5 comments about The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities.

1. ...stock trader, definitely not for beginners. It's a wee bit hard to understand, however read and re-read it, you will discover some awesome techniques that will help you be profitable!



2. It's true that there is not one compound sentence in this 440 page book -- an incredible feat in itself. Unfortunately, it does make the book a challenge to read.
   
   However, opening my copy at random, across two pages I count 13 paragraphs, of which nine contain one or more highlighted sentences. The book is densely packed with actionable and accurate information.
   
   The combination of endless subject-verb sentence structure, along with the fact that Farley wrote for experienced traders and therefore doesn't waste time explaining what the reader ought to already know, makes this book inappropriate for new traders.
   
   But it's a virtual goldmine for experienced traders. Intermediates will get a boost to the next level, and professionals will get some tips and important reminders.
   
   If you're ready for it, by all means, buy it.



3. Whilst I am sure there are some pearls of wisdom contained in this book it is an extremely difficult book to read as a result of the language and phraseology used.
   
   In addition many Figures/illustrations are used without reference in the body of the text and the reader is left to try and decipher what is presented without any real assistance.
   
   I was referred to this text as the bible of swing trading and I am really quite disappointed with the outcome as it is poorly written when the subject matter demands direct non-flowery statements. Each page is filled with flowery, emotive statements that are confusing and poorly directed.
   
   I would not recommend this book to any one wanting to get a meaningful understanding of swing trading.



4. There are useful ideas in this book but I find it is so difficult to read. We definitely need to apply the right strategy to suit the market cycle but do we need to have too many entry set-ups? Trading is a game of probability. There is no guarantee an entry set-up will work out. Risk control and exit strategy are more important. We can swing trade successfully with just a few entry set-ups.
   Do you need to buy this book? If you want to get ideas on entry set-ups and chart analysis you may consider but be prepared it is not an easy read. Besides, most of the ideas are already presented in the author's website [...] You may want to visit his website first.



5. The topics covered in the book are indeed varied to the extent that certainly the major swing trade techniques are identified. This is not an introductory text on the subject and is not necessarily useful as a reference due to the lack of specific examples and guidance. As simple as it may seem, a better reference on the subject of technical analysis and swing trading techniques is Technical Analysis for Dummies. While the mathematics for a vast majority of the techiques presented in the text may appear dry and uninteresting, more sample problems and a "big picture" approach would certainly have helped this book get the point across to the trader who wants to employ any number of methods to minimize the emotion factor when trading stocks. Leave this book on the bookseller's shelves.

5 comments about Sell and Sell Short (Wiley Trading).

1. In my way of thinking, Dr Elder has really written a book on how to manage your trade. I have asked people, how do you manage your trade after entry? The answer usually is, it depends. I think Dr. Elder's book gives concrete actionable answers to that question.



2. Greatbook and leads on from some of the other works. Written in a simple and understandble way and an essential one that you will return to from time to time



3. I work with several colleagues of mine in late 30's and early 40's studying their MBA. They spend quiet a bit of money, time and family time ( cases where kid's tv addiction linked to parents doing their MBA). Few of them managed to get promotion,some had their titles changed, some moved to different companies doing similar jobs etc. I asked some of them what was their objective of studying MBA at this age. Most have a vague objective,but as Dr.Elder quotes "A caged animal trying to grab it's tail"!. All of them have invariably tried their hand in stock market, got burnt and move back to the comfort of 'cubicle jungles'.
   
   Had they spend the $20,000 or $30,000 they spend on MBA with proper training on trading, losses, trial and error in stock market, software many would have come far ahead in trading and 'self reliance' and 'early retirement' . Instead they fear the corporate layoffs and meaningless promotions that involve travel and less family time and divorce and rebellious kids. I have started the trading career like most others and lost money and thankfully got access to Dr.Alexander Elder's materials before a wipe off!
   
   So now, we have a better way of self graduating to "MBA of trading' where you can be self reliant and retire by simply digesting Elder's books, his suggested reading materials, software ( ex : Metastock , tradestation), bite the painful bullet of losses, enjoy the pleasure of successful trade and slowly evolve to a mature trader. If you are a working professional, you will spend as much ( or more) time as a regular MBA Course, but at least if you happen to be a person fit for becoming an "MBA In Trading", you will be far better off than a MBA in a corporate culdesac.
   
   
   Here is the suggested order to graduate yourself to an "MBA in Trading".
   
   1. Trading for a Living: Psychology, Trading Tactics, Money Management ( You will need to read it twice)
   2. Start making journals and learn from your on trading experiences
   3. Come Into My Trading Room: A Complete Guide to Trading (Masterpiece...Read 4 or 5 times to absorb the spirit and content of the book.)
   4. Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading) (Read couple of times)
   5. Sell and Sell Short (Wiley Trading) (Read couple of times)
   6. Read the books mentioned by other full time traders in "entries and exits" ( ex: Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude)
   7. Understand Metastock, Tradestation, esignal type tools.
   8. Attend his seminar if you can afford it.
   
   Think about all the time ,money and effort you are going to put into it, it will be similar to the money spent on an MBA...and your title might be "Work from home CEO" with your job description like Self reliant full time trader who looks forward to Monday Mornings and for whom work is an everyday vacation and will work during a vacation also. He is available when kids need him
   
   Reviewing his book in solitude will not serve the reader since it is a sequence of learning material in a tough world and should be treated as such.
   
   I would call Come Into My Trading Room: A Complete Guide to Tradingas his masterpiece,but Trading for a Living: Psychology, Trading Tactics, Money Management is highly recommended because of the sections like all technical indicators explained. Some tools might be tailor made for you. In Come Into My Trading Room: A Complete Guide to Trading, the book has narrowed down to exact trading tools Elder uses which is great,but for a newbie , it is better to read the entire menu ( Trading for living) and then chose your dinner ( Come Into My trading room). In trading parlance, The above two books will have to be your "core" positions .
   
   Entries & Exits: Visits to 16 Trading Rooms (Wiley Trading) And Sell and Sell Short (Wiley Trading) are the perfect desserts.E and E is a classic which walks through some sample trades and also a glimpse of tools those users use. All of the traders are trading for living, some with less than 250k equity . Elder looks at their trade and see how simple he makes his trading decision . Sell and Selling short is more like an addendum to his previous books with focus on exit strategies.
   
   I know there are plenty of readers who read financial (and wealth making) books for entertainment. If you are one of them ( The way to check is if you read financial books constantly AND do trading BUT do not have proper records), still this book will fit your case. Choice of words all along the book and subtle comedy makes it an equally interesting read.
   
   EXAMPLES of some punch lines (not verbatim):
   > A person who pees against the wind has no right to complain of laundry bills
   > Newbies swarm to options to get more bang for their bucks,but it is usually their head that gets banged.
   > What beginners call gut feel is usually an urge to gamble, and i tell them they have no right to a gut feel.
   > If you pay high above EMA, you will find a greater fool who will pay even more
   > Traders dream of profits but often freeze like deer in the headlight when a loss hits them
   
   Whichever book you read in whatever order, make sure to read it, read again and read again .. tread carefully on stockmarket.You might win and in small and subtle ways it is happening to me!



4. I'm just adding my voice to the chorus of people who unreservedly recommend this book.
   
   I have finished "Sell and Sell Short" and have found it to be the most cogent and useful manual for a new trader. I have read several books, but this is the one that stands head and shoulders above a very crowded field.
   
   It gives the impression of several detailed discussions with an elder (pun intended) and wiser trader who has graciously imparted his experiences in order to save you the time and pain of doing the same.
   
   Furthermore, the book is worth the text-book like higher price, because the color graphics make a big difference. I've read books where they will refer to "colored" chart information in a black and white chart. It undermines the entire purpose of the chart.
   
   If you're looking for one sensible trading guide that covers all the main bases, this is the one.



5. Dr. Alexander Elder, after writing Trading for a Living, takes readers to the next level and teaches them about selling and short-selling. Before doing so, he covers the topic of how to buy because according to the author, you have to buy well in order to sell well.
   
   The book is organized in a way where the author writes approximately one page about a subject, then asks many multiple choice questions. The second half of the book is dedicated to answering those questions, and that's where the bulk of information is provided. For some this type of organization may not work because it feels like being back in school studying for an ACT or SAT. But besides that, the book is excellent.
   
   - Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

5 comments about The Concepts and Practice of Mathematical Finance (Mathematics, Finance and Risk).

1. I had first read Joshi's "Quant job interview questions and answers," and I kept seeing that more background information for the questions was contained in this textbook. So I had been considering buying this book for a while. But I realized that I needed to start writing some C++ and the projects contained in the back of this books tipped me into buying it.
   
   I have been using it in addition to Shreve's Stochastic Calculus for Finance I and II, and Hull's Options Futures and Other Derivatives.



2. I had a hard time understanding this book's explanations of financial concepts. Some things are just not crystal clear. I would learn some of this first from a book that has a more cut-and-dried 'textbook' approach like Hull and then read this. Aside from this I think it looks like a solid work worth reading and studying. ...But again, not as the first pick for the absolute beginner. What I do like is that it is heavier on the mathematical "meat" than a book like Hull.



3. As the title says, you can get both concepts and practice of mathematical finance without strong mathematics background. The author covers every aspects from the basic trees and BS to the LIBOR market model.
   
   It is not plain as much as Hull (1999) Options, Futures & Other Derivatives or Neftci (2000) An Introduction to the Mathematics of Financial Derivatives etc. Also you don't have to get sick of heavy mathematics as much as Karatzas and Shreve (1991) Brownian Motion and Stochastic Calculus or Steele (2000) Stochastic Calculus and Financial Applications. (Strictly speaking, the latter ones are about stochastic calculus not mathematical finance.)
   
   In addition, you can find the "Further reading"-relevant references with comments at the end of the most chapter. It drives you to read relatively recent research/papers in depths.
   
   
   I don't know whether it is a great book for practitioners. However, Joshi's book is definitely one of the must-read item for quant wannabe.



4. This is the book that sparked my interest in mathematical finance. Unlike most other books that attempt to teach readers results ONLY through mathematical proofs that sometimes involve tedious algebra, Joshi's primary approach is to drive intuition in (as well as including less rigourous proofs, but this does make it more accessible).
   
   Another more distinct feature of Joshi's book is that it is written in a more colloquial tone (upon reading the first chapter you will immediately see so) which again makes it an easier read.
   
   Having read some of the other reviews I would agree that the main con is the typos; however, the authour has pointed out that the new copies had these corrected and, in any case, the more alert reader should have picked up most of the obvious typos themselves.
   
   Also, I agree that the exercises that Joshi sets are somewhat different to those of other texts but I do NOT find this to be a con. This is because Mark Joshi appears to avoid focusing on the numerics but rather his exercises emphasizes the need to understand the concepts.
   
   Those who are looking for either numerical exercises that focus on memorisizing formulae or exercises involving mathematical proofs should look elsewhere but I will stil strongly recommend to read this book COMPLEMENTARY to others due to its unique take on the fundamentals; therefore I not only recommened this book to those beginning to pursue a career in mathematical finance but also that this book is an excellent ADDITION to those on an intermediate level. 5 Stars.



5. Mark Joshi's work really stands out from the crowd of introductory mathematical finance books. In particular, the level of financial intuition provided is very hard to find elsewhere, yet the treatment retains mathematical rigour without becoming too dry. Mark's ability to highlight and focus on the key ideas and concepts of the various topics covered also distinguishes this book from others.
   
   I found the chapter on the LIBOR market model particularly useful. It covered the fundamental issues of this difficult topic in a clear and precise way, and relative to many of the other books, in a very efficient way. The balance between theory and practice in this chapter (and the rest of the book!) was excellent.
   
   My single criticism is that in some cases it would have been nice to have more guidance for the computer exercises. However, this wasn't really part of the scope of the book, and Mark's book on C++ does a great job helping here in any case.

5 comments about Futures & Options For Dummies.

1. This book is what I was looking for. I wanted to get a no-pressure education on the options trading processes. This book does the job in a user-friendly easy to understand style. Does it better than some other stuff I've tried. I recommend it.



2. I'm new to options so this seemed to be a good place to start and some of the information was helpful but when I found a glaring mistake on page 75 I lost faith in the book and won't finish it. An example is given of a covered call that is supposed to make $500 or 10% but it actually looses you money with commissions..Read at you own risk



3. This isn't what you expect from the "For Dummies" series. Meaning you don't close the book feeling you can get started with confidence (unlike, say, Currency Trading for Dummies, after which you can do just that). Overall it's a useful primer but nothing more. Its strengths are some macroeconomic insights and occasional tips on how the big players play the game. It is average in terms of giving the basics on calls and puts and basic spreads, and it gives the usual overview of charting and technical analysis. The three main weaknesses are: 1) An overemphasis on using historical charts to show where you could have bought and sold based entirely on 20/20 hindsight; 2) Trying to cram in too many subjects in the second half of the book, offering brief intros with very few insights but what feels like at least 2 warning per page on "Don't forget there is risk involved" and "Moves can be huge and reversals are unexpected;" 3) An absence of an overview of the tools and software available. This last is the clincher why I gave it only 2 stars. Because trading in futures is considered the big league (and rightly so, because there IS huge risk involved), the best softwares cost money and are sold business to business. It is still not considered the realm of the burgeoning individual speculator. For internet software, well for any software, you need to have a simulation so you are expert in the workings of the software before trying to trade real time- imagine losing thousands of dollars because you don't understand how to correctly set up your spread in the software!
   If software does include a simulation package for evaluation, it is likely using simulated data. The better software packages that offer simulation for options will balk at futures and tell you you need to be approved for a futures account, in other words you need to commit before seeing it. This current grey area for individual speculation is to be expected, but that's why I bought the book, hoping it would bridge those gaps. It did not.



4. I found the book way too cumbersome. The author tries to write about everything financial and as a result does it very poorly.
   
   I found the section on Options especially weak. He's taken a straight forward subject and made it seem more complicated.
   
   Pass on this one!



5. If you're new to options, this is _the_ book to start with. Surely, online resources are plentiful, but no single web site can give you all the information and explanations you need to really get a good grasp on whqat exactly might be happenning. I've already made some money in options but, believe it or not, I've made more in stocks because I didn't quite grasp how these things work. This said, if you understand options and have a good idea of how the underlying (stock) is going to perform you can see your option appreciate 20, 50, or even 100 plus percent in a very short time. This is the draw of options. The most important thing you need to know, however, and this is 'experience' speaking, is that you have to, i mean, have to reel in your money if you see so much as 5 or 10 cent markdown in the price of your option. Why? because, unlike stocks, you can always buy right back in if the thing does start going your way With stocks, you usually hold it until you see , say, an 8% depreciation in value. This is not true with options. If you have, say, ten contracts, you're leveraging 1000 shares. Thus, if your thing goes down 5 cents, you've lost 50 dollars; 10 cents, 100 dollars and this usually happens intra-day, within a few minutes. For this reason, options are classified as 'high risk', but it's only high risk if you're averse to gettting rid of them. Stocks might take 2 or 3 or 5 days or more to show such a drop; that's when you might sell. Oh, and one more thing...having the right software makes or breaks your trading. Schwab offers options, but not any kind of software that gives you all the information and tools you need. Check around; there's a few that offer killer stuff. Visit investools.com
   I hope this helps future traders but, if you must know, you gotta digest all the info in the options part if you're to get a grip on the thing.

2 comments about Financing Real Estate Investments For Dummies.

1. As a "seasoned" real estate investor, I did not expect much from this book. Considering the typical "Dummies" format, there woudn't be much in there for me, right?
   
   Wrong. I was pleasantly surprised to find a well thought-out detailed approach for evaluating investment properties, and various financing options. While time and the market have changed some of the finance options, the content on NOI and cost evaluation are right on, and the authors did a terrific job in making sure that novice investors understand that this is a BUSINESS decision, not an emotional one. The bottom line is that the numbers have to work.
   
   I have enjoyed other books by Chip and Ralph, and was glad to add this to my collection. It would be a great place to start for any individual just getting started in the real estate investment game - and there's even some good stuff for us old pros ;-)



2. Typical of a "Dummies" book, the format is easy-to-read and follow, with a LOT of great content.
   
   Authors use a lot of examples and provide good formulas for calculating value and NOI numbers. Does not go into enough detail for larger properties or more complex deals, but again, understand the "format" is for beginners.
   
   Added this to my bookshelf as I have enjoyed other books by the authors, and looking forward to more material in the future. Definitely recommend this for anyone starting out in investment real estate.

5 comments about Trading Natural Gas: Cash, Futures, Options and Swaps.

1. I've spent time trading bonds for a corporate industrial company and needed a resource to understand the natural gas market. I found this book to be an outstanding overview of the trading process, trading jargon and hedging strategies. This book is generally written for someone who is (or hopes to be) an employee of a natural gas marketing/trading company. It is not written for the individual investor who is looking to open up a commodity trading account online. Having said that, I don't think that the book is a waste of time for the individual investor. It is very informative and complex trades are flowcharted for the visual learner. I feel that this book is a "must read" for anyone interested in working on the gas trading desk at a marketing/trading company.



2. I work in a gas trading software company and this is a good book to read to learn the business. Just wish there is more detail info on the different types of trades out there.



3. provides a very good basic understanding of how gas is traded.
   just enough technical detail to be useful, without getting into the "Greeks" of determining option value.



4. The principles of gas trading laid out clearly and concisely. Perfect for my needs.



5. Even if you do not have a solid understanding of derivatives, this book is really good explaining step by step how the different derivatives are used for hedging natural gas; regardless if you are the producer, trader, or end user. The author gives many examples of how each derivative works. I highly recommend this book if you are starting out as a junior trader, risk products trader, supply planner, etc.

5 comments about Trade What You See: How To Profit from Pattern Recognition (Wiley Trading).

1. One of the best books I've read introducing Fibonacci levels, Gartley and butterfly patterns and even the basics of money management, trading plans and daily routine.
   
   This book is a must read for all beginning technical chart pattern traders.



2. I have built a small library of trading books in my search for the information needed to trade for a living. I have to say that Trade What You See and Larry Pesavento's methods is the answer I was looking for.
   
   It's different than most trading books because it focuses on pattern recognition and does not use any indicators. It took me a little while to remove the moving averages and other indicators I was using (with little success) and try this method. My win % is now over 60% consistently and for the first time I see that I will be able to trade for a living.
   
   The book covers it all from the patterns, money management, discipline and a daily routine.
   
   This book is the one publication that changed my trading career for life.



3. "Trade What you see" is a terrific trading book that will leave the reader with a complete trading plan that they can apply to any market in any time frame. In addition to being written in a style that even the most novice trader will grasp (no fuzzy industry termonology)..."trade what you see" has perhaps the most appropriate title of any trading book i've read...and i've read many. Readers are not required to learn any high level math or to understand complex financial analysis.The patterns and set ups that are covered in TWYS are very clearly explained and definitive rules for each setup are detailed within the book. I highly recommend "Trade what you see"



4. I've followed Pesavento for years, and his market calls are right on the money -- and he did it again calling the October 6th, 2008 week historic decline.
   
   It's usually the soft spoken guys that really know what is going on in the market -- and when they speak you should listen. Was listening to a radio interview with another great market technician, Bennett McDowell - he wrote "The ART of Trading" The ART of Trading: Combining the Science of Technical Analysis with the Art of Reality-Based Trading (Wiley Trading) -- McDowell was on the "Financial Wisdom" radio show on [...] the other day because Gabriel Wisdom, the host, was so impressed by how McDowell called the same decline on Friday, October 3rd, 2008 -- also right on the money.
   
   What Gabe Wisdom said in his interview with McDowell is that he also had Pesavento on his show earlier, calling the same decline, and Pesavento was hesitant to make the call on air -- since he didn't want to concern the listeners. And that is the challenge for these guys that make these calls -- they see what their analysis tells them, but don't want to overly alarm the general audience.
   
   Pesavento uses Astrology and Pattern Recognition to make his market calls and McDowell uses Elliott Wave and his ART, Applied Reality Trading, software to make his calls. Both are based on technical analysis, which some folks still are afraid to embrace. But, now more than ever, the average trader AND investor must start to learn how to use these techniques. Now more than ever we all need as much ammunition as we can get to work through the existing economic downturn.
   
   Best not to rely solely on your financial advisor and/or broker, and instead take your finances into your own hands. Pesavento's book and his approach to pattern recognition will teach you how to do just that. Recommended reading.



5. To those who would dismiss the author's writing, theories, etc. the proof is in the pudding. I have the opportunity to listen to this gentleman from time to time in radio interviews and he called the entire week of declines for the first week in October 6-10th AND last week he correctly predicted significant problems from the 24th through the 26th.
   
   If his text helps you simply avoid entering a position, he has done you a service. His analysis and logic has been spot on and I look forward to his next book.

5 comments about A Trader's First Book on Commodities: An Introduction to The World's Fastest Growing Market.

1. Tradable commodities can be grouped into four categories: Metals (e.g., gold, silver), Energy (e.g., crude oil, coal), Livestock and Agricultural Products (e.g., corn, live cattle), and Exotics/Financials (e.g., silk, currencies).
   
   This book provides a basic introduction to the buying and selling of financial instruments called futures and option contracts involving the above-mentioned commodity classes.
   
   Futures and option contract trading provides commodity consumers and producers opportunities for hedging against various kinds of risks (e.g., price volatility, production problems), shifting the risks to those willing to place bets on how the market for an underlying commodity would move.
   
   For example, a farmer concerned that the price for a crop could decrease between planting and harvesting times could hedge against such risk by selling and buying appropriate contracts at planting and harvesting times, respectively, in the hope that if the price decline did materialize, the trading profit potentially due him could cover the losses he might potentially suffer from cash transactions for his crop. In a "success" scenario, if corn at harvesting time cost 50 cents less per unit of transaction (say, per 5000 bushels) than its cost at planting time, and the difference between contract prices (for the same amount of crop) sold and bought at planting and harvesting times, respectively, was also 50 cents, then the farmer would have made a successful hedge.
   
   There are many things one needs to know in order to become a successful commodity futures and option contract trader. This book provides a good grounding in: knowing what a futures and an option contract is and how they're different, how trading such instruments are different from, say, trading stocks, pros and cons of futures and option contract trading compared to stock trading, what goes into contract specifications, quotes, and profit and loss calculations for different commodities (e.g., delivery / expiration dates, what a trading unit represents [e.g., 1 contract of corn futures = 5000 bushels], how price movements are quoted [e.g., in cents or dollars], dollar value of each price unit movement [e.g., a penny change in corn futures contract price = $50], etc.)
   
   Adding commodities to one's investment portfolio is usually thought of as a diversification strategy / opportunity. Direct trading of commodity futures and option contracts, which in my opinion requires considerably more skills and knowledge than buying and selling mutual funds or stocks, however, is not the only way to get exposure to commodities investment or trading opportunities. Other avenues include buying and selling commodities-related mutual or exchange traded funds, or stocks of, say, commodity producing companies such as mining companies. I'm not sure why the author focused on futures and option contract trading heavily in a book meant for helping beginners get started with commodities, but in my opinion, including a discussion of those other avenues would have added value to this beginners' book.
   
   Other types of information missing from, but could add value to, this book include: discussion of the potential usefulness of trading simulators that help beginners get a feel for futures and option contract trading using virtual rather than real money and a sampling of the companies that provide such educational opportunities; references to other useful books or resources such as commodity-specific trade association web sites; or perhaps even a sampling of companies that provide futures and option contract trading services in addition to the author's company, DeCarley Trading.
   
   An introductory book that covers more than Commodity Futures and Option Contract Trading as well as the other types of information I've mentioned above as missing from this book is Scott Frush's Commodities Demystified. Published in 2008, it's a more engaging and easier read than this book but small parts of it may no longer be up to date (for example, the Top 25 Commodity Mutual Funds listing may no longer be valid); however, the concepts discussion is still valid and quite good.



2. To write simply, concisely and clearly one must really know one's subject. The author, Carley Garner has 35 years experience in the business and it shows. I know absolutely nothing about trading or investing but after finishing this book I felt I had a clear grasp of how the markets worked and what to do. All phases were clearly broken down and explained: terminology, the various types of commodities and how they are traded, what to look for in a broker, how to understand quotes and figure futures, in short all you need to get going. All speculation has inherent risk, so at least go in armed with knowledge. This book gives it to you.



3. This book is very technical, so I enlisted the economist who has a keen interest in trading markets to help me review it thoroughly. The book is a straightforward and practical introduction for people such as those who think they may want to speculate in commodities. It also contains enough useful information to be helpful to those who have already begun trading in futures. It informs on how trading markets work and what one needs to know to open an account and execute trades. There is good advice on how to choose a broker (though it does not suggest specific brokers), how to trade, and the different types of commodities / futures that can be traded. This is not a trading strategy book per say, but the information in this book is just as important in that it can help a new trader develop a safe approach to speculating. Readers will get a realistic view of the benefits and pitfalls of speculating that will help them determine whether futures trading is for them. The information will help those who do decide to trade to develop a responsible and mature structure to their investment methods. Note, there is little detail on what drives commodity prices or on investment strategy, and this is not literature as it means to enlighten would-be daytraders. However, this is an excellent practical introduction to the world of commodities trading as it is practiced, and is probably a must read for anyone that intends to participate in or work in commodities markets.



4. I've been a fan of Carley Garner's but was hesitant to buy this book because it is geared toward beginners. However, after hearing her interview with Vince Rowe on his radio show I was intrigued. It might be a beginner's book but there are some relatively bold opinions scattered throughout the text, along with perspectives on topics that aren't normally communicated in a commodity book. This book is truly one of a kind.
   
   Overall, I give this book an A+ and am especially fond chapter 14 "Futures Market Slang".



5. I'm torn between two opinions on this book. As per the title "A Trader's First book on Commodities - An Introduction to the Worlds Fastest Growing Market" it delivers what it sets out to do...introduce new investors to the world of commodities. Important topics include:
   - A Crash Couse in Commodities (why they are different than stocks/bonds, history etc)
   - Hedging vs Speculating (fairly basic information but worth repeating in an introductory book)
   - The Organized Chaos of Open Outcry and Electronic Trading (interesting but not earth shattering info)
   -Account Access, Trading Platforms and Quote Vendors (getting into the nuts and bolts)
   -Chooseing a Brokerage Firm (again, fairly basic but prudent information)
   -Finding a broker that fits (prudent but getting repetitive)
   -Order Types and how to use them (solid info)
   -Making Cents of Commodity Quotes (meat of the issue)
   -Figuring in Financial Futures (ditto)
   - Coping with Margin Calls
   -Emotional Stability (fluff/filler?)
   -Trading is Business...Have a Plan (good advice)
   -Why speculate in Futures
   -Futures Slang and Terminology
   
   Okay...that is a list of topics in a nutshell. As you might imagine, a large portion of the book consists of terminology which is perfectly acceptable. The author has a conversational style that is both simple yet informative.
   
   So, why not a full five stars? The book was very poorly edited...so poorly it nearly drove me up the walll to read. For example, here is a direct quote from page 73......"I have gotten to experience the anguish of a client going negative". Seriously, "I have gotten..."???? EGADS! Where was the editor?!?!
   
   Bottom line - good book in need of a good editor.

5 comments about Trading Commodities and Financial Futures: A Step by Step Guide to Mastering the Markets, 3rd Edition.

1. This is a really weak attempt to write on the topic and consequently, for the new trader - to understand trading. That is partly because the content is somewhat poorly organized and presented. I recommend Linda Raschke or Toby Crabel's books. They are both hedge fund managers, and trade for living. Their books and materials are almost out of print unless you see it on Ebay or Amazon.
   But after reading this book I am rather confused as to how and when to use the disclosed trading techniques.



2. This book is a great intro to commodities. please see my blog for an in depth review simekspeculation.blogspot



3. This an insightful book about the authors experience with commodity trades. For those who are clueless and watch Mad Money, I wouldn't recommend this book because it doesn't visualization. It's More of a general overview of the basics, it brings a good feeling for individual investors who are stumbling to make a decent decision.
   
   Instead, go with Dona Kline, Kenneth Morris "WSJ: Guide to Understanding Money and Investing" or stick to the Dearborn PassTrack books. Also try Kaplan for continuous education, but don't rely on it too much.
   
   For those who are seriously taking the securities exams, always prepare yourself for 110%, nothing less.
   
   GO FOR IT !



4. I've found that most financial books are either overly simplistic overviews that are rarely more informative than a pamphlet or are filled with arcane academic information that is not put into any useful/practical context. This book does a fantastic job bridging the gap. It begins with an excellent overview on how the markets work, then moves into practical strategies, with an emphasis on which indicators are likely to be most helpful. It's easy to read, in part due to the author's personal touch. Definitely not dry.
   To call this book "largely pedestrian" is pompous and petty. If you're new to futures or at an intermediate trading level, do yourself a favor and buy this book!



5. If trading is about markets, psychology, technique, then this book is an excellent introduction to these areas. Beeing balanced and only 250 pages, the book does not cover the areas in much depth. This might be a positive or a negative according to what one wants. 5 stars because the book is easy to read and gives an excellent big picture view on trading.

5 comments about Volatile Markets Made Easy: Trading Stocks and Options for Increased Profits.

1. I read this book after his earlier book "Options Made Easy" ,which paved the way to get more out of this book. In adition to the well presented standard fare in options books, the author also addresses the psychological aspects which can be half the battle when trading. The examples presented were beneficial and,as a learner,the more the better. Again, a good read coupled with his earlier book.
   Although it is not necessary for an option trader to understand the mathematics behind the option models used, the author does include equations which is quite helpful in my opinion. The reason for this is that any trading strategy is used more appropriately if the trader understands the math behind it.
   I have had better profits selling options when volatility is high and moving lower and buying them when volatility is low and expected to go higher.
   His statement "if volatility in the market continues to rise , then buying these options will be rewarded by higher premiums,provided the implied volatility of the options follows suit" seems to advocate buying options when volatility is high and expected to go higher. In my experience this is a dangerous strategy since if volatility collapses the option premiums will collapse with it and you are likely to face a loss quickly.This is especially true if you bought an option during a period of high volatility.
   Also I wished the author mentioned the effect of lopsidedness in open interest between puts and calls on the likelihood of a specific option expiring worthless. I read this in another book and was amazed at the accuracy of this approach in predicting whether the puts or calls are more likely to expire worthless .
   Even with the minor critical comments the book is still worth reading.



2. If I were to characterize Guy Cohen's book 'Volatile Markets Made Easy' by a single word, it would be 'Clarity'. Investors/traders who are relatively new to Options, would be well advised to read Guy Cohen's earlier book 'Options Made Easy' (published in 2005) before reading 'Volatile Markets'.
   
   Trading is always profitable, if you get the direction right (usually Up for long Calls and Down for long Puts). When you get it right, have a plan for taking profits. For those times when you don't get it right,
   Guy has a good suggestion: Base your Stops on stock price and not on the option price.
   
   The discussion on Greeks is excellent; the graphics (screen shots) would be easier on the reader's eyes and brain if they were a bit clearer. Of course I am picky about clarity, because I am spoiled by the absolute clarity in Guy's writing. For example, while discussing implied volatility Guy writes: "If volatility in the markets continues to rise, then buying these options will be rewarded by higher premiums, provided the implied volatility of the options follows suit."
   
   Although Guy seems to prefer simple line diagrams (example Figure 4.1 Straddle Components) I would recommend a forward reference to Figure 4.6, p111 which better illustrates the relative axes positions essential for the understanding of the Straddle risk profile. The same applies to Strangle (Figure 4.2 vs. Figure 4.19).
   
   I am somewhat puzzled by the section `Adjusting Trades and Gamma Trading' (p 129), which does not appear to meet the clarity standards I expect from Guy's writing.
   
   While most authors shun using mathematical equations, I appreciate Guy's daring inclusion of Option Pricing Models (Black Scholes and the Binomial model). This will encourage at least some readers to be exposed to `what creatures these pricing models are', in spite of lack of inclination to grasp the concept in detail.
   
   Perhaps the best one learns by reading Guy's books is his simple trading philosophy: "... by taking profits early, we remove stress from our trading even if it means we don't make the maximum amount from each and every successful trade." I couldn't agree more since `no one goes broke taking profits'.
   
   Options Made Easy: Your Guide to Profitable Trading (2nd Edition)
   Option Spread Strategies: Trading Up, Down, and Sideways MarketsOption Spread Strategies: Trading Up, Down, and Sideways Markets



3. Guy Cohen has written an incredibly good book concerning today's volatile markets. Throughout the book he gives exact examples of what option strategy to use to maximize your profit and minimize your risk. He gives real insight into the psychology of the markets and how that interplays your timing of your entry and exit of a trade.
   
   The book not only explains exactly how to use well-known volatility strategies like straddles and strangles, but also compares them in detail to ratio-backspreads where he shows how risk can be even better mitigated. That is one of the unique areas of this book and one of the most valuable.
   
   Another thing I liked is the author's intimate understanding of your emotions when a trade is on, and how to manage your trade practically so you retain your sanity. He explains that the biggest losses tend to come where a trader doesn't grab the opportunity to take a profit when it presents itself. How true that is! This forms the essence of Cohen's trading plan to take some profits off at a conservative initial profit target, but allow the remainder to trail any remaining profitable movement for a potential "windfall" gain. In trending markets this trading plan is golden. In rangebound markets the trading plan will keep you out of too much trouble.
   
   I recommend this book for the beginners as well as the seasoned traders. Volatile Markets Made Easy will certainly help you make money and is a must read book for these volatile crazy markets.



4. Back in the 1980s a move in the Dow Jones of 50 points was considered big. Since the collapse in 2008 and rebound in March 2009, volatility has been constant in the marketplace and Guy Cohen's book leads the way in demonstrating how to take advantage of the wild swings in the market.
   
   If you don't know how to profit from explosive movements up or down or have a history in mutual funds or buying stock alone then this is a must-read book for you. With an established track record in making options easy and accessible to the retail trader, Guy Cohen builds on earlier work to provide key insights that every trader and investor should know. A must read for all who are seeking better control of their own financial futures.



5. I can honestly say that I was suprised how much I did not know about trading the stock market when I started reading Guy Cohen's book.
   
   I have been trading the markets for some years and have been generating quite a decent income from it just by applying a couple of very simple strategies. However, like most traders, my trading has always been plagued with some common problems: being stopped-out too early and too often, my entry order being triggered prematurely and then the market turning against me, not knowing when to take a profit and then finding myself leaving money on the table.
   
   I have to say that had I read this book ten years ago, I would not have made so many mistakes in my trading. Guy Cohen explains that there is actually indeed a solution to the problems mentioned above. For example, he explains how by trading flag patterns (in the style that he trades them) we can avoid prematurely entering a position, whether long or short. Furthermore, I am convinced that following his strategy, there is indeed a way we can significantly reduce the rate at which we are stopped-out of a trade. For example, he explains very clearly there is a science to placing your stop-loss depending on what you see on the chart. Plus I now have a clear plan as to when to take profits.