5 comments about More Money Than God: Hedge Funds and the Making of a New Elite.

1. More Money Than God is one of the top ten best selling investment books on Amazon right now. Half of the book is a history of the hedge fund industry while the rest of the book looks at their role in the investment world both good and bad. Although the whole book is written in a narrative style I noticed this pivot about half way through it.
   
   The author spent thousands of hours interviewing some of the top hedge fund players and his hard work shows. This is the best book I've read on the topic of hedge funds. It shows you how the industry started out with the first hedge fund created by Alfred Winslow Jones and continues up until the present day, with a penetrating discussion of the financial crisis, and interesting studies of the biggest and most successful hedge fund managers in between, such as George Soros, Michael Steinhardt, Julian Robertson, and Paul Tudor Jones.
   
   Mallaby asserts that hedge funds are not the big villain that people make them out to be. In contrast with the big banks that had to be bailed out hedge funds did not need to be bailed out in the financial crisis. Mallaby believes that the best and brightest managers run hedge funds and unlike banks they put the bulk of their own money into the funds themselves so that the managers interests are totally aligned with their investors. If their investors lose money than they will lose too.
   
   This stands in start contrast to the Wall Street banks which saw management awarded with giant bonuses even after the banks they supposedly were managing went under and even after the trillion dollar government bailout was rushed into law over a terrified and manipulated body politic.
   
   What is more hedge funds - except for the exception of Long-Term Capital Management - are never too big to fail.
   
   If you spend some time reading Mallaby's book you'll get a good idea of the secrets behind the most successful hedge fund managers. People look at them in awe and think of them as total genius, but one thing worth nothing is that none of them were right all of the time. All of them had a year or two when they were positioned incorrectly or else made the wrong bet at some time or another - and these are the best of the best. But what they all had was longevity and perserverance and knew how to take advantage of things when they were right.



2. As hedge funds increase in size, variety and number, they also exercise growing power over central banks and national governments, as well as companies and industries. Unfettered by a fixed investment philosophy, hedge fund managers bank on the flexibility to buy assets and sell them short as dynamic markets dictate. Some hedge funds have succeeded spectacularly and some have failed, such as those holding too many mortgage securities when the U.S. housing industry collapsed in 2007. But over its history, the hedge fund industry's performance has been remarkably good. Here, business journalist Sebastian Mallaby forcefully argues that hedge funds contribute to economic stability by chasing the true value of mispriced assets. His richly detailed book centers on the successes and occasional missteps of famous hedge fund managers, including such luminaries as Stanley Druckenmiller, Paul Tudor Jones II, Michael Steinhardt, Julian Robertson and George Soros. getAbstract recommends this book as a vivid introduction to hedge funds for those who are unfamiliar with them, and as a valuable, often entertaining, reference for financial professionals. And if you want to know even more, read the illuminating footnotes.



3. Not sure why others are fawning over this book. Mallaby spends 90% of the book detailing 12 or so of the most famous hedge fund operators and how they amassed their fortunes. While their stories are interesting, they have been well-told and are available in simple internet searches. I didn't feel Mallaby was bringing any new information to light.
   
   The author does touch on all the salient points as to why hedge funds are not evil (as the press would have you believe). Still, I was hoping for more from this book than just a history lesson on the industry's most famous participants.



4. A very well-written and throughly researched work, which debunks some myths (hedge funds don't outperform the market! Soros won the battle with the Bank of England singlehanded!), and points out the absurdity of the efficient markets hypothesis (by the way, the reviewers who say that "Warren Buffett proved that" are confused -- Warren could well be the coin-tossing orangutan, plus he manages his companies, and doesn't just hold stock in them, so is not playing the same game). The efficient market hypothesis is really the idiot's (in this case "the economist's") version of the second law of thermodynamics, the idiot/economist apparently incapable of understanding that systems TEND to an equilibrium, but that does not mean they are perpetually IN equilibrium.
   
   For people interested in finance, the book is very informative, though some of the information can be found verbatim in other books (the author is very scrupulous about attribution), and people interested in John Paulson's activity are better off reading The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History. No technical information is given on quantitative trading strategies (although the book has more information about Renaissance Medallion's trading than I have seen anywhere else), nor, really, on any other trading strategy, with the notable exception of "global macro" (as practiced by Soros and Druckenmillier), but since the author works for the Council on Foreign Relations, this is not exactly a shocker.
   
   I completely agree with the author that regulation is bad for hedge funds, but then again, I have austrian inclinations, and strongly believe that the current mix of the government providing a safety net for the big banks in return for imposing a heavy regulatory burden and permitting them to be grotesquely overleveraged is what is really toxic about the current environment. Unfortunately, this shows no sign of getting better.



5. If you have read "Too big to fail", "House of Cards", "Big Short", "Lords of Finance", "Fool's Gold", etc. you will like this book better. More wisdom based on incredible research and interviews. I was initially resistant to Mallaby's recommendations about financial reform, but he sold me based on reasoning well supported by evidence. The clearest, most readable and reasoned discussions of the efficient-market theory and Soros' reflexivity. If you don't know those terms, read this book anyway. He will at the end and you'll be glad whether you interest is investing or just voting. This is scholarship dressed up as popular non-fiction. On a par with Tom Wolfe and Malcolm Gladwell for brining non-fiction to a wide audience.

5 comments about Diary of a Very Bad Year: Confessions of an Anonymous Hedge Fund Manager.

1. I wholly enjoyed this book. It's educational, entertaining, and somewhat nerve wracking once you sense how close we got to something like a complete meltdown. It helped me understand what the hell just happened. Should be required reading for all econ students.



2. If I would have known that this was a book of edited transcripts of interviews I probably wouldn't have bought it; but I didn't and I did and I'm glad I did. Unlike some of the other reviewers, I have read a lot about the financial crisis but this book is a unique look at that crisis from the heart and mind of an insider who lived through it. Anonymous is not cigar chomping Neanderthal, Wall Street aristocrat or a nerdy math wizard. He is sort of a really smart everyman; a guy you'd like to have a beer with. So buy this book get in the hammock with a beer and enjoy your weekend.



3. This is a good book when combined with others. It can give the reader a good, intuitive introduction to how trading and markets work. If you read this book and no others, you'll know a little and have been entertained. If you go on from this book, you'll find it can serve as a good base for further learning. As someone with experience in the securities business, I enjoyed HFM's clarity of exposition, but didn't find him the brilliant chap the interviewer seems to believe he is. He's a smart guy, no doubt, and he thinks a lot about what he does, but let's not blow this out of perspective, folks. His thoughts on Lehman Bros, Bear,AIG and Madoff are particularly interesting. Not a classic, but a good exposition.



4. The content of the book makes it hard to believe that this was a real interview, since while the information is not bad, it is at a very basic level, which might have bored any finance professional (but if the Anonymous HFM really wanted to teach, that would explain things). For what it is, it is quite good, and the lay reader will learn what all the big words mean. There are (but very few) nuggets you might not find anywhere else (such as: why did Bear Stearns fail?), but the general point of view is quite mainstream and follows the government party line (curiously, the government party line does not really depend on which party is doing the governing). For example, the HFM seems to believe that Lehman should have been bailed out, which most finance people I know do not, but to each his own, I suppose.



5. read this book in one sitting, liked it a lot, couldnt put it down. The style of this guy's writing is pretty enjoyable, and you feel almost bad for the 'anonymous' hedge fund manager (until you realize that he made a ton of money from his hedge fund over his career) as things go from bad to worst. but since he's mostly an emerging market trader you dont blame him too much for missing the full scale of the crisis.

5 comments about Options, Futures, and Other Derivatives with Derivagem CD (7th Edition).

1. The book is very complete and covers various materials with concrete examples.
   
   Too expensive though but overall good investment!



2. If you are purchasing the paperback (7th edition) of the Student Solution Manual " Options, Futures, and other Derivatives" by John C. Hull, the Cover says "CD-ROM included", but in reality it is NOT included.
   
   I ordered two replacement books before being informed that the CD-ROM is only included in the Hardcover edition.
   
   Otherwise at a first glance, the book seems to be pretty good



3. Not just people in Sales & Trading / Structuring, but anyone who worries about the role of derivatives needs to first give this important book a read through: It simply and elegantly explains the role of derivatives.
   
   Don't make judgments about things you don't understand: read hull and learn



4. An interesting book that helps you step by step to understand the financial market and the valuation of the different products.



5. Thi book is a "compendium" of the most important issues in finance. It's clear, both theoric and practical, very useful for students and workers

5 comments about Market Wizards: Interviews with Top Traders.

1. In a constantly evolving trading rules, most older systems that generated hedge fund managers extraordinary returns would not work today. While much of the strategies described by those interviewed in this book fall under this category, they many of these market participants continue to remain the very best traders around today. Especially interesting are the Michael Marcus, Ed Seykota, Bruce Kovner, Paul Tudor Jones and Dr. Van Tharp. Great read and very insightful as to what goes on in the mind of the world's best traders.



2. This is one of my favorite books. It's always motivating during a down trading period. Although some reviewers claim it is outdated, I think they fail to realize some of the tried and proven tenets of trading. I believe that all traders should have this on their bookshelf - both novice traders for inspiration, and veteran traders for motivation.
   
   Note that in the above paragraph, I say "traders" and not "investors." Investors may not find this book as fascinating unless they are actively involved with their portfolios beyond "passive investing."



3. This is a must read for aspiring traders. The interviews are in depth with countless anecdotes and tips that will benefit new traders and traders that have some experience.
   
   I highly recommend it.



4. If you would like insights into the thought processes,trading rules and the stock trading psychology of highly successful traders, get this book...it's outstanding!
   
   A professional trader uses his head and stays calm. Only amateurs become excited or depressed because of their trades. Emotional reactions are a luxury that you cannot afford in the stock markets. Acting out of anger, fear, or elation destroys your chance of success. You have to analyze your behavior instead of acting out on your feelings.
   
   In this book, you have the opportunity to learn from the masters and learn not only from their success, but also from their failures.



5. For anyone familiar with the vast amount of investment literature out there, I'm sure you've come across a book written in the first half of the twentieth century called "Reminiscences of a Stock Operator." This classic tome is widely considered to be the "Bible" of trading, and it has been referenced directly or indirectly in many of the other popular books in the genre. You may have even read it yourself. For years it has been THE book to have influenced the world's top traders, but now, Jack Schwager has created the next classic work to fill recommended reading lists.
   
   "Reminiscences..." is mentioned in several of the interviews with the "Wizards", so it is no surprise that many of the same themes are echoed throughout the book. Chronicled are anecdotes and philosophies from some of the world's greatest traders, and to have them all gathered for the reader in one place is amazingly stimulating. More than any other book, "Market Wizards" has helped me become a profitable trader. Investors routinely pay hundreds, even thousands of dollars to attend trading seminars, but don't learn nearly as much readers will soak up from these pages. I make a habit to go back and regularly review the collection of tips in the back of the book, and nothing helps me break out of a trading slump like rereading a few select chapters.
   
   For those looking for a step-by-step trading system, you may be disappointed, but if you're interested in learning from the best of the best, then there's no other choice. The interview format makes for a quick read, and it's interesting to get a glimpse of how these great men live and trade. I highly recommend "Market Wizards" and its sequel "The New Market Wizards" to anyone wanting to take the next step toward trading success.

5 comments about Devil Take the Hindmost: A History of Financial Speculation.

1. Maybe I've read too much on this topic, but seems like nothing to new or earth-shaking here.



2. This book makes it extremely clear that the stock market is a dangerous place. The author begins with the speculator and the ethics of speculation.
   
   "Speculation is a divisive topic. Many politicians - several of them in Asia - warn that the global economy is being held hostage by speculators. In their opinion, the speculator is a parasitical figure, driven by greed and fear, who creates and thrives on financial crises ... Western economists take a radically different line. They argue that speculation is fundamentally a benign force, essential to the proper functioning of the capitalist system."
   
   In the last paragraph of the book the author gives us his conclusion on this speculative debate.
   
   "Speculation undermined the Bretton Woods system of fixed currencies and, more recently, it has destroyed the state managed capitalism of Japan and other Asian nations. As an anarchic force, speculation demands continuing government restrictions, but inevitably it will break and chains and run amok. The pendulum swings back and forth between economic liberty and constraint."
   
   That conclusion in my estimation gets a 10 on the Alan Greenspan scale of economic mumbo-jumbo. But it is standard fare from those versed in economics. After reading the book I actually understand what the author is trying to say in this self-contradictory statement. That's a little scary, in itself.
   But in truth I did not buy this book to get the author's answers to anything. I bought it to get historical information on panics, bubbles and crises. I got a good deal of information. I'm satisfied.
   
   I was actually looking for a book discussing U.S. panics beginning with colonial times and coming forward to the present. More than half this book discusses pre-colonial panics and countries other than the U.S. So I'm still in the market for something more specific and more detailed.
   
   But what about investing in the stock market? What kinds of people have been involved in this enterprise? And how should an average person look at the stock market for his personal investments.
   
   The answers for me, after reading this book are: Do not invest in the stock market. It is filled with crazies, manipulators and the clinically insane - not to mention outright gangsters and criminals. And an average person would be better off investing their life's savings in their retarded son-in-law than giving their money to a stock broker.
   
   The author takes his readers on a tour of the many famous speculative bubbles and manias of the past going back to the "Tulipomania" of 1630 and carrying us through the Japanese crisis of the 1980s. He even dabbles into present day derivatives and hedge funds. The book was published in 1999 so it predates the current fiasco. But this book makes it very clear that the historical information was there. Japan should have been an obvious example.
   
   For Alan Greenspan to state before Congress that he couldn't imagine that prominent bankers and brokers would act in such a "negligent" unprofessional manner is beyond naivete. Alan was obviously joking. It is difficult to determine when Alan Greenspan is joking.
   
   But Alan was not the criminal. He did nothing wrong. He did nothing right either. As J.K. Galbraith stated in many of his books, the Federal Reserve and its bosses did exactly what they should have done ... nothing. If they let the bubble go until it collapsed they are blamed for the collapse. If they put on the brakes and tighten up the money in the middle of a "boom" they will be blamed from killing the growth and crippling the prosperity. For us here at home the big questions are where were the inspectors, the regulatory agencies and the Congress and the Senate with the proper rules? And even bigger question ... Where was the moral conscience of all those thousands who participated in all the scamming and falsifying? We had more than an accident here. We had a moral and ethical calamity.
   
   What this book makes clear is that what has happened has happened many times before - not on such a great a scale as today. This current speculative extravaganza was a major moral earthquake.
   
   Galbraith said in his book "Money, Whence it Came, Where it Went" that the time between speculative insanities or panics is directly proportional to the time it takes for everyone to forget the last speculative bubble or panic.
   
   Galbraith also had much the same confusing type answer to the problem as offered by Mr. Chancellor.
   
   For the present, rules and regulations need to be put in place but as time goes on these rules or any rules will be undermined. There will then be another collapse and a new need for newer rules. Galbraith suggested a five year term for new rules and new regulators. Then all bureaus should be abolished and new ones established. In other words, the new rules must be kept ahead of the old rule breakers and manipulators. Keep changing the game.
   
   This answer seems to indicate that the problem is endemic to the system. So we need a new system. But is that possible? And what will it be? And will it have other flaws equal to or worse than the present system?
   
   Maybe the same system could be continued if we could just develop some better human beings.
   
   Books written by Richard Noble - The Hobo Philosopher:
   "Hobo-ing America: A Workingman's Tour of the U.S.A.."
   "A Summer with Charlie" Salisbury Beach, Lawrence YMCA
   "A Little Something: Poetry and Prose
   "Honor Thy Father and Thy Mother" Novel - Lawrence, Ma.
   "The Eastpointer" Selections from award winning column.
   "Noble Notes on Famous Folks" Humor - satire - facts.



3. Sometimes we forget how bad it can be, and then we howl over minor bad times in the markets. We may be past a mania in residential housing, but we have not really experienced a panic or crash yet. People squeal over how bad the equity market is, but recently we haven't had anything like the 2000-2002 experience, much less the 1973-1974 or 1929-1932 experience.
   
   Two books come to mind when I think about disaster in a non-fear-mongering way: Manias, Panics, and Crashes, by Charles Kindleberger, and Devil Take the Hindmost, by Edward Chancellor. They take two different approaches to the topic, and those approaches complement each othe, giving a fuller picture. Chancellor takes a historical approach, while Kindleberger deals with the structures of financial crises.
   
   From Chancellor, you will see that manias and their subsequent fallout are endemic to Western culture. Someone living a full life over the last 300+ years would see one or two big ones, and numerous small ones. Relatively free societies give people freedom to make mistakes. Given the way that people chase performance, we can all make mistakes as a group, with large booms and busts. Much as the regulators might want to tame it, they can pretty much only affect what kind of crisis we get, and not whether we get one. He is somewhat prescient in suggesting that the leverage inherent in derivatives post-LTCM could be the next crisis. This book is a better one if you like the stories, and don't want to dig into the theories.
   
   But if you like trying to place the manias, panics, and crashes on a common grid, to see their similarities, Kindleberger has written the book for you. In it he draws on a number of common factors:
   
   * Loose monetary policy
   * People chase the performance of the speculative asset
   * Speculators make fixed commitments buying the speculative asset
   * The speculative asset's price gets bid up to the point where it costs money to hold the positions
   * A shock hits the system, a default occurs, or monetary policy starts contracting
   * The system unwinds, and the price of the speculative asset falls leading to
   * Insolvencies with those that borrowed to finance the assets
   * A lender of last resort appears to end the cycle
   
   I liked them both, but I am an economic history buff, and a bit of a wonk. The benefit of both books is that they will make you more aware of how financial crises come to be, and what the qualitative signs tend to manifest during the boom and bust phases of the overall speculation cycle.



4. I highly recommend this book to anyone trying to make sense of the economic crashes of the past couple of years. "Devil Take the Hindmost" is a well written history of financial bubbles--how they develop and how they collapse. I wish I had read it two years ago.



5. 
   I have been a client adviser in speculative/growth investments for 11 years and have recommended that all my clients purchase this book. Along with Peter Lynch's One Up on Wall Street, and my yet to be written second book I believe that these three are all you need to provide the platform for success in speculation. It is amazing how those tied up in textile, shipping and mining companies in the 1600's would not look at out of place in some of the bars/eateries in Perth. No doubt hairstyles would have changed but I can just imagine the rubbish flying back and forth way back then. This book illustrates clearly and with considerable passion how human stupidity is infinite and "Fear is temporary and greed is perpetual".
   I could not imagine Australians willing to pay 1200x earnings for Qantas or Virgin Blue or insane amounts to join a rundown public golf course. It shows that bubbles can show up anywhere and although the great Nasdaq bubble came after the book was written the same rules apply. This book will help us prepare for the bubble in Australia considering we were the first to lift rates, and we had that Hey Hey Its Saturday skit which earnt the country considerable publicity.
   When times get tough i.e when you should be buying stocks low this book brings it all together and I cannot recommend it strongly enough. No need for black boxes, flux capacitors or $5,000 seminar courses, this book nails it in an easy to read and enjoyable manner! Buy low, buy quality, buy lots and sell high it never changes!
   
   Tony Locantro
   Perth WA

5 comments about Derivatives Markets (2nd Edition).

1. For those studying for the Actuary Exam MFE, this is a decent textbook to refer back to. I am also using Weishaus's Exam MFE study manual. It's nice to read the textbook and get the background for what is basically just included as Cliff's notes in Weishaus's study manual. The two paired together provides a comprehensive background for the material.



2. I used this book in an actuarial Exam FM/2 prep course at my university. We only covered the material through swaps (i believe chapter 8). Easily understandable. I had trouble understanding the swaps portion of the text. Definitely a more valuable source if accompanied with instruction. Tons of information... no information on directional trading and prediction of market movements, but that is not what the book was intended for.
   
   Best Regards



3. This book is actually quite weak. While, the other books recommended by Actuarial Societies are quite strong, this one does not hold up. There are not enough examples or problems in the book. In addition, the book continually reuses the same information in its examples requiring less thought to get through them.
   My biggest complaint is how the book approaches Put-Call Parity. This book offers the worst explanation for that concept I have ever read, which is sad because it is the basis for pricing calls and puts.



4. This seems to be the book chosen by most instructors so there must be some reason for assigning it. I am familiar with the material from reading corporate finance texts. This text, however, is not written well and is actually confusing. So one struggles to understand what the author is actually saying. Hope it gets better.



5. This is a great book. Not only was it very useful in my derivatives class, it also was useful for other finance subjects. I often found its explanations helpful for completing assignments in fixed income and international finance courses. McDonald's clear explanations and explicit examples set this book apart from others.

3 comments about Financial Risk Manager Handbook (Wiley Finance).

1. I strongly recommend this book to whoever is willing to take FRM exam.
   This book was the only resource I studied to pass the FRM exam.
   However, if you're not somewhat familiar to the subject, you may need to study from additional resources.



2. Very good book. Bought from amazon. Amazon took long time to ship and deliver. Almost 2 weeks.



3. If you're an amazon prime member this book will end up costing you a lot less that the price on the Garp website.

5 comments about Day Trading For Dummies.

1. I didn't know the first thing when it came to day trading. This book was PERFECT for a starting point. Very well written and it provides you with a lot of good beginner information. Highly recommend for any one that doesn't know where to start.
   The only thing that got me in this book was when the author was referring to a person.. they referred to them as "she". Minor annoyance



2. this book was excellent...it helped me realize this was a profession that just was not for me...saving me countless dollars in mistakes and inefficiencies...it trully paid for itself



3. Convinced me not to try it. Good info but I don't have the guts to put my money on teh line at this time.



4. I bought this book hoping it would give at least a basic introduction to day trading. The book accomplished that. Loque goes over the basic needs of being a day trader. Emotional, financial and even office setups. She emphasizes that being a day trader is a business and one has to treat it as such. Not something that you do in your spare time from work or family responsibilities. The only thing I noticed is that she emphasizes having a good trading plan. I think she should have offer more examples of a trading plan and strategies. But she does offer at the end a lot of other resources to check out. If you are absolutely new to day trading this is a good book to start from.



5. This book is good for a person who is new to day trading. It provides an excellent start as an overview. Once you are more familiar with day trading, you will need more in-depth and advanced book.

5 comments about Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets.

1. Fairly good book. The author Michael Covel, spends too much time selling trend following as a viable investment style. This comes at the expense of getting into details of how to implement a trend following strategy and how to implement a risk management plan around that strategy. Implementations is the punch line I kept looking for as I read the book. That said, I got a lot out of the book, but this required putting together the little nuggets of wisdom scattered around the book.



2. Excellent book about the great traders of Wall Street and how they think. Covel has many priceless quotes from "the masters" that give you insite in the thinking behind their decisions. He describes the different systems that they use and discusses why they choose to use those trading systems, rather than employ the traditional "Fundamental Analysis" of profits, blue book, earnings and so forth.
   
   Covel's initial discussion is to convince you that the traditional Fundamental methods and "Dollar Cost Averaging" is a complete waste of time and do not work as advertised. He also believes that the in and out day trading is not nearly as successful as the trader who trades the trend. Trend traders never buy the bottom or sell the top, but they make excellent profits by trading the middle part of the trends that last a few weeks to a few months. He also compares the draw-downs experienced by various trader's methods in a side by side comparison.
   
   Don't read this book to learn HOW. Read it to understand WHY.



3. Disclaimer: A free copy of this book was received from Amazon Vine in exchange for an honest review.
   
   I actually have made several attempts to read Trend Following by Michael W. Covel and moved it back to my stack several times. I kept returning it to my stack in the hopes that someday I would read it all the way through and then take what I learned to go and make millions on the stock market. Well it took me more than a year but I finally made it all the way through. Sadly for anyone who buys this book hoping to learn how to make a small fortune by following market trends, this book will NOT help you do so.
   
   Covel spends most of the book trying to convince the reader of the worth of trend following-- telling the story of successful trend followers, detailing the performance of trend followers in various market crises, quotes and lessons from trend followers, etc etc etc. There is very little meat to the book and very little information about how to actually follow trends. In fact, forget reading the book, and skip directly to appendices E,F and G which are the only parts of the book that contain any actual how to information.
   
   About the only positive thing I can say about the book is that it has whet my appetite to learn more about trend following, but to anyone considering investing in this book, my advice is to put your money under your mattress instead.



4. It's probably not for everyone, but Covel makes an in-depth case for the superiority of technical analysis and trend following as the methods of choice for superior returns. Not quite the step-by-step guide I'd hoped for, but there is good, useful information for the beginner and professional alike.



5. I have been on my stock market journey for some time and I only wish I had of found this book earlier.
   
   This book is a MUST read for anyone about to start their journey in the markets or anyone who may be walking around and bumping into walls. Whether those walls be listening to hot tips from friends or brokers or your own personality
   
   Trend following is just one of the many strategies that are out available for making money in the markets. For me personally this book opened my eyes to see the value in having a systematic approach to trading. Without a systematic approach to your entries, exits, stops, money management etc. you will get eaten alive.
   
   This book may not give you an exact road map to building your own Trend Following strategy, but if it opens your eyes to the concept and sets you on your own journey of discovery into this style of trading then it has done its job.
   
   Once again, highly recommended, especially to the people who haven't quite 'cracked' it just yet.

5 comments about Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series).

1. This book is definitely a slow-starter. I used to be an equity trader/analyst and find derivatives fascinating. However the way this book begins made me set it on the shelf for the time being. I will eventually go back because it does contain useful information. However for a book named 'Traders Guns and Money' don't expect the book to bring about the same excitement as the title.
   
   That being said, this is an excellent resource on insight into the derivatives market and how it's been used by professionals and non alike. Well worth the read if you're looking to learn.
   
   As far as other books go, "Pit Bull" by Schwartz and "Reminiscences of a Stock Operator" are two solid ones.



2. The author studied and ACTUALLY traded the derivatives that some people ONLY talk about. The book is written in an entertaining yet very informative way. I figure you would not be an expert on derivatives after reading but you sure will know a lot more about them. So in way, this is an insiders recount of the world of derivatives. A great book.



3. This book is an excellent read. It opens with a fictional account of a typical deal gone bad and works from there to explain where the derivatives market started and how it developed over the years.
   
   Satayajit is able to explain complicated concepts in a way that makes sense and his expertise on the subject is very evident. I actually liked the writing style too - between the fiction of the opening chapter, the humourous description of office life had me laughing out loud at times, as well as all the technical explanations!
   
   The book confirms every investors worst fear about Wall Street and how they consistently pick the pockets of their clients and the fact that many managers of Investment banks didn't understand the toxicity of the products they thought were making them billions.



4. I read this book after sub-prime happened and was shocked to see that if so many people knew how derivatives are used then why didnt anyone do anything to stop them, not even regulators? The Writer almost predicts the disaster waiting to happen. Book is full of practical wisdom (for example, "new paradigm" invariably means new bubble!) and real world incidents and anecdotes (for example, one firm sold call options with $0.01 strike on itself, with maturity of 5 years. Why you ask. Deep in the money call is equal to selling shares, except that you defer taxes till the option is exercised). Book is full of such anecdotes, which make it very interesting.
   
   I gave it four stars because, sooner or later all the wall-street books give the same feel. You read one and you have almost half read the next one. This one is slightly different because it requires a bit more knowledge about finance than some of the other books on wall street.
   
   To conclude, if you have already read 5+ books on wall street, this one will not have much to offer you. If you are anyway related with finance industry, you'll love this. If you are only beginning to read about wall street, you should get this - Das has a very rich industry experience and you'll love his anecdotes.



5. Traders, Guns & Money opens with the classic derivatives fairy tale: the farmer grows wheat, the baker bakes wheat, and the banker--God bless him--brings the two together with a forward contract, hedging their equal and opposite exposure. This is the legitimate use of derivatives. Satyajit Das dispenses with this story in one or two pages. The following 300 pages is a look a the other side of derivatives: the dangerous side.
   
   Das walks the reader confidently through the sell-side, buy-side, risk management, quants, equity derivatives, structured products, and finally credit derivatives. That he manages to do so with clarity is impressive. That he manages to do so with humor is absolutely amazing. I would confidently recommend Traders to anyone with an interest in high finance. For those like myself with a sick interest in banking, fixed income, and derivatives, it's pure gold.
   
   The book does suffer from under-editing: an egregious spattering of typos and a few rambling passages. It's also bitingly cynical. However, neither detracts from what is ultimately the most brilliant introduction to the dazzling world of derivatives one can hope to find.