Trading Pairs: Capturing Profits and Hedging Risk with Statistical Arbitrage Str

The Nile on eBay   Trading Pairs by Mark Whistler

An accessible guide to the pairs trading techniqueA leading arbitrage expert gives traders real tools for using pairs trading, including customizable Excel worksheets available on the companion website.Mark Whistler (Denver, CO) is the key developer of pairstrader.com as well as a licensed securities trader and broker and leading arbitrage expert.

FORMATHardcover LANGUAGEEnglish CONDITIONBrand New Publisher Description

An accessible guide to the pairs trading techniqueA leading arbitrage expert gives traders real tools for using pairs trading, including customizable Excel worksheets available on the companion website.Mark Whistler (Denver, CO) is the key developer of pairstrader.com as well as a licensed securities trader and broker and leading arbitrage expert.

Back Cover

Pairs trading is an effective trading style that has traditionally been utilized by institutional investors such as hedge funds and savvy individuals who trade for a living. But today, this style has been adopted by a broad range of traders-from the novice to the veteran. With the help of technology and some commonsense guidance, you too can begin using this technique to boost the profits of your portfolio. Written by Mark Whistler, a licensed securities trader and broker and leading arbitrage expert, Trading Pairs clearly illustrates this profitable technique, and allows you to gain a new perspective on the markets as well as a new approach to investing. In addition, if you have access to the Internet and Microsoft Excel, the companion website can help you put everything in this book to practice, as well as track your pairs. "Mark Whistler has produced the ultimate guide to pairs trading that is a must read for any technical or fundamental market trader. Better yet, he's done so with a sense of humor that makes for an even better read!" - Scott Cortelyou cohost, Business for Breakfast , 760 AM, The Zone, KKZN

Flap

Traditionally, when you either buy or sell a stock, you hope that it moves in the one direction that results in a profit. However, at times, this strategy leaves you with a "naked" position that is simply at the mercy of the markets. Thus, pairs trading offers a unique alternative and allows you, the individual investor, a way to "hedge" positions. The goal is to protect your portfolio from dramatic market upswings or downturns, while finding stock relationship inequalities–all in an effort to make money. Written by Mark Whistler, a licensed securities trader and broker and leading arbitrage expert, Trading Pairs: Capturing Profits and Hedging Risk with Statistical Arbitrage Strategies clearly illustrates this profitable technique, and allows you to gain a new perspective on the markets as well as a new approach to investing. In addition, if you have access to the Internet and Microsoft Excel, the companion CD-ROM can help you put everything in this book to practice, as well as track your pairs. This informative, yet easy-to-read guide begins by laying a small foundation that will help you form a solid understanding of pairs trading. You’ll be introduced to market basics such as liquidity ratios and shares outstanding. You’ll also receive a briefing on how both fundamental and technical analyses tie into pairs trading. Once the basics are covered and you’re familiar with pairs terminology, you’ll learn how to put this profitable technique to use in your trading endeavors. In straightforward and easy-to-understand language, Trading Pairs explores the fundamental, technical, and emotional cycles of the market’s rotational relationships, and illustrates how to capitalize on discrepancies when disharmony appears. It will discuss, in-depth, the importance of: Understanding correlations, including stock correlations in relation to indices Using statistics to: identify relationships, assist in determining the direction of the relationship, and ascertain how to execute your trades based on the data presented Differential versus ratio Moving averages and NSD Money management Using Excel to trade pairs And much more Pairs trading is by no means the "holy grail" of trading, but with the proper base of applicable knowledge and impeccable money management skills, you’ll find yourself with an effective trading strategy for any market environment. Filled with in-depth insights and practical advice, this book will help those who don’t have access to expensive trading software create live spreadsheets, track pairs like a pro, and increase the bottom line of their portfolios.

Author Biography

Mark Whistler is a licensed securities trader and broker and leading arbitrage expert. Mark recently worked as the Editor in Chief for a respected financial newsletter and was a guest analyst on a nationally syndicated radio show. He holds a bachelor's degree in finance and art history. He is the key developer of pairstrader.com and can be seen around the country giving seminars on trading techniques, technical analysis, pairs trading, and deciphering economic news. He has contributed to a market show on 760 AM (in the Denver area), and writes a newsletter, The Pairs Trader (pairstrader.com).

Table of Contents

Acknowledgments. Introduction. CHAPTER 1:The Nuts and Bolts. What Are Pairs? How Do Pairs Work? Who Uses Pairs? Mindset of Reading This Book. CHAPTER 2: Why Fundamental Analysis? Common Sense. China.com. How Fundamental Analysis Relates to Pairs. CHAPTER 3: Market Basics. Growth and Growth Ratios. Growth, PE, and the PEG Ratio. Tying It All Together. CHAPTER 4: Technical Analysis. Candlestick Charting. Support and Resistance. Trend Lines. Moving Averages. CHAPTER 5: Technical Analysis Indicators. Stochastics. Chaikin Money Flow Oscillator. On-Balance Volume. Relative Strength Index. CHAPTER 6: Basic Pairs Terminology. Understanding the Correlation. Spread, Differential, and Ratio. Divergence Trading. Convergence Trading. CHAPTER 7: Importing Data into Excel. CHAPTER 8: Understanding Correlations—Steve Price. CHAPTER 9: Correlation Simplified. What Is a Correlation? Where to Find Correlations. Building a Correlation Using Excel. CHAPTER 10: Understanding Stock Correlations in Relation to Indices. Why an Index? What Is Beta? How to Apply Beta. Where to Find Beta. CHAPTER 11: Basic Statistics. Frequency Distribution. Mean/Median/Mode. Mean Deviation. Variance. Standard Deviation. CHAPTER 12: Excel and Statistics. Setting Up the Spreadsheet. Average, Median, Mode, and Standard Deviation. Understanding the Present Data. How Do You Know Which Stock to Buy or Short? Charting the Data. CHAPTER 13: Differential versus Ratio. Differential. Ratio. CHAPTER 14: Applying Statistics to Pairs. Density Curve. Understanding the Data. CHAPTER 15: Taking a Step Back for a Moment. CHAPTER 16: Moving Averages and Normalized Standard Deviation. Standard Deviation. Differential Moving Average. Normalized Standard Deviation. CHAPTER 17: Money Management. Why Money Management? Psychology of Money Management. Understanding How Pairs Can Be Dangerous. CHAPTER 18 Money Management II. Fundamental Principles. Know Yourself. The Plan. CHAPTER 19: The Reality of Pairs. Do Pairs Really Work? Trader or Investor? Making the Style Work for You. Intraday Pairs. CHAPTER 20: Trading an Actual Pair. Introduction. Trading Diary—The Beginning. Historical Time Line of Divergence Events. CHAPTER 21: The Current Setup. Understanding Where the Pair Is Now. Anadarko Petroleum. CHAPTER 22: Trading Diary. CHAPTER 23: Correlating Stocks to Indices. General Electric and ExxonMobil. General Electric and the DIAMONDS. ExxonMobil and the DIAMONDS. The Three Wise Men. CHAPTER 24: Option Basics—Scott P. Evans. CHAPTER 25: Understanding Volatility. What Is Volatility? Volatility Position Sizing in Your Spreadsheet. Volatility and the Individual Stock. Weighted Volatility. CHAPTER 26: Understanding Volatility and Options. Speed and Option Premium. Option Strategies for Pairs. CHAPTER 27: Using Technical and Fundamental Analysis with Pairs. Technical Analysis. Fundamentals. KBH Homes and Tol Brothers. Moving Averages and Support and Resistance as Stops. CHAPTER 28: Assorted Advice to Assist Trading. CHAPTER 29: The Monitor Sheet. CHAPTER 30: Conclusion. The Market Bubble. Words of Caution. Last Words of Advice. Appendix I Economic Indicator Summary. Appendix II Web sites, Books, and Software. Endnotes. Glossary—Jonathan Crowell and with Additions from Andrew and Aaron Long. Index. About the CD-ROM.

Long Description

Pairs trading is an effective trading style that has traditionally been utilized by institutional investors such as hedge funds and savvy individuals who trade for a living. But today, this style has been adopted by a broad range of traders from the novice to the veteran. With the help of technology and some commonsense guidance, you too can begin using this technique to boost the profits of your portfolio. Written by Mark Whistler, a licensed securities trader and broker and leading arbitrage expert, Trading Pairs clearly illustrates this profitable technique, and allows you to gain a new perspective on the markets as well as a new approach to investing. In addition, if you have access to the Internet and Microsoft Excel, the companion website can help you put everything in this book to practice, as well as track your pairs. "Mark Whistler has produced the ultimate guide to pairs trading that is a must read for any technical or fundamental market trader. Better yet, he s done so with a sense of humor that makes for an even better read!" Scott Cortelyou cohost, Business for Breakfast , 760 AM, The Zone, KKZN

Feature

An accessible guide to the pairs trading technique. Filled with readable theory and applicable guidance. Includes helpful Excel spreadsheets to enable the reader to better understand pairs trading in action. Information is customizable so as to permit readers to adjust it to their personal preferences.

Details ISBN0471584282 Author Mark Whistler Series Wiley Trading Language English ISBN-10 0471584282 ISBN-13 9780471584285 Media Book Format Hardcover DEWEY 332.645 Series Number 216 Year 2004 Imprint John Wiley & Sons Inc Subtitle Capturing Profits and Hedging Risk with Statistical Arbitrage Strategies Place of Publication New York Country of Publication United States Short Title TRADING PAIRS Edition 1st DOI 10.1604/9780471584285 UK Release Date 2004-08-24 AU Release Date 2004-07-15 NZ Release Date 2004-07-15 Pages 304 Publisher John Wiley & Sons Inc Publication Date 2004-08-24 Illustrations Charts: 139 B&W, 0 Color Audience Tertiary & Higher Education US Release Date 2004-08-24 We've got this

At The Nile, if you're looking for it, we've got it.With fast shipping, low prices, friendly service and well over a million items - you're bound to find what you want, at a price you'll love!

TheNile_Item_ID:126566054;