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

$11.00

  • Pages: 272
  • Format: PDF
  • Published Date: 2010
Category:

Description

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