{"product_id":"trading-pairs-isbn-9780471584285","title":"Trading Pairs","description":"An accessible guide to the pairs trading technique\u003cbr\u003e A leading arbitrage expert gives traders real tools for using pairs trading, including customizable Excel worksheets available on the companion website.\u003cbr\u003e Mark Whistler (Denver, CO) is the key developer of pairstrader.com as well as a licensed securities trader and broker and leading arbitrage expert.  Acknowledgments.  \u003cp\u003eIntroduction.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1:The Nuts and Bolts.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Are Pairs?\u003c\/p\u003e \u003cp\u003eHow Do Pairs Work?\u003c\/p\u003e \u003cp\u003eWho Uses Pairs?\u003c\/p\u003e \u003cp\u003eMindset of Reading This Book.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2: Why Fundamental Analysis?\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCommon Sense.\u003c\/p\u003e \u003cp\u003eChina.com.\u003c\/p\u003e \u003cp\u003eHow Fundamental Analysis Relates to Pairs.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3: Market Basics.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGrowth and Growth Ratios.\u003c\/p\u003e \u003cp\u003eGrowth, PE, and the PEG Ratio.\u003c\/p\u003e \u003cp\u003eTying It All Together.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4: Technical Analysis.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCandlestick Charting.\u003c\/p\u003e \u003cp\u003eSupport and Resistance.\u003c\/p\u003e \u003cp\u003eTrend Lines.\u003c\/p\u003e \u003cp\u003eMoving Averages.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5: Technical Analysis Indicators.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStochastics.\u003c\/p\u003e \u003cp\u003eChaikin Money Flow Oscillator.\u003c\/p\u003e \u003cp\u003eOn-Balance Volume.\u003c\/p\u003e \u003cp\u003eRelative Strength Index.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6: Basic Pairs Terminology.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderstanding the Correlation.\u003c\/p\u003e \u003cp\u003eSpread, Differential, and Ratio.\u003c\/p\u003e \u003cp\u003eDivergence Trading.\u003c\/p\u003e \u003cp\u003eConvergence Trading.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7: Importing Data into Excel.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8: Understanding Correlations—Steve Price.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9: Correlation Simplified.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is a Correlation?\u003c\/p\u003e \u003cp\u003eWhere to Find Correlations.\u003c\/p\u003e \u003cp\u003eBuilding a Correlation Using Excel.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10: Understanding Stock Correlations in Relation to Indices.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy an Index?\u003c\/p\u003e \u003cp\u003eWhat Is Beta?\u003c\/p\u003e \u003cp\u003eHow to Apply Beta.\u003c\/p\u003e \u003cp\u003eWhere to Find Beta.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11: Basic Statistics.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFrequency Distribution.\u003c\/p\u003e \u003cp\u003eMean\/Median\/Mode.\u003c\/p\u003e \u003cp\u003eMean Deviation.\u003c\/p\u003e \u003cp\u003eVariance.\u003c\/p\u003e \u003cp\u003eStandard Deviation.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12: Excel and Statistics.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSetting Up the Spreadsheet.\u003c\/p\u003e \u003cp\u003eAverage, Median, Mode, and Standard Deviation.\u003c\/p\u003e \u003cp\u003eUnderstanding the Present Data.\u003c\/p\u003e \u003cp\u003eHow Do You Know Which Stock to Buy or Short?\u003c\/p\u003e \u003cp\u003eCharting the Data.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13: Differential versus Ratio.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDifferential.\u003c\/p\u003e \u003cp\u003eRatio.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 14: Applying Statistics to Pairs.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDensity Curve.\u003c\/p\u003e \u003cp\u003eUnderstanding the Data.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 15: Taking a Step Back for a Moment.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 16: Moving Averages and Normalized Standard Deviation.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStandard Deviation.\u003c\/p\u003e \u003cp\u003eDifferential Moving Average.\u003c\/p\u003e \u003cp\u003eNormalized Standard Deviation.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 17: Money Management.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Money Management?\u003c\/p\u003e \u003cp\u003ePsychology of Money Management.\u003c\/p\u003e \u003cp\u003eUnderstanding How Pairs Can Be Dangerous.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 18 Money Management II.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFundamental Principles.\u003c\/p\u003e \u003cp\u003eKnow Yourself.\u003c\/p\u003e \u003cp\u003eThe Plan.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 19: The Reality of Pairs.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDo Pairs Really Work?\u003c\/p\u003e \u003cp\u003eTrader or Investor?\u003c\/p\u003e \u003cp\u003eMaking the Style Work for You.\u003c\/p\u003e \u003cp\u003eIntraday Pairs.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 20: Trading an Actual Pair.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction.\u003c\/p\u003e \u003cp\u003eTrading Diary—The Beginning.\u003c\/p\u003e \u003cp\u003eHistorical Time Line of Divergence Events.\u003c\/p\u003e \u003cp\u003eCHAPTER 21: The Current Setup.\u003c\/p\u003e \u003cp\u003eUnderstanding Where the Pair Is Now.\u003c\/p\u003e \u003cp\u003eAnadarko Petroleum.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 22: Trading Diary.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 23: Correlating Stocks to Indices.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGeneral Electric and ExxonMobil.\u003c\/p\u003e \u003cp\u003eGeneral Electric and the DIAMONDS.\u003c\/p\u003e \u003cp\u003eExxonMobil and the DIAMONDS.\u003c\/p\u003e \u003cp\u003eThe Three Wise Men.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 24: Option Basics—Scott P. Evans.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 25: Understanding Volatility.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Volatility?\u003c\/p\u003e \u003cp\u003eVolatility Position Sizing in Your Spreadsheet.\u003c\/p\u003e \u003cp\u003eVolatility and the Individual Stock.\u003c\/p\u003e \u003cp\u003eWeighted Volatility.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 26: Understanding Volatility and Options.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSpeed and Option Premium.\u003c\/p\u003e \u003cp\u003eOption Strategies for Pairs.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 27: Using Technical and Fundamental Analysis with Pairs.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTechnical Analysis.\u003c\/p\u003e \u003cp\u003eFundamentals.\u003c\/p\u003e \u003cp\u003eKBH Homes and Tol Brothers.\u003c\/p\u003e \u003cp\u003eMoving Averages and Support and Resistance as Stops.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 28: Assorted Advice to Assist Trading.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 29: The Monitor Sheet.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 30: Conclusion.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Market Bubble.\u003c\/p\u003e \u003cp\u003eWords of Caution.\u003c\/p\u003e \u003cp\u003eLast Words of Advice.\u003c\/p\u003e \u003cp\u003eAppendix I Economic Indicator Summary.\u003c\/p\u003e \u003cp\u003eAppendix II Web sites, Books, and Software.\u003c\/p\u003e \u003cp\u003eEndnotes.\u003c\/p\u003e \u003cp\u003eGlossary—Jonathan Crowell and with Additions from Andrew and Aaron Long.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e \u003cp\u003eAbout the CD-ROM.\u003c\/p\u003e  \u003cb\u003eMark Whistler\u003c\/b\u003e 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, \u003ci\u003eThe Pairs Trader\u003c\/i\u003e (pairstrader.com).  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.  \u003cp\u003eWritten 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 \u003cb\u003ewebsite\u003c\/b\u003e can help you put everything in this book to practice, as well as track your pairs.\u003c\/p\u003e \u003cp\u003eThis 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.\u003c\/p\u003e \u003cp\u003eIn 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.\u003c\/p\u003e \u003cp\u003eIt will discuss, in-depth, the importance of:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUnderstanding correlations, including stock correlations in relation to indices\u003c\/li\u003e \u003cli\u003eUsing statistics to: identify relationships, assist in determining the direction of the relationship, and ascertain how to execute your trades based on the data presented\u003c\/li\u003e \u003cli\u003eDifferential versus ratio\u003c\/li\u003e \u003cli\u003eMoving averages and NSD\u003c\/li\u003e \u003cli\u003eMoney management\u003c\/li\u003e \u003cli\u003eUsing Excel to trade pairs\u003c\/li\u003e \u003cli\u003eAnd much more\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003ePairs 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.\u003c\/p\u003e  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.  \u003cp\u003eWritten 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 \u003cb\u003ewebsite\u003c\/b\u003e can help you put everything in this book to practice, as well as track your pairs.\u003c\/p\u003e \u003cp\u003e\"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!\"\u003cbr\u003e  –\u003cb\u003eScott Cortelyou\u003c\/b\u003e\u003cbr\u003e  cohost, \u003ci\u003eBusiness for Breakfast\u003c\/i\u003e, 760 AM, The Zone, KKZN\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990402613477,"sku":"NP9780471584285","price":110.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471584285.jpg?v=1761787685","url":"https:\/\/k12savings.com\/products\/trading-pairs-isbn-9780471584285","provider":"K12savings","version":"1.0","type":"link"}