Commodity-markets

It is often said that economics
so far has had less successes
than other sciences, such as for instance physics,
because it has to deal with problems of
greater complexity. However, it seems that economists have
made little effort to rank economic problems according
to their level of complexity.
In this book, from the
very outset, the author selects a question which may
be seen as one of the "simplest" problems in economics.
Why?
Instead of considering the question of
price determination on one market
which depends upon all the numerous factors which
affect demand and supply, the author concentrates his
attention on the RELATIVE price differences between
several (spatially separated) wheat markets.
In such a way, all the factors
affecting demand/supply are so to say brushed aside.
The book first develops a very simple model which
describes the process of spatial arbitrage, that is to say
the decision to buy on a more distant market whenever the
price on that market added to the transport cost is smaller
than the price on nearer markets.
The model is first used to compare prices on only two
markets. Even in this simple form it permits
several predictions which are matched by observation.
In subsequent chapters the model is extended to
the case of N spatially separated markets and this
discloses the existence of a pattern of
prices WAVES hidden behind more of less erratic
price fluctutations due to random exogenous shocks.
Such price waves are indeed observed provided the
data are sufficiently "fine grained" in space as
well as time.
This is an elegant solution to the fundamental
problem of understanding the interactions between
N markets trading in the same commodity.
An incredibly insightful read. Highly recommended.

If you like this sort of thing sure go for it. I don't but well written

This book gets a 4 stars rating because of its expensive price (the book is only 220 pages and full of empty spaces). But, price is always subjective. You may treat it as the cost of your education.

Anyway, what makes this book so very valuable is the fact that it is easy to read, clear, definitive, and yes it has so many valuable information on what parameters to use for each indicator. How many of you left confused on what parameters should be used? This book will definitely clear away the clouds in your mind.

LeBeau has done extensive research on indicators such as ADX and his insights on other popular indicators are extremely valuable.

The title may be slightly misleading because bulk of the contents is explaining each technical indicator (120 pages), while only 45 pages on explaining how to build a trading system. Yet, it is clear and concise.

The final Chapter is also valuable. It deals with 12 Day Trading systems that the author has selectively chosen out of all day trading ideas he has or has received from other great traders.

I only discoverd this pretty old book recently. I am suprised to find there are quite a lot of trading tips. What make this book stands out of the crowd is the tips were very concrete and practical. The discussions about exit and stop loss are parcticular good. Many other books just said cut the loses quick. How quick? When? This book gives you some hints. The authors also give some tricks in using indicators which I hope I could know earlier.

Murphy has written a very good reference book, useful for brushing up on the finer points of charting, indicators and so forth. He also does a good job of going over the various technical theories with a straight face, neither endorsing favorites nor casting ridicule on the ones that are more logically suspect (cough cough, gannelliottfibonacci, cough cough).

The only thing I really took issue with was the habit of trying to predict the size and extent of price moves rather than sticking with more general observations regarding momentum and overall movement. Looking for something to happen before there is evidence of its arrival is a dangerous game for technical players, and to devotees of the approach, a friendly warning: be careful not to become a fundamentechnicalyst. Meaning, always keep in mind that effective technical analysis highlights probability rather than makes predictions. Since I just made up the word for this review, I'll now throw in the definition: A "fundamentechnicalyst" is one who makes predictions, just like the run of the mill fundamental analyst does- except the fundamentechnicalyst is making predictions based on technicals: chart patterns and various indicators, rather than supply and demand, weather, politics etc. In giving advance notice of how the movie is going to end, the approaches have similarity in their folly. The answer is to not say, "aha! because of pattern ABC, result XYZ must now occur...." Instead, say, "aha! because of pattern ABC, there is a reasonable probability that XYZ could possibly occur, but I recognize this is an odds game which means 1) it is normal, reasonable and expected for me to be wrong a portion of the time (the odds say so), and B) I gotta have a risk point, just in case this is one of those occurrences where the odds don't play out in my favor.

The difference in the thought process is subtle but critical. A prediction locks you in, creates a psychological commitment, brings your ego into the game, and screws up your mindset in general. Whereas if you recognize trading is essentially nothing but an odds game, then flexibility and peace of mind remain intact.

One of the hidden gems of this book was an excellent outline of why the contrarian method works. I don't want to give away Murphy's goods here, so I will just say that he points out a few very interesting reasons why it is natural for the majority to be wrong at turning points, and it is not simply because the masses lack trading ability or intelligence (though that is a factor, of course; the lumbering beast called Crowd is known for strong back and weak mind.)

To sum up, buy this book if you are new to technicals, if you want to brush up on your knowledge, or if you just want a handy reference. But be wary of the prediction trap. Keep your understanding of probability and odds intact.

Murphy has taken a very technical analysis of a "dry" subject and turned it into a readable, useful guide that should by read (and referred to often) by everyone who dares trade in the futures markets. It's a great first book on the subject, and a great book for experts alike.

Murphy has collected, collated, condensed and presented just about every method of technically analysing the futures markets. His text, whether dissecting simple or abstruse concepts, is remarkably lucid. Comprehensive and comprehensible, this is a reference futures traders must own. All I would have asked for in addition would be more suggestions for implementing trading strategies, but that, in fact, might require another book. If Murphy were to write it, he might outsell all those fake futures promoters and their $195 "courses" combined.

Investing isn't easy. Investing profitably is even harder. As a result, investors are always looking for that 'angle', that 'edge' that will help them realize more consistent profits.

In the past 2 decades, many on Wall Street have come to believe that technical analysis of stock charts is one of those tools. Having worked in the financial services markets since 1987, I do believe that technical analysis can be a helpful tool. And if you are looking for a definitive source of TA, then look no further.

Technical Analysis of the Financial Markets by John Murphy covers all the basic aspects of TA: philosophy, chart construction, fundamental vs. technical analysis, trends, major technical pattern recognition, moving averages, oscillators, times cycles, computer trading systems and much more. He also covers different methods of charting, including bar, point and figure and candlestick (be aware that most of the analysis techniques he presents apply to bar charting, not PnF or candlestick).

What I like most about the book is that it written clearly, simply and logically. It uses many graphical examples that SHOWS the reader what to look for. It does not rage on about the merits of TA (which many investors feel is complete hooey) but how to apply basic (and sophisticated) TA techniques. I use TA frequently in my business and find that it helps me manage my client's portfolios more effectively, especially when it comes to SELLING a position, whether to lock-in gains or limit losses.

If you are a TA convert, or if you have an interest in learning more about it, this book is a useful guide and should be purchased. Today, it remains one of the few investment reference books that I keep in my office.

Murphy's tome on technical analysis is rqeuired reading for any practioner in the financial markets. As a professional trader, I constantly refer to the book for soldifying core technical and trading tactics. A true gem of a work.

thorough and complete, the reader is left believing that upon completion they have seen and learned all there is to be known about charting.

a bible of technical analysis (if you're a believer). i cannot recommend it highly enough.

This book takes classical chart patterns and describes how to develop an options strategy to trade such patterns. The book is quite distinctive in this respect. How should we use options to trade a potential head and shoudlers bottom? This book tells you how, together with flow charts of the possible paths whcih a pattern could develop into. Traders who do not trade in options but like chart patterns should also like this book. I bought it because it gives insights into chart patterns. Now, as I begin to trade options, I feel I should get a lot of insights into converting my patterns into option strategies.

This book is well written. The explanations of when and how to use the various option tactics is clear and concise. Charts are provided so the reader can see how the option strategies actually worked.

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.