عنوان

The laws of trading :

(Number (ISBN

1119574196

(Number (ISBN

111957420X

(Number (ISBN

9781119574194

(Number (ISBN

9781119574200

Erroneous ISBN

9781119574217

Title Proper

The laws of trading :

General Material Designation

[Book]

Other Title Information

a trader's guide to better decision-making for everyone /

First Statement of Responsibility

Agustin Lebron ; foreword by Aaron Brown.

Place of Publication, Distribution, etc.

Hoboken, New Jersey :

Name of Publisher, Distributor, etc.

John Wiley & Sons, Inc.,

Date of Publication, Distribution, etc.

[2019]

Specific Material Designation and Extent of Item

1 online resource (xxii, 282 pages)

Text of Note

Foreword credit on digital cover.

Text of Note

Includes bibliographical references and index.

Text of Note

Cover -- Title Page -- Copyright -- Contents -- Acknowledgments -- Foreword by Aaron Brown -- As old and as true as the sky -- Introduction -- What Is Trading? -- Why Study Trading? -- What Are Financial Markets? -- Vested Interests -- Who This Book Is For -- What This Book Will Not Do for You, and What It Will -- Why Laws? -- References -- Chapter 1 Motivation -- Why Are You Trading? -- Shouldn't This Chapter Be Short? -- Greed and Fear -- Boredom -- The Zone -- Risk Seeking -- Wanting a Big Score -- Intellectual Validation -- Why Does Motivation Matter? -- Make Peace with Your Motivations, or Change Them -- The Role of "You" -- Protecting Ourselves -- Making "You" Small -- Caring about the Right Things -- Precommitment and Hindsight -- Self-Knowledge and Precommitment in Other Contexts -- Buying a New Car -- Navigating the Job Market -- Precommitment for Self-Improvement -- Summary and Looking Ahead -- References -- Chapter 2 Adverse Selection -- An Information Theoretic View of Trading -- A Holy War among Statisticians -- Having Beliefs and Updating Them -- Using Our Updated Beliefs -- After the Trade -- It's All Bayes, All the Way Down -- Markets and Society -- A Paradox: Why Does Anyone Trade at All? -- Special Trades -- Keeping Your Head When Others Are Losing Theirs -- Adverse Selection in Other Financial Markets -- IPOs -- Rights Issues -- An Extra Special Rights Issue -- Adverse Selection in Everyday Life -- eBay and the Winner's Curse -- Store Sales and Specials -- Job Market -- Insurance -- Summary and Looking Ahead -- References -- Chapter 3 Risk -- What Do We Mean by Capital? -- Self-Financing Portfolios -- Collateral and Capital -- Being Right and Losing Anyway -- Risk and Hedging -- What Is Risk? -- VaR and the Mismeasure of Risk -- Gaming the Measure -- What Sorts of Risks Are There? -- Evaluating and Measuring Risk.

Text of Note

Partitioning the Data -- The Process of Building Models -- Development versus Production -- When Models Break -- How Much Variation Is Expected? -- Assessing Strategy Changes -- A General Approach -- Models in the Real World -- Humans Are Model-Building Machines -- Models of the World -- Models of Other People -- Models of Ourselves -- Summary and Looking Ahead -- References -- Chapter 7 Costs and Capacity -- Introduction -- Categorizing Costs -- Quadrant 1: Visible Linear Costs -- Quadrant 2: Visible Nonlinear Costs -- Quadrant 3: Invisible Linear Costs -- Estimating Depreciation Rates -- A Little-Appreciated Fact about Trade Depreciation -- Quadrant 4: Invisible Nonlinear Costs -- Herding -- Accounting for Herding Risk -- Opportunity Cost -- Unknown Unknowns -- Bell Labs and the Sociology of Innovation -- The Landscape of Trades -- Overestimating Profitability -- Underestimating Cost -- The Ownership of Trades -- Summary and Looking Ahead -- References -- Chapter 8 Possibility -- Six Impossible Things before Breakfast -- Logical Possibility -- Physical Possibility -- The Inductive Hypothesis -- What's Special about Today? -- Induction in Financial Markets -- Feedback Systems and Their Stability -- A Normal Market in a Stock -- A Bigger Trade -- The Squeeze -- Some Comments -- The Anti-Inductive Behavior of Markets -- Correlations and Low-Probability Events -- Correlations and the Financial Crisis of 2007-2008 -- Aftermath -- Probabilities and the Effect of Correlation -- Practical Techniques for Evaluating Possibilities -- Taking It up a Notch: Bet on It -- Some Historical Episodes -- Portfolio Insurance and the 1987 Market Crash -- Incinerating Money in Japan: The Dentsu IPO -- "Impossible" Events in 2008 -- The Chief Unpegs -- Summary and Looking Ahead -- References -- Chapter 9 Alignment -- The Ballad of Victor Niederhoffer -- Roles -- Capital.

Text of Note

Top-down Risk -- Bottom-up Risk (A Worked Example) -- Risk Systems -- The Varieties of Market Risk -- Identifying Risks -- Optimizing the Hedge -- Risk, Utility, and Catastrophic Risk -- Risk in Everyday Life -- Insurance -- Job Offer Decisions -- Useful Paranoia and Natural Hedges -- Summary and Looking Ahead -- References -- Chapter 4 Liquidity -- Liquidity Is in the Eye of the Beholder -- Size -- Frequency -- Uniqueness -- Transparency -- Heterogeneity -- Risk and Liquidity -- Buy FITB Shares -- Buy FITB Single-Stock Future -- Buy FITB Calls -- Sell FITB Puts -- Buy XLF -- Buy SPY -- Conclusion -- Liquidity in a Broader Context -- Memberships and Contracts -- Housing -- The Job Market -- Finding Liquidity -- Buying a Car -- The Rise of Amazon -- Summary and Looking Ahead -- Bibliography -- Chapter 5 Edge -- What Is Edge? -- Understanding and Acting -- Marginal Traders, and Why They're the Only Ones that Matter -- Telling Stories -- Biases Big and Small -- Overconfidence Bias -- Confirmation Bias -- The Competitiveness of Financial Markets -- Are Stories Really Necessary? -- Constructing Reasons -- Creativity -- Persistence -- Quantitative Review -- Qualitative Review -- Practicality -- Go Try It -- The Nature of Real-World Edges -- The German Tax Dividend Trade -- When Edges Break -- Edges in a Broader Context -- Edges in the Workplace -- Your Personal Edge -- Summary and Looking Ahead -- References -- Chapter 6 Models -- Some Light Philosophy -- What Should Models Be? -- Scary Generative Models -- Scary Phenomenological Models -- Disagreements about Scariness -- Useful Simplifications -- An Example from High-Frequency Trading -- Putting the Cart before the Horse -- Characteristics of Good Models -- Robustness -- Hardware, Software, and Wetware -- Inspectability -- Data Management and Model Building -- Data Scarcity -- How Much Data Is Necessary?

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Text of Note

Every decision is a trade. Learn to think about the ones you should do-and the ones you shouldn't. Trading books generally break down into two categories: the ones which claim to teach you how to make money trading, and the memoir-style books recounting scandals and bad behavior. But the former don't have profitable trades to teach; if they did they'd keep those trades to themselves. And the latter are frequently entertaining, but they don't leave you with much you can apply in your own life. The Laws of Trading is different. All of our relationships and decisions involve trading at some level. This is a book about decision-making through the lens of a professional prop trader. For years, behavioral and cognitive scientists have shown us how human decision-making is flawed and biased. But how do you learn to avoid these problems in day-to-day decisions where you have to react in real-time' What are the important things to think about and to act on' The world needs a book by a prop trader who has lived, breathed and taught trading for a living, drawing upon years of insights on the trading floor in real markets, good and bad, whether going sideways, crashing, or bubbling over. If you can master the decision-making skills needed to profitably trade in modern markets, you can master decision-making in all walks of life. This book will teach you exactly those skills.-Introduces, develops, and applies one law per chapter, making it easy not only to remember useful concepts, but also to have them at the ready in any situation.-Shows you how to find and think about the "special edge" of your organization, and yourself.-Teaches you how to handle the interaction of people with artificially intelligent (AI) machines that make decisions, a skill that is rapidly becoming essential in the AI-driven economy of the future.-Includes a "bonus" digital ancillary, an Excel spreadsheet with various worked examples that expand on the scenarios described in the book. Do you need to make rational decisions in a competitive environment' Almost everyone does. This book will teach you the tools that let you do your job better.

Title

Laws of trading.

International Standard Book Number

9781119574217

Investment analysis.

Investments-- Decision making.

BUSINESS & ECONOMICS-- Finance.

Investment analysis.

Investments-- Decision making.

BUS-- 027000

Number

Edition

Class number

Book number

Lebron, Agustin,1976-

Brown, Aaron,1956-

Date of Transaction

20200822154832.0

Cataloguing Rules (Descriptive Conventions))

pn

Electronic name

[Book]

Y