figures - no description of various kinds of derivative products, why they are used,... But then, what can you ask for in such a small volume?

If you are an engineering/maths student and you want to discover what mathematical finance is about, I recommend you this book instead of John Hull's book.

A good INTRODUCTION to ONE part of finance
As precisely mentioned in the title, this book is only an introduction; and it is not an introduction to finance, but to stochastic calculus applied to finance.

The buyer of this book should therefore be aware of three facts:

1. After having read this book you are not (yet) an expert on stochastic calculus applied to finance. You have to continue with other books mentioned in Lamberton/Lapeyre. But this book is an excellent framework that leads you to many important results, omiting proofs that are only technical.

2. Mathematics is used in many other areas of Finance too (Time Series Analysis for example). What is treated in this book is only a very small part of Finance Mathematics, but an important one.

3. One should read another book with more economic background at the same time.

The authors begin with discrete-time models to present many important ideas in a (mathematically) simple environment before treating the contiuous models. Introduction to stochastic integration and stochastic differential equations is brief. Stochastic integration is only with respect to the standard browning motion. After having reached the Black-Scholes model and american options, the approach via partial differential equations is treated, followed by interest rate models, models with jumps and, a good idea: a chapter on simulations.

The book has very few mistakes, no important ones, only a strange layout failure on pages 6 to 7.

So I highly recommend this book as an INTRODUCTION to ONE important part of finance mathematics if read in combination with another book with more economic background. It can especially be used for upper graduate student seminars or as a basis for lecture courses.

A stochastic approach of finance for engineers!
The french initial version of this book has been one of my first technical papers that deal with stochastic calculus towards finance. It is written by and for engineers I must admit, but students in actuarial sciences (like me) won't be lost by so many formulas and equations if they agree to read with a piece of paper and a pencil on the hand. I have worked on the Vasicek's model and the simulations described have helped me a lot. Too bad that the lattice model is not explored. Anyway it is a good preparation before the opening of "Brownian Motion and Stochastic Calculus" from Karatzas & Shreve.

Too Much Exercises!!
A compact & rigorous book on the mathematics of financial derivatives.However, it's not a best buy for having too much exercises . I would recommend Neftci's or Baxter's book for newcomers

A Mathematically Sophisticated But Frustrating Treatment
The book is a translation of a French Text. Generally, the exposition is mathematically sophisticated and flows well. However, many of the interesting and important results are given as exercises and long problems with many parts which can be frustrating (& irritating). In fact, I would estimate that a third of the book consists of these exercises and problems. The book should be used as a companion to other more basic books on option pricing like "Financial Calculus" by Baxter et al. ... Read more

Book Description

"Profits always take care of themselves but losses never do."
–Jesse Livermore

Jesse Livermore is considered by many to be the greatest stock trader who ever lived. He pocketed $3 million in a single day when he predicted the crash of 1907 and made $100 million as America rolled into the Depression. Although he began his career in 1892, the ideas and practices he displayed are as valid today as they were when he was first implementing them–and makingmillions.

In Trade Like Jesse Livermore, author and Livermore expert Richard Smitten explores the technical aspects of Livermore’s trading success, and shows you how to use these techniques to achieve the success Livermore once did. Smitten skillfully outlines Livermore’s methods of dealing with what he considered the three essentials of successful stock market trading: timing, money management, and emotional control.

Trade Like Jesse Livermore covers every aspect of Livermore’s trading principles and timing techniques, from discerning market behavior and trends such as top down and tandem trading to paying close attention to indicators such as one-day reversals and spikes. This book also explores Livermore’s money management strategies, including avoiding cheap stocks, establishing a profit target, and setting stops before trading.

With Trade Like Jesse Livermore as your guide, you can learn how to trade without fear or greed so you can begin to trade more profitably. ... Read more

Book Description

Selling naked options, long considered profitable for professional traders but too risky for most investors, has been surging in popularity. The Complete Guide to Options Selling avoids dry, complex theory and jargon in favor of a simple, direct approach that sophisticated investors can use to produce surprisingly consistent results with only slightly increased risk. This down-to-earth book explains how to apply market fundamentals--while avoiding common options trading mistakes--to make options selling a profitable part of any portfolio strategy.

Book Description

Measure market sentiment and predict market trends.

Contrary opinion is the opposite opinion of the sentiment held by the majority. If eighty percent of traders are bearish then a bullish view would be a contrary opinion. As developer of the Bullish Consensus, R. Earl Hadady has fine-tuned sentiment, measuring the opinion of a specific majority, to a calculable figure. Traders can now develop a winning trading plan around the Bullish Consensus and buy or sell as warranted by its numbers.

Examines in-depth the workings of the futures markets and how market sentiment affects those markets.
* Demonstrates that the trend of the market is actually a reflection of the trend of market sentiment

Earl Hadady (Glendora, CA) is the author of the first edition of Contrary Opinion: How to Use it for Profit in Trading Commodity Futures. Mr. Hadady is a renowned expert in contrary opinion. ... Read more

Reviews (3)

Excellent book, simple and provocative
What you will come to know in several years can be assimilated in little time with this book written by the master. Because most people are going towards electronic trading, they are devoid of the emotions that people have witnessed in the trading pits. Often times, things that are percieved in a convoluted way are at the hu