If you work in fixed income and use Bloomberg pages to access data on bonds, you need Bond Math. L Library West. In this new edition, Dr. Liaw offers a substantial revision of his bestselling text, responding to requests from educators and professionals alike. In addition, Dr.
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Liaw discusses investment banking opportunities in China, Japan, the EMU, and emerging markets, as well as the special challenges that come with globalization. A staple of industry training programs and a valued reference among banking professionals in its first edition, "The Business of Investment Banking, Second Edition" adds a wealth of new information to an already indispensable practical resource.
The Business of Investment Banking by K. The investment banking industry has changed dramatically since the financial crisis. Three of the top five investment banks in the United States have disappeared, while Goldman Sachs and Morgan Stanley have converted to commercial banking charters. Bernstein Call Number: HG Describes the changes in the practice of investing that relies heavily on complex mathematics, derivatives, hedging, and hyperactive trading. This book provides insights on how key finance theories have evolved from their ivory tower formulation to profitable application by portfolio managers.
Happily, Peter has taken up his facile pen again to describe these changes, a virtual revolution in the practice of investing that relies heavily on complex mathematics, derivatives, hedging, and hyperactive trading. This fine and eminently readable book is unlikely to be surpassed as the definitive chronicle of a truly historic era. B47 Library West. Capital Ideas traces the origins of modern Wall Street, from the pioneering work of early scholars and the development of new theories in risk, valuation, and investment returns, to the actual implementation of these theories in the real world of investment management.
Filled with in-depth insights and timeless advice, Capital Ideas reveals how the unique contributions of these talented individuals profoundly changed the practice of investment management as we know it today. Charlie Munger by Trenholme J. Griffin; Charles T. Munger Call Number: HG Charlie Munger, Berkshire Hathaway's visionary vice chairman and Warren Buffett's indispensable financial partner, has outperformed market indexes again and again, and he believes any investor can do the same.
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His notion of "elementary, worldly wisdom"--a set of interdisciplinary mental models involving economics, business, psychology, ethics, and management--allows him to keep his emotions out of his investments and avoid the common pitfalls of bad judgment. Munger's system has steered his investments for forty years and has guided generations of successful investors. This book presents the essential steps of Munger's investing strategy, condensed here for the first time from interviews, speeches, writings, and shareholder letters, and paired with commentary from fund managers, value investors, and business-case historians.
Derived from Ben Graham's value-investing system, Munger's approach is straightforward enough that even novices can apply it to their portfolios. This book is not simply about stock picking, it's about cultivating mental models for your whole life, but especially for your investments. U6C45 Library West. The futures and options bible from the world's first, and America's largest, futures exchange Through nine editions over three decades, the Chicago Board of Trade CBOT has provided futures and options traders with the self-published Commodity Trading Manual. The Chicago Board of Trade Handbook of Futures and Options delivers valuable information on everything from the uses and purposes of the futures market to nuts-and-bolts descriptions of day-to-day exchange operations.
The Clash of the Cultures: Investment vs. Speculation by John C. B e-book MyiLibrary. How speculation has come to dominate investment-a hard-hitting look from the creator of the first index fund. Over the course of his sixty-year career in the mutual fund industry, Vanguard Group founder John C. Bogle has witnessed a massive shift in the culture of the financial sector. The prudent, value-adding culture of long-term investment has been crowded out by an aggressive, value-destroying culture of short-term speculation.
In The Clash of the Cultures, he urges a return to the common sense principles of long-term investing. Provocative and refreshingly candid, this book discusses Mr. Bogle's views on the changing culture in the mutual fund industry, how speculation has invaded our national retirement system, the failure of our institutional money managers to effectively participate in corporate governance, and the need for a federal standard of fiduciary duty. Bogle recounts the history of the index mutual fund, how he created it, and how exchange-traded index funds have altered its original concept of long-term investing.
He also presents a first-hand history of Wellington Fund, a real-world case study on the success of investment and the failure of speculation. The book concludes with ten simple rules that will help investors meet their financial goals. This no-bull, bottom-line guide from "The Reformed Broker" Josh Brown and Yahoo Finance's Jeff Macke will help you cut through the cacophony and make the most of today's media news. It's an eye-opening crash course in separating financial facts from fiction featuring interviews with some of the world's most influential investors, including: Jim Cramer Mad Money takes you behind the scenes of his polarizing TV program--and talks about his clash with Jon Stewart on The Daily Show.
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Henry Blodget Business Insider shares anecdotes about tangling with Eliot Spitzer, covering the Martha Stewart trial, and launching his Business Insider site as a "marked man. You'll also find invaluable insights from the original father of financial TV, Jim Rogers, and from James Altucher, the most shockingly honest commentator in the history of the medium. Clash of the Financial Pundits is the one guide that will change the way you look at markets and investing forever.
Call Number: HG C65x Library West, Business Reference. The edition of the Commodity Trading Manual, the first and most accessible guide to the futures industry, continues to provide new industry professionals and potential end users with a comprehensive overview of the market. The Commodity Trading Manual looks both at futures' past, from Ancient Greece to Old Chicago, and futures' future, with updated coverage of major industry trends the rise of new and international markets, OTC derivatives, and electronic trading.
Chapters end with annotated bibliographies. A glossary, a directory of major futures exchanges world-wide, and specifications for the most actively traded futures and options contracts are also included. John C. Bogle shares his extensive insights on investing in mutual funds. Since the first edition of "Common Sense on Mutual Funds" was published in , much has changed, and no one is more aware of this than mutual fund pioneer John Bogle. Now, in this completely updated Second Edition, Bogle returns to take another critical look at the mutual fund industry and help investors navigate their way through the staggering array of investment alternatives that are available to them.
Written in a straightforward and accessible style, this reliable resource examines the fundamentals of mutual fund investing in today's turbulent market environment and offers timeless advice in building an investment portfolio. Along the way, Bogle shows you how simplicity and common sense invariably trump costly complexity, and how a low cost, broadly diversified portfolio is virtually assured of outperforming the vast majority of Wall Street professionals over the long-term. It is written by respected mutual fund industry legend John C.
It discusses the timeless fundamentals of investing that apply in any type of market. It reflects on the structural and regulatory changes in the mutual fund industry. F5 Library West. ISBN: X. JohnWiley, originallypublishedin Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's finance professionals, but are also regarded by many as gospel.
He recorded these philosophies in 'Common Stocks and Uncommon Profits', a book considered invaluable reading when it was first published in , and a must-read today. S39 Library West, Pre-Order. Spanning everything from technical analysis, trading systems, and fundamental analysis to options, spreads, and practical trading principles, A Complete Guide is required reading for any trader or investor who wants to successfully navigate the futures market.
Clear, concise, and to the point, this fully revised and updated second edition provides a solid foundation in futures market basics, details key analysis and forecasting techniques, explores advanced trading concepts, and illustrates the practical application of these ideas with hundreds of market examples. A Complete Guide to the Futures Market: Details different trading and analytical approaches, including chart analysis, technical indicators and trading systems, regression analysis, and fundamental market models. Separates misleading market myths from reality.
Gives step-by-step instruction for developing and testing original trading ideas and systems. Illustrates a wide range of option strategies, and explains the trading implications of each. Details a wealth of practical trading guidelines and market insights from a recognized trading authority. Trading futures without a firm grasp of this market's realities and nuances is a recipe for losing money. Benello; Tobias E.
Carlisle Call Number: HG B Library West, On Order. Discover the secrets of the world's top concentrated value investors Concentrated Investing: Strategies of the World's Greatest Concentrated Value Investors chronicles the virtually unknown--but wildly successful--value investors who have regularly and spectacularly blown away the results of even the world's top fund managers.
Sharing the insights of these top value investors, expert authors Allen Benello, Michael van Biema, and Tobias Carlisle unveil the strategies that make concentrated value investing incredibly profitable, while at the same time showing how to mitigate risk over time. Highlighting the history and approaches of four top value investors, the authors tell the fascinating story of the investors who dare to tread where few others have, and the wildly-successful track records that have resulted.
Turning the notion of diversification on its head, concentrated value investors pick a small group of undervalued stocks and hold onto them through even the lean years. The approach has been championed by Warren Buffett, the best known value investor of our time, but a small group of lesser-known investors has also used this approach to achieve outstanding returns. Discover the success of Lou Simpson, a former GEICO investment manager and eventual successor to Warren Buffett at Berkshire Hathaway Read about Kristian Siem, described as "Norway's Warren Buffett," and the success he has had at Siem Industries Concentrated Investing will quickly have you re-thinking the conventional wisdom related to diversification and learning from the top concentrated value investors the world has never heard of.
D Library West. All stock-market investors embrace the motto "Buy low, sell high. Powerful psychological forces prevent us from pursuing a contrarian investment strategy, although it consistently beats the market, according to David Dreman, a seasoned money manager and long-time columnist for Forbes magazine. One of the Street's best-known and most articulate contrarians, Dreman has updated his investment classic, Contrarian Investment Strategies, using recent research on investor psychology. His revised book combines proven techniques for selecting undervalued stocks with fresh insights on how to defy, and thereby profit from, the popular fears or enthusiasms of the moment.
A3 C75 Library West. Every company faces credit risk. Credit derivatives are among the most powerful tools available for managing it. Once restricted to the financial industry, they are now widely used by businesses of all kinds - and all financial professionals need to understand them.
Credit Derivatives explains these tools simply, clearly, and rigorously: what they do, how they work, and how to use them. Gregoriou and Paul A. A3 C Library West. In The Credit Derivatives Handbook, some of the world's sharpest financial and legal minds come together to discuss how credit derivatives have evolved from tools restricted to the banking industry into flexible and customizable instruments used by investors of all kinds.
You will come away with the knowledge and insight needed to measure and value risk, as well as the ability to put credit derivatives to work. Over fifteen contributors provide in-depth analyses of subjects in their respective areas of expertise. Market thoughts, predictions, and insights that can't be found anywhere else. With clear and concise language, legendary investment pioneer Dean LeBaron offers guidance for investors.
Everything readers need to know about today's complex and exciting investment landscape is in this comprehensive guide to investing theory which shares the insights of thirty investment luminaries on their particular area of expertise including Mark Mobius on emerging markets, John Bogle on mutual funds, and Bill Miller on active portfolio management. G73 Library West. Recent disputes between shareholders and major corporations, including Apple and DuPont, have made headlines.
But the struggle between management and those who own stock has been going on for nearly a century. Mixing never-before-published and rare, original letters from Wall Street icons—including Benjamin Graham, Warren Buffett, Ross Perot, Carl Icahn, and Daniel Loeb—with masterful scholarship and professional insight, Dear Chairman traces the rise in shareholder activism from the s to today, and provides an invaluable and unprecedented perspective on what it means to be a public company, including how they work and who is really in control. Jeff Gramm analyzes different eras and pivotal boardroom battles from the last century to understand the factors that have caused shareholders and management to collide.
Throughout, he uses the letters to show how investors interact with directors and managers, how they think about their target companies, and how they plan to profit. Each is a fascinating example of capitalism at work told through the voices of its most colorful, influential participants.
A hedge fund manager and an adjunct professor at Columbia Business School, Gramm has spent as much time evaluating CEOs and directors as he has trying to understand and value businesses. He has seen public companies that are poorly run, and some that willfully disenfranchise their shareholders. The book is a step-by-step guide to derivative products. By distilling the complex mathematics and theory that underlie the subject, Chisholm explains derivative products in straightforward terms, focusing on applications and intuitive explanations wherever possible.
Case studies and examples of how the products are used to solve real-world problems, as well as an extensive glossary and material on the latest derivative products make this book a must have for anyone working with derivative products. U6 Z94 Library West, Forthcoming. And it distills the complexities, absurdities, and pomposities of Wall Street into plain truths and aphorisms anyone can understand. It cuts through the fads and fakery of Wall Street and clears a safe path for investors between euphoria and despair. Staying out of financial purgatory has never been this fun.
M5 ProQuest eBook. How businesses and other organizations can improve their performance by tapping the power of differences in how people think What if workforce diversity is more than simply the right thing to do in order to make society more integrated and just? What if diversity can also improve the bottom line of businesses and other organizations facing complex challenges in the knowledge economy? It can. And The Diversity Bonus shows how and why.
Scott Page, a leading thinker, writer, and speaker whose ideas and advice are sought after by corporations, nonprofits, universities, and governments around the world, makes a clear and compellingly pragmatic case for diversity and inclusion. He presents overwhelming evidence that teams that include different kinds of thinkers outperform homogenous groups on complex tasks, producing what he calls "diversity bonuses.
Page shows that various types of cognitive diversity--differences in how people perceive, encode, analyze, and organize the same information and experiences--are linked to better outcomes. He then describes how these cognitive differences are influenced by other kinds of diversity, including racial and gender differences--in other words, identity diversity. Identity diversity, therefore, can also produce bonuses. Drawing on research in economics, psychology, computer science, and many other fields, The Diversity Bonus also tells the stories of people and organizations that have tapped the power of diversity to solve complex problems.
And the book includes a challenging response from Katherine Phillips of the Columbia Business School. The result changes the way we think about diversity in the workplace--and far beyond it. A69 Library West. Why is paying for things painful? Why are we comfortable overpaying for something in the present just because we've overpaid for it in the past?
We think of money as numbers, values, and amounts, but when it comes down to it, when we actually use our money, we engage our hearts more than our heads. Emotions play a powerful role in shaping our financial behavior, often making us our own worst enemies as we try to save, access value, and spend responsibly. In Dollars and Sense, bestselling author and behavioral economist Dan Ariely teams up with financial comedian and writer Jeff Kreisler to challenge many of our most basic assumptions about the precarious relationship between our brains and our money.
In doing so, they undermine many of personal finance's most sacred beliefs and explain how we can override some of our own instincts to make better financial choices. Together Ariely and Kreisler reveal the emotional forces working against us and how we can counteract them. Mixing case studies and anecdotes with concrete advice and lessons, they cut through the unconscious fears and desires driving our worst financial instincts and teach us how to improve our money habits.
The result not only reveals the rationale behind our most head-scratching financial choices but also offers clear guidance for navigating the treacherous financial landscape of the brain. Fascinating, engaging, funny, and essential, Dollars and Sense provides the practical tools we need to understand and improve our financial choices, save and spend smarter, and ultimately live better.
The Education of a Speculator by by Victor Niederhoffer. N54 Library West. We speculate on our careers, relationships, games, and investments. Life-changing decisions hang on our ability to read and anticipate turns of events. Offering a way of thinking rather than a "system," this powerful, remarkable book shows us how to speculate and win much more than we ever thought possible. Of course, Niederhoffer's greatest fame and fortune is as an extremely successful trader, and here his tips, principles, and methods become most manifest.
Niederhoffer establishes the relationship between stampeding elephants and market behavior, explores the use of musical structure as a guide to trading, and dissects the many roles of deception. In The Education of a Speculator, charts of stock prices are followed by pictures of paintings; the advice of cops, crooks, and Nobel scientists are all juxtaposed and synthesized - all in the service of successful speculation and investment.
P Library West, Forthcoming Order. Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the secret world of active investing. Pedersen views markets as neither perfectly efficient nor completely inefficient. Rather, they are inefficient enough that money managers can be compensated for their costs through the profits of their trading strategies and efficient enough that the profits after costs do not encourage additional active investing.
Understanding how to trade in this efficiently inefficient market provides a new, engaging way to learn finance. Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth—fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies—and he looks at such diverse topics as portfolio choice, risk management, equity valuation, and yield curve logic.
Efficiently Inefficient effectively demonstrates how financial markets really work. Malkiel and Charles D. Ellis Call Number: HG M Library West. A timeless, easy-to-read guide on life-long investment principles that can help any investor succeed.
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The Elements of Investing has a single-minded goal: to teach the principles of investing in the same pared-to-bone manner that Professor William Strunk Jr. The Elements of Investing hacks away at all the overtrading and over thinking so predominant in the hyperactive thought patterns of the average investor.
Malkiel and Ellis offer investors a set of simple but powerful thoughts on how to challenge Mr. Market at his own game, and win by not losing. Gregoriou Call Number: HG E53 Library West. This pioneering reference is the most authoritative source on alternative investments. Containing entries, the encyclopedia focuses on hedge funds, managed futures, commodities, and venture capital.
With contributions from well-known, respected academics and professionals from around the world, it offers in-depth definitions for each entry, lists numerous tables and figures, and includes academic references. Encyclopedia of Finance by by Cheng F. Lee and Alice C. Lee Call Number: HG E e-book SpringerLink and Business Reference. The Encyclopedia of Finance is a major new reference work covering all aspects of finance.
Coverage includes finance financial management, security analysis, portfolio management, financial markets and instruments, insurance, real estate, options and futures, international finance and statistical applications in finance applications in portfolio analysis, option pricing models and financial research. The project is designed to attract both an academic and professional market. It will also have international approach to ensure its maximum appeal. The Editors' wish is that the readers will find the encyclopedia to be an invaluable resource.
An innovative new valuation framework with truly useful economic indicators The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative.
Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution'the Value Creation Report'and demonstrates its utility in key industries.
New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making.
These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation. Buffett; Lawrence A. The year marks the fiftieth anniversary of Berkshire Hathaway under Warren Buffett's leadership, a milestone worth commemorating. The tenure sets a record for chief executive not only in duration but in value creation and philosophizing.
As the book Buffett autographs most, its popularity and longevity attest to the widespread appetite for this unique compilation of Buffett's thoughts that is at once comprehensive, non-repetitive, and digestible. New and experienced readers alike will gain an invaluable informal education by perusing this classic arrangement of Warren's best writings.
The fourth edition's new material includes: Warren's 50th anniversary retrospective, in what Bill Gates called Warren's best letter ever, on conglomerates and Berkshire's future without Buffett; Charlie Munger's 50th anniversary essay on ''The Berkshire System''; Warren's definitive defense of Berkshire's no-dividend practice; and Warren's best advice on investing, whether in apartments, farms, or businesses.
R95 Library West. Following an introductory essay that explores investment theory and stockmarket returns over the years, the A-Z covers everything from Accruals concept and Arbitrage pricing theory, through Leverage and Mark to market, all the way to Weight of money and Zero coupon bond. Useful appendices include data on stockmarket performance and investment formulas. C Library West. This currency trading book provides readers with real, practical information on how to trade the foreign exchange market effectively.
It begins by covering introductory information on the forex market, including basic trading mechanics and the benefits of forex trading, and then goes on to describe specific currency trading methods and skills in step-by-step detail. This includes highly practical information on technical and fundamental analysis, risk and money management, and powerful forex trading strategies. These strategies have proven extremely effective in helping traders play the forex game to win.
L62 e-book MyiLbrary. A comprehensive history of the evolution of technical analysis from ancient times to the Internet age Whether driven by mass psychology, fear or greed of investors, the forces of supply and demand, or a combination, technical analysis has flourished for thousands of years on the outskirts of the financial establishment.
Lo details how the charting of past stock prices for the purpose of identifying trends, patterns, strength, and cycles within market data has allowed traders to make informed investment decisions based in logic, rather than on luck. The book reveals the origins of technical analysis, compares and contrasts the Eastern practices of China and Japan to Western methods and details the contributions of pioneers such as Charles Dow, Munehisa Homma, Humphrey B.
Neill, and William D. The Evolution of Technical Analysis explores the fascinating history of technical analysis, tracing where technical analysts failed, how they succeeded, and what it all means for today's traders and investors. F56 Library West. Financial Behavior: Players, Services, Products, and Markets provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets.
The book offers a different way of looking at financialand emotional well-being and processing beliefs, emotions, and behaviors related to money. The book provides important insights about cognitive and emotional biases that influence various financial decision-makers, services, products, and markets. With diverse concepts and topics, the book bringstogether noted scholars and practitioners so readers can gain an in-depth understanding about this topic from experts from around the world.
In today's financial setting, the discipline of behavioral finance is an ever-changing area that continues to evolve at a rapid pace. This book takes readers through the core topics and issues as well as the latest trends, cutting-edge research developments, and real-world situations. Additionally,discussion of research on various cognitive and emotional issues is covered throughout the book.
Thus, this volume covers a breadth of content from theoretical to practical, while attempting to offer a useful balance of detailed and user-friendly coverage. Those interested in a broad survey willbenefit as will those searching for more in-depth presentations of specific areas within this field of study. As the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets offers a fresh looks at the fascinating area of financialbehavior. Mulford and Eugene E. Comiskey Call Number: HF B2 M75 Library West.
So much for the notion 'those who can, do-those who can't, teach. These guys know their balance sheets. The Financial Numbers Game should serve as a survival manual for both serious individual investors and industry pros who study and act upon the interpretation of financial statements. Financial Shenanigans by by Howard Mark Schilit. Call Number: HF B2 S Library West. Techniques to uncover and avoid accounting frauds and scams Inflated profits It presents tools that anyone who is potentially affected by misleading business valuations - from investors and lenders to managers and auditors - can use to research and read financial reports, and to identify early warning signs of a company's problems.
A bestseller in its first edition, "Financial Shenanigans" has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers. Financial Statement Analysis by Martin S. An updated guide to the essential discipline of financial statement analysis In Financial Statement Analysis, Fourth Edition, leading investment authority Martin Fridson returns with Fernando Alvarez to provide the analytical framework you need to scrutinize financial statements, whether you're evaluating a company's stock price or determining valuations for a merger or acquisition.
This fully revised and up-to-date Fourth Edition offers fresh information that will help you to evaluate financial statements in today's volatile markets and uncertain economy, and allow you to get past the sometimes biased portrait of a company's performance. Reflects changes in the financial reporting landscape, including issues related to the financial crisis of Provides guidelines on how to interpret balance sheets, income statements, and cash flow statements Offers information for maximizing the accuracy of forecasts and a structured approach to credit and equity evaluation Filled with real-life examples and expert advice, Financial Statement Analysis, Fourth Edition will help you gain a firm understanding of the techniques that will help you interpret financial statements, which are designed to conceal more than reveal.
Flash Boys is about a small group of Wall Street guys who figure out that the U. They come to this realization separately; but after they discover one another, the flash boys band together and set out to reform the financial markets. They create an exchange in which high-frequency trading--source of the most intractable problems--will have no advantage whatsoever. The characters in Flash Boys are each completely different from what you think of when you think "Wall Street guy.
From their new vantage point they investigate the big banks, the world's stock exchanges, and high-frequency trading firms and expose the many strange new ways that Wall Street generates profits. The light that Lewis shines into the darkest corners of the financial world may not be good for your blood pressure, because if you have any contact with the market, even a retirement account, this story is happening to you. But in the end, Flash Boys is an uplifting read. Here are people who have somehow preserved a moral sense in an environment where you don't get paid for that; they have perceived an institutionalized injustice and are willing to go to war to fix it.
T Library West. Luck in trading, business, and life. This book is about luck, that single most important factor in everything. It tells how we perceive and deal with luck and how we filter the mass of information that is thrown at us daily, to understand what is important and what is the result of pure chance.
Fooled by Randomness delves into the reality of the lucky fool being in the "right place at the right time", and is set around the greatest forum for investigating the misconception of chance perceived as skill -- the world of trading and derivatives. Written in an accessible and entertaining manner, Taleb combines personal trading experiences, with details and examples from a multidisciplinary array of topics -- ancient history, classical literature, philosophy, mathematics, and science.
P68 Library West. The first one, Buying Bankruptcies, really opened my eyes to the potential in this method.
Please tell our members about this strategy and why it works. James: Typically, when a company declares bankruptcy, the stock is halted by the exchanges so the company has time to disseminate the news of their downfall. By that point Worldcom was the subject of dozens of lawsuits, headlines every day about corruption, all executives being fired, and the debt was trading for pennies on the dollar.
The stock itself was around 10 cents on bankruptcy day. Everyone who was going to bet on this bankruptcy was already short the stock. Not only were they short, but probably almost every executive was short the stock in order to hedge their worthless shares. And everyone who was long the stock as an investment had already most likely sold the stock by this point.
Certainly all mutual funds were out of it by this time they never hold a 10 cent stock. So these stocks tend to double or triple in value within days, as happened in the case of Worldcom, Enron, FAO Schwartz, and countless other mega-cap bankruptcies. Dave: Along the same lines, you also suggest trading stocks that are going to be deleted from the indexes.
Most people trade stocks that are being added to the index, as do the index funds. This deletion concept seems odd to me. How do you play deletions from the indexes? James: We buy the day the stock is deleted, right we hope when all the irrational selling pressure being placed on the stock by index funds selling, is over.
The same concepts apply as in the bankruptcy system. Dave: The day moving average is one of the most talked about and utilized technical indicator. Does the day MA work in the traditional manner and what is the best way to use the day MA? James: So many media pundits use the day MA to make a meaningless point to fill up airtime that its lost all value as a technical indicator.
Dave: What can you tell our members about trading gaps? Does the traditional wisdom that gaps fill stand up to testing? When there is fear, a stock gaps down. When there is greed, a stock gaps up. Most books talk about exhaustion gaps, continuation gaps, etc without ever demonstrating how to determine which gaps are which. Testing is the way to determine this and take advantage of the fear and greed associated with these moves. Normally I only like to trade gap downs. Gap ups tend to keep going. Prop traders trade on behalf of their institution, rather than external clients.
They usually exist within small partnerships and banks though new regulation has reduced the amount of prop trading in banks. Often prop traders trade with a smaller amount of money, but make more aggressive bets. Prop traders typically receive a larger fraction of the returns they make e.
This means they end up earning a similar amount per year as hedge fund traders. We also found that the 99th percentile in finance i. Some hedge funds have to disclose their total compensation, which means you can estimate the average compensation per staff member. Many of these figures include support staff too, so they are underestimates of the trading salaries.
This puts them in line with our estimates. Keep in mind that high-frequency firms generally offer higher pay than hedge funds. Finally, your expected earnings will also be very sensitive to personal fit. If you have a higher than average chance of making it to the top roles, your expected earnings could be many times higher, and vice versa. If you donated half, that would be enough to cover the salaries of about 5 non-profit CEOs or academic researchers, while still having a huge amount left to live on. You can read more in our guide to earning to give.
To find out more about the job, read this interview with a hedge fund trader. Read next: what are the highest-paying jobs in America? Get in touch. Get more research like this in your inbox once a month, including our upcoming career review of hedge fund trading. Search for:.