Smart traders don't fear crises: they use them as opportunities to make money. Shock Markets shows how to do it -- with exceptional detail, not vague handwaving. Robert Webb and Alexander Webb offer meticulously detailed breakdowns of recent crises, revealing how they impacted both individual stocks and the market as a whole -- and guiding traders in creating detailed game plans for profiting from future shocks. By fusing real-life trading examples with rigorous moment-by-moment analysis of price changes, they give readers the tools to survive and thrive in even the most volatile markets.
This accessible, actionable book answers crucial questions like: What moves stock prices? What moves the overall stock market? How can traders profit from understanding the catalysts that precipitate sudden sharp changes in stock prices? From the actions of corporate executives to regulatory decisions, earnings announcements to merger deals, lawsuits to settlements, macroeconomic reports to the policy actions of foreign governments, seemingly distant and unrelated factors can have a huge, sudden impact on stocks in today's interconnected markets. Shock Markets illuminates each of these catalysts, and demonstrates their shifting behavior during fads, fashions, bubbles, crashes, and market crises. The focus is completely practical: helping savvy traders uncover profit where others find only peril.
Key Features
- Powerful trading strategies and tactics for profiting from increasingly volatile markets: real example trades and actionable information!
- You can't predict stock market shocks -- but you can trade and profit from them while they're happening!
- Discover potential profit opportunities associated with trading catalysts ranging from earnings announcements to mergers, lawsuits to regulatory action.
- Contains meticulous moment-by-moment analysis of important recent shocks -- and real, actionable lessons.
- How to adapt to today's volatile markets, and devise a trading plan to take advantage of them.
Contents
- Chapter 1 The Nature of Trading
- Chapter 2 Five Simple Questions
- Chapter 3 Fads, Fashions, and Bubbles
- Chapter 4 Earnings and Corporate Announcements
- Chapter 5 Rumor Has
- Chapter 6 Political Economy
- Chapter 7 Predatory and Insider Trading
- Chapter 8 Crashes, Trading Glitches, and Fat-Finger Trades
- Chapter 9 Man Versus Machine
- Chapter 10 Flight to Safety
- Chapter 11 Why Most Traders Lose Money
- Chapter 12 Developing a Trading Game P
About the Authors
- Robert I. Webb is a Paul Tudor Jones II Research Professor at the University of Virginia. He has traded fixed income securities for the World Bank and futures on the floor of the Chicago Mercantile Exchange. He designed new financial futures and futures option contracts for the Chicago Mercantile Exchange, where he served as Senior Financial Economist. He has also served as Senior Financial Economist for both the Executive Office of the President, Office of Management and Budget, and the U.S. Commodity Futures Trading Commission. He earned his Ph.D. in finance at the University of Chicago. Webb edits The Journal of Futures Markets and is author of Trading Catalysts and Macroeconomic Information and Financial Trading.
- Alexander Webb is a writer with a keen interest in finance, emerging markets, politics, business, technology, and international travel. Living in Asia for half a decade, Alex earned a baccalaureate degree in International Business and Global Management from The University of Hong Kong. He studied Mandarin at the Chinese University of Hong Kong, Beijing Language and Culture University, and at Shanghai Jiao Tong University. He also studied in Japan at Ritsumeikan Asia Pacific University. He worked as an intern at a Chicago Options trading firm and is currently working on a new book.
Book Details
- Hardcover: 304 pages
- Publisher: FT Press; 1 edition (c2013)
- Language: English
- ISBN-10: 0132337959
- ISBN-13: 978-0132337953
- Product Dimensions: 1.3 x 6 x 9 inches
- List Price: $49.99