Book : Trading Realities: The Truth, the Lies, and the Hype In-Between
Trading Realities teaches investors and traders the universal, basic principles that apply to every financial market: stocks, bonds, commodities, foreign exchange, futures, options, and beyond. Writing for beginners and experienced investors alike, successful trader and author Jeff Augen illuminates key issues that are often mentioned but rarely fully understood: issues such as leverage, liquidity, market trends, risk, valuation, interest rates, and the impact of news and events. Most important, he shows how to apply this knowledge to trade and invest far more profitably. Augen focuses on the massive forces that really move financial markets: the market dynamics that are fundamental to your success, regardless of your investment strategies or the asset classes you choose. You’ll learn how to value markets in absolute terms (e.g. constant currency), rank investment vehicles according to risk; assess the real impact of leverage and the true meaning of trends; interpret the flow of money between markets; and much more. Augen shows how to identify and collect the information that matters most (and ignore the information that doesn’t matter). Once you have the facts you need, you’ll learn how to use those facts to gain a clear advantage: one that you can sustain through any market environment.
From the Back Cover
“Jeff Augen is truly a unique voice and mind in today’s financial discourse. He has a knack for translating intricate economic and market interrelationships into easy-to-understand ideas and has a way of seeing patterns and cause-effect relationships across markets. For those who listen, there is much to learn and much from which to profit. Ultimately, he gives individuals a fighting chance to participate in the markets to their advantage.”
—H eather L arson -B lakestad , Executive Editor, Stocks, Futures, and Options Magazine
“Jeff is a true scientist who has turned his formidable skills to the markets. His systematic research and open mind have led to a series of insights that are stunningly original and an investment philosophy based on facts, with no time wasted on mere conventional wisdom. Following Jeff’s thinking can help any investor avoid many costly blind alleys and develop a strategy based on how markets actually work.”
—R obert B irnbaum , former hedge fund president
“Jeff Augen reveals the ‘ugly truth’ that everyone investing in the markets needs to hear and also applies the lessons to the real world of trading. He attacks popular myths, notably about whose fault it is when investment decisions lead to losses and who gets credit for being a wise investor. The tie-in between investment/trading strategic thinking and well-explained economic reality is refreshing and extremely valuable.”
—M ichael T homsett , author of Put Option Strategies for Smarter Trading and The Options Trading Body of Knowledge
Today’s financial markets are complex and dangerous. The value of individual investments is now more strongly influenced by world economic and geopolitical events than by the underlying fundamentals of the company being invested in. Layered on this intricate web of forces is the impact of high-frequency computer trading programs that enter and exit trades in a fraction of a second and drive 60% or more of the market volume on any given day. Trading Realities provides investors with new skills and approaches to succeed in this environment. Without this enhanced knowledge, investing is no more than gambling.
Writing for beginning and experienced investors alike, successful trader and author Jeff Augen focuses on the powerful forces that really move markets: the dynamics that are fundamental to your success, no matter which strategies or asset classes you choose. He provides new approaches to identifying market trends, exploiting global economic forces, trading the news, valuing risk, and dissecting economic reports released by the government.
You’ll learn how to gain a clear advantage: an advantage you can sustain through any market environment.
Invest with the markets, not against them
Leverage the “mega” forces that drive all markets, in all market environments
Why markets always move in the direction that damages the most investors
… how to recognize that direction and move with it
Why even experienced investors overrate their knowledge and skill
What you really need to know before you make an investment
How to clarify and compare the real risks of potential investments