The Hedge Fund Edge: Maximum Profit/Minimum Risk Global Trend Trading Strategies (Wiley Trading)

Description

Achieve higher returns with lower risk and take your profits globally. A leading hedge fund trader offers a solid and profitable trading approach to the world markets. "This is the best stock market book that I have read in a long time. Boucher lays it out clearly, concisely, and in a most interesting manner. A 'must read' for anyone who invests in the equities market." -Dan Sullivan Editor, The Chartist "A leading practitioner offers rich theoretical insights and sound practical advice based on years of successful trading. Mark Boucher is that rare investment analyst who knows what really works in trading and can communicate it with authority and grace." -Nelson Freeburg Editor and Publisher, Formula Research, Inc. The Hedge Fund Edge is an indispensable guide for any investor or trader who wants to consistently profit from the markets without having to undergo huge risks. Mark Boucher, hedge fund manager and well-known speaker on trading, provides readers with a solid methodology for achieving market-beating, long-run returns with risk that is substantially below the long-run risk of U.S. and global equities. Boucher first looks at the limitations of traditional stock and bond investing, and then explains how to determine the safest and most profitable periods for investing in stocks in any country. He explains this strategy both conceptually and with an objective model that has been used to manage money successfully since the 1950s. He shows how to allocate funds among global equities at any given time while following safe, reliable, and profitable trends. The book also provides a thorough discussion of the Austrian Liquidity Cycle, an original combination of Austrian Economics, Economic Alchemy, and Liquidity Cycle Theory. Boucher explains how to use this theory to understand the major moves behind the markets and determine the most profitable market in which to invest. The Hedge Fund Edge provides critical valuation and technical models as well as essential information on stock selection techniques to help readers identify which markets and stocks are both lower-risk and higher-performing. Boucher also describes, in detail, the impact of governmental policies on the markets and the connection between macroeconomic performance and investment performance. Also included are essential timing models for determining when to invest in gold, bonds, commodities, and other asset classes, as well as methods for allocating a portfolio with the goal of investing in the very best trends at any one point in time across all asset classes. The book emphasizes the power of diversification among asset classes, such as arbitrage funds, global hedge funds, different types of futures funds, distressed bonds, and other market-uncorrelated investments. Boucher explains how this diversification can be used to build a bullet-proof and highly profitable portfolio that returns consistently high profits with much lower than market risk. Boucher provides examples from his own real-time hedge fund trading experience and offers his performance as proof of what can be achieved via these techniques. The Hedge Fund Edge melds market timing, vehicle selection, risk management techniques, economic insight and understanding, and tactical asset allocation into a totally new philosophy and approach that has been proven to produce spectacular gains with relatively low risk. Review: covers a lot more than just hedge funds..... - There is so much information in this book that it demands at least two readings. First, there is a wealth of material on trading. The chapter on technical analysis and reading the markets is solid and contains some good tips I've not found elsewhere. There is an entire chapter on containing risk, a large focus of which is money management--this information is worth the price of the book in itself. Boucher also offers good material on selecting equities, evaluating other asset classes, and yes, hedge funds. However, the material on hedge funds does not take up a huge amount of space, and at first I wondered why he gave the book the title it has. I have since concluded that the title reflects his overall strategy, which is one of limiting risk by spreading ones' investments among many types of securities and asset classes, both onshore and offshore. Aside from the above mentioned material, however, Boucher also has a couple of chapters on basic economics which I found to be invaluable background information for traders (like me) without business or economic degrees. His description of the liquidity cycle is brilliant. He explains the economic theory of Austrian alchemy, and shows how that model makes better sense than Keynesian economics. He has also provided data to convince me (a social liberal) that corporate taxes have a negative effect on a nations' citizenry. This book requires dedication to get through certain sections, but it is well worth it. Its strength is its clear elucidation of trading information and techniques, supported by a foundation of economic theory and historical data, which enables the reader to understand the context in which s/he trades. Review: Must Read for traders! - Great book! Must read!