May 22, 2021 by Brent Donnelly
The book describes trading as a complex and dynamic game that requires a combination of skills, discipline, and rationality. It emphasizes the challenges faced by traders of all levels and the need for a strong mindset, methodology, and mathematical understanding to succeed. The author, drawing on personal experience and extensive research, aims to define the ideal trader and provides a practical guide with actionable information.
The book is structured into four parts:
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Part One: Examines the equation for trading success, offering a brief overview of the general recipe for success.
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Part Two: Delves deeper into the specific qualities of winning and losing traders, encouraging readers to identify their own traits and learn from presented strategies.
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Part Three: Explores how to become an expert in trading, covering topics like microstructure, market narrative, technical analysis, sentiment, and risk management. It includes a detailed walkthrough of a real trade to illustrate the author's thought process.
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Part Four: Focuses on maintaining a healthy mindset, discussing adaptation, continuous improvement, self-awareness, perspective, and metacognition.
February 11, 2011 by Perry J. Kaufman
In "Alpha Trading: Profitable Strategies That Remove Directional Risk," Perry Kaufman, an experienced trading systems developer, provides insights on making profitable trades in markets devoid of obvious trends. The book addresses the challenge of finding alpha when markets seem irrational, experiencing price shocks that disrupt diversification and make hedging seemingly impossible. Kaufman offers strategies for trading in directionless markets and those marked by constant price shocks.
Drawing from Kaufman's 30 years of experience in trading across various market conditions, "Alpha Trading" serves as a valuable resource for both professional and serious individual traders. The book provides practical strategies to thrive in markets where traditional trend trading approaches may be less effective.
November 10, 2014 by Maneet Ahuja
After reading this book, you will gain a better understanding of the enigmatic world of hedge funds. The book emphasizes that successful hedge fund managers possess a unique set of qualities that are not easily replicated, especially in a landscape where the number of hedge funds continues to grow.
The insights provided in the book will equip you with the ability to distinguish between reality and myth in the hedge fund realm. This skill becomes particularly crucial as promises and high fees are not always followed by superior investment performance. The capacity to make such differentiations becomes even more critical in a world undergoing massive realignments, where previous norms are becoming realities, and market structures are evolving.
Furthermore, the book will prepare you to contemplate unanswered questions in the hedge fund industry. Can certain hedge fund approaches genuinely deliver on the claim of being "market neutral" in an investment world where many parameters have become variables? Can the collective success of a subset of hedge funds continue to justify premium fees for the entire industry? In the face of ongoing sovereign debt crises, will regulators feel compelled to impose restrictions on hedge funds to render them less effective?
These questions are significant and yet remain unanswered, leaving readers in a thoughtful and contemplative space regarding the future of hedge funds and their role in the evolving financial landscape.