MadMarketScientist

Hello all. I will be one of the admins and new owners and am proud to be continuing what James started. Even better, James intends to remain engaged with the community which is great. With that said, we really want to keep carrying out the mission of the website. We're not planning any major changes since what James has built is working well, but we're always open to new ideas and suggestions to make this community better for all of you. That's why we're here after all. This is about a sense of place and home where active traders can share and learn. Maybe even have a little fun or blow off a bit of steam after a particularly rough day in the market, or have a circle of friends to share a success. Please, by all means, ideas and suggestions are great. We need to keep growing the site, the more posters and readers we have the better it becomes for everyone's experience. Please continue to help us spread the word and make this "THE" place for sophisticated traders to hang out. As for my background, I've been trading actively over 10 years. Forex, futures and stock. Mostly futures now, with a dash of forex thrown in. Stock trades I haven't had as much time for but do have some long term holdings. I do daytrade, and of late have been doing more automated trading but for the most part I'm a system based discretionary trader. I have a few partners as well who will share the responsibility of running the site with me and we each have our own experiences we'll try to bring to TL. If there's anything I can do please let me know. Your support up to this point is greatly appreciated and I know it's important to James that we keep TL growing and on its mission. Thanks!

"The Race" participants let's up the ante. Of course a run towards a cool million dollars in profit might be reward enough, but let's make it even more interesting. Traders Laboratory will aware the Grand Champion of "The Race" a brand new Apple iPad 32GB version. You can use it to track the second million you're going to make. Perhaps we'll throw you a virtual ticker tape parade and shower you with other adulation but for now, your million (or however close you get) plus this shiny new Apple iPad should suffice. We've discussed this with the "Thalestrader" who developed "The Race" and there are a few conditions. "The race is about making a million dollars. The finish line is one million dollars in profit. So whoever wins should be the one who gets closest to the finish line. The finish line is a million dollars in profit, so at twenty weeks, whoever is closest to the finish line should be the winner of the TL prize. The rules from the first post in this thread must be followed/adhered to. If we need to get further verification or evidence of the return than please comply with that request. Just to keep it fair for everyone." Remember, it's whomever at the end is closest, and Traders Lab will look at the final statements, and declare the winner at our discretion based upon the results. But, a winner will be crowned! Good success to all.

Classic book by John Magee written in 1958. This is the book I would recommend to anyone interested in trying his hand at the stock market. It is not, however, exciting, by any stretch of the imagination. Nor is it a book to read over the weekend. Magee takes his time, and the reader would do well to take his time also. This is a book to think long thoughts about. It is not at all difficult. It is, in fact, very easy. But the concepts which it addresses are fundamental, in the deepest sense of the word, to an understanding of what markets are, how they work, and what one can expect to earn from them.

Product Description by Amazon The psychological aspect of trading is considered by many to be the most important. In this classic, veteran trader Roy Longstreet explores many areas that are of psychological significance to the futures trader and offers guidance on how to deal with each effectively. This is a behind the scenes book in the strictest sense of the phrase. When Roy Longstreet was first confronted with the question: If you know so much about commodity trading, then why aren't you rich? He determined that the best answer would be a conspicuous measure of financial success in the trading of commodities futures. That he achieved his objective is evident, because now he is the head of the largest brokerage firm in the country dealing exclusively in commodities. The techniques and the methods he employed over the years to achieve financial success is what is important to the reader and in this book we have those methods ably described by Mr. Longstreet. His approach to commodity trading is more fundamental than technical. He believes that psychology plays a basic role in the movement of commodity prices. As a matter of fact, he has often expressed the desire to hire a psychologist to apply specialized knowledge and find out what people who trade commodities think and why they make the mistakes they do. Roy Longstreet's views will prove to be invaluable for those who want to increase their financial standing along intelligent, crystal-clear and forthright lines. As publishers of many books in the financial field, we recommend Roy Longstreet's book to you.

From the Back Cover Trader Vic — Methods of a Wall Street Master Investment strategies from the man Barron’s calls "The Ultimate Wall Street Pro" "Victor Sperandeo is gifted with one of the finest minds I know. No wonder he’s compiled such an amazing record of success as a money manager. Every investor can benefit from the wisdom he offers in his new book. Don’t miss it!" —Paul Tudor Jones Tudor Investment Corporation "Here’s a simple review in three steps: 1. Buy this book! 2. Read this book! 3. See step 2. For those who can’t take a hint, Victor Sperandeo with T. Sullivan Brown has written a gem, a book of value for everyone in the markets, whether egghead, novice or seasoned speculator." —John Sweeney Technical Analysis of Stocks and Commodities "Get Trader Vic-Methods of a Wall Street Master by Victor Sperandeo, read it over and over and you’ll never have a losing year again." —Yale Hirsch Smart Money "I have followed Victor Sperandeo’s advice for ten years, and the results have been outstanding. This book is a must for any serious investor." —James J. Hayes, Vice President, Investments Prudential Securities Inc. "This book covers all the important aspects of making money and integrates them into a unifying philosophy that includes economics, Federal Reserve policy, trading methods, risk, psychology, and more. It’s a philosophy everyone should understand." —T. Boone Pickens, General Partner Mesa Limited Partnership "This book gave me a wealth of new insights into trading. Whether you’re a short-term trader or a long-term investor, you will improve your performance by following Sperandeo’s precepts." —Louis I. Margolis Managing Director, Salomon Brothers, Inc

From the Inside Flap "Bottom line, you will pay to learn this business one way or another. The biggest problem with learning the hard way is that it will kill your ego (and your account) very quickly."–George Fontanills George Fontanills is one of the world’s most respected traders and one of the most sought-after advisors to top financial institutions and trading firms. But he was by no means an overnight success. Fontanills learned the art and science of trading the markets the hard way–through a difficult and costly series of trials and errors. One of the most important lessons his early trading experiences taught him was that the first job of every novice trader is to acquire as thorough an education as possible about the ins and outs of the markets. In writing this book, George Fontanills’s aim was to help beginners avoid the pain and expense of learning the trading game the hard way, by providing them with a solid foundation in the fundamental and technical aspects of trading stocks and other major investments. A complete, step-by-step guide, The Stock Market Course covers all the bases, from mastering market terminology to performing technical analysis. Writing in plain English and using a minimum of technical jargon, Fontanills and his coauthor, Tom Gentile: Evaluate the risks and benefits of stocks versus other forms of investment Help you to determine if trading is right for your personality and lifestyle Familiarize you with the basic rules and mechanics of stock investment Clearly define stock market terms, concepts, and procedures Acquaint you with all major investment instruments, including stocks, bonds, mutual funds, indexes, and options Help you decide if you should work with a broker, what type is best for you, and how to find one you can work with Show you how to pick stocks suited to your needs and research the companies involved Teach you how to analyze markets and to develop winning entry and exit strategies Arm you with proven risk management techniques School you in the basics of market psychology and sentiment analysis The next best thing to having a top investment coach by your side every step of the way, The Stock Market Course helps you transform your dream of success as a stock trader into a golden reality.

From the Back Cover Some are born with it. Others acquire it. Everyone wants it. It's the ultimate market wisdom, and your key personal asset on the road to financial success—it's intuition. In The Intuitive Trader, Robert Koppel draws on his extensive knowledge of the markets—culled from decades of frontline experience, as well as insightful interviews with top traders—to lay out a fascinating, practical "blueprint" for developing and honing intuitive trading skills. Success depends on refining your intuition to a level that allows you to take the next step with unshakable confidence. But bringing yourself to this level is a daunting challenge—one that often requires you to override the logic of your acquired knowledge. It begins with self-awareness, a notion that many traders resist, looking instead to black-box trading systems and the expertise of self-proclaimed "gurus." Koppel explains why relying solely on empirical reasoning can actually inhibit your trading performance. He demonstrates why you need to combine the deductive with the inductive—integrating the intellect with the intuitive. Along with penetrating analysis by psychologists and psychiatrists, The Intuitive Trader is filled with industry success stories from the likes of: Linda Leventhal, the independent trader and current member of the Chicago Mercantile Exchange who discusses the thrills and dangers of trading in the pit; Howard Abell, equally at home trading on the floor or in front of a computer screen, who recalls a lifetime of lessons in the importance of understanding—and loving—the process; Thomas Belsanti, the interest rate, stock option, foreign currency, and livestock wizard who explains how he stays motivated and confident day in, day out; Charles Faulkner, the strategies expert whose extensive writings on the science of success explore how and why people succeed in the market. With extensive exercises that will show you how to use intuition to enhance your trading performance, The Intuitive Trader provides the insights and techniques you need to take your trading to a new level. Advance praise for THE INTUITIVE TRADER "The Intuitive Trader is an indispensable addition to a trader's library. Bob Koppel has clearly identified how traders can distinguish true intuitive trading impulses from market hunches. I highly recommend The Intuitive Trader."—John F. Sandner, Chairman Chicago Mercantile Exchange "Koppel has opened the door for those willing to do the work. He has done a superb job with this difficult subject."—John R. Conheeney, Jr. Chicago Board of Trade "The Intuitive Trader is well-written...and clearly presented. Throughout his writing runs the thread of simple common sense. The Intuitive Trader is an important book that will remain fresh years into the future when the trading system you bought no longer works..."—from the Introduction David Silverman, Director Chicago Mercantile Exchange "Koppel cuts new ground in the exploration of intuition...that most traders will find as relevant and as indispensable as a quote screen. The Intuitive Trader is a must read for both the veteran and aspiring trader."—from the Foreword William J. Brodsky, President Chicago Mercantile Exchange Rand Financial Services provides expert clearing and execution, services for the CTA/CPO, and institutional services. Rand is a member of all principal U.S. commodities exchanges

The Three Steps to Successful Stock Trading. New 1970 edition of the classic about the mechanics of stock trading with a recent foreword by the author. Historically, the best selling book on the subject, Neill tells not only how to read the tape, but also how to reason out what's happening behind the scenes. Superb chapters on human nature and speculation. Figures and charts. Originally published in 1931.

From the bestselling author of How to Get Started in Electronic Day Trading Everything You Need to Know to Become a Confident, Knowledgeable Online Trader Successful traders know: The rules for profitably trading today's fast-moving stock markets are consistent and dynamic. Traders who don't follow these rules won't last long and may never know how close they were to true trading mastery**if they had just known the rules. Rules of the Trade gives you the building blocks toward becoming a profitable, market-wise trader. This detailed examination**written by acclaimed trader, trainer, and writer David S. Nassar**shows what traders must do to succeed. Its market-proven rules will show you how to cut losses short and let profits run in every aspect of electronic trading, including: Entering and exiting trades Psychological discipline Stock selection Hedging risk Evaluating performance Utilizing technology and the Internet Money management High-stakes online trading requires discipline, knowledge, and a strict adherence to time-tested rules of trading and market behavior. Rules of the Trade tells you what those rules are, gives you the knowledge and instincts to use those rules perceptively, and shows you how to take full advantage of today's volatile and turbulent stock markets**history's greatest opportunity for individual investors to garner significant trading wealth.

Product Description from Amazon 299 pages. Reminiscences of a Stock Operator is adapted from a series of Saturday Evening Post articles written by Edwin Lefevre in the 1920s. The book narrates Livermore7s ascent from a "boy plunger" to the most influential speculator on Wall Street. While much of the book is devoted to Livermore's experiences, a larger part of the book deals with trading wisdom and rules that Livermore imparts through Lefevre. Years later, many trading and investing books repeat the very same rules first enunciated by Livermore in Reminiscences, such as: go with the trend; no stock is too high to buy or too low to sell; let your winners run and cut your losses short; make your own decisions; and market history repeats itself. Interestingly, Livermore frequently violated his own rules and usually lost money as a result. The enduring appeal to the book rests in Livermore's view that the market is made up of people and the excesses of the market reflect mass psychology and the mistakes of individuals are frequently the result of the inability to control fear and greed. Thus, the views and lessons of Livermore continue to be relevant to every new generation of investors and traders. Generations of investors have benefited from this 1923 masterpiece. Jack Schwager's new introduction explains why this account of Jesse Livermore, one of the greatest speculators ever-continues to be the most widely read book by the trading community. "The best book I've read--I keep a supply for people who come to work for me." - Martin Zweig

From Publishers Weekly After working several years in what he considered to be a dead-end job as a financial analyst at E.F. Hutton, Schwartz quit the firm, accumulated a nest egg of $100,000 and on August 13, 1979, bought a seat on the American Stock Exchange where he began trading stocks, options and futures. He quickly became an expert at trading S&P futures, and in his first full year as an independent trader made $600,000 and a year later earned $1.2 million. Schwartz's style was to get in and out of positions in a hurry; he rarely held on to any financial instrument for more than a day. As his success on Wall Street grew, he began his own fund in which he would manage other people's money as well as his own, a move he would regret. The stress of running the fund contributed to his developing pericarditis, which nearly killed him. His doctors advised him to slow down his lifestyle, so at the age of 48, Schwartz, along with his wife and two children, moved to Florida where he took up golf and developed a daily routine that allowed him to keep trading, but at a more relaxed pace. This is one of those rare autobiographies where the subject unintentionally portrays himself in an unfavorable light. As he grew ever richer, Schwartz became consumed with generating even more money and prestige so that he could "run with the top dogs." Inadvertently, he has written a cautionary tale on the dangers of being addicted to money and power. Coauthors Morine and Flint are freelancers.

Product Description from Amazon NLP has already helped millions of people overcome fears, increase confidence, enrich relationships, and achieve greater sucess. Now the NLP Comprehensive Training Team has written a book that reveals how to use this breakthrough technology to achieve whatever you want. Short for neuro-linguistic programming, NLP is a revolutionary approach to human communication and development. In NLP: The New Technology of Achievement, you'll be guided step-by-step through specific programs for learning the characeristics of top achievers and creating a blueprint for unlimited sucess. Plus, an all-new twenty-one-day program created especially for this book provides you with the essential skills you'll need to achieve peak performance in business and life.

Product Description from Amazon Sometimes even the most thorough homework on fundamentals fails to pinpoint the best time to buy a stock or take profits. Technical analysis helps market players predict the price behavior of a stock, commodity, or any financial instrument, giving clues about the course your trade may take in the coming weeks and months. When market timing is of the essence in making logical, informed decisions about your trade's future, technical analysis is the tool. In New Thinking in Technical Analysis: Trading Models From the Masters, a dozen top authorities reveal their techniques and strategies for successful trading. This book offers market participants a treasury of tools to improve their investment performance, each from a unique and time-tested perspective. Readers will find immense value in the straightforward, user-friendly, application-rich presentation of market dynamics forecasting in this invaluable guide. Enhanced with over 170 charts and illustrations, New Thinking will become the primary companion of every trader seeking to gain a competitive edge. New Thinking in Technical Analysis contributors include: Thomas R. DeMark (New Market Timing Techniques), Peter Eliades, Larry McMillan (McMillan on Options), Robin Mesch, John J. Murphy (Technical Analysis of the Financial Markets), Steve Nison (Japanese Candlestick Charting Techniques), Steven Poser, Linda B. Raschke (Street Smarts: High Probability Short Term Trading Strategies), Bernie Schaeffer (The Option Advisor), Courtney D. Smith (Option Strategies), Ken Tower, and Larry Williams (Long-Term Secrets to Short-Term Trading). Inside each chapter: • Descriptions of a particular model, what it measures, and the theory behind it • Explanation of how the technique works and how it is validated • Helpful illustrations, featuring multiple screen images • Discussion of each technique's particular value and usefulness as compared with alternative models • Examples of how and in what situation the technique is applicable--and when not to use the model

Product Description by Amazon World-renowned Stanford University psychologist Carol Dweck, in decades of research on achievement and success, has discovered a truly groundbreaking idea–the power of our mindset. Dweck explains why it’s not just our abilities and talent that bring us success–but whether we approach them with a fixed or growth mindset. She makes clear why praising intelligence and ability doesn’t foster self-esteem and lead to accomplishment, but may actually jeopardize success. With the right mindset, we can motivate our kids and help them to raise their grades, as well as reach our own goals–personal and professional. Dweck reveals what all great parents, teachers, CEOs, and athletes already know: how a simple idea about the brain can create a love of learning and a resilience that is the basis of great accomplishment in every area. “If you manage any people or if you are a parent (which is a form of managing people), drop everything and read Mindset.” –Guy Kawasaki, author of The Art of the Start and the blog How to Change the World "Highly recommended . . . an essential read for parents, teachers [and] coaches . . . as well as for those who would like to increase their own feelings of success and fulfillment.” –Library Journal (starred review) “A serious, practical book. Dweck’s overall assertion that rigid thinking benefits no one, least of all yourself, and that a change of mind is always possible, is welcome.” –Publishers Weekly “A good book is one whose advice you believe. A great book is one whose advice you follow. This is a book that can change your life.” –Robert J. Sternberg, author of Teaching for Successful Intelligence “A wonderfully elegant idea . . . It is a great book.” –Edward M. Hallowell, M.D., author of Delivered from Distraction

From the Back Cover The Breakthrough Trader's Guide On How to Spot--and Profit From--News-Driven Market Swings The hardcover edition of If It's Raining in Brazil, Buy Starbucks first introduced Professor Peter Navarro's authoritative "macrotrading" system to traders around the world. Now let this paperback edition introduce you to the market-proven power of macrotrading, and show you how to increase your trading precision by more precisely quantifying the impact of economic events on specific sectors of the stock market. "Learning to interpret news correctly is a key in successful investing. Peter Navarro gives lots of great examples to help you learn." --Jim Rogers, Author, Investment Biker "In targeting the market events that cannot be ignored, If It's Raining in Brazil, Buy Starbucks does a great job separating the thought process of the amateur investor from the professional. Navarro's book gives the reader a valuable insight into market psychology." --David S. Nassar, CEO, MarketWise Securities, Inc., Bestselling author, How to Get Started in Electronic Day Trading and Rules of the Trade "Witty, fun, and very informative...Peter Navarro has come as close as you can to creating the ultimate roadmap to understanding how news and economic events affect markets. I wish this book had been available when I started my trading career." --Oliver L. Velez, CEO, Pristine Capital Holdings, Inc., and http://www.Pristine.com, Author, Tools and Tactics for the Master Day Trader

Product Description by Amazon Richard Wyckoff was a Wall Street legend. Not only did he make a fortune, but he also was the longtime editor and publisher of The Magazine of Wall Street and the developer of successful methods to analyze and forecast the market. In this book, originally published in 1922, Wyckoff lays out his insider's knowledge for everyone, especially those who are willing to study before risking one's own money. After all, he wrote, "in Wall Street as anywhere else, the chief essential is common sense, coupled with study and practical experience." He covers topics such as the six rules he's found helpful, why he adopted Harriman's principle, what he looks for before buying a bond, the earmarks of a desirable investment, the importance of knowing who owns a stock, and how to recognize manipulation in the market.

Product Description by Amazon How did a world-famous dancer with no knowledge of the stock market, or of finance in general, make 2 million dollars in the stock market in 18 months starting with only $10,000? Darvas is legendary, and with good reason. Find out why.

From Publishers Weekly New York Times science writer Goleman argues that our emotions play a much greater role in thought, decision making and individual success than is commonly acknowledged. He defines "emotional intelligence"?a trait not measured by IQ tests?as a set of skills, including control of one's impulses, self-motivation, empathy and social competence in interpersonal relationships. Although his highly accessible survey of research into cognitive and emotional development may not convince readers that this grab bag of faculties comprise a clearly recognizable, well-defined aptitude, his report is nevertheless an intriguing and practical guide to emotional mastery. In marriage, emotional intelligence means listening well and being able to calm down. In the workplace, it manifests when bosses give subordinates constructive feedback regarding their performance. Goleman also looks at pilot programs in schools from New York City to Oakland, Calif., where kids are taught conflict resolution, impulse control and social skills.

From Library Journal This is a fascinating book filled with lucid prose and seductive reasoning. Freelance science writer Ridley reaches into the literature of genetics; molecular, theoretical and evolutionary biology; ecology; sociology; and anthropology to weave an extraordinary tale of the evolution of human nature, beginning with the evolution of sex. Using Lewis Carroll's Red Queen (who runs as fast as she can to stay in the same place) as a metaphor for evolution, Ridley shows how sex was the result of an evolutionary arms race between hosts and their disease-causing parasites. Ridley covers so much ground that transitions may be abrupt or unclear, particularly in the last two chapters; also, his review of human homosexuality is thin. His occasionally pompous style (including his immediate dismissal of those who do not believe in evolution) may offend some readers. However, Ridley clearly explains many complex and remarkable concepts for a wide audience. Highly recommended. - Constance Rinaldo, Dartmouth Coll., Hanover, N.H.

From the Inside Flap THE PSYCHOLOGY of RISK Mastering Market Uncertainty In The Psychology of Risk: Mastering Market Uncertainty, renowned psychiatrist and trading coach Ari Kiev builds on his internationally acclaimed books Trading to Win and Trading in the Zone to explore the psychology behind risk and trading. By focusing on your appetite for risk-taking, your ability to manage and adapt to risk, and your pathological patterns of risk-taking, Kiev shows you how to overcome the psychological obstacles of risk that undermine your decision-making process and ability to cut losing trades and stick with winners. With the help of numerous trading case studies, Kiev outlines a risk management program that bridges the gap between investor psychology and quantitative risk management techniques. Filled with expert advice and examples of real market situations, The Psychology of Risk allows you to take action in the face of uncertainty and unpredictability by addressing issues such as: Risk and the trading approaches you need to deal with it Psychological techniques that will help you trade independently of emotions: excitement, anger, fear, and stress Handling problematic behaviors such as perfectionism, decision paralysis, hoarding, and impulsiveness Handling failure and success Using the tools of coaching, teamwork, and system building to overcome obstacles Risk taking does not mean living dangerously; it shows a willingness to act beyond the circle of what you already know. In breaking from the natural inclination to "avoid risk at all costs," you will begin to see risk in a new light–certainly not always as a negative force. The step-by-step approach presented in The Psychology of Risk will provide you with a new and stimulating perspective on risk, which will enhance your trading success and increase your profits.

Technical Analysis of Stock Trends by Robert D. Edwards and John Magee, is considered to be the Bible of market analysis. The first book to introduce a methodology for determining the predictable behavior of investments and markets, Technical Analysis of Stock Trends revolutionized technical investment approaches and showed traders and investors how to make money regardless of what the market is doing. A true classic of market analysis, this book is an indispensable reference for investors and traders, both seasoned veterans and the new generation alike.

From the Inside Flap Market Profile™ is a form of technical analysis that was jointly developed by renowned trader and author J. Peter Steidlmayer and the Chicago Board of Trade. Over the years, this unique tool has helped traders gain an unparalleled understanding of the markets, as well as find profitable trading opportunities within them. Simple in concept, yet complex in detail, Market Profile™ organizes a number of market elements into a rapidly understood graphic form–revealing trading opportunities other methodologies miss. In the first edition of this classic guide to Market Profile™, Steidlmayer introduced traders to this revolutionary new way of reading and trading the markets. Now Steven Hawkins returns to update and revise Steidlmayer’s concept of Market Profile™ within the context of today’s fast-paced markets. Steidlmayer on Markets: Trading with Market Profile™, Second Edition lays the foundation for understanding and implementing the Market Profile™ methodology by providing background information based on Steidlmayer’s experiences as a commodities trader, and showing how he developed his ideas and learned to apply them successfully within the markets. Hawkins moves on to fully discuss this groundbreaking approach to trading the stock, options, and futures markets. In-depth insights and expert advice will teach you: How to make sound trading decisions using the Market Profile™ and Liquidity Data Bank approach The newest methods in volume analysis, including On Floor Information (OFI) and Volume @ Time How to recognize the "Steidlmayer distribution"–a trading concept that serves as the basic building block from which all market activity develops How to formulate a game plan and fine-tune your strategy And much more Fully updated and completely revised to reflect today’s ever-changing economic environment, the new edition of Steidlmayer on Markets combines practical guidelines for learning how to read and use the markets with the underlying principles of how markets work. Filled with helpful tables and charts, and timely new chapters, this book is the most comprehensive guide to trading with Market Profile™.

Legendary trader Phantom's free ebook. Download available here.

From the Inside Flap Pairs trading is the simplest possible example of employing a market neutral strategy. It involves the trading of securities in pairs comprised of a long position in one security and a short position in the other. If performed properly, an investor will be in the ideal position of gaining in any situation--whether the market rises or falls. Author Ganapathy Vidyamurthy examines two versions of pairs trading that arise in the context of statistical arbitrage and risk arbitrage. He offers a compelling point of view that integrates theory and practice--providing in-depth analysis and insight in both of these cases. Issues encountered when translating theory to practice are addressed in a direct manner, arming the investment professional with the quantitative tools needed to answer key questions relating to this type of trading. Written in an easy, accessible style, the book is a seamless blend of ideas ranging from econometrics, control theory, and operations research to core financial theories like arbitrage pricing theory and the theory of contingent claims. It is organized in three information-packed parts. Part I sets the context for the rest of the book by introducing material on key topics including time series, factor models, and Kalman filtering. Part II of the book details statistical arbitrage pairs, a relative value arbitrage based on the premise that there is a long-run equilibrium between the prices of the stocks comprising the pair. Part III moves on to illustrate the trading techniques and strategies associated with risk arbitrage. This widely practiced arbitrage technique involves pairs trading that arises in the context of corporate events, especially mergers and acquisitions. You’ll also discover why--although they are called arbitrage strategies in the industry--they are by no means risk-free. Pairs Trading contains specific and tested formulas for identifying and investing in pairs. To further facilitate an understanding of this method, a bulleted summary highlighting key points is provided at the end of every chapter. Peppered with humor and snippets of history, Pairs Trading provides a framework for and insights on applying rigorous analysis to trading pairs in the equity markets.

Product Description by Amazon This book is an examination of Market Profile charting concepts. The Market Profile principle is also used by knowledgeable and experienced day traders. This is the best available text on the subject. The key element that has long separated tremendously successful traders from all others is their intuitive understanding that time regulates all financial opportunities. In 1984, J. Peter Steidlmayer formally introduced the Market Profile as a way to graphically depict the acceptance or rejection of price over time. For the first time, what had once been the domain of the intuitve trader was not accessible to all traders. The ability to record price information according to time has unleashed huge amounts of useful market information in a form never before available In turn, this information explosion has triggered a new way of looking at markets and opened the doors for accelerated levels of market analysis. Mind Over Markets is a book about learning; learning the dynamics of markets through the organization of price, time and volume, and learning how to synthesize this information with your own intuition. Our goal is to arrie at a healthy balance between the powers of objective observation and intuitive decision making--a rare talent possessed by only the best of traders.