5 comments about Schaum's Outline of Mathematics of Finance.

1. The target audience of this book is people who want to know how to estimate annuities, life insuarance premiums etc. If you are sitting the actuarial exam(SOA) 2 this is what you need for the Theory of Interest part. It also covers parts of exam 3. The book is affordable and way better than any other else. The methodology is crystal clear.



2. As with most of the books from the Schaum's Outline collection, this book comprises the fundamentals so it can be used as a supplement to standard textbooks in class, as a stand-alone study aid, or as a reference for the professional practitioner.
   
   My academic background is in Electronics Engineering, so I really didn't take any courses on finances back in College. When my work forced me to gain knowledge in the area of Financial Math I turned to this book as a self study guide. The text is clear, has a lot of worked problems and examples, and it did its job: Gave me the knowledge I needed.
   
   No wonder that this is actually the Very best-selling book of the whole Schaum's Outline collection.



3. I recommend this text to financial professionals I teach ... VERY helpful to clear the cobwebs several years after college!



4. I am a manager, and sometimes I listen to financial managers without being deeply involved in their technical language. After reading and practicing this book , I am able to use my skills more proactively working with them.
   Pasquale D'Ippolito



5. This don't work for me because I need to start at a more elementary level. It appeared that this book had a lot of solved problems and would be very helpful to the appropriate student level. My mistake.

5 comments about Morgan: American Financier.

1. Jean Strouse, the author of several acclaimed biographies, decided to write a biography of John Pierpont Morgan, who was, in his day, America's preeminent financier. At the beginning of her project, she was intent on writing a book along the lines of "Morgan: American Ogre," but in doing research for the book, and reading Morgan's correspondence, she came to radically rethink her views. The subtitle for this book could be "Morgan: American Genius."
   
   When J. Pierpont Morgan entered banking, Europe had substantial savings which stood to get much higher rates of return in the developing markets of their day, the New World, but only if they were invested with reputable and well-managed concerns. Morgan's bank guaranteed that the companies he dealt with were reputable, honest and well-managed; by serving as a bridge between the New and Old Worlds, Morgan became America's preeminent financier.
   
   In her biography, she reports that many of the criticisms leveled at Morgan were bereft of any basis in reality, or misrepresentations of the facts at hand. Among other points she raises, she shows instances of companies where Morgan had a substantial amount of influence giving business to the lowest bidder rather than to each other, which rebuts the charges of favoritism. She explains than in 1907, when Morgan put his entire prestige on the line to stop what threatened to be a stock market crash similar to that of 1929, he was acting to save the system, and not to enrich himself as some critics have claimed; on the contrary. Her revelation that the Morgans père et fils declined to make "contributions" that would have averted the Congressional hearings that portrayed Morgan as America's "malefactor of great wealth" is revealing.
   
   Strouse has painstakingly researched many aspects of Morgan's life, from his time at Goettingen, Germany's most acclaimed university, where Morgan was urged to become a professor of math because of his phenomenal mathematical talent, to the economics and business rationales behind Morgan's dealings, to his understanding of art history and the legacy of his gifts to American museums, and into the relationships among and history between the New England families from which Morgan hailed. This is not simply a biography but the veritable work of an artisan-biographer.
   
   All the same, I suspect that Jean Strouse was so enthralled by Morgan's exceptional erudition, achievements, charm and taste - to this day his library is one of the smaller wonders of our world - that she neglected to delve into a question that may be a less fortunate aspect of Morgan's legacy. Not long after Morgan's death, a slaughter erupted in Europe whose after-effects still carom in our day. During the World War One, the British liberally tapped the American credit markets, through the House of Morgan. Morgan had enjoyed the confidence of the highest levels of the English government, as well as that of the Kaiser; for that matter, the Pope was greatly impressed by Morgan and wished him much health and wealth. As Strouse writes, Morgan had offered to lend Balkan countries money if they agreed to end their belligerent ways. Did Morgan not foresee the horrible possibility that Europe would use his bank to raise the funds to extinguish its bestest and brightest in a truly senseless orgy of violence? If he did foresee this, could he not have sought to avert this disaster? Had Strouse tried to answer these questions, I would bestow more than 5 stars on her book.



2. BECAUSE OF THE SUPERB CHAPTER ON ONE OF THE MOST CRITICAL PERIODS IN THE HISTORY OF THE UNITED STATES - THE PANIC OF 1907 - THIS MAKES THIS BOOK THE PREMIER BOOK ON THIS PERIOD IN MY OPINION. M GORDON



3. A good history of not only the man, also of american politics and finance.
   The real workings between BIG Business and the men who created them



4. Jean Strouse tries to get beyond the myths, both positive and negative, and show us the living breathing man that was J.P. Morgan and she does a remarkable job. Strouse is the kind of biographer who immerses herself fully in her subject when she writes a book and her commitment to the project is legendary at The Morgan Library where Strouse toiled in the archives for years. Her research shows; "Morgan: American Financier" is authoritative and deep. Strouse shows takes inside Morgan's family and personal life as well as deep into his business dealings. We get the full sweep of his professional and personal power; his personal challenges, demons, principles, and pleasures.
   
   Morgan was a man who was larger than life in his own time. He was the consummate guardian of the "Gentleman Banker's Code" - a Victorian notion of serving the greater good through serving the client that formed the heart of the finance culture - with some Protestant spiritual overtones thrown in. Morgan's bank, with its twin loci on either side of the Atlantic, sat astride the flow of capital between England and the US. In the 19th Century English capital investment was vital for American industrial development and Morgan helped tame the destructive competitive business practices displayed in the railroad wars where rival rail lines would squander millions building parasitic parallel lines in an effort to drive the competition out of business. Morgan learned the lesson that cutthroat competition was wasteful of investor's capital and he ever after strove to build peaceful vast monopolies. This kind of business value system seems at odds with our current notion of free market capitalism it certainly wasn't very popular with labor or with those who feared the power of vast trusts. Vast trusts were Morgan's specialty. He personally assembled the first billion dollar stock offering in knitting together the vast majority of US steel production into US Steel. He set up a host of other vast monopolistic conglomerates including General Electric, International Telephone & Telegraph, International Harvester, International Mercantile Marine, and a host of railroad accumulations (just to mention the highlights). In defending foreign investment interests he defended the dollar's value on the International market by defending the gold standard - putting him at odds with bimetallism and William Jennings Bryan. In the East Room of his fabulous 36th St. Library there is a huge 16th century tapestry representing the sin of greed. Morgan clearly thought of himself as a force for moral order among robber baron thieves. When JP Morgan died he left less than $120 million - a figure that shocked many people who had figured he was worth far more. Morgan assembled vast economic power through board voting proxies with the goal of orchestrating a smoother running economy for the profit of his clients. While Morgan did good business on legitimate business, he didn't skim or abuse his position (granted "insider trading" wasn't considered a sin in those days - if it was done discretely). JP Morgan died in 1913 a year after the Titanic (which was built by IMM - his new shipping trust; thus stressing Morgan doubly because he had friends who died on board and the disaster stood to devastate the bottom line of a huge project/client of his) and the Pujo hearings where Morgan was grilled for his role in resolving the Panic of '07 which involved a massive hat trick of capital and political manipulation that featured putting Teddy Roosevelt over a barrel and forcing him to approve a critical bit of monopolistic corporate takeover business for the US Steel concern, staunching a run on the banks, and bailing out a bankrupt New York City government - all in the same month! That kind of power scared the heck out of many and spurred the establishment of the Federal Reserve.
   
   Much of this ground had been covered back in 1990 with Ron Chernow's superb "The House of Morgan". What sets Strouse's book apart is the story of Morgan's personal and emotional life and how she weaves the business story into context with Morgan's private life. JP Morgan was a dynamo riven by contradictions. Notoriously intense - Edward Steichen, the photographer - after taking Morgan's portrait, said that "meeting Morgan's gaze was like confronting the headlights of an express train". He was also a portly man whose nose was horribly deformed due to a disease called rhinophyma. That didn't stop Morgan from having numerous flirtations and affairs and a vibrant public social life. JP Morgan was a man dominated by a stern and judging father, Junius, who dictated JP Morgan's life until Morgan was fully an adult and in charge of the banking empire. For example, Morgan fell in love with Amelia Sturges ("Mimi") and married her despite the fact that she was dying of tuberculosis and wasn't a strategic match. She died on their honeymoon, emotionally devastating JP. Junius stepped in and selected JP's next wife, Frances Louisa Tracy, "Fanny" - based on sound socio-economic factors. Fanny was shy, staid, and retiring; a poor match to JP's fiery extroverted nature. Over time they ended up living entirely apart - each one spending half the year on the opposite side of the Atlantic from the other. Morgan frequently traveled with other women - chaperoned by his daughter Louisa. But Morgan was also devoutly religious and was very active in his church's management and fiscal affairs. He was involved with selection of the pastor - a man who became one of Morgan's closest lifelong friends. Morgan's ferocious business pace drove many of his partners to work to death. Morgan found solace and refuge in yachting and his yachts are legendary (one was fitted with cannon and depth charge launchers and used for U-boat hunting in WWI by the US Navy).
   
   But Morgan's greatest love was art. At the time of his death, fully half of his vast fortune was reckoned to be in his art collection. Many consider it to have been the finest art collection ever assembled. During Morgan's lifetime, much of that art remained in his London mansion. After his death, sadly, his son Jack couldn't keep it together for perpetuity because of economic and political reasons. Morgan's first artistic passion was books. The books he brought to New York and later in his life he commissioned probably the world's most impressive private library - now known as The Morgan Library & Museum. He hired the voluble, coquettish, and brilliant Belle DaCosta Greene in 1905 to be the Library's first director and curator. Belle Greene is a fascinating character in her own right - receiving a good introduction here (and warranting her own extensive biography "An Illuminated Life: Belle da Costa Greene's Journey from Prejudice to Privilege" by Heidi Ardizzone). The Library became Morgan's business office in his later years and the banking community nicknamed it "the uptown branch". Much of Morgan's later history - including his artful handling of the Panic of '07 - happened there. Morgan's art collecting transcended personal pleasure. Like his professional life he was clearly trying to lead and shape the United States. In amassing such important cultural holdings he was attempting to raise America closer to his beloved England's cultural stature.
   
   Comprehensive, personal, meticulously researched and annotated; Jean Strouse has written the definitive biography of an epic life.



5. This biography of J.P. Morgan is a yawner. Wading through this book lets you know about Morgan but you never get to know the man.
   Strouse goes into mind numbing detail on his art collection and mistesses while lightly touching on his financial deals. She follows tangents to the point of losing the reader. At times it felt as though she just strung all her notes together to make this book.
   The very rare nuggets to the understanding of Morgan are not worth the time or money.

5 comments about One Nation Under Debt: Hamilton, Jefferson, and the History of What We Owe.

1. Bob Wright's tenth book proves once again his keen ability to link our economic history to present trends. In these times of economic instability, one owes it to oneself to become educated. This does not mean education in regard to the current and near future "guesses" of what may come financially, but more importantly on how we have arrived here.
   A must read. Regards... Michael W. Vasta



2. This book provides rare insight into the financial foundations of the US economy. Supporting data, trends, and documentation add additional color to this thoughtful commentary on early american economic history. This obviously knowledgeable author writes in a very readeable style. The book was fantastically insightful.



3. Why do governments go into debt ? How do they pay for it ? Is that debt a good thing or a bad thing; that is to say, is a national debt a blessing or a curse ? Just what was the breakdown and nature of America's first national debt ? These are just some of the questions answered in Robert Wright's latest work.
   It would not be bad bet to wager that few of us in the United States know how and why we incurred our first national debt. Maybe more importantly, even fewer of us probably realize just how much there is to contrast between now and then. Just after the adoption of our Constitution, our debt became, under the care and genius of a young Alexander Hamilton, a relatively temporary and useful tool for putting the credit of the United States on solid footing with Europe; while simultaneously serving as a a positive example to our merchants and businessmen, on whom so much of our finances were dependent. Today, our debt would appear to be nothing more than something for career politicans to continually run up for the sake of votes. Indeed, in today's modern American Nanny State, our so-called care takers seem to have no thought to paying the debt down, nevermind off. A far cry from some 200 years ago ! In Robert Wright's new book, such unfortunate differencees between now and then become all too clear.
   There is even something for the more socially minded Historian in Wright's breakdown of those who were our nation's very first creditors. He sheds light on just who these first true patriots were.
   In sum, this is a well written book on a very important subject matter.



4. Anyone intersted in US history will enjoy this book, it was an easy read on what I thought would be a complicated subject.
   
   The author keeps the subject interesting by mixing the "big picture" of international finance with political skullduggery at home and shines more light on the much maligned Alexander Hamilton's role in safeguarding America's first years.



5. Dr. Wright's presentation of the nation's first national debt is both engrossing and informative. Perhaps it is his background as an historian, but regardless, his presentation of economics is straightforward and makes for a good read from the layperson's point of view.
   
   Wright shows Alexander Hamilton as the genius that he truly was. While critics of Hamilton tend to focus on his behind-the-scenes machinations during the 1800 election, Wright allows Hamilton's financial wizardry (which should be this founder's true legacy) to shine. Indeed, Hamilton grasped that a national debt and the eventual assumption of states' debts was necessary not only for the new nation to survive practically, but to maintain its international public credit.
   
   I would recommend reading this book in concert with John Miller's biography on Alexander Hamilton, Portrait in Paradox. Both authors show that Hamilton was well ahead of his time.
   
   The chapters read easily, with an early focus on the Dutch and English international finance models of the early and late 18th century. The chapter entitled "Life," which concentrates on a few individual Virgina debt holders, is also engrossing. Wright spotlights the stories of a few individual patriots to show that these debtholders were just as vital to the nation, with their willingness to take a chance on the early United States, as was both France and Holland in their initial financing of the War of Independence.
   
   All in all, a great read.
   
   Dr. Dennis Edwards
   Associate Professor of Economics

5 comments about Financial Modeling - 2nd Edition: Includes CD.

1. The book has great practical value. It also applies to those who wish to implement financial models in other computing environment than Excel.



2. Beninnga states things very clearly.
   And the sophistication is great.
   No matter what level you are in, it's good for you.
   And these knowledge are really useful in real world!
   I mean,I'm really gonna keep this book for myself after I finish the degree.



3. Is an excelent book to learn and undertand how to creat financial models in excel.
   
   I strongly recomend it.
   
   Romer iragorri



4. It's kind of a drag, especially for a book of this type, that there are so many errors in both the text AND in the provided source code. Some of the code has clearly never been tested as published, since it actually doesn't run. Uninitialized variables, incorrect derivation of (calculus) derivatives, function names used as variables within the same function (causes infinite recursion crash on some systems), etc., etc., etc. All of these errors that I found in a single chapter have not been published in the book's extensive errata, so presumably have not been found yet. If something doesn't check out in this book, don't blame yourself, check another reference to verify the correct calculation method.



5. Beninnga's modeling book is a superior product for its intended audience: beginning to intermediate Excel users. I just used for one of my graduate courses in Finance at Florida International University, and it was spot on for what we needed. I knew exactly what to do on a financial calculator but not how to set those applications up in Excel. Beninnga's chapters cover many of the applications you'll see out there in the real-world. As a added bonus, he includes the CD, so you'll have the exact spreadsheets he uses in the chapters. Keep in mind that being able to read those actual commands/text in the cells give you all the necessary building blocks to enhance your knowledge. No matter what any textbook teaches, you still need your own "intellectual horsepower" and financial acumen to make Excel spreadsheets. To his credit, Beninnga has openly stepped up and posted an errata sheet for the known errors and you'll need to download those. Taken on whole, I salute Benninga for being the pioneer in bringing Finance to Excel applications and I'm eagerly awaiting his 3rd edition. If you're a Finance guy looking to learn finance in Excel, then this a "5-star" gotta have!

5 comments about Financial Calculus : An Introduction to Derivative Pricing.

1. Baxter/Renie's book makes it easier to understand Shreve's texts on stochastic calculus (vol.1,2). In particular, ch 2 (discrete) & ch. 3
   (continuous) gives nice and simple descriptions of the essential concepts: filtration, measure, numeraire, drift, Ito formula. (These concepts can be difficult without a more detailed description of a stochastic process). The chapters 4,5,6 can be considered applying the concepts to SDE's in a number of cases, say, forex., equities, interest rates and multi-dimensional problems. These applications provide a good grasp of the mechanics to better understand the more detailed description of the same concepts in Shreve's texts.



2. This is a great book, no doubt about it...
   
   The basic ideas and tools of mathematical finance (Arbitrage Pricing Theory, Stochastic Calculus, Martingale Measure) are presented in a VERY conceptual way, allowing one to gain solid intuition in a field often obscured by abstraction and formalism. The description of the impact of change of measure on Brownian Motion, among others, is a little gem!
   
   Although the level of mathematics is not overly complex, some sections still require a fair amount of "fiddling" with pen and paper to fill in the gaps and make sure the concepts are clearly grasped. That definitely demands a little mathematical maturity and assertiveness. The section on the Binomial Representation Theorem, for example, could be expended a little, with more concrete examples. But if one spends the time, goes through the book over and over looking at everything in ever finer details (...it is only 200 pages and a pretty quick read), it is immensely rewarding and provides a solid basis to tackle more complex monographs.
   
   The only reservation is about the quick and much rougher presentation of Interest Rates Models. While the first sections on the Black-Scholes framework, Arbitrage Pricing and replication strategies for Vanilla options are very detailed, the Heat-Jarrow-Morton model could definitely be expanded (some of the results presented are not easy to derive given the material presented) and LIBOR models should be covered.
   
   Given the success of the book, one however wonders why a second edition polishing a few sections (see Martin Baxter's website for extra material) and addressing newer developments has not been issued...



3. I think this is one of the best introductions to mathematical finance around. Unfortunately, the book was out of print when I taught the subject, so I never got to test it as a textbook.
   
   In particular I really like chapter 2, where the authors introduce the key concepts in discrete time binomial processes. This allow them to introduce deep concepts like information and filtration in an understandable manner, while few students really understand measurability. (If you think that is a trivial idea from stochastic analysis, you may want to go for another textbook.) The binomial representation theorem is almost trivial, but show what the general version, the martingale representation theorem is all about, and why it is so useful. Similarly, the Cameron Martin Girsanov is heavy stuff in continuous time, but the idea is simple for binomial processes. I guess a lot of students will understand what the theorem i all about for the first time when they se the binomial version.
   
   The book then goes on to generalize all these ideas to continuous time and space, but with somewhat less mathematical formalism than many other books.



4. "Martin Baxter
   Works at Nomura International in London.
   He was a Fellow for four years at Pembroke College, Cambridge, has held a one-year visiting position at the University of British Columbia, and has been an invited speaker to both academic and financial audiences in Europe and North America.
   
   Andrew Rennie
   Studied mathematics at Cambridge.
   He is presently Head of Financial Engineering at Rabo Bank in London, a position he reached via philosophy, chemistry and graphic design."
   [from the book of the front flap]
   
   "The book is the First published 1996
   Reprinted with corrections 1997
   Reprinted 1998 (twice), 2000 (twice), 2001 (twice)
   Printed in the United Kingdom at the University Press, Cambridge."
   [from the book]
   
   ".....This unique, MODERN AND UP-TO-DATE book will be an essential purchase for market practitioners, quantitative analysts, and derivatives traders, whether existing or trainees, in investment banks in the major financial centres throughout the world."
   [from the book of the back jacket]



5. This book is not an introduction to the subject for the following reasons:
   - no description is given of the financial instruments they are supposed to model;
   - the math necessary is not introduced on an accessible level;
   - definitions of anything are chronically missing.
   As a result the book is very short but hardly accessible even to people with some background in the subject.
   The authors seem to have some sort of practitioners' knowledge of the subject, which however, is not enough to make an instructive text. The style of the exposition is such that at times reads as almost arrogant (e.g. referring to everything as simple and elementary). In fact, the text gives the impression of some sort of an ego trip. I wonder how would they write now when the once mighty Merill is bankrupt (one of the authors was head of debt derivatives in Merill)?
   The second part of the text, which is examples of valuations of various derivatives may be of use to practitioners who already know all about the subject, but have not worked with the particular type of instrument.

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

1. I have not seen any book that describes its domain with such generous detail and is geared for real life trading. The contents may not be enough for those who trade only financial energy instruments, but it is indeed a good course material for the market makers, and hedgers, namely end users and producers. I highly recommend this book to those who are involved in natural gas industry.



2. 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.



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



4. 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.



5. 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.

5 comments about Personal Finance (The Mcgraw-Hill/Irwin Series in Finance, Insurance, and Real Estate).

1. The book looks brand new and the cd was in a sealed package. I would highly recommend using Amazon for college books.



2. This book was used but is in great condition. I saved a great deal of money bu purchasing it here. I will purchase furture books with no problem.



3. "Personal Finance, 8th Edition.
   It's never too early to plan your future.
   The market-leading textbook Personal Finance helps students learn the fundamentals of financial planning, preparing them to make informed choices related to spending, saving, borrowing, and investing that lead to long-term financial security.
   
   Features of the Eighth Edition:
   
   * The CHAPTER-OPENING CASES have been revised and expanded to two pages, containing many new features such as "What Actions Should Be Taken?" and "What About Your Situation? question sets, making them more relevant to each student's situation.
   
   * PERSONAL FINANCIAL PLANNER (PFP) sheets, written by the authors to help students create and implement a personal financial plan and which correlate with the text content, are now conveniently located at the end of the text.
   
   * New, NARRATED POWERPOINTS exclusively for students, follow the chapter topics and provide explanations and real-life examples for handling financial situations.
   
   * New! A CONTINUING CASE at the end of each chapter follows one family's issues to help students see the total picture in creating a financial plan."
   
   [from the back cover of the book]



4. The book is new but the CD Rom has a problem. It's used and ruined!!!



5. Book holds a broad overview of various areas that are helpful for your senior year of college or other points in your life where you'll be trying to do some personal financial planning. Some of the information could be less basic or a little more up-to-date.

5 comments about Charting the Stock Market: The Wyckoff Method.

1. I'm certain that people like the legendary W.D. Gann and other traders of his kind were/are the last to let out the secret that makes them the 5% of successful traders, versus the 95% of us who are but buffalo for them to feast upon. I think many of these 5% write books to bring more of the 95% into the markets as well as to make a profit selling books.
   
   Those of us who buy books are the ones who know in our gut that the markets are NOT a "random walk" and are cyclical, and that's how we're lured into the trap of believing someone else out there is going to part with this precious advantage...even Gann never gave up his edge, letting us have all the leftovers from his early years before finding the key, which he'd undoubtedly discovered.
   
   So, what to do? Forget about fundamental (news) information on trading as by the time you hear it, it's already priced into the stock or commodity. Pure technical trading, approaching the market chart WITHOUT ALL THOUGHTS OF PROFIT OR LOSS is the only way to divorce yourself from the traps of Fear or Greed that make us the buffalo and not the hunter. If you can't get a feel for one chart, go to another until you find one that's got that ripe look or feel to it. Find the indicators that work for you, or just use a ruler and pencil and let your instinct go to work and make your prediction if one becomes apparent. THEN make the trade.



2. This is, in my opinion, one of the best technical analysis books out there.
   The approach of Richard Wyckoff was developed in the beginning of the century and it still applies. He shows you, in great details, how through price, volume and trend lines you can identify what a stock is doing and what it is about to do. And he did all of it by hand!!!
   The system is pure and, if combined with other indicators, moving averages, etc. can be powerful.
   The book is full of technical information. It is condensed, not an easy read but worth every penny and it is one of the least expensive books out there.
   I highly recommend it.



3. I've never bought or read this book. I'm researching it to potentially buy it, and ran across the table of contents posted on the Traders Press web site. In case it is useful to others, posting here:
   
   Table of Contents
   Preface
   
   Part I: Principles of the Wyckoff Method
   by Jack K. Hutson
   
   The Early Days
   Elements of Charting
   Market Trends in Composite Averages
   Understanding Group Stock Behavior
   Prelude to Individual Chart Reading
   Figure Charts
   Effective Forecasting
   Trendlines: Refinements in Charting
   Selecting the Best Individual Stocks
   Refining Chart Analysis
   Maximizing Profits with Stop Orders
   Intraday Swings with Wave Charts
   Serving an Apprenticeship
   Developing a Personal Trading Style
   Market Strategy
   
   Part II: The Wyckoff Method in Action
   by David H. Weis
   
   The Wyckoff Method and Bond Futures
   Anatomy of a Market Move
   
   Part III: The Wyckoff Method: Five Steps to Success
   by Craig F. Schroeder
   
   Determining Trend
   Relative Strength and Weakness
   Identifying Opportunities
   Buying and Selling Tests
   Timing Your Commitments
   
   Glossary
   List of Figures
   Index



4. This is a very good book on technical analysis and also gives a great outlook on what is happening in the market. If you understand how the strong-hands are playing the market you can jump on for the ride, and profit!
   
   The section on Price-Volume analysis is priceless and makes this book great. If you can watch and comprehend what is going on by using price and volume, you are head and shoulders above most people that trade. Knowing what the strong-hands in the market are doing, and then joining them, is my favorite way to make money. I can't move a market, but I am very good at "jumping on the big dogs back" and riding for profit.
   
   The rest of the book was informative, but I have a habit of reading a book and taking the things I like. I like to understand what others in the market are doing, but if it does not resonate with me, or makes my current process more complicated, I do not use it. If you use this book and follow its instructions you will do well. Yes, it is a lot of work, but most successful traders work hard. I have a similar system and Price/volume analysis just makes sense to me. Plus it works well. So use the parts you like.
   
   If you do not have a system you designed, or are not a consistent, profitable trader, you can use the Wyckoff process outlined in this book to be consistent and profitable. The author talks about hand charting and analyzing the data. He says it should take about an hour a day. With the advent of computerized trading and Excel, I can configure the data into charts in seconds, then spend about 15 minutes glancing through them. Then focus a little more time on the areas that look interesting. If under an hour a day is too much work, maybe trading is not what you should be looking at? Anyway, its a great book that will give you a more detailed understanding of what is really happening in the market. Good luck.



5. I need someone to enlighten me why other reviews gave this book such high ratings. This book has several shortcomings. It was first written in 1986 so many things are outdated. As another reviewer has pointed out, this book needs to provide examples to illustrate its points. The writers might be good traders but are lousy writers; they have failed to explain many key points. The content adds no new information than what most people already know: low volume on rallies, drawing trendlines, breaks of trendlines as signals for change in direction. I gave up reading the first author (Hutson) half-way through. I jumped to the third author (Weis) because the chapter titles seem hopeful, but I found the same shortcomings there (not enough examples, lack of explanation, etc.). My conclusion is don't even bother with book. I gave it one star because I don't know how to rate it as zero star.

5 comments about New Insights on Covered Call Writing: The Powerful Technique That Enhances Return and Lowers Risk in Stock Investing.

1. This book is an excellent primer on one of the safest form of the options game, at least from the perspective of the brokerage industry. So, if you're bored with watching your portfolio creep around at a few percent a day, you can write (sell) a call option for $100 on a $5000 investment (for example) and have a pretty good chance of keeping the 2% at the end of the month. Lehman and McMillan do an excellent job of providing return formulae and web resources for further research. But the question remains: do you really want to get into this? (I admit it's addictive). If you do you'll turn into your own stock churner. The brokerage fees aren't too bad if you use one of the discounters, but get ready to do some major capital gains calculations (profits from unexercised options are all short-term capital gains). Here's a hint: this is NOT the way Warren Buffet got rich.



2. As I view it, there are two key questions relating to any complex investment strategy:
   
   1) Why? Why should I pursue this strategy versus my current (probably simpler) strategy?
   2) How? If the proposed strategy is indeed worthwhile, how can/should I implement it?
   
   This book does a reasonably good job of answering the second question, with details on how options work, and a discussion of things like getting approval to trade them, tax issues and the like. I'd read some similar material elsewhere (including CBOE's own site), but this book pulls together a lot of disparate information, and filled in some holes in my own somewhat meager understanding of the mechanics of trading options.
   
   However, showing HOW to trade options is not very important, IMO, if one cannot show WHY one should trade them in the first place.
   
   The book jacket is not very encouraging in this light - mentioning that "Returns of 10 to 15 percent per year in conservative accounts - and as much as 20, 40, or 60 percent per year in more aggressive accounts - are possible". Of course, like most investors, I would be thrilled to get 60 percent annual returns, but experience and reading have taught me that those advocating investment strategies and making claims of that magnitude are to be taken with a BIIIIIIG grain of salt.
   
   Within the book itself, sky-high claims like the above are (fortunately) not emphasized. But basically, three rationales are presented for covered call writing:
   
   1) Ability to obtain superior returns through knowledge of the future direction of a particular stock (i.e. if you think/know Microsoft will go up/down in the next month, then do XYZ...)
   
   2) Ability to use more leverage (there is a long discussion of how different scenarios are treated from a margin perspective, with an emphasis on controlling larger blocks of stock/options for a given starting investment)
   
   3) Reduction of risk, possibly without significant reduction of return
   
   Personally, I think that markets are reasonably efficient, and that I lack and real ability to outpredict the market with regards to returns on specific stocks (once I normalize for various risk characteristics). So rationale 1 above holds no appeal to me.
   
   I am also not interested in increasing the leverage of my portfolio, and further, if I was, I think there are probably simpler/cheaper/more efficient means of doing so other than writing covered calls.
   
   That leaves rationale 3, which was what sparked my interest in reading this book. The author briefly discusses the BXM - an index created by the CBOE in conjunction with some research showing that a buy-write strategy (owning a broad index and mechanically writing calls against it) produces about the same return as owning the index itself, but does so with significantly less risk/volatility. But the authors' discussion of this research is short - about two and a half pages, and gives minimal or no mention of some important issues:
   
   1) The BXM strategy involves writing calls every month. This will create a variety of costs - brokerage fees, spread/transaction costs, taxes, and time. While these factors may affect any mechanical strategy (including indexing itself), they are likely to be much more severe for the BXM strategy.
   
   2) The BXM strategy is a backtested strategy. It's relatively easy to find strategies that would have outperformed the market in the past, given what we know now (Consider the MICROSO strategy - buy at IPO any stock that begins with the letters MICROSO), but one should approach such strategies with caution. It's much harder to identify and implement strategies that will work for the FUTURE, and that are in fact proven to do so over the subsequent decade or two.
   
   3) The market itself may have changed. Writing options is relatively more attractive if call premiums are high. It appears, based on evidence presented in this book and elsewhere that I've seen, that call premiums have generally been higher than they *should* have been (per Black-Scholes). This, in turn, has made call-writing more profitable than it otherwise might have been. But markets change over time, and it's quite possible that call premiums might trend downward (or may have already done so), towards, or conceivably even below, 'true value'. I don't know if this is the case, but it's something for a potential investor to be concerned about, and isn't well addressed in the book.
   
   The authors' also conduct their own study looking at writing options on a basket of individual stocks. While the results are interesting, the study is flawed - they emphasize tech stocks, and in their limited pool of 20 companies studied, one they've chosen is Microsoft, starting in 1988! At that time, I think, Microsoft was a relatively small company (it had only gone public in 1986), and it seems unlikely that someone selecting a portfolio of 20 (hopefully representative) companies to own and write options on would have chosen Microsoft. For what it's worth, the study finds that a covered call strategy on Microsoft underperforms buy and hold in absolute returns, which should hardly be surprising (writing covered calls means giving up some upside, and Microsoft had a LOT of upside during the time period covered), though there are other stocks in the study for which the strategy had better results. But the basic problem is that the stocks selected seem unlikely to have been representative of what a conservative to moderate investor would have chosen at the beginning of the study, and thus it's not really possible to draw broad conclusions.
   
   ====
   
   OK, moving on... The book is now a few years old, and thus misses some recent market changes. There are several funds that now implement buy-write strategies, making it much simpler for investors to access these strategies (I don't *think* the authors mention any of these funds, but it's possible I've forgotten a brief mention somewhere in the book). From my brief inspection of the results of some of these funds, they haven't done very well so far, which bodes ill for individual investors thinking they can implement such a strategy on their own.
   
   Anyways, I've devoted a lot of pixels to picking at the book. In my opinion, it fails to prove that the strategy it advocates is a good one. However, that doesn't mean that the strategy ISN'T good, only that the book fails to prove things one way or the other. But if you're convinced by other evidence that covered call writing is a good strategy, or if you simply want to take your chances (I don't advocate the latter), then the book does at least offer a good overview of the mechanics involved. That's why I give it 3 stars...



3. Very good book on covered call writing. Gives alot of of basic info for beginners, as well as advanced techniques as well.



4. Messrs. Lehman and McMillan are excellent writers. The reason for choosing this book was my previous knowledge of Larry McMillan and his reputation in options as a teacher and trader. Moreover, my interest in purchasing this book was not so much as to "how" to write covered calls, but "when" and "why" to close out the position, and what the best strategy for writing OTM, ATM or ITM covered calls. I was pleasantly surprised as to everything covered in this book. I learned so much and I certainly had all of my questions answered. Since, one must be very careful when trading options, covered calls are the safest way for the novice trader (in my opinion) to put money in your pocket each month, and this book was extremely helpful not only in the selection of the best stocks but also the execution.



5. Before reading this book, I already have something introductory knowledge about option from Cohen's . I finished read this book in two days -- it's too superficial, you can go throught it very quick. Here is what I learn from the whole book.
   
   1. Covered call writing could be profitable.
   2. Covered call writing could be risky.
   3. Covered call writing need skill to choose between strike, expire, and market timing.
   4. Covered call writing could be adjustable (roll up, out, down, and etc.)
   
   The major problem: this book is lack of examples. It makes the book a full list of common conceptions.
   
   Sorry if I am too cynical or offensive.

5 comments about Great Boom Ahead: YOUR COMPREHENSIVE GUIDE TO PERSONAL AND BUSINESS PROFIT IN THE NEW ERA OF PROSPERITY.

1. Harry S. Dent, Jr.'s book is remarkable both for the overall accuracy of its predictions and for the simplistic model upon which those predictions depend. Written in 1993, it claims a niche within the general family of "trend" books written by the likes of Alvin Toffler and John Naisbitt. The work anticipated our current era of super bullish markets, which it predicts will continue through 2007. The crystal ball drops a few items, given that a few years have passed since publication. Nonetheless, it offers a clear macroeconomic forecast and investment tool. If you sense the Fed just doesn't get the New Economy, this is the book for you. We [...] recommend this book to those seeking to understand the United States' era of record-breaking economic gains (and Japan's current hard times).



2. Well supported by fact and Examples. Just wish I had read it years earler as I could have saved many $. I just couldn't put it down. Now I wouldn't be without it.



3. An update on this 1992 book "The Great Boom Ahead" from the perspective of 2003. First, Harry Dent is the eternal optimist and this earlier book correctly predicted the bull market of the 90s, while Robert Prechter, Martin Weiss, Nick Guarino, etc. were all wrong (in their timing at least) in predicting a downturn and depression to occur. But wait....the 2000-2002 downturn that cost so many investors money has at least opened a few eyes. And on pages 16, 18 and 34-36 of this book Harry Dent himself predicts the "Mother of all Depressions" to arrive around 2010, when the baby boomers' spending spree is over and they begin to retire. So the eternal optimist Harry Dent AGREES with the eternal pessimists and "doom-n-gloomers" about the inevitable outcome. They just disagree on the timing. So somewhere between 2004 - 2010 we can expect the largest downturn in U.S. history since 1929-1932. Enjoy the rest of the boom !!



4. Harry Dent really made a spectacular call back in 1993 in this book about the tremendous rise in the Dow during the 90's. He even predicted the slump in 2002-2003. His ideas of why this happened are presented in a simple theme that I found very intuitive. This book is a gem.
   As for other books by Mr. Dent, he decided to contradict himself and go for very unrealistic goals for the Dow. Read this book and ONLY this book. Too late to make a killing on the stock market but still time to get out of stocks before the coming slump.
   UPDATE November, 2008:
   Amazing. Forget about ALL of Mr. Dent's predictions after this book was written. Here are some direct quotes from this book. And he wrote this in 1993.
   Mr. Dent states very clearly on page 16 "The next great depression will be from 2008 to 2023. How long will the depression last? 12 to 15 years. Why? The peak of the baby boom births occurred between 1957 in 1961. The next wave of births did not turn up until 1973 to 1976, or 12 to 15 years later. So you can expect a major economic downturn, starting around 2008 and lasting to around 2022 to 2023. No amount of government stimulus will prevent it, just as it didn't prevent the Great Depression of the 1930s." Now he wrote this book in 1993! Housing "housing will grow dramatically from 2000 to 2004".
   Business failure. "This is a period of reckoning for the excesses that develop in the growth boom. As they prosper, industries invest far too much and building capacity in the race for leadership in growth markets. Therefore, when consumer demands drop predictably after a peak of a generation's spending wave, the economy is left with a pool of excess capacity. Price wars result from everybody dumping product at lower prices. A shakeout occurs, leading to the survival of the fittest. Only strong companies with greatest economic scale and brand loyalties will survive these times. This shakeout process results in layoffs and bankruptcies, which generate persistently high levels of unemployment and deflation in prices. Depressions occur at very specific time in the industry cycle. They can be predicted, and even tempered, but not prevented."
   1993. He predicted this in 1993.



5. In 1993 I'd have rated this book 5 Stars. It was a great book leading up to the late 90s boom. But it's now 17 years old and there have been too many macro changes to consider this a best buy for the times. Only the demographics remain the same.
   
   In 2000 he predicted the DOW hitting 40,000 and repeated it in his 2004 book. In 2006 he changed it to 16000 to 18000. His latest prediction is 20000 by 2009. Bottom line is that if you make enough predictions one of them is bound to be correct --- sooner or later.