Book Description

The foreign exchange (FOREX) market used to be the exclusive arena for professional currency traders and major financial institutions. With the barriers to this market now removed, you too can participate and profit from currency trading–but first you must learn how.

In Currency Trading: How to Access and Trade the World’s Biggest Market, expert trading veteran Philip Gotthelf provides a cutting-edge and comprehensive overview of the largest market in the world–where currency trading volume exceeds $1 trillion daily–and shows you how to take advantage of the fluctuations within currency markets to reap enormous rewards.

Currency Trading is filled with in-depth insights and valuable advice that any level of currency trader can appreciate. Numerous real-world examples and case studies help drive each point home in a straightforward, no-nonsense manner. Topics discussed include:

• The principle of "parity" and how to master it
• How currency markets such as futures, options, Interbank, and forwards work
• Events that affect currency value–from interest rates to a country’s economic position
• Forecasting using fundamental and technical analysis
• Basic to advanced trading strategies for currency markets
• How to avoid scams and take advantage of legal manipulations within currency markets

The dynamics and rules of currency trading are constantly changing. There is no point in following the outdated advice of "experts." Currency Trading offers practical information which will allow you to cultivate your own views of currency trading, sharpen your skills, and ultimately, draw your own conclusions on where, when, and how to trade almost any currency–from U.S. Dollars to Euros. ... Read more

Reviews (4)

Thanks Disappointed and Disgusted from Northern California
The author spends way too much time explaining basic economic indicators that should be basic knowledge for any investor. After I read another review that outlined the blundering editorial mistakes, I had to see for myself. All true! I cannot continue reading this text... How can anyone who makes this many conspicuous mistakes get a book deal much less be right about anything? Not worth the $70 price tag!

Great book to start with!
As the author of the book "Futures For Small Speculators" I tend to be very critical of books that discuss my industry. Although this book had a few editorial mistakes, Mr.Gotthelf still did a solid job of getting his point across. For a beginner this is a great start. For more indepth analysis I would go to Mr. Cornelius Luca's books.

Hastily slapped together, poorly written, sloppily edited
It appears that Gotthelf dictated much of this book into a tape recorder, some far-away typist created the manuscript, and nobody bothered to read or edit the final result. How else to explain that "Jim Ellis is the Founder and Chief Executive Officer of Oracle" on p.43 (I thought it was Larry Ellison)? These sorts of editorial lapses are rife throughout the book.

To name but a few examples, Fig 6.5 caption says "Cash Currency trading screen" but it's actually a bar chart of Yen futures (p.124)

The data for Figure 8.11 (a perpetual contracts bar chart of Yen) is presented with the caption of Figure 8.10 ("Soybeans futures monthly chart"). No soybeans chart is presented at all; instead, a Nikkei futures chart mysteriously appears (p. 212)

Figure 8.41 is printed upside down! (p.236). Honestly. This is perhaps the ultimate insult to the reader and ought to be a source of acute embarrassment to the editor and author.

Academy Award nominee James Caan, with two a's, will be amused to read p. 89 which states "... has been depicted in fiction such as the movie Rollerball starring James Cann" with two n's.

Those who buy the book believing it may deliver on the dustjacket's promise "How to trade the world's biggest market" will receive a disappointment. The only trading strategy Gotthelf reveals is "Go Long when price crosses above a moving average, Go Short when price crosses below a moving average." Then he regurgitates standard methods of creating a synthetic position using options. There is absolutely nothing new here.

No review would be complete without mentioning Gotthelf's mysterious concept of Parity. First he tells you it's "a ratio that always equals one" (page 24). Next he tells you "there are no exact relationships" in FOREX (page 32), leaving you to wonder how Parity could always equal one if there are no exact relationships. Then he muddles through two hundred more pages and eventually you, the reader, decode the fact (which Gotthelf never bothers to state exactly) that his "Parity" actually means "Equilibrium". Great. But where's the insight?

I own several other Wiley Finance books and all of them have wonderful quotes from important figures in the trading world, in the form of testimonials and gushing recommendations on the rear dustjacket. Kaufman's "Trading Systems and Methods" has five, Hill and Pruitt's "The Ultimate Trading Guide" has four, Ryan Jones's "The Trading Game" has five, Sweeney's "Maximum Adverse Excursion" has three, et cetera ad nauseum. But this currency book by Gotthelf has exactly zero quotes on the dustjacket. No recommendations, no congratulations, no endorsements. I suggest you follow the advice of everyone who DIDN'T write a recommendation for Gotthelf's book: stay away.

Soros's Resource
OK, I don't know if Soros used this resource, but he probably would have enjoyed it. This is a classic for anyone who wants to engage in serious trading or speculation in the foreign exchange markets. This book entertains as it illustrates. One caveat is convertibility risk detailed in Tavakoli's book on "Credit Derivatives". We saw this happen in several Latin American countries, Iran, and more, and that effects settlement on foreign exchange and foreign exchange options. Another product Tavakoli writes about is credit default contingent foreign exchange. One can speculate and earn big premiums, but the risk is difficult to evaluate. ... Read more

Book Description

Learn How to Profit from Option Selling and Time-Value Decay

"John Summa and Jonathan Lubow make a special contribution to the trading literature with their book Options on Futures: New Trading Strategies. Among other notable features of the book, the authors present their favorite trading setups for S&P 500 and commodity futures options, an excellent chapter covering SPAN margin requirements, and actual trades and follow-up adjustments under far from ideal market conditions. The book drives home the point that options on futures should be part of any trader’s arsenal. The authors’ premium selling approach will come as an eye-opener for many options traders who remain confined to option buying strategies. If you want to learn how to trade options on futures, there is no better place to start. This outstanding book, coauthored by John Summa, who is one of the best options educators and traders in the business, provides a practical, hands-on explanation of how to trade options on futures. Options on Futures is full of trading nuances and key insights that make it uniquely effective. Highly recommended reading!"
–Steve Bell, General Partner, Intraday Investments
Kailua-Kona, Hawaii ... Read more

Reviews (5)

Bravo
I recently carefully studied your book entitled "Options on
Futures" and found it just fascinating. Of course, I have long been a
seller of SPX cash market options and your book broadened my understanding
of what can be done in the futures and options on futures markets. Your book
and workbook are very clear, understandable, and applicable.

Another book about selling options...
This book is really no different from the many other books about options and why it is better to be a seller of option premium rather than a buyer. ... The only real difference from most other options books is that this book focuses on futures options instead of stock and index options. The only chapter that addresses any slightly new material is the chapter about the margin requirements of trading futures options. And even that chapter is lacking. In order to fully be able to employ the material abouts margins, you have to buy a ...computer program. I can't really recommend this book to anyone with even slight experience trading options. For beginners only!

Options on Futures
This is a very simple, canned presentation. The book is primarily boilerplate that may be read free on any exchange website. There may be value for the novice here, but anyone with experience will put the book down 15 minutes after picking it up.

One of the best Options books out there....
Very good treaty on trading options as a net seller, sellers being the options traders in the market who make the real money. Well written, clear examples, margin reqs covered thoroughly...

Glad I got this one
I like to buy straddles. That makes me a debit spreader. Since this book is all about CREDIT-spreads, you'd think that I would stay away from it.

Nevertheless, I'm glad that I bought the book and consider it to be an important addition to my library. The authors do a good job of:
-- explaining why speculators should be interested in options on futures;
-- explaining why speculators should think twice about buying premium... as opposed to selling it;
-- showing how to take and then adjust positions on certain basic strategies.

The book is:
--less theoretical and more immediately useful than Natenberg's "Option Volatility & Pricing";
--better organized than Caplan's "The New Option Secret";
--more focused and informative than Spears' "Commodity Options", and...
--less combative than Gallacher's "The Options Edge".

To be honest, I'm glad that I've had a chance to read and re-read ALL these books -- so I'm not saying that you shouldn't get any of them. It's just that Summa and Lubow make an especially good case for credit-spreading.

One last point: "Options on Futures" is a must-have if you follow the recommended trades on... ... Read more

Book Description

Who gets stock options? How many? How often? And when? Many companies and professional advisors are familiar with how employee stock option plans work, but they lack detailed information on how companies are actually designing and using their plans. This 498-page book describes and analyzes the results of a pathbreaking survey of 247 U.S. companies conducted by the leading research and information organization in the field. The book is the most comprehensive resource available to the public on how companies design stock option plans. It mainly focuses on broad-based stock option plans (i.e., those covering most employees), but also addresses executive-only plans and employee stock purchase plans.

The results presented here allow readers to make comparisons on allocation, vesting, and eligibility issues, as well as on corporate-level issues of dilution, the percentage of total option awards going to certain kinds of employees, the basis on which options are awarded, and other issues. The book provides extensive breakdowns of data by company size, industry, and region. These breakdowns provide overall plan data and also present information for various classes of employees. The results for executive plans and employee stock purchase plans (ESPPs) are presented separately in these breakdowns. Other chapters discuss the data on private vs. public companies, technology companies, companies offering one-time grants, ESPPs at companies with broad-based option plans, and how companies communicate their plans and get employees involved. Finally, the closing chapter summarizes other research in the field.

With its clear summary and analysis of overall results; its detailed breakdowns by industry, company size, and region; and its comparisons of public and private companies, this book is an essential tool for any company or consultant involved with employee stock options or related plans. It is spiral-bound for ease of use. ... Read more

Book Description

Pairs trading is an effective trading style that has traditionally been utilized by institutional investors such as hedge funds and savvy individuals who trade for a living. But today, this style has been adopted by a broad range of traders–from the novice to the veteran. With the help of technology and some commonsense guidance, you too can begin using this technique to boost the profits of your portfolio.

Written by Mark Whistler, a licensed securities trader and broker and leading arbitrage expert, Trading Pairs clearly illustrates this profitable technique, and allows you to gain a new perspective on the markets as well as a new approach to investing. In addition, if you have access to the Internet and Microsoft Excel, the companion CD-ROM can help you put everything in this book to practice, as well as track your pairs.

"Mark Whistler has produced the ultimate guide to pairs trading that is a must read for any technical or fundamental market trader. Better yet, he’s done so with a sense of humor that makes for an even better read!"
–Scott Cortelyou
cohost, Business for Breakfast, 760 AM, The Zone, KKZN ... Read more

Book Description

An in-depth examination of a powerful new trading strategy

"Fischer provides an intriguing and thorough look at blending the Fibonacci series, candlesticks, and 3-point chart patterns to trade securities. Backed by explicit trading rules and numerous examples and illustrations, this book is an invaluable tool for the serious investor. Read it."
–Thomas N. Bulkowski author of Encyclopedia of Chart Patterns and Trading Classic Chart Patterns

In this groundbreaking new book, Fibonacci expert Robert Fischer and coauthor Dr. Jens Fischer successfully merge Fibonacci applications with candlestick charting to create an innovative trading strategy that will help you enhance profits and reduce risk.

Filled with in-depth insights, helpful charts and graphs, and practical real-world examples, Candlesticks, Fibonacci, and Chart Pattern Trading Tools reveals how correctly combining these different strategies can give you a noticeable edge in challenging market times–regardless of whether you are a short-term or long-term trader–and improve your chances of success under a variety of market conditions.

You’ll be introduced to the critical aspects of this synergistic approach through in-depth analysis and detailed explanations of:

• Core combinations of Fibonacci trading tools with candlesticks and regular 3-point chart patterns
• The magic figure "three" and its relevance in pattern recognition
• Fibonacci-related trading strategies, selected candlestick chart patterns, and regular 3-point chart patterns
• Applications of these trading strategies–double tops, Fibonacci price extensions, PHI-channel applications
• PHI-ellipses as trading tools
• And much more

Along with the computer technology of the WINPHI charting program included on the companion CD-ROM, Candlesticks, Fibonacci, and Chart Pattern Trading Tools will help you understand and implement this profitable trading strategy to the best of your ability. ... Read more

Reviews (2)

Good concept, but too repetitive
the first 3 chapters touch very briefly on psychology, fibonacci tools and candlesticks charting as an introduction. it is concise, just about sufficient to give uninformed readers a basic understanding in these topics. for a deeper understanding of these subjects; steve nison's 'japanese candlestick charting' and fischer's 'new fibonacci trader' are excellent. these chapters were easy for me as i had already read those 2 books.

chapter 4 is what seems to be a pretty useless chapter where the author states statistical tests done on the profitability of each method described in the previous 2 chapters (ie the various candlesticks and fibonacci tools). he would repeat the description of each method and show their profitability tests over certain periods.

chapter 5 details a very useful method of using fibonacci trading, the PHI-ellipse. however, this chapter only repeats and expand what you'd have read in the previous chapters. note: PHI ellipses was already covered briefly in chapter 2. PHI ellipse is also found in 'new fibonacci trader'.

chapter 6 teaches you how to combine the various methods discussed. the author would repeat some of the methods as he reintroduce them. an illustration of how repetitive the book is, the chapter is 50 pages long, half of which are graphics and there are summaries after each topic/method; yet there is a further summary to this chapter of 2.5 pages. obviously, the summary is a repetition!

there would be a last chapter of summary for the entire book...

a software for using the proprietory PHI-ellipse is provided with this book. i find that i cannot use it so far. but this may be due to my own inadequacies with the computer... or a conflict as the software has some very strict requirements for the charting data.

a good book with good theories but the author need to organise it better. the end product is disorganised and repetitive. readers could just read 'japanese candlestick charting' and 'new fibonacci trader', apply some common sense to combine these 2 methods and skip this book. the same CD-ROM software for the PHI ellipse come with 'new fibo trader'.

Fibonacci ,selected chart patterns and candlesticks.
This book is a combination of Candlestick, Fibonacci and some basic chart patterns, Three quarters of the books discussed the basic principles and applications of these three tools, only the last chapter show you how to apply these tools together. The explanation of candlestick and chart pattern seem to be too brief, and the fibonacci part overlays a lot with the author's previous book. I would suggest you to buy this author's previous book "The New Fibonacci trader" together with Steve Nison's "Japanese Candlestick Charting Techniques¡¨, and it would be sufficient for you. ... Read more

Book Description

The Convertible Bonds (CB) market is growing all the time. To date, over one trillion dollars worth of CBs are in circulation. Corporations are finding this source of fund-raising more and more attractive. And for different reasons, the buyers are finding CBs increasingly attractive investment vehicles. Kevin Connolly has put together an excellent treatment of pricing convertible bonds, some of the chapters are:

• Returns distributions and associated descriptive statistics
• Modelling the share price process
• The basic convertible bond model
• Introducing the complications
• Convertible bond sensitivities
• Using equity warrent models to price CBs
• Refix clauses

Reviews (10)

It's a start...
If you are a beginner to the area then this book could be of some use to you. However, for the more experienced practitioner it is limited in its usefulness. The phrase "beyond the scope of this book" becomes too repetitive whenever the interesting and challenging topics are mentioned. And it is precisely these modeling areas that differentiate the convertible bond from the more trivial option pricing problems that are covered well in other books. This lack of detail in the meatier areas is the biggest disappointment of the book. Generally it is well written and presents the issues clearly - just not enough of the issues that really matter.

Well-written, valuable reference work
Don't be fooled by its size relative to other financial textbooks. This is a comprehensive and well-written text, containing far more valuable information than previously available on the complex issues of pricing convertible bonds.

Starting from first principles, Connolly's tome takes the reader (both beginner and professional alike) step by step through the process of building a convertible bond model, gradually introducing the various complications that set CB's apart from other instruments.

The result is a success for the author and a reward for the reader who is prepared to work through the text and accompanying (free) software. Maybe there is such a thing as a free lunch after all!

The best of a very bad bunch
It's amazing that nobody has written a decent book on convertible bonds. This is the best in a very weak selection.
The book essentially starts at Chapter 6. If he wanted to write a book on modelling in excel he should have thougt about doing it before Jackson and Staunton (Modelling in Excel and vba). However, there isn't any vba here. How another reviewer can say that the pace accelerates enough to keep the attention of the expert is crazy, Chapters 1-5 are very irritating; as I say, they might be fine in another book.
The author's avoidance of vba is a drawback. Why not? It is a logical thing to do.
In the last couple of chapters, the author stops doing excel and just shows the graphs. He even freely refers to a embeded tree spreadsheet and then nonchalently points out that it isn't on the disk provided. Why not?
The real reason is that the binomial method becomes completely unworkable as soon as one introduces complications. One needs to use finite difference methods. FDMs are not even mentioned in this book. The author places his presentation as the state of the art, it isn't. I learned more in 4 pages of one of Wilmott's books (Mr. Numerical DE Solver) [Paul WIlmott on Quantitative Finance, section on convertible bonds] than I did from this book.
If you are interested in building models of convertibles, that can take into account any but the most vanilla features, this is not the place. For a conceptual non-quantitative overview, fine.

Excellent.
This is a very good book. Connolly starts from the beginning, assuming you know nothing, but accelerates at just the right rate to hang on to beginners and not to annoy people who already know the basics. Admittedly, if you're a quant you'll know all this stuff (anyway, if you're already a quant you shouldn't need to buy a book on the subject in the first place). If you're not a quant, it's a fine introduction to how to model convertibles. In fact, there's enough information here for you to have a go at writing your own toy model that takes into account most of the complexities of CBs (including puts and resets), although you'd be a trifle crazy - or extremely confident - to start trading off a model you implemented *only* having read this book.

This is an excellent book for anyone who is a user of CB models, who understands the inputs and outputs, and who wants to know more about what's going on inside the model "black box".

Useful, practical, essential, but MORE Please!
Connolly has written a useful, practical book for those who are attempting to price these (increasingly) complex instruments. For more abstract or academic treatments of the topic, seek other sources and the innumerable academic journals of quant finance. But for a nut-work 'gotta-price-this-bugger-'cause-my-boss-asked-me-to-and-I'm-the-quant-guy-in-the-shop' this guide, while not strictly a 'cookbook,' is indispensable. Although it begins at a relatively basic level, it clearly and concisely explains every technique from the simple (y = mx + b) and then step-by-step ratchets up to the Excel-samuri level (MIN and MAX tests after multiple operations of option pricing trees (bi-nomial and tri-nomial)).

I limited my rating to four stars, however, because Connolly only mentions in passing the available (expensive) software-house products that do many of the same things his example spreadsheets do. Fin software needs critics, and I can think of no one better placed than the author to examine them and give front-line quant analysts his views.

In addition, like most worker bees, I try never to reinvent the wheel (programming in C++ and VB or anything else for this kinda thing is undiluted soul-destroying tedium), but at the same time want to thoroughly check out the foundational theory and techniques someone applied before I risk my career on someone else's work. In this case, a good list of the academic sources and current financial literature on the topic would have been a useful and welcome addition to this slender volume.

I suppose a final criticism is that we have all seen the exponential growth of credit derivatives in the past few years. Connolly's next edition will need to address the topic of credit derivatives in relation to convertible bonds, as their use in combination with CBs provides alternate hedging, investment, and speculative strategies not explicitly considered in this book. ... Read more

Book Description

Become a savvy investor in the options market

The New Options Market, Fourth Edition

Referred to as the bible of options books, The New Options Market has groomed two generations of traders and investors for success. Now with this updated and expanded Fourth Edition, Max Ansbacher gives his unique and tested strategies to you! With the help of numerous real-world illustrations, appendices with over thirty Web site suggestions for options traders, and specific advice on option picks, he explains the basics of trading theory and practice. In easy-to-understand, nonmathematical language, The New Options Market, Fourth Edition, is a highly personal, and newly updated guide that is specifically aimed at options traders in need of knowledge that will lead them to success.

"Aimed squarely at the ordinary investor, The New Options Market provides a practical guide to the use and misuse of options as an investment tool. Max Ansbacher’s book is an excellent starting point for investors seeking a clear, nontheoretical introduction to options." –Jack Schwager, Author of Market Wizards and The New Market Wizards

"As a broker on the S & P options floor for the past eight years, I find that The New Options Market, unlike other option books, represents a clear, practical approach to trading options. Both the professional and the novice will benefit from the comprehensive coverage of all aspects of option trading." –Kevin M. Maclean, V.P., Fimat, U.S.A.

"Max Ansbacher is a true professional–one of today’s most experienced option brokers and traders. His expertise stands out in this new edition of his book as it has in the previous editions. The fact that Max is a maestro at writing options is evident in the quality of the chapters on option selling."–Lawrence G. McMillan, President of McMillan Analysis Corp. and author of McMillan on Options ... Read more

Reviews (5)

Finally--solid strategies for success!
If you are serious about trading options, BUY and study this book! Ansbacher explains the concepts needed to understand options in clear and nontechnical terms. Often he is brutally honest in ways the force you to think. The most valuable parts of the book are the strategies that he provides for each type of trade to inform you of what action to be prepared to take if (and when!) the market turns against you. Ansbacher repeatedly tells you that it is not easy to make money with options, but the thesis of the book is that if you approach options trading with some of the strategies he shares, you will be able to keep the premiums you collect and not get an ulcer. His ideas about trading two-strike prices out and about how to easily figure the margin requirements on options are well worth the price of the book. The purpose of this book is not to tell you how to find good stocks for writing options; the book's purpose is to provide you with sound strategies to be successful once you identify stocks in which you are interested. If you want to identify the good stocks, spend a few dollars and sign up for a program like VectorVest. Then you will have both the process and the content for success...

Good book to bring you down to earth
I found this book very useful in bringing people back to reality as to the speculative nature of option trading. It even includes very good advice as to how to avoid (or mitigate if you will) losses. I only gave 3 stars to this book as it does not provide strategies as to how to pick correct stocks, and as they say, winning in options is 90% stock selection and 10% option trading.

It is a good purchase for anyone starting in this business. Wish you all luck.

A Clear, Concise Overview with an *Opinion*
The strengths of this book are the clarity with which it has been written, the numerous practical examples provided, and most importantly, the opinions which the author, an experienced options trader, freely provides. Ansbacher has avoided dealing with the complexities of options such as the Black-Scholes pricing model, the greek sensitivities, etc., instead focussing on the basics: common strategies and analyzing what to do when things don't work as planned (in contrast to Fontanills' whose examples always make money!), but it is his experience which really shines. Reading this book is straightforward, owing to its conversational tone and is really like having an experienced options trader at your disposal -- Ansbacher is no flake, he's traded SPX options for years and runs a successful hedge fund....This one belongs on the bookshelf with McMillan and Natenberg...

Very shallow
Ansbacher opens by stating that "basically the strategies [for using options] are as true today as they were 25 years ago". So much for the title "The NEW Options Market". As far as rating it a "bible of options books" from "one of today's most experienced option brokers and traders" is concerned, I'd hate to see an average book on the subject.

If you want to TRADE options then forget this book. The author has the firm belief that an option should be held till expiry. He therefore fails to sufficiently discuss the effects of dynamic variables on option price and leaves the reader with as good as no tips or strategies for TRADING options.

Technical traders will find this book insulting. The author assumes for the purposes of developing his strategies that in the end we all gain no more than the market average. It may be a contentious point but enough people believe in the merits of technical analysis and would have expected its consideration in a "bible of options", with a discussion and strategies for trading options in the short term.

In the book's synopsis (above), Jack Schwager rightly points out that the book is "aimed squarely at the ordinary investor". The lavish appraisals of Messrs Maclean and McMillan only do a disservice to their own reputations.

For the more conservative 'investor' this book may be sufficient as a basic starter. Short term 'traders' will be left with little more than could have been gleaned from basic info on web sites. For me the book left important questions unanswered. Spare yourself the frustration - spend a little more money and get a more comprehensive book!

Finally, a book about futures options that anyone can use!
Mr. Ansbacher has done what seemed impossible: he has written a book about the complex world of commodity options- and more specifically S&P 500 index options- that doesn't require a Ph.D. to understand. And to boot, the ideas in the book actually work.

I am a professional commodity broker, and like many of you I've bought books about the complex world of futures trading, only to get home and find that a background in computational physics was required to get any further than the introduction page. What Mr. Ansbacher has done is to demystify a subject that many people (even professionals) don't really understand, even though they've read books on the subject and pretend to know: option trading.

Mr. Ansbacher's approach isn't what one would call simplistic. To the contrary, his approach is very exacting, methodical, and concrete. It's just that he has avoided lapsing into language that most readers couldn't grasp. And his approach will make many people who speculate in commodity options think twice about what they are doing.

The complex world of commodities is one where the investing public is constantly pitted against the professional traders, with predictable results. Mr. Ansbacher attempts to show the average (losing) trader the folly of what it is he's doing, and provide a roadmap to success and greater understanding. Anyone who wonders why he is losing money trading options should close his account, buy this book, and "go back to school." Highly recommended. ... Read more

Book Description

Explores two neglected mathematical tools essential for competing successfully in today's frenzied commodities markets: quantity, which shows the proper amounts a trader should trade for a given market and system, and intercorrelation of returns (diversification), which shows not only which markets and systems to trade, but how to diversify with respect to trading the right quantities for each market. By using these lesser known tools in conjunction with the more popular trade/system selection tools, readers will see mathematically how success in the markets can be achieved, and how``success'' without using all three is most likely incidental. In addition, non-stationary distribution of profits and losses and drawdowns are incorporated into the discussions to expose traders to the highs and lows of commodities markets and how best to leverage their assets. ... Read more

Reviews (5)

Excellent coverage of a difficult topic
... this book is incredible. I have a degree in mathematics and the principles expressed are extremely sound -- but far more important than the formulas are the first couple of chapters which cause you to view trading in a very different, and statistical, manner. Although the theories in this book can really only be applied to a trading system (which I haven't really used), after reading this book over several times I understand that there is a mathematical certainty that I will eventually lose my trading capital if I don't start approaching trading in a more systematic fashion. Anyway, I highly recommend it -- the sections on gambling theory alone are worth buying it.

Beware applying optimal f to actual trading
The problem with optimal f is that the calculation is highly dependent on the largest loss on a trade (not drawdown) experienced in backtesting. If you use optimal f and the largest loss in actual trading is greater than the loss experienced in backtesting, you will go bankrupt. Vince deals with this problem in an offhanded manner by suggesting that the actual f you use should be "padded". OK, so in the end you don't even use the actual optimal f, you pad it. And how much do I pad it by? Vince is silent on this question. So the purpose of optimal f - to decide by formula how much capital to allocate to a trade - is totally negated by the fact that you must "pad" optimal f. And you must pad it by a qualitativly determined amount because, again, Vince gives no formula on how much to pad it by. Optimal f is totally useless for system traders or any other trader for that matter.

full of fluff, platitudes, generalities, and inaccuracies
"This book is about mathematical tools". That's the first sentence of Vince, who as it turns out markets his books as heavy on math. I'd bet that he never had college classes in math, or physics, or finance for that matter. His book is full of mathematical depths like explaining why 1+2*3 is equal to 7, not to 9, or giving four reasons why asterisks is the best symbol for multiplication. Another brilliant example is when he illustrates how to combine three assets with different weights: 10% of A, 10% of B, 80% of C; 10% of A, 20% of B, 70% of C, and then three more pages of other different combinations. General math level of this book is a level of B-student in the seventh grade who has never derived a mathematical formula or proved mathematical fact. Then, considerable part of the book is authors comments on trading wisdom, like "first loss is the best loss". Then, there are some ramblings on normal ditributions and Capital asset pricing theory. About 60 pages are appendices on completely irrelevant topics like he writes Black-Scholes formula, or normal distribution, or his grandiose program duplicated in C and Basic.

The "stuff" of this book, which is the so-called "f-ratio" is explained on about ten pages. You can understand it, although it is not a clear explanation. Better probably to read it where the author got it in the first place. It is difficult to say if f-ratio has much practical importance because of assumption of indefinite divisibility of trading contracts.

Most of all this book reminded me a project done overnight for a school or college class where you put a little stuff in the middle and then pad it for volume with anything you can come up with because you need to satisfy the minimum length requirement.

Simply the best investment money management book out there
I bought this book about 4 years ago and put it on the shelf for later reading (I collect books in this subject area). I sure wish I read it thoroughly at an earlier date. Concerning the area of money management as related to investing, this is simply the best book I have ever seen, and like I said, I collect books dealing with this subject. While this book at first seems oriented towards the futures markets, its principles may be applied to any market. Personally, I invest in stocks, not futures. Just this weekend, using the theory discussed in this book, I set up a spreadsheet that I feel confident will greatly improve my trading returns in the future. Highly recommended. The material is explained very well and very thoroughly and is very convincing.

The best book on money management
This book changed my trading life. It tells why money management is as important or more important than a trading strategy itself. It also allows one to make apple to apple comparisons of trading systems; after the analysis you then allocate numbers of contracts (or shares) to each system. Without proper money management most traders, even with winning strategies, are doomed to fail. ... Read more

Reviews (6)

Excellent Options Overview
I read this book when I began my self-education
into the financial markets back in the mid-'80s.
Now I can get a hardback copy, in 'like new' condition,
for a steal!

It contains 200-300 practical examples on using
options for all sorts of investment situations and
objectives.

If you're new to investing, it might take a while
to see the logic in some of the examples, but all
of the strategies are viable and 'make sense'.

It is an excellent resource on the use of options
for straight trading, hedging, spreads, straddles,
producing income, and insurance, etc.

IMHO "Sure-Thing Options Trading:..." should
be on every investor's bookshelf.

Undiscovered gem
This book is a steal at the current used price. It is definitely worth putting on your shelf, and reading and re-reading it. I agree with the above reviews.

Top of the Class
This book is intended (more or less) for a person beginning in options. Its no "walk in the woods" but considering the abstruseness of both the subject and the other books on the topic I have scanned, it's near the top of the class. I think, it may also be somewhat more understandable than the Option Industry Council's - Option's Toolbox CD. This whole area has been poorly explained to the beginner for the most part, which is why options are not much more widely used despite their potential for leverage and risk reduction.

Best of the multiple options books I have read.
Of the ten + options books that I have read, this was my first, and it is the best.I still refer to it often.Most of the other books are either too technical or too simplistic.This engages the reader with practicalexamples and descriptions of the types of trades that the novice tointermediate investor will use most.I heartily recommend it.

This book is very interesting and readable.
A concise, useful, and comprehensive overview of futures trading.It was quite appropriate for a beginner. ... Read more

Book Description

A professional's guide to controlling risk when investing in the foreign exchange and money markets. Particular emphasis on the use of derivatives. The book offers a unique perspective combining coverage of all three areas. ... Read more

Book Description

Swing trading tips and techniques from Undergroundtrader.com--voted Forbes's "Best of the Web" for 2000, 2001, and 2002

Short-term and swing trading has become the strategy of choice for active, aggressive traders and investors. Secrets of the Undergroundtrader details the advanced methods today's most successful traders live by, from stochastics and candlesticks to 3-price breaks, volatility signals, and more.

Each of these methods is tested daily in the trenches and is designed to allow traders to more accurately time entry and exit points in bull, bear, and nontrending markets. The authors open by explaining how the methods work and then provide step-by-step directions so traders can:

• Learn and become comfortable with the method
• Implement the method in the heat of trading
• Manage the method both mentally and physically

Reviews (6)

Not a good book at all, save your money
The reviews were obviously written by the writers or their friends. Buy Trading for a Living by Dr. Elder, and High Probability Trading by Marcel Link. These are the best 2 books I've read out of 35 books I've read in 12 years of trading. Good Luck.

the definitive work
Don't know what the bloke from Italy is writing about; sounds like lots of sour grapes.

This book is without a doubt, the real deal and probably the best book I've seen to day on intraday trading. No nonsense, hard hitting and very generous explanations of fractal analysis (different time frames necessary to gauge your trades), multiple uses of indicators, exponential MA shift to predetermine moves and close monitoring of the 'noodles' (or Nasdaq futures) which are the primary movers of the market, not necessarily individual, retail traders. One thing I really liked was the strong recommendations of the authors (who unlike most trade book authors are REAL traders) to only trade ONE basket stock like MSFT and become intimately familiar with the cycles of that stock. More and more I'm realizing that is the only way to really get good at predicting moves. Saves lots of aggro.

One thing to keep in mind: this book is not for beginners, nor even intermediates. It is fairly complex stuff, though not a real hard read, and really, only more advanced experienced traders with pretty good knowledge of TA would get the most out of it. So forget the Toni Turner-type books that are much ado about nothing: this book is a must for any serious day trader.

THE BEST TRADING BOOK
Thank you Jay, and all underground traders team for sharing all new developments and extraordinary capabilities to deserve my own trading methods.
A PUP book wrote by amazing real traders.

No stars would be a better rating
This is not a TA or Day trading book, this is an insult to every serious trader. Classic example of take the money and run.
Part 1 (by Jea Yu): same tools of previous book (2MA+Stochastic), 168 pages with 13 charts. Sorry, i forgot the new innovative tool: 3 period exponential moving average with a shift -3. WOW !!!!!!!!!
Part 2 (by Russell Lockhart,Ph.D.): 174 pages, about 30 charts.
Group Orgy with Candlesticks+Lunar Clock+Fibonacci+Natural Squares+Harmonics of Range+Market Structure+Price/Time+Three-Price Breaks+ bla bla bla.
Appendix A: "These two entry techniques uses the indicators in an innovative way". First technique: 20-period EMA retracement technique (do you remember Street Smarts?). Second technique: stochastic divergence trades (very, very innovative tool, a 5-3-3 stochastic with a 1 min. chart).
Last but no least. Appendix B (by John Allen). The chart (pag.345) displays an Evening Star pattern, top reversal signal: sell signal. No, for Mr. Allen this pattern is a Piercing pattern, bullish pattern etc... etc...
This book is not worth the paper that it is printed on (recycled, acid-free paper).
Save the last scalpers !!!

What day traders need to know
I am a full time Day-Trader and utilise the methods outlined in this book. The book provides a comprehensive review of the methods used at undergroundtrader .com It is not a book for complete beginners. Some initial readings with more basic books will be needed in order for newer traders to gain full benefit. The book is excellent because it provides 2 approaches to trading. I strongly advise you to get this book if you are considering trading as a full time career, dont pay attention to people who slag off this book .I trade full time using these methods and they work. The lack of reference to Day Trading in this book is probably because of the bad name that it now has. Yet this book is really about trading not investing, mainly on an intraday basis. Moreover there are very useful strategies discused which can help the investor or less active trader to. Overall it is an essential addition to any trader or investors arsenal. ... Read more

Book Description

Guidelines for fully understanding and getting full benefit from an employee stock option plan

Nearly 10 million U.S. employees are fortunate enough to receive company stock options. Unfortunately, far too many have little or no idea exactly what it is they have. An Employee's Guide to Stock Options provides the first comprehensive­­and comprehensible­­guide to employee stock options, covering what they are, what they are worth, how to maximize their value, and more.

Compensation specialist Beth Walker outlines an easy-to-follow program that any employee, at any level, can use to get full value from a company's stock option program. Complete in both its guidelines and its real-life examples, this handy book outlines the fundamental actions that must be taken when stock options are part of a financial plan, as it explains:

• Different types of options

• How to avoid common and costly mistakes

• The impact of the Alternative Minimum tax

Book Description

For good reason, investors feel whiplashed by the markets of the past few years and are looking for sensible ways to bridge the gap between the consistency of fixed-return instruments and the upside potential of equities.

New Insights on Covered Call Writing presents an investment approach that, though it has been used by some traders for thirty years, is largely unknown or misunderstood by active investors and traders. This book shows how to use this powerful investment technique for success in today's and tomorrow's markets.

Most of the many professional books on options devote no more than a cursory chapter to covered calls. This book gives a complete guide to the increased control and lowered risk this technique offers active investors and traders, and will take writing covered calls from under the general umbrella of options and make it accessible to a broader range of the investing public. ... Read more

Reviews (9)

excellent discourse on covered call writing
an excellent guide to understanding covered call writing. as a retiree and never having written covered calls, i am convinced it is an opportunity for conservative investors offering potential returns competitive with stock ownership alone and better returns than those available on bonds. mr.lehman covers all aspects, from underlying stock selection, selecting good covered writes, web sites offering all sorts of data and even tax consequences as structured by IRS.

Good book but lacks the "how to"
This is a good book if you already have a grasp of the basic concepts of covered call writing but are more interested in the details of why covered call writing works rather than how to use the concept to make money. The author spends a lot of time going through esoteric details on black scholes models and comparisons between the buy and hold and covered call strategy but little time is spent on providing real market examples on how to use the concepts in the book to make money. As an investor and trader my main purpose of reading any book is to learn the "how to" practical concepts that work in real market situations to enhance my profits and this is where this book is deficient. Furthermore this book does not get into the art of picking the right stocks and the timing criteria needed to decide when a covered call is a good strategy and when it is a losing one.
This book deserves at least 4 stars for explaining the covered call concept in great details and proving its usefulness. To make the best use of this book you need to couple it with one that will give more practical examples on using these concepts in real life situations in addition to strategies of picking the right stocks to write covered calls on and critical timing strategies. The book that worked best for me was the recently published September 2003 Second Edition "generate thousands on your stocks without selling them " By Elias. Elias's book has extensive real market examples with many innovative and profitable concepts.

Good, but not good enough
I expected a bit more from these authors. There is a wealth of data (too much) showing the viability of this strategy. This book provides convincing evidence that covered call writing is an excellent strategy - a stratgy I discovered last year after reading THE SHORT BOOK ON OPTIONS, which I also recommend.

The short book goes deeper into the basics of options. Lehman's book is for the more advanced options student.

Read both books and adopt this investment strategy. You won't be sorry (based on my profitable first year of using options)

A good approach to begin working with options...
As a professional in this industry, I was impressed with the book though it is hard to be certain how much was written by McMillan... There are better books to be sure, but it is tough for the average investor to start their education in options with a tome like "Options as a Strategic Investment" by McMillan (though it is fairly comprehensive and well written.) This book does a great job helping a stock investor transtion to an options investor by introducing some "baby steps" coupled with "grown-up" concepts. Covered calls are a preferrable start over more agressive strategies for those who are new to the subject matter. This book will serve new options investors quite well, and remind experienced options players of the important fundamentals.

Just about everything you need
I found this book to be excellent, really, but some of the nitty-gritty details about covered writing were missing. Such as computing returns in a margin account. Interestingly, McMillan covers those details in one of his other books -- Options As A Strategic Investment, so I guess I'd recommend that as a complement to this book. Overall, though, I found this book informative in the philosophy of covered writing -- why you'd want to use that strategy, and what you'd benefit by doing so. ... Read more

Book Description

Your Guide to Earning Consistent Profits on Short-Term Investments

Fine-tune your trading skills to the point that you’ll know where the market will go and when it will get there–with Sniper Trading: Essential Short-Term Money-Making Secrets for Trading Stocks, Options, and Futures. Renowned trader George Angell shows you how to spot the best opportunities, capitalize on them, and get out of the market in one quick shot–just like other "sniper" traders.

Sniper Trading offers three specific approaches to the market: support and resistance, time and price, and day of the week–then shows you how to utilize this information to:

• Create buying and selling "zones"
• Measure market symmetry
• Take a macro view of the market
• Develop an array of short-term trading techniques

. . . all of which will help improve the bottom line of your short-term trades.

Filled with numerous examples, helpful charts, and proven trading strategies and systems, Sniper Trading is your complete guide to short-term trading whether you’re interested in stocks, options, or futures. From the basics of short-term trading to the psychology behind it, Sniper Trading gives you the ability to understand market patterns, master the discipline needed to utilize this hard-won knowledge, and come out with measurable profits. ... Read more

Reviews (9)

Not a very good book
1. There is obviously a credibility issue with Angell getting nailed for telling half truth in marketing the LSS system in the late 90s. The book is not entirely about the LSS system though. I always take the cautious track when someone try to sell me a profitable system.

2. I agree with the other reviewers on the contents. The book is rather unorganized(in many chapters) and there is a lot of cliche repeating through the book. Yes, market wizards are better read if you want something along that line.

3. Many of the claims were not backed up with tested results. If that doesn't raise your suspicion, I can sell you the Brooklyn bridge at a pretty good price.

4. There are the momentum forumulas one reader suggested. Yes, play with them and learn anything you can before risking any real cash. I am not certain it offers more insight than other existing indicators but I keep my mind open on that one.

5. As to the simplicity of a two legged move, yes, I laughed when I first read it. However, you shouldn't take something for granted just because it is simple (Many successful traders use simple system which they have lots of insights on). The key in this matter is how well that two legged breast work in action which the book didn't offer any solid evidence.

And some of his rules are leaning towards the discretionary side which makes the system less repeatable and objective.

Top 10
This book is one of the top ten books on trading & investing that I've ever read. Mr. Angell has given the retail trader a real gift in terms of being able analyze the market based on price action (which is the final arbiter of value). If you work with the methodologies and formulas in the book, lay them out in a spreadsheet, track the market by its Oscillation in combination with increasing or decreasing Momentum while keeping an eye on the 5 and 1 day Strength measurements and initiating trades in the buy envelope, sell envelope or at the pivot point (long or short based on market momentum) there is a very high proability that you will learn to trade extremely well. This of course, will lead to making a substantial amount of money.

I recommend purchasing this book and the workbook, setting up your spreadsheet formulas and tracking your commodit(ies) for a period of a month via paper trading while you figure it out - You MUST keep good records and track the information in a spreadsheet so that you can create a good historical understanding of the market's price action in relation to the differnt value measurements. (I'm using it with the E-Minis, but I'm sure it will work for any commodity).

Note: (It took me a total of about 6 months of sitting in front of my screens and analyzing the market movement to put it all together-so, there is a learning curve, but believe me, it was worth it).

Good Trading and Good Luck!

Very, very poor book
This book is unfocused, and what little information there is only describes a simple "two-leg" trading system. The author claims that this system is proven by historical data, but doesn't give this data. A publisher like Wiley should be ashamed to put out such trash by an author who has been sanctioned for scamming investors in the past. For the cliche (but true) trading advice given in the book, you'd be better of just re-reading Market Wizards.

Misleading
It's too good to be true and written by a proven dishonest person.

Proven background of the author's dishonesty can easily be obtained from publicly available information from the Commodity Futures Trading Commision. In particular, CFTC Docket No. 02-08 was provided for the public to view here:

http://www.cftc.gov/files/enf/02orders/enfangell-order.pdf

Would you want to follow the advice given by the person addressed in that CFTC Docket? hmmmm, don't think so

Don't loose your money and time reading this book
Don't loose your money and time reading this old history ... Read more

Book Description

This book is an introduction to the markets in deposits, bonds, futures and swaps. It explains the purpose and design of these financial instruments, and how they are used by the various players in the financial system.

The book is for new recruits and potential new recruits in financial markets, as well as accountants, lawyers, and those wishing to understand the basic principles of finance. The author's engaging, accessible and non-mathematical style is comprehensible by those with no prior financial knowledge. ... Read more

Reviews (2)

A readable and thorough introduction to fixed income markets
Extremely readable. One could read this book in a single sitting and get a great jumpstart to an understanding of fixed income markets - the why and the how.

Wiseman has an engaging style of writing which prevents the stifled yawns normally associated with reading this genre, and keeps one turning the pages...

The book nicely covers the fundamental theory of why there exists a fixed income market, then turns to the players and discusses what they do, and finally covers some of the fundamental trading strategies and math employed to turn a buck.

Nice one...

i could not put this book down
i found this book very well written. It provides detail and yet covers that what it says it does. I find that Wiseman explains concepts in a verystraight forward way. Although i had to pause to eat and think about some of the financial products discussed such as "par yields". I found I was able to understand the book. The book contains some of the trader jargon and a outline of the players involved in the market. I think that anyone who wants to something with securities or trading should read this, before/during/after an intership. As the english say "Wiseman" is the dogs ballocks!! get this book! ... Read more

Book Description

The concept of profiting from trading volatility is not new, but is known to only a few players in the derivatives industry. Buying and Selling Volatility is the first book to explain this trading strategy in detail without using complex mathematics. Offering a new approach to the subject of options, seen purely from a volatility viewpoint, the author uses illustrations to clearly explain the connection between volatility and options. He explains how investors can profit from the volatility, or lack of volatility, of an option price regardless of whether the market rises or falls. Useful to both novice investors and professional traders, Buying and Selling Volatility also supplies the reader with a risk management software system that is comparable to those used commercially. ... Read more

Reviews (4)

Not worth the money
Very basic book not worth the $1.... I have been in the derivative market for 5 years. For a beginner, there are much better books out there that cover all the material of this book in one chapter.

To know what u're tradin'...
The best way explained how an option price is calculated - use a dice ! The rest is ... idea-giving, good.

Good for beginners..
I found this book to be a good beginner book in trading . The chapters didn't go into much depth for more advanced traders . I would say that if your imtimidated by math then this book will be a good buy , but if you want depth and a bang for your buck ..you could do better.

OUTSTANDING!!!!
This book is all that one needs to make money in these volatile times. Now that the market is down, I'm making more money in shorting stocks than I was when I was bullish! I also enjoyed the instructions on timing...very simple, yet pure genius. ... Read more

Book Description

Designed and written for active traders who are interested in practical information that can improve their results, Trading Index Options offers tried-and-true techniques without a lot of theory and math. Bittman provides traders with the know-how to evaluate practical situations and manage positions. Among the key features: the basics of index options, including various spreads; how to match strategies with forecasts; alternatives for losing positions; the importance of price behavior and volatility. A windows-based software program that provides multiple option pricing and graphing is included in the package. ... Read more

Reviews (14)

An understanding of options delivered accurately and clearly
This book demystifies the factors that make options such an attractive and powerful trading and investment tool. Bittman's clarity leaves no misunderstanding or ambiguity about how things work in plain language and steers you clear of common beginners' mistakes. The included software provides a hands-on interactive learning experience to reinforce ideas introduced in the book and is a useful tool to evaluate potential trades.

The sections that lay out trading plans and strategies present a straightforward and disciplined approach to identifying and evaluating attractive trading opportunities. Although geared to options, these are helpful to consider no matter what markets or instruments one is trading.

Read Bittman first to get a solid foundation, then move on to the MacMillan books for the post-grad experience.

An excellent value for the price!

A Clearly Written Look At Index Options
A few years back, Bittman wrote a well-received fundamental look at equity options entitled Options for the Stock Investor. This time around the author delves into the world of index options.

Trading Index Options covers a lot of material and shines at helping the trader build a foundation to expand upon. This strength is clearly evident early on when Bittman defines most common option strategies. From the simple to the complex, each page has a graph illustrating profit and loss characteristics at expiration along with some insightful comments on each strategy. To the author's credit he mentions transaction costs as a major factor hindering more complicated strategies.

In ensuing chapters Bittman covers basic buys and sells in detail, along with basic spreads, straddles, strangles, and ratio spreads. The book is light on math and seeks to make these strategies and the reasons for their employ easily understandable.

Included with Trading Index Options is a software program entitled Op-Eval 3. The program can be used to calculate implied volatilities, greeks, compare options, and graph positions. Perhaps of greatest utility, however, is the software's ability to allow you to look at how changes in underlying prices and time decay will affect your position.

While advanced option players may find they've already compiled much of the information Bittman presents, it remains a solid sourcebook. Beginners and intermediate players will be hard pressed to find a clearer or more concise reference tool. Easily worth the money you'll pay online and a nice addition to anyone's option library.

Good Book with Outdated Software
The good news is that this book is very nicely done, providing a useful foundation to beginner and intermediate options traders. I found that I learned quite a lot about the interactions between option pricing and the various factors influencing pricing. The author provides numerous case study examples utilizing the OP-EVAL(TM) software included with the book. A majority of the book cont