Trading Realities: The Truth, the Lies, and the Hype In-Between is designed to help investors understand the economic and political forces that drive financial markets and to invest alongside those forces instead of against them. It also provides a blunt assessment of the limitations that most private investors face.
Introduction:
Understanding these limitations and being able to manage risk are as important as choosing the right investments. The following basic principles are central to the theme of this book:
- Financial markets, and stock markets in particular, always move in the direction that will do the most damage to the most investors.
- Financial markets are interrelated. Understanding the effects of one market on another is critical to successful investing.
- Individual stocks tend to be swept along by the market. Even the best companies suffer declines during a market correction, and the worst companies can rally in a strong bull market.
- Many investors blame the market when their stocks decline and credit themselves with wise investing when the same stocks rise.
- Experienced investors tend to overrate their knowledge about the companies they invest in. Gaining insights not already known to the market is a very difficult undertaking.
- The ability to interpret and understand government reports and news releases is a critical skill.
- Understanding and avoiding risk is a key component of basic investing. Understand the relative risks of different financial instruments and avoid overusing leverage.
Contents:
- Global Economic Forces and the Average Investor
- The Harsh Realities of the Marketplace
- Betting with the House
- Identifying Trends
- A New Era
- The Importance of Volatility
- Strategies for a New Market
- Options Primer
Trading Realities: The Truth, the Lies, and the Hype In-Between By Jeff Augen pdf
