Trading Realities: The Truth, the Lies, and the Hype In-Between

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