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Trading Catalysts: How Events Move Markets and Create Trading Opportunities
- By Robert Webb
- Published Oct 3, 2006 by FT Press.
- Copyright 2007
- Dimensions: 6x9
- Pages: 368
- Edition: 1st
- Book
- ISBN-10: 0-13-038556-5
- ISBN-13: 978-0-13-038556-7
- eBook (Watermarked)
- ISBN-10: 0-13-239479-0
- ISBN-13: 978-0-13-239479-6
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Product Author Bios
Robert I. Webb teaches Financial Trading at both the McIntire School of Commerce and the Darden Graduate School of Business Administration at the University of Virginia. His research focuses on derivative securities and markets, trading, and incentive economics. He is the author of Macroeconomic Information and Financial Trading(Oxford, 1994) and has written numerous academic papers. Webb has traded treasury bonds and other fixed income securities for the Investment Department of the World Bank; traded futures as a “local” on the floor of the Chicago Mercantile Exchange; designed new financial futures and option contracts for the Chicago Mercantile Exchange; served in the Executive Office of the President, Office of Management and Budget during President Reagan’s first term; and served at the Commodity Futures Trading Commission. He previously taught at the University of Southern California. Webb is editor of The Journal of Futures Markets, a leading academic journal on derivative securities and markets. He earned his Ph.D. in finance from the University of Chicago, and has published widely in both academic journals and the financial press.
In Trading Catalysts, Robert I. Webb examines the various factors that move markets. Webb focuses on the catalysts that spark the biggest price changes–and the greatest potential for substantial profits or losses. Using numerous real market examples, Webb demonstrates the often inconsistent response of prices to similar trading catalysts across markets and over time, the occasional significantly delayed response, and the frequent market overreaction. Whether traders bet directly on a trading catalyst, on the presumed market reaction (or overreaction) to it, or not at all, the potential impact on market prices and volatility means that all traders must pay attention to trading catalysts and the market reactions that they induce. At the very least, the prospect of significant volatility around some event may affect the timing of a trader’s entry or exit of positions and may cause a trader to reduce his position size. If you’re a serious trader, this book will help you understand the influence of trading catalysts and identify potential trading opportunities.
Volatile financial markets create both the risk of substantial losses and the opportunity for substantial gains. Sudden jumps or breaks in prices can impart a roller-coaster-ride-like quality to trading or investing in financial markets. Trading Catalysts is the first complete guide to the events that spark large changes in prices. These include: central bank actions; ill-advised comments by policymakers; news of natural disasters; elections; certain economic reports; terrorism; company specific announcements; the unwinding of large positions by key market participants; and simple trading errors among others. The varied origin of trading catalysts means that some traders may have an edge in anticipating the market’s reaction to certain trading catalysts. Numerous real market examples take the reader into the heart of the market to illustrate the direction, magnitude, speed, duration, intensity and breadthof influence of trading catalysts on market prices. Because a minute can be a “lifetime” in the world of trading, many of the detailed examples recount moment-by-moment and tick-by-tick changes in market prices. This book discusses the role that trading theses(or prevailing beliefs about market relationships), market conditions,and sentimentplay in determining how prices react and sometimes overreact to various trading catalysts over time. Trading Catalysts will help readers anticipate potential events that could spark rallies or breaks; predict situations with feedback loops that drive markets up or down; and identify situations where substantial overreactions are likely to occur.
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7 of 8 people found the following review helpful
Entertaining and informative, By
This review is from: Trading Catalysts: How Events Move Markets and Create Trading Opportunities (Hardcover)
The book was both fun to read and instructive, an unusual combination. It is clearly written and well organized. Each section deals with real life events that were easy to relate to and key issues are clearly highlighted. Chapters typically pull everything together with a concluding "trading lesson". It is a great book those who what to get a better understanding of what drives market prices in very real terms. I recommend it for those who are involved in brokerage and related trading activities, managing their own portfolios, students or those who are just curious
3 of 3 people found the following review helpful
Essential reading for anyone with an investment portfolio and especially for people that trade the news, By The Reader Without A Name (California) - See all my reviews
This review is from: Trading Catalysts: How Events Move Markets and Create Trading Opportunities (Hardcover)
Robert Webb's book Trading Catalysts is required reading for anyone that invests in the financial markets and especially for people that trade the news. The book is an excellent history of how major news events in the past have impacted the financial markets. At the same time it presents an excellent framework for managing the risks and exploiting the opportunities created by major news events. The global scope and multiple asset class perspective of this book is quite remarkable making it relevant for any reader regardless of what part of the world they are from and what they invest in. Trading Catalysts takes a very broad and complicated subject and makes it much easier for any reader to understand and capitalize on.
9 of 12 people found the following review helpful
too general to help my trading, By
This review is from: Trading Catalysts: How Events Move Markets and Create Trading Opportunities (Hardcover)
This book is a collection of historical facts and author's observation of price reactions to news/events in treasury, commodity, and equity markets. As a trader, I was disappointed that the author didn't present any in-depth analysis or strategies for taking advantage of the many trading catalysts and the volatility they create. This book can be a good introductory material for people new to the market, but not for traders.
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Praise For Trading Catalysts: How Events Move Markets and Create Trading Opportunities
Trading Catalysts Reviewed in CHOICE Magazine, August 2007
Webb examines unusual events, "trading catalysts," that create opportunities for potentially profitable trading. Some catalysts are internal to the securities markets; others, such as economic reports, political events, or weather and natural disasters, are external. He divides the book by type and devotes a chapter to each catalyst, giving numerous detailed illustrations. For example, geopolitical events include the war with Iraq, the arrest of Mikhail Khodorkovsky (the head of the Russian oil company, Yukos), elections, and terrorist attacks. Weather and disasters include hurricanes, floods, earthquakes, mad cow disease, and SARS. These unanticipated events cause the volatility of securities prices to increase, which creates an opportunity for trading. Comprehensive investment and financial market collections.
—H. Mayo, The College of New Jersey
Reprinted with permission from CHOICE, copyright by the American Library Association.
Online Sample Chapters
Introduction to Trading Catalysts: How Events Move Markets and Create Trading Opportunities
Trading Catalysts: Who Wins? Who Loses?
Table of Contents
Preface
Chapter 1: Introduction
Chapter 2: Market Conditions and Sentiment
Chapter 3: Talk Isn’t Cheap
Chapter 4: Geopolitical Events
Chapter 5: Weather and Natural Disasters
Chapter 6: Market Interventions
Chapter 7: Periodic Economic Reports
Chapter 8: Size Matters
Chapter 9: Bubbles, Crashes, Corners, and Market Crises
Chapter 10: The Accidental Catalyst
Index
Downloadable Sample Chapter
Book
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