Option

This book is an essential a textbook for college students. It provides all the basic materials about the futures market. But I feel it doesn't cover too much about the problems of real world trading. After trading for sometimes, I know that there are many tricks using by the professional traders. They are really important. They can give you edges over other traders. But they are seldom covered in college textbooks. So you still need to read other books or learn from other people before you put the money into this risky game.

This is clearly one of the best investment books written. The title belies the breadth of valuable market knowledge the book offers students of the markets.

If you are going to trades futures, read this book, make a few trades, then read this book again. It is a cold, hard look at the reality of trading. While just about every other book on futures trading assumes you are a gullible idiot, this one exposes the difficulty of the pursuit. Its depth and breadth are incomparable.

There is no question that when it comes to informational books on trading, Schwager is the best around. This book meets his high caliber of quality and informativeness. I can recommend this book to anyone looking to broaden their knowledge of fundamental analysis and the guts of what affects supply and demand. But I can't recommend the book wholeheartedly because basing trading decisions on fundamental analysis in itself is such a flawed approach in my opinion.

I used to pay a lot of attention to fundamentals. I would spend hours each day looking at news and research to get a feel for the reasoning behind the movement. After doing this for a while, I realized the inherent futility in the approach- if a trade sets up technically I will take it, unless there is some compelling reason not to, and if there is no technical confirmation, I won't take it, period- and so fundamental analysis just doesn't play much of a role in either case. Nowadays, I still keep tabs on fundamentals somewhat, but mainly only to avoid getting hit by a train- not taking action in front of a significant report or going short coffee in the freeze season, stuff like that. Below are a few reasons why my trading has become solidly technical:

1) Most daily news is worthless, and here is why: at any given time, there are half a dozen arguments for being bearish on a market, and half a dozen reasons to be bullish. When a market has a big move up and the reason isn't clear, the news services pick a couple of the bullish reasons and talk about those. If the market has a move down, they highlight some of the bearish reasons. It's total retrofitting, and thus usally a waste of time to read because there's usually not really a way to turn that knowledge into profit. The "traders" that the newsies interview are often just run of the mill clerks or brokers who don't really know anything special- or if they do, they don't tell. The classic filler explanations on the aftermarket newswires are "profit taking," "fund buying" and "fund selling." When you read about one of those three, the general translation is that the reporter dragged out one of the old standards because "who the heck knows" just doesn't make good copy.

2) Many of the best trades are the ones where the move starts before anyone knows why. Bruce Kovner talked about this concept in the first Market Wizards. (Incidentally, Kovner was making 300 million a year in profits at one point, so he might be worth listening to). If a breakout occurs when everyone is expecting it, then everyone is in already, and the odds are not as good because a lot of the buying (or selling) is already done. But if a breakout occurs and no one knows why, then there are (1) potentially powerful hidden reasons for the move, and (2) a whole group of traders who are not in the market yet and may want or need to get in (or out if the move is against them) once the reason comes to light. So, by deduction, if some of the best trades are the ones where the fundamentals reasons are not yet clear, then by paying attention to fundamentals too much, you run the risk of keeping yourself out of the best trades. You have to be willing to say, "I don't know why this setup is occurring, but the technicals are tellling me something that the news might confirm later." Because the news often comes after the window of opportunity has already closed, you often have to be willing to act before the fundamental reasons are clear.

3) Analysts are often biased and have a hesitancy to change views. When an analyst writes down his opinion on a piece of paper and then sends it out for everyone to see, part of his pride and reputation is staked on that opinion. It is a psychological fact that writing something down, and confirming something to other people, makes a person more committed to that belief because humans have a very strong desire to be consistent. That makes him very hesitant to change his mind, even when the facts change. If an analyst is bullish one week and then the facts turn bearish the next week, the analyst should change his mind- but the odds are that he will not, because he will be thinking "well, if i was bullish last week and do a 180 to bearish this week, then I will look stupid." But often that is the right thing to do! Especially for fundamental analysis, being flexible is very important. But most analysts are too worried about their reputations to have that flexibility. This is one reason trends occur, because the masses are hesitant to change their minds even when it is rapidly becoming clear that they should.

4) Much of fundamental analysis is either incomplete or just plain wrong. Even if you have 90% of the puzzle pieces, the 10% that you are missing could be important enough to turn the whole picture upside down. Or if you somehow miraculously have all the pieces, you still have to figure out how to weight them properly and determine what the market is going to pay the most attention to. It is almost impossible to get all the facts correctly uncovered and assembled without overlooking anything. And then there is always the possibility that something could come up by surprise that you were not prepared for. Different analysts with access to the same information will often have directly contradicting opinions on a market. What does that tell you? Generally the only time that the analysts are all on the same page is when the writing on the wall is obvious- and by that time, the move is usually almost done if not over. There is simply no free lunch.

5) Price- the ultimate value judgment of all underlying fundamentals- reveals itself in the technicals. The technicals don't lie and the technicals don't have an emotional bias. They represent the opinions of the entire market, with a heavier weighting towards the bigger and smarter players, and are thus more reliable than individual opinions subject to bias and error. For a fast mover such as myself, this is what needs to be known. I'm interested in the next three days, not the next three months or years.

For the above reasons, fundamental traders caveat emptor.

This is the most comprehensive books on Fundamental Analysis that I have ever seen. This book along with Schwager's Technical Analysis book are required reading for new futures brokers that I hire to my firm.

Mr.Schwager and Mr.Turner have put a very strong mathematical spin on how fundamental analysis can be accomplished. They dissect government trade reports and analyst reports and put an empirical face on the nebulus act of fundamental analysis.

In the preface of the book Mr.Schwager admits that fundamental analysis is not quite accurate. Which begs the question, "why write such a complex book?"

This book is not for the faint of heart, nor is it light reading. It is quite indepth and for the most part above the heads of many beginning futures investors. In order to understand any of the examples you have to have solid trading reference points in your personal trading life.

I recommended it for intermediate traders primarily.

After being involved with futures for 11 years and authoring three books on the subject, I am always impressed at Mr.Schwager thoroughness in researching.

This Series "Schwager on Futures" is the biggest work has ever been written on futures trading. As a Futures Trader I advise everybody to read these books before to starts any real trading in Futures, that if not taken in the proper way can be very painfull. As a Member of IFTA(International federation Of Tecnical Analisys)I suggest you to read it joint with John Murphy's "Technical Analisys f Futures Markets" and "Intermarket Technical Analisys" this will give you a integral knowledge of Futures Environment that is what you need on your Trading philosophy. I always let these books on my desk because I need them so many times during my trading day. THEY ARE A REAL REFERENCE. The good thing of this series is that you can test your comprension by the various study guides. Reading the book about "Managed Trading" You can even get able to judge the returns of the various CTA and decide when it is better to invest in them and to whom give your money.Probably you are not be interested in the Fundamental analisys book but remember, especially in the commodities markets, EVEN IF YOU ARE GOING TO TRADE TECHNICALLY IS VERY IMPORTANT TO UNDERSTAND FUNDAMENTAL ANALISYS!!! Thank you very much to have spent all this time for read me.

The one thing this book points out is that no matter how close of a friend any one country claims to be with another, in the end all countries are out for themselves. I would think that government officials would know this one ancient fact, it must be a staple of foreign policy. Yet reading this book and the stumbling around the US government did you kind of wonder if maybe they were just putting their heads in the sand and hoping the issue would go away. The book details out how Israel bought, lied and stole their way to the nuclear bomb, you got to give it to them they just kept going after the goal they set. The path they took is well laid out by the author and you get a good taste for the political dealing between the US and Israel.

My only complaint with the book is that the author could have spent just a bit more time clearly explaining the fears in Israel that drove them to get the bomb. The author touches on this point but I would have liked more detail. Then again it may be difficult to truly understand their mindset given the violent history they have had over the past century. Overall I found the book to be interesting and well put together yet not overly exciting. If you are interested in this part of history or even how US / Israel politics worked in the cold war then you will enjoy this book. If you are looking for an exciting true life spy story then this is not the book for you.

This book proved to be very interesting when I started reading it.It gives you a very good inside look of how Israel was able to obtain the atomic.Seymour Hersh shows how Israel dealt with the United States,South Africa,and Iran to obtain the technology
and materials to become a nuclear power. You are shown the spy activities that were used by Israel to make this a sucessful effort.This book leaves little to the imagination.This is a good history of the nuclear movement in Israel.Read this book,you
will enjoy it.

As is necessary for a subject as shrouded in secrecy, the author must do a considerable amount of detective work in order to arrive at a deep understanding. "The Samson Option" is exemplary in this style of book. Written like a detective story and with not a page lacking suspense, this book rivals any of the best Sherlock Holmes or the best modern-day thrillers. Yet, this is no fiction! It is apparent from the thorough notes that the author hasn't spared an ounce of meticulous research about such an important topic as nuclear weaponry. In it we learn about espionage tales, about cold war alliances, and about nuclear blackmail. Does Israel have nuclear weapons? If so how did they obtain them? What is the United States position on this, and why does it matter? Who funded the Israeli bomb? "The Samson Option" answers all these questions and many more, but in the process generates many more questions and mysteries that remain to be solved. Truly thought-provoking and enjoyable reading!

This book is intended (more or less) for a person beginning in options. Its no "walk in the woods" but considering the abstruseness of both the subject and the other books on the topic I have scanned, it's near the top of the class. I think, it may also be somewhat more understandable than the Option Industry Council's - Option's Toolbox CD. This whole area has been poorly explained to the beginner for the most part, which is why options are not much more widely used despite their potential for leverage and risk reduction.

A concise, useful, and comprehensive overview of futures trading. It was quite appropriate for a beginner.

Of the ten + options books that I have read, this was my first, and it is the best. I still refer to it often. Most of the other books are either too technical or too simplistic. This engages the reader with practical examples and descriptions of the types of trades that the novice to intermediate investor will use most. I heartily recommend it.

This is not your ordinary trading book, but one that teaches some real "usable" techniques. The book is broken up into chapters written by different people, so the tone of voice will change frequently. The prize of this book is the Seleznov breakout method, which anyone can use to trade profitably for life. That alone is worth thousands of times the price of this book. I'd recommend this for any serious amateur/semi-pro level short term trader who may be lacking a consistent trading system.

This is an eclectic book. It doesn't focus on a major theme and is a collection of different people's views plus the author's.

I would not recommend this book for beginners who want to learn the basics because I don't feel the foundation is thorough.

It is a good book for those who want to see how others trade, their diverse techniques, and their opinions on trading. Also of value are the risk management techniques.

A more appropriate title would be: Different techniques by various traders and other trading tips.

I have read many "trading" books, and find this one a pleasant suprise. Section Two includes a good source of trading strategies that work, each one written by people who actually trade. Strategies covered include 1) pure price action by Gary Smith, 2) breakouts by Mark Seleznov, 3) seasonals by Steve Moore, et.al., 4) patterns by Mark Etzkorn, 4) springs and upthrusts by Hank Pruden, 5) Bow Tie patterns by Dave Landry, and a few others.

The strategies include a good summary of setups, entries, stops, and exits. These summaries are general enought that you can program them in most any backtest software you use, not just Tradestation or C++. I use them to backtest with TC2000 and TC Companion.

The book also has very good information on risk mangement, the mechanics of trading and the mindset of different trading styles.

The great thing about this book, is that it is a well integrated compilation of tools and techniques from a variety of well known and/or highly successful traders. The editor did a wonderful job of taking this diverse group and integrating the book into a very logical and usable flow.

While it may be too much for the pure beginner, this book will be most appreciated by the intermediate to advanced trader.

This book can be characterized as a list of attached examples, or a collection of notes. It is difficult to follow and not thorough. Rather than explaining concepts the authors give examples, one per chapter. Furthermore, most of the material is repeated in each chapter since they apply to all the examples. This is a book made in a hurry by compilation of the authors notes. My major interest was in AMT implications which were ignored. After trying to read it for 2 days it went to a corner of my bookcase.

A reader from Westborough reviewed the book and did not find it helpful, I disagree. I think the book is intended for the reader like me who has a limited knowledge of their options. In addition, the stories/examples within the books were the best part of the book. If you have an advanced knowledge of options this book might not be right for you, but if you need a simple, easy to read and enjoyable overview of options - I suggest you read this book.

I was lost with my options until I read this book. I feel that I am able to guide myself through the maze of options with help of this book.

Outstanding book. I bought this for my daughter who, against my better judgement, chose to be a psychology major at Madison. Before I gave her the book, I read the whole thing. I'm not nearly as worried anymore. This book provides excellent overview to what can be accomplished with a Psych degree.

I liked this book because it was short and easy to read and gave a great overview of careers, job options and graduate school. It's funny too. I had it assigned to me in a class and I didn't resell it!

This book is a quick and easy to read friend to a psychology major. The authors direct you to other resources but give you all the basics you need to know. It reads like they've actually talked to psychology majors and know our concerns.

This is not a TA or Day trading book, this is an insult to every serious trader. Classic example of take the money and run.
Part 1 (by Jea Yu): same tools of previous book (2MA+Stochastic), 168 pages with 13 charts. Sorry, i forgot the new innovative tool: 3 period exponential moving average with a shift -3. WOW !!!!!!!!!
Part 2 (by Russell Lockhart,Ph.D.): 174 pages, about 30 charts.
Group Orgy with Candlesticks+Lunar Clock+Fibonacci+Natural Squares+Harmonics of Range+Market Structure+Price/Time+Three-Price Breaks+ bla bla bla.
Appendix A: "These two entry techniques uses the indicators in an innovative way". First technique: 20-period EMA retracement technique (do you remember Street Smarts?). Second technique: stochastic divergence trades (very, very innovative tool, a 5-3-3 stochastic with a 1 min. chart).
Last but no least. Appendix B (by John Allen). The chart (pag.345) displays an Evening Star pattern, top reversal signal: sell signal. No, for Mr. Allen this pattern is a Piercing pattern, bullish pattern etc... etc...
This book is not worth the paper that it is printed on (recycled, acid-free paper).
Save the last scalpers !!!

Thank you Jay, and all underground traders team for sharing all new developments and extraordinary capabilities to deserve my own trading methods.
A PUP book wrote by amazing real traders.

I am a full time Day-Trader and utilise the methods outlined in this book. The book provides a comprehensive review of the methods used at undergroundtrader .com It is not a book for complete beginners. Some initial readings with more basic books will be needed in order for newer traders to gain full benefit. The book is excellent because it provides 2 approaches to trading. I strongly advise you to get this book if you are considering trading as a full time career, dont pay attention to people who slag off this book .I trade full time using these methods and they work. The lack of reference to Day Trading in this book is probably because of the bad name that it now has. Yet this book is really about trading not investing, mainly on an intraday basis. Moreover there are very useful strategies discused which can help the investor or less active trader to. Overall it is an essential addition to any trader or investors arsenal.

The book is of very limited value for any company outside the US. All explanations are given with regard to US laws and regulations.

This book is an invaluable reference for any business owner or advisor contemplating the use of stock options to improve a company's performance, motivate employees and create an ownership culture. The National Center for Employee Ownership, the impetus behind this book, is a national treasure, as far as I'm concerned. Their mandate is to democratize the workplace to best reflect the demands and dynamics of the 21st Century Global Economy. This book uniquely addresses everything a company needs to consider regarding stock options: the business, financial, accounting, legal, securities and human resources/organizational development aspects. You cannot find a better resource or more accessible book in the stock options arena.

Excellent book. Though the title doesn't sound as hot as "Ectrepreneu's guide to equity", it covers much more and in depth with the same price. It covers all the pros and cons and tax issues for stock option and empolyee stock ownership plan and other incentive plans. The bottom line, after reading the book, you won't be any more confused about each plan. To an employee, it is very helpful in deciding if you want to stay with present employer or change to another one with a better incentive plan. To an entreprenur, this is the Bible. It will benefit your business and your staff enoumously. I wish I had bought this book first. It could have saved me time and money in shipping $ handling fees and returing back to Amazon the "Entrepreneu's Guide to Equity"

If the book store wasn't so far away, I would have driven back to return this book. As a working parent thinking of staying home, the title caught my attention. However, within pages it became really obvious the author uses this book as a platform to repeatedly bash daycares and manages to work this theme in throughout the book. To be fair, when the author focuses on stay-at-home strategies the book seems ok, although she veers off the subject so frequently to express her opinions about what constitutes a good mother that it's difficult to get through. The negativity expressed towards working women in this book is astonishing and makes me question why staying home seems to create so much hostility towards those that don't.

I didn't feel that the author "bashed" day cares. The author had a section about deciding to stay home in the first place. I found the sections about transitioning back to work very helpful.

Written with respect, wit, and honesty, this book stands out among the many parenting books now on the market. Berggren's experience and insight make the book worthwhile. Her writing style makes the book enjoyable to read. Offers perspective, alternatives, and food for thought.