Trading Realities The Truth, the Lies, and the Hype In-Between

Understand and Master the Market Dynamics That Impact Every Strategy and Asset Class Recognize the trading implications of todayrs"s financial distortions and global economic forces Understand crucial, hidden interrelationships among financial markets Avoid the critical errors most investors make--and profit from their mistakes For every investor and trader, both part-time and full-time Whatever strategy or assets you choose, yours"re subject to the same global market forces and financial distortions. If you want to invest profitably, youmustunderstand these forces. Thatrs"s whereTrading Realitiescomes in. Drawing on many years of technical analysis and practical trading experience, Jeff Augen explains how marketsreallybehave--and why they usually move in the direction that causes the most damage to the most investors. Augen reveals how to find the information that can give you a sustained advantage...uncovers the hidden significance of money flows between markets...demonstrates simpler, better ways to manage risk...shows how to invest with the wind at your back, not blowing in your face! Todayrs"s financial markets are complex and dangerous. The value of individual investments is now more strongly influenced by world economic and geopolitical events than by the underlying fundamentals of the company being invested in. Layered on this intricate web of forces is the impact of high-frequency computer trading programs that enter and exit trades in a fraction of a second and drive 60% or more of the market volume on any given day.Trading Realitiesprovides investors with new skills and approaches to succeed in this environment. Without this enhanced knowledge, investing is no more than gambling. Writing for beginning and experienced investors alike, successful trader and author Jeff Augen focuses on the powerful forces that really move markets: the dynamics that are fundamental to your success, no matter which strategies or asset classes you choose. He provides new approaches to identifying market trends, exploiting global economic forces, trading the news, valuing risk, and dissecting economic reports released by the government. Yours"ll learn how to gain a clear advantage: an advantage you can sustain through any market environment. Investwiththe markets, notagainstthem Leverage the "mega" forces that drive all markets, in all market environments Why markets always move in the direction that damages the most investors ...how to recognize that direction and move with it Why even experienced investors overrate their knowledge and skill What you really need to know before you make an investment How to clarify and compare the real risks of potential investments Getting past the myths of risk and leverage and understanding the realities

Je ff Augen, currently a private investor and writer, has spent more than a decade building a unique intellectual property portfolio of databases, algorithms, and associated software for technical analysis of derivatives prices. His work, which includes more than a million lines of computer code, is particularly focused on the identification of subtle anomalies and price distortions.

 

Augen has a 25-year history in information technology. As cofounding executive of IBM’s Life Sciences Computing business, he defined a growth strategy that resulted in $1.2 billion of new revenue and managed a large portfolio of venture capital investments. From 2002 to 2005, Augen was President and CEO of TurboWorx Inc., a technical computing software company founded by the chairman of the Department of Computer Science at Yale University. His books include Day Trading Options, Trading Options at Expiration, The Option Trader’s Workbook, and The Volatility Edge in Options Trading. He currently teaches option trading classes at the New York Institute of Finance and writes a weekly column for Stocks, Futures and Options magazine.