All Trading Books

In order to succeed in the capital markets, professional traders and investors must understand that markets aren't mathematical abstractions, but dynamic, real-time reflectors of the world we live in. You need to know how the capital markets work in practice, what the drivers are, how to recognize them, and how to develop and implement effective trading strategies.

Written by Joseph Benning, a Moody's Vice President and former Senior Economist at the Chicago Board of Trade, this vital financial resource provides examples of successful trading strategies, guidance on when and why to use them, and revealing discussions of trading psychology and risk management.

With his trademark lively and engaging style, Dr. Benning cuts through the complexities of the capital markets, making them accessible, practical, interesting, and easy to understand. He also organizes Trading Strategies for Capital Markets into three sections for maximum depth and clarity that cover

• The historical development of capital markets, the modern market, and drivers such as pricing, policy, and volatility
• Main instruments of capital markets, including debt, treasury and federal securities, corporate and municipal bonds, equity securities, hybrid securities, and options. This part also covers trading strategies such as Carry Trade, Tactical Yield Curve Trading, Treasury Basis, and Synthetic Yield Curve--and offers expert accounts of ETFs and equity indexes
• Insightful information on risk management, behavioral finance, trading psychology, and position risk

Trading Strategies for Capital Markets equips professional traders and investors with a complete, one-stop reference for all aspects of today's complex capital markets that includes winning trading strategies for taking advantage of current market realities.

User Reviews about Trading Stategies for Capital Markets

Benning assumes a mathematically sophisticated reader, who know little about how markets work. So he provides an education. Centred in no small way on the Efficient Market Hypothesis by Markowitz. This is the dominant theoretical framework for modelling financial markets, and whether you subscribe to it or not, you need to be well aware of it. The book suggests, based on plausible reasoning, that markets are weakly efficient. But that volatility can be greater than theoretically assumed.

Another key portion of the book covers the Capital Asset Pricing Model.

Black-Scholes option pricing is derived, showing the assumptions on which it was originally based. Other financial instruments are also covered. Like Collateralised Mortgage Obligation (CMO). Alas, no mention of its close relative, the Collateralised Debt Obligation, which has been much in the news in 2007. A curious omission. But the book is still well worth reading. -- nothing on CDO ?!