Archive for September 2010

Book Review: “The Handbook of Trading Strategies for Navigating and Profiting from Currency, Bond, and Stock Markets”

Author: Greg N. Gregoriou

This is a book I enjoyed reading. Compared to some other arid titles in finance, “The Handbook of Trading Strategies for Navigating and Profiting from Currency, Bond, and Stock Markets” represents a change in approach which I appreciated.
Why? Well, the answer comes in relatively easy. “The Handbook of Trading Strategies” is not an academic book which takes you painfully slow chapter by chapter through the arid domain of the trading theory. On contrary, Gregoriou has put together a thick handbook of case studies from which various authors derive generalized conclusions about trading on various market environments.
Each chapter is actually a case study in one trading domain. Authors apply their specific knowledge to various topics, such as arbitrating the various currency markets (Chapter 17. Disparity of USD Interbank Interest Rates in Hong Kong and Singapore: Is There Any Arbitrage Opportunity), applied technical analysis (Chapter 7. Profitability of Technical Trading Rules in an Emerging Market) or parallel trading (Chapter 2. Informed Trading in Parallel Auction and Dealer Markets: The Case of the London Stock Exchange). Read more

“Forex Chartist Companion – A Visual Approach To Technical Analysis” by Michael Duane and James Lauren Bickford – A Book Review

If you read my previous book reviews, then you certainly know how much I like this type of companion books. Mostly I enjoy the graphs and seeing the logic behind- and the more I see, the more puzzled I am (but this is another topic). “Forex Chartist Companion – A Visual Approach To Technical Analysis” was no exception to the rule – I enjoyed massively the approach laid out into its pages.

“Forex Chartist Companion – A Visual Approach To Technical Analysis” is written at a basic level which builds up to higher (more advanced) topics. In this respect, the book is somehow typical for the American educational books (it could have easily been called “Charting for Dummies”). It has also some advanced features, but overall it is written at an intermediate level.

The book is written with the average trader’s needs in mind – you should not expect advanced techniques described there. It could not do it without sacrificing the width of treating the topic – and here the book does a fantastic job in listing almost any imaginable type of forex chart. If you thought you knew them all, “Forex Chartist Companion – A Visual Approach To Technical Analysis” can prove you wrong.

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Book Review – “Handbook of Finance, Volume III – Valuation, Financial Modeling and Quantitative Tools” by Frank J. Fabozzi (editor)

This week I managed to get over another monster book in finance – the third volume of a well respected series of handbooks put together by the Yale Professor in the Practice of Finance, Frank. J. Fabozzi. It is hard not to be impressed when you first look at such a book – it is a massive tome of 835 thin pages, premium quality paper and full of articles by various authors. So at first I was very curious – what is inside?

I was quite surprised – the book is quite comprehensive. I would say that it is maybe a bit too comprehensive for the finance practitioner who wants a quick reference for an expert issue in the field. Just for your broad idea, here’s the book’s summary listed shortly:

Volume III. Valuation, Financial Modeling, And Quantitative Tools. Read more

Book Review – “Derivatives- Principles and Practice” by Rangarajan K. Sundaram and Sanjiv R. Das

If until now I focused my readings on application oriented stuff on technical analysis, with “Derivatives- Principles and Practice” my lectures took a 360 degrees turn. McGraw-Hill Professional is well known for publishing as-academic-as-possible books in the finance area (and not only). I used to study on some of their books for my MBA and I knew that they are a different class.

So, if you are used with books which focus on stories and on easy to understand graphics. Well, “Derivatives- Principles and Practice” is much more complex for several reasons.

First of all, this is an academic book written with motivated and well-informed students on mind. Although the authors specify that you need to know only high-school mathematics and that everything else is within the covers of the book, it might be very hard for the reader to progress if he/she does not grasp well the basic mathematical concepts. After all, this is a book on derivatives – which represent one of the most complex financial subject on planet Earth. Read more