3 comments about Pricing Money: A Beginner's Guide to Money, Bonds, Futures and Swaps.

1. Easy to follow, introductory guide. As the title suggests, this is a beginner's guide so there are no complex equations or other involved mathematics. Basic concepts are explained in a clear way with good examples to illustrate mechanics.



2. Extremely readable. One could read this book in a single sitting and get a great jumpstart to an understanding of fixed income markets - the why and the how.

   Wiseman has an engaging style of writing which prevents the stifled yawns normally associated with reading this genre, and keeps one turning the pages...

   The book nicely covers the fundamental theory of why there exists a fixed income market, then turns to the players and discusses what they do, and finally covers some of the fundamental trading strategies and math employed to turn a buck.

   Nice one...




3. i found this book very well written. It provides detail and yet covers that what it says it does. I find that Wiseman explains concepts in a verystraight forward way. Although i had to pause to eat and think about some of the financial products discussed such as "par yields". I found I was able to understand the book. The book contains some of the trader jargon and a outline of the players involved in the market. I think that anyone who wants to something with securities or trading should read this, before/during/after an intership. As the english say "Wiseman" is the dogs ballocks!! get this book!

5 comments about Pricing Convertible Bonds.

1. Sometimes reads like a smorgasbord of topics and facts. Don't see the key topics and themese show through in a consistent manner. Never even talks about other models and risk management/hedging challenges in these respects...



2. It's amazing that nobody has written a decent book on convertible bonds. This is the best in a very weak selection.
   The book essentially starts at Chapter 6. If he wanted to write a book on modelling in excel he should have thougt about doing it before Jackson and Staunton (Modelling in Excel and vba). However, there isn't any vba here. How another reviewer can say that the pace accelerates enough to keep the attention of the expert is crazy, Chapters 1-5 are very irritating; as I say, they might be fine in another book.
   The author's avoidance of vba is a drawback. Why not? It is a logical thing to do.
   In the last couple of chapters, the author stops doing excel and just shows the graphs. He even freely refers to a embeded tree spreadsheet and then nonchalently points out that it isn't on the disk provided. Why not?
   The real reason is that the binomial method becomes completely unworkable as soon as one introduces complications. One needs to use finite difference methods. FDMs are not even mentioned in this book. The author places his presentation as the state of the art, it isn't. I learned more in 4 pages of one of Wilmott's books (Mr. Numerical DE Solver) [Paul WIlmott on Quantitative Finance, section on convertible bonds] than I did from this book.
   If you are interested in building models of convertibles, that can take into account any but the most vanilla features, this is not the place. For a conceptual non-quantitative overview, fine.



3. This is a very good book. Connolly starts from the beginning, assuming you know nothing, but accelerates at just the right rate to hang on to beginners and not to annoy people who already know the basics. Admittedly, if you're a quant you'll know all this stuff (anyway, if you're already a quant you shouldn't need to buy a book on the subject in the first place). If you're not a quant, it's a fine introduction to how to model convertibles. In fact, there's enough information here for you to have a go at writing your own toy model that takes into account most of the complexities of CBs (including puts and resets), although you'd be a trifle crazy - or extremely confident - to start trading off a model you implemented *only* having read this book.

   This is an excellent book for anyone who is a user of CB models, who understands the inputs and outputs, and who wants to know more about what's going on inside the model "black box".




4. Connolly has written a useful, practical book for those who are attempting to price these (increasingly) complex instruments. For more abstract or academic treatments of the topic, seek other sources and the innumerable academic journals of quant finance. But for a nut-work �gotta-price-this-bugger-�cause-my-boss-asked-me-to-and-I�m-the-quant-guy-in-the-shop� this guide, while not strictly a �cookbook,� is indispensable. Although it begins at a relatively basic level, it clearly and concisely explains every technique from the simple (y = mx + b) and then step-by-step ratchets up to the Excel-samuri level (MIN and MAX tests after multiple operations of option pricing trees (bi-nomial and tri-nomial)).

   I limited my rating to four stars, however, because Connolly only mentions in passing the available (expensive) software-house products that do many of the same things his example spreadsheets do. Fin software needs critics, and I can think of no one better placed than the author to examine them and give front-line quant analysts his views.

   In addition, like most worker bees, I try never to reinvent the wheel (programming in C++ and VB or anything else for this kinda thing is undiluted soul-destroying tedium), but at the same time want to thoroughly check out the foundational theory and techniques someone applied before I risk my career on someone else�s work. In this case, a good list of the academic sources and current financial literature on the topic would have been a useful and welcome addition to this slender volume.

   I suppose a final criticism is that we have all seen the exponential growth of credit derivatives in the past few years. Connolly�s next edition will need to address the topic of credit derivatives in relation to convertible bonds, as their use in combination with CBs provides alternate hedging, investment, and speculative strategies not explicitly considered in this book.




5. A good start, but not enough detail or complexity. Unfortunately, it doesn't seem like there is anything better.

5 comments about Stock Market Miracles: New, Innovative, and Powerful Ways to Make Your Money Work Wonders!-.

1. I bought Stock Market Miracles along with Wall Street Money Machine back in 1997. Using Wade's option strategies I was, as a total beginner, green as green could be turn $250 into $1350 in three weeks on my first play, $400 into $4800 on my second play and $1500 into $7000 (on a 3/1 post stock split play) in 3 days.
   
   As a total novice, I was excited to say the least. Wade Cook and Robert Allen are two of the very best financial coaches today. I also recommend Rich Dad Poor Dad by Robert Kiyosaki.
   
   Take the naysayer with a grain of salt. This guy obviously has an agenda that does not include helping you.
   
   By the way, I made those gains without using Wade's newest and more advanced strategies disclosed in Wade's newest book Wade Cook's Stock Picking Handbook. I recommend that you go to Wade's website www.wadecook.org.



2. In this sequel to the best selling Wall Street Money Machine, Wade Cook goes even deeper into his revolutionary and new strategies for cash flowing the stock market. There is more information on stock splits, options, rolling stocks, buying and selling calls and puts, tandem plays and so much more. This book makes a great companion to Wall Street Money Machine.



3. Following the strategies in this great book by Wade Cook, I have made 20% returns since 1997 and I still made money even during the Clinton Bear Market.

   Most of Wade's strategies are bear market in nature anyway. They are as safe as safe can be when trading in the stock market. Big upside. Little downside. Great book.




4. I bought this book along with Wall Street Money Machine back in July 1998 during yet another "Clinton Bear Market" I was amazed to see that I could make money even during a down market. Highly recommend Stock Market Miracles and Wall Street Money Mchine (now known as Wall Street Money Machine Vol I & II.



5. Following WADE COOK's advice in this and his classic WALL STREET MONEY MACHINE, I bought options on YHOO prior to their last split and nearly doubled my money in one day.

   Stock splits are predictable, safe and easy way to make money quickly...as long as you follow the advice and precautions that Wade teaches. Many will remember that stocks like Compaq, split and never came back up again. In fact, dropped by 300% after splitting. But Wade warned us about Compaq and other stocks like Compaq that should have been avoided.

   Following WADE'S advice has enabled me to quit my full time job, stay home with my children and make a nice living.

   Thanks WADE!

4 comments about Options Markets.

1. This was our options text book at the MIT Sloan School of Management. For all the technicalities involved, "Options Markets" is relatively easy to understand and follow with plenty of examples charts, graphs and tables.

   John C. Cox and Mark Rubinstein also provide sage advice and recaps, even far into the book, for example:
   "for initiating and maintaining neutral positions:
   1. Never initiate a neutral position where one side of the position is unfavorable
   2. Whenever one side...becomes unfavorable, liquidate that side and replace it with another option with a favorable price
   3. Never adjust by buying an overpriced option or selling an underpriced option
   4. If possible, always adjust by buying an underpriced option or selling an overpriced option

   Although the book is a little old, the fundamental principals are sound and so well explained as to make this a truly valuable learning tool for puts, calls, market structure, general arbitrage relationships, exact option pricing formulas, and general option applications.




2. I bought this book 7 years ago, and just recently took it back off the shelf to read/reread sections related to my current work. Book is packed with explanations that facilitate understanding of these complex instruments. And it's nice to see how the binomial model is developed by its inventors. I highly recommend this book to all seeking to understand how to price and analyse options. The reason I gave it 4 stars was that book has an equities focus.



3. Always an up-to-date work. The excellent analysis of every aspect of options ranks it a must for the researcher (speculator or agent trader) in order to comprehend thoroughly the real nature and forces of the derivative instruments of the markets and obtain a strong infrastucture for consequent reading on strategies and technical analysis. Mathematics of the book are plain and worth reading to the last equation, for they prove to be the key to the understanding and valuation of any novelty work on the subject.The authors' state-of-the-art multiple remarks and explanations on options prices,their factors and sensitivity factors makes it an everyday's book, besides its academic value. A stand alone book for traders that once you get it is to be read over and over in sequence with any new techniques to be tested.



4. Always an up-to-date work. The excellent analysis of every aspect of options ranks it a must for the researcher (speculator or agent trader) in order to comprehend thoroughly the real nature and forces of the derivative instruments of the markets and obtain a strong infrastucture for consequent reading on strategies and technical analysis. Mathematics of the book are plain and worth reading to the last equation, for they prove to be the key to the understanding and valuation of any novelty work on the subject.The authors' state-of-the-art multiple remarks and explanations on options prices,their factors and sensitivity factors makes it an everyday's book, besides its academic value. A stand alone book for traders that once you get it is to be read over and over in sequence with any new techniques to be tested.

No comments about Simple Steps to Option Trading Success.

5 comments about Trading Systems: Secrets of the Masters.

1. The book consists of a series of answers to a questionnaire sent out to many system developers, and literally a line of code devoted to the concepts presented by each interviewee. None of the ideas or answers by themselves will provide you with anything near a complete trading system, making the title misleading. In fairness, it's probably wishful thinking that one could get anything more than a lead out of any book on trading systems.
   
   On the upside, it's been over a decade since the release of the book and a few of the systems have held up and the basic logic behind the systems the interviewees have sold in the past could you on the path to a profitable system.
   
   There are a few noteworthy pieces to the puzzle and words of wisdom that someone can take away from the book:
   
   * Many use similar principles as the core of their system logic - buying higher highs
   * Most count winning % as the least important aspect to a trading system, pointing to drawdowns and number of trades as more important metrics
   * Several use SP trading systems, and although perhaps due to the date of the book, look at no less than 15 minute bars and most 45 minute bars and higher, saying there is too much noise in 1-5 minute bars
   * Many use very few parameters that can be optimized or curve fitted to past data
   * The constant refrain is the simpler the better
   * They build on the work of others and few are totally unique



2. Written in pseudo-Market Wizards style.. consists of a questionaire/interview with some of the legends of this most recent generation. There is some bias towards mechanical systems, but the information discussed is beneficial to every trader. This is one of those books that you can pick up a handful (and more) of ideas to try out for yourself.



3. This book is of no value!
   Interviews irrelevant,system ideas presented light like smoke.
   If you want to make money, instead of buying this book try to write one alike.
   Don't make the mistake I did by buying it.
   Period



4. The author was rather lazy in writing this book. He asked the "Masters" the same questions. You cannot ask the same question to people have different trading styles. The question of which futures should be retained or cancelled is really stupid. It doesn't help traders to learn something useful. Some of the "Masters" didn't answer all of them. And some answers were very confusing. I would prefer Schwager's Market wizards. This book is also overpriced. Fortunately, I borrowed it from the library. Not recommended!



5. I found Joe's book to be extremely helpful in getting into the minds of some top traders. I have found in my own trading that one good idea can be worth thousands of dollars in profits(or avoided losses for that matter). One of the easiest ways to develop success at anything that you do is to find out what the pro's are doing and then try and copy them. Joe's book sheds light on the processes the pro's use to develop trading systems and will help you on your journey to developing your own successful strategies. Get two copies, one for your library and another for the people that will inevitably ask to borrow yours.

No comments about Advanced Options Trading: Approaches, Tools, and Techniques for Professionals Traders.

5 comments about Put Options : How to Use This Powerful Financial Tool for Profit & Protection.

1. This book does an excellent job at explaining Put Options and why you need to use them. You'll never just buy a stock again, selling the Put Option is ALWAYS a smarter move.



2. The author has an interesting thesis for investing solely using a hedged set of Put options. After doing some analysis it does appear that the concept has merit, at least during times of high market volatility. At other times it appears that the premiums do not exceed the trade commisions -- at least with my brokerage.
   
   The author must have had a minimum word requirement in his publishing contract because he took an inordinate amount of space to define his reasonably simple concept.



3. One-third of the book is an advertising of a strategy. Or maybe it just sounds like an infomercial?
   
   One-fifth of the book is tables of almost all stocks and almost all options. Why?
   
   And, as mentioned before, where is that tool that helps in calculating the selection parameters? It is actually one of the most ridiculous (and negative)points of the book. Here: "You are probably thinking that you could spend every waking hour doing this analysis. Fortunately, you do not have to. The automated toolkit I developed will allow most investors to properly analyze...portfolio in less than 30 minutes". Right. Good. Where is it?
   
   As I said, the book is on a silly side as it tries to explain the strategy to ones who do not know what an option is.
   
   The strategy and ideas (diversification, unpredictability of stock prices, the notion that the strategy does not guarantee gains all the time, factors to consider, etc.)in this book are not bad.



4. I found this to be a very good discussion of a strategy that I was already considering - Selling PUT options. The author makes a compelling argument for this approach and adds some additional twists to the idea that I had not considered. If you have a reasonable amount of capital to start working with, probably 20K+, you could implement this type of strategy with good results. Less capital than that and you will probably start to see the effects of brokerage fees eating up too much of you profits if you try to diversify.
   
   Overall, a very good book - the one downside is that in the book the author keeps mentioning a software program he had written to help you implement the system, but after much searching, including on his website, I was not able to find it. Too bad, it sounded like a very helpful program.



5. You should know I'm biased. Mr. Cohen is my personal financial consultant. Over the past three years while many of my friends were losing a fortune in the market, my portfolio grew substantially thanks to the principles discussed in this book. If you can't have Jeff as your personal advisor, the next best thing to do is read his book and see how he does it. - Wm.G.Hayden,M.D.

5 comments about Design, Testing, and Optimization of Trading Systems.

1. The book is really well written. Not a single line of code, just the concepts and math required to bullet proof your trade system programming.



2. The book is well written and easy to read. I have learned a great deal from it. So far, it is the best book I've read about trading system design and development. I recommend it to anybody who is serious about trading systems.



3. Let me state my biases up front. I've always been rather suspicious of so-called "mechanical" trading strategies, although I'm a strong supporter of a technical approach to the market.
   
   Technical analysis, for me, has always been about individual market participants, as a group, are likely to respond to price action to further their interest for profits, or to conserve capital. Market players are not mindless robots who are as predictable as coin flips, but people pursuing goals, and who learn from history. How the market reacts to news and fundamental info is extremely important from this point of view.
   
   While there are things that can be learned from looking at price action, any algorithm that can extract profits from markets is likely to be short lived. With the advent of cheap, powerful computers, it is all too easy to "test" a system on historical data, only to have it fail in real time. Proper system testing is difficult to do.
   
   Even if testing is done properly, it is likely to have been found by a significant number of smart, well-capitalized people long before you or I ever came onto the scene, making historical test results misleading, possibly unprofitable.
   
   The fact is, markets change, and the context of price action in the past may be totally different to the current market environment. How do market systems account for market change, while still producing valid results?
   
   This book allayed some of my fears. Since system testing IS hard to do, it is unlikely that a significant percentage of people will discover the signals of a profitable system, making the method unprofitable.
   
   Even a skeptic such as myself will admit that proper historical testing can, at the very least, encourage thought about future market conditions, and prepare for various scenarios.
   
   Most important (to me), system testing provides a reasonable method for adapting to changing markets. As new data comes in, the model can, and should, change.
   
   This book teaches you how to do proper system testing, so you can have confidence in your results.
   
   I deduct 1 star from the emphasis on the use of a frequentist statistical methodology. It is becoming clear in economics that talk of "long run frequencies" makes little sense for historical events that occur in a particular place, or a particular time, and are not likely to be repeated.
   
   The use of Bayesian methods based on a subjective interpretation of probability (ie. degrees of belief), are growing in usage, and can provide more appropriate answers to certain questions that the "frequentist" methods do not.
   
   For experienced technicians, I can recommend it.



4. Very well written (simple English) that help to organize thoughts of trading. and it help to improve your level of thinking about trading in general. little book, but very useful. It is very good start to learn how to make a mechanical trading system based on the ideas (that you think should work in the market) then you can back test and forward test those ideas. in this way you will see the weakness and the strength of your way of approaching the market. that will lead to one or more step ahead on you journey to achieve your goals in trading. it is simple and makes you do this tough task with the least possible amount of time.



5. I have never written a comment about a book, but hopefully other people will at least be warned. This is the one of the worst books I've ever read. I have read several Wiley books; most of them are poorly written and lacking substance. This one is unbelievably bad.
   This book deserves a negative five stars. (Who wrote those other reviews?)
   If you have never read a book on trading systems, then this book is may tell you something. Otherwise, save your money. There's nothing here.

3 comments about The Options Trading Body of Knowledge: The Definitive Source for Information About the Options Industry.

1. Thomsett' book may be viewed as three books in one or as a three part book;
   Part 1 (first 80 pages) provides a concise and clear expose of what every trader/investor needs to know about securities (stocks and options) as elements of a well managed portfolio for a high rate of return with manageable levels of risk. Part 2 (110 pages) lists most any options strategy that you can think of, in a format suited for review and reference. Part 3 (90 pages) provides a comprehensive glossary and reference list for books and on-line sources for option traders.
   
   Thomsett's introduction to History of Options is fascinating, especially since it refers to Aristotle's `Politics' from 350 B.C. and Tulipmania in 1637 AD, elucidating an excellent distinction between well thought out strategy vs. greed driven crowd following. The entire presentation is excellent. I wish the numerous paragraphs of prose were also interspersed with a few more figures to break up the monotony of thousands of words, albeit strewn with pearls of clear wisdom in almost every paragraph. Mr. Thomsett has a way with words; example- `any position with both calls and puts that is not a straddle is classified as a combination.'
   
   The term `extrinsic value' has multiple definitions, but I like Thomsett's choice to keep Time Value distinct from extrinsic value, the latter being attributable primarily to implied volatility. Other authors appear to have left it entirely to Thomsett to point out that `options are one of the few alternatives for offsetting the inflation and tax risk combination without violating your own risk tolerance level.' While there is a dearth of figures, there is an abundance of tables with valuable information such as `Breakeven Rates' of gain to offset Tax and Inflation Risk (Table 2.1).
   
   Given my penchant for mathematical equations, I was pleasantly surprised to find that Mr. Thomsett has successfully presented `Elements of Value' for options without the need for Black-Scholes Equation (which is, of course, included in the extensive Glossary). The author has successfully demonstrated that `traders will improve their overall portfolio performance by defining their goals in advance'. The simple formulas the author uses to calculate annualized returns for correct choice of options and other useful metrics are well within the average reader's grasp.
   
   The discussion of option strategies in Part 2, would be more amenable to a greater number of readers if Mr. Thomsett chose to cover the simplest strategies (such as Long Call, Long Put, Covered Call and Married Put), up front to introduce the notation and the profit/loss charts without having to muddle through Alligators (in A-C group) to get to the Long Call in D - P group.
   
   In summary, this book is definitely worth owning by every option trader interested in good portfolio performance.
   Options Made Easy: Your Guide to Profitable Trading (2nd Edition)



2. The book is an ok review or reference book, but for the beginner, go with Getting Started in Options , much better! This title is one to add to complete your info source. But McMillan Options as a Strategic Investment is much better resource.



3. This is only the intro and first chapter, but it does a good job of explaining the basic terms of options trading. We've been considering doing some options trading, but I couldn't seem to follow my husband's explanation of how they worked. The author does a pretty good job of explaining with examples.