Practical Speculation

Submitted by Book Library on 17 July, 2010 - 11:16

Praise for Practical Speculation More trading ′truth′ than a dozen typical market books combined. It’s in a league of its own. Active Trader magazine Victor Niederhoffer and Laurel Kenner probably know more about short–term movements than anyone else . . . an invaluable guide for speculators. James H. Lorie, Eli B. and Harriet B. Williams Professor Emeritus of Business Administration, Graduate School of Business, University of Chicago A Rabelaisian romp down Wall Street this book is fearless and occasionally shocking, but always the conclusions are backed up by supporting numbers. Recommended to those seeking both fun and profit.

Richard Zeckhauser, Frank P. Ramsey Professor of Political Economy, Harvard University Practical Speculation is so good that I’ll guarantee it. If it’s not for you, just return it to me with your sales receipt for a full prompt refund. Martin Edelston, Publisher, Bottom Line / Personal Pearls of investment wisdom from a Wall Street legend. I recommend it to anyone with serious financial aspirations. Andrew Lo, Harris & Harris Group Professor, MIT Sloan School of Management.

Positive Review of Book

My husband trades for a living. For many years now I have been in the dark, trying to understand what it is he does. Now it is very clear. I found this book to be very helpful in my understanding of this profession. Now I understand that I did not marry a gambler, which has saved our marriage.(HA-HA)

Negative Review of Book

The authors spend the first 8 chapters to warn readers about spurious correlation, ever-changing market cycle, propaganda and only to start to offer their own version of it in chapter 9 and after. It almost feels like Vic wrote the first part and Laurel wrote the second, or is it the other way around?

Author Biography

VICTOR NIEDERHOFFER′s storied career as a speculator spans more than twenty–five years. In the introduction to Practical Speculation, Vic describes the rollercoaster his hedge fund rode from No. 1 in 1996 to the debacle in 1997 that forced him to close his fund. Rather than giving up, he wrote this book "figuring that by trying to teach others, I might learn something myself," apparently with some success.

Niederhoffer was ranked No. 6 for the year 2003 among 200 managed futures hedge funds in the TASS database, and is No. 4 in the performance rankings through mid–2004. Niederhoffer is the author of the critically acclaimed Education of a Speculator as well as numerous groundbreaking academic articles about markets. A magna cum laude graduate of Harvard, he holds a doctorate in economics from the University of Chicago Graduate School of Business. He is a five–time national champion in squash and claimed the world title in 1976.

LAUREL KENNER has written several hundred columns on the stock market with Victor Niederhoffer for CNBC money, Active Trader magazine, worldlyinvestor.com, and TheStreet.com. She previously spent five years as chief U.S. stocks editor at Bloomberg News and five years as an award–winning aerospace reporter for Copley Newspapers.

Table of Contents

    PART I: MUMBO JUMBO AND MOONSHINE
  1. The Meme
  2. Earnings Propaganda
  3. The Hydra Heads of Technical Analysis
  4. The Cult of the Bear
  5. 'We're No. 1' Usually Means 'Not Much Longer
  6. Benjamin Graham, Mythical Market Hero
  7. News Flash: Computer Writes Stock Market Story!
  8. PART II: PRACTICAL SPECULATION

  9. How to Avoid (Spurious Correlations)
  10. The Future of Returns
  11. The Periodic Table of Investing
  12. When They Swing for the fences, We Run for the Exits
  13. Boom or Burst?
  14. Market Thermodynamics
  15. Practical Market Lessons from the Tennis Court
  16. The Fine Art of Bargaining for an Edge
  17. An Amiable Idiot in the Biotechnology Revolution
  18. Finale

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