Customer Reviews

High Performance Futures Trading: Power Lessons from the Masters

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In Indian capital market, a historic change is going to take place on July 2, 2001. Indian capital market has a system of carrying forward the trades done on the stock market till the party completes the delivery of cash or certificates as the case may be or squares off the transaction with a buy or sell as appropriate. During the carry forward period, the margin may or may not be paid by the investor, but he has to pay carryforward charges from settlemet period to settlement period. This practice is being stopped from July 2, 2001 and India will have a derivative market in financial securities in which only the players can take positions by paying margins.

Hence, there is a lot of interest in the country to read books on futures and options trading. People are moving from library to library to read books on derivatives. It is in this context that I came across this book.

This book is edited one. Right at the beginning of the book, the editor focusses the readers on the three essential elements of future trading: discipline, well designed trading system, and adequate capitalization. A chapter on discipline by Jake Bernstein stresses the importance of continuous effort to track the market data and act upon it. Kenneth Upshaw's chapter on conserving capital is a very useful chapter. In a recent seminar, a number of experienced brokers commented that clients in general do not like stop loss actions. That means many traders in the markets are doing a basic mistake. The call of the editor to traders to review the basics of trading is very appropriate. Eighteen chapters are devoted to discuss various technical approaches that were used by master traders successfully.

The last chapter summarizes all the chapters in the book and provides the common threads of the master strategies.

This book is recommended for study by every aspiring futures trader. Only difficulty could be that you have to find it in a library.