Win By Not Losing: A Disciplined Approach to Building and Protecting Your Wealth in the Stock Market by Managing Your Risk - Hardcover

ATKESON

Hardcover

ISBN 10: 0071812903 ISBN 13: 9780071812900

Verlag: McGraw Hill, 2013

Inhaltsangabe

A DISCIPLINED STRATEGY FOR AVOIDING MAJOR DOWN MARKETS AND PARTICIPATING IN BULLISH MARKETS Your financial advisor's strategy to buy-and-hold a diversified equity portfolio sounded good. Diversification promised to protect your wealth. Now, however, more than a decade of hard data shows it didn't work. And, more than likely after a decade of multiple financial shocks and crashes, your account balance is not what you hoped it would be when you started saving years ago. Much of your investment life has been spent just trying to make back what was lost. Win By Not Losing reveals how you can make smarter, more profi table investments by first protecting your capital from major bear equity markets. It also shows you how to identify major bullish equity market trends and guides you on how best to participate. By avoiding the major downs and catching the ups, your portfolio compounds gains and allows you to achieve your financial goals. Chasing returns leads to the poorhouse. With this book's disciplined system for knowing when to buy, what to buy, and when to sell, you can build and protect your portfolio through active management techniques. It walks you step-by-step through growing your portfolio in bull and bear market cycles. You will master a concrete investing method that lets you trade with emotionless confidence and precision. Packed with links to online resources and personal tips from successful, high-profile traders, Win By Not Losing gives you everything you need to: Identify the market metrics that are important to building wealth Detect and measure the market signals foreshadowing major moves Build a portfolio with strong downside protection, full transparency, immediate liquidity, low fees, and incredible risk-adjusted returns Your portfolio returns will continue to be disappointing unless you act. It's time to make up for lost profits by taking an active, professional, and nonemotional portfolio management approach to avoid major losses and capture gains. Win By Not Losing provides everything you need to build wealth in today's stock market. Stop watching your money rise and fall without signifi cant net gain with a "buy-and-hold" strategy and optimize your positions as market sentiment changes. In a nonappreciating market, investors must actively manage equities to acquire gains. Win By Not Losing presents an active approach that uses rigorous risk-management techniques to preserve your wealth and generate high returns in all equity market environments. Prominent authors and lecturers Nick Atkeson and Andrew Houghton have culled the best of their work to help you revitalize your trading habits, protect your capital, and beat the market. Through real-world stories demonstrating fi nancial theory in action and how-to instructions for executing their strategic investment approach, these expert authors enable you to: Achieve sizable returns through an investment strategy equally focused on when to invest and when to sell Avoid major down markets and fully benefit from major up markets Access unique financial information to help you stay current, think ahead, and build and protect your wealth Whether you're an independent investor or a professional financial advisor, this refreshing look at investing will change the way you see the markets. Forget what you know about modern portfolio theory and trade to make money in today's markets with Win By Not Losing. "Anyone with some experience in the stock market, especially the person who wants to move beyond a buy and hold strategy, can find useful tidbits in this book." ReadingTheMarkets.com

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Über die Autorin bzw. den Autor

NICK ATKESON and ANDREW HOUGHTON are founding partners of Delta Investment Management, a registered investment advisory firm based in San Francisco. Delta Investment Management is a provider of premier tactical investment strategies to individuals and institutions. Atkeson and Houghton are also editors and advisors for several financial newsletter publications.

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Win By Not Losing

A Disciplined Approach to Building and Protecting Your Wealth in the Stock Market by Managing Your Risk

By NICHOLAS ATKESON, ANDREW HOUGHTON

McGraw-Hill Education

Copyright © 2014 Nicholas Atkeson and Andrew Houghton
All rights reserved.

ISBN: 978-0-07-181290-0

Contents

Foreword by Charles Githler
Our Offer to You
Introduction
Authors' Note
Part One: Streaks and Investing
CHAPTER ONE The Story of Sonny
CHAPTER TWO The Nature of Streaks
CHAPTER THREE Why Should We Invest?
CHAPTER FOUR The Story of Mr. M
CHAPTER FIVE Building Blocks
CHAPTER SIX The Story of Modern Finance Theory
CHAPTER SEVEN The Story of Mike
CHAPTER EIGHT Style
CHAPTER NINE Your Brain on Stocks
CHAPTER TEN Observations from the Trading Floor of an Investment Bank
CHAPTER ELEVEN Risk
CHAPTER TWELVE A History of Mutual Funds and the Story of Jeffrey Vinik
CHAPTER THIRTEEN Paradigm Shift
CHAPTER FOURTEEN The Story of Neil Peplinski and Good Harbor
CHAPTER FIFTEEN What Is Tactical Investing?
CHAPTER SIXTEEN The Story of Vinay Munikoti
Part Two: Applying a Tactical Trading Discipline to Profit from Investable 
Equity Market Trends
CHAPTER SEVENTEEN Capturing the Ups and Missing the Downs: Five Steps
CHAPTER EIGHTEEN Do Enough to Make a Difference
CHAPTER NINETEEN Knowing If It Works: Attribution Analysis
CHAPTER TWENTY Seeing the Forest for the Fees
CHAPTER TWENTY-ONE Parting Shot
Sources
Index

CHAPTER 1

The Story of Sonny

Some stories start with "I know a guy who knows a guy who knows a guy." In thiscase, we actually do know the guy. Not only do we know him, we sat next to himon a trading desk for years. The guy is named Sonny.

We start our story with Sonny because he rode one of the hottest of hot streaksthat we are aware of. It was not like amassing a fortune on a single major idealike Bill Gates starting Microsoft or Mark Zuckerberg founding Facebook; it wasa streak involving an amazing series of wins. It was a streak based oninvestment discipline in a part of the world in which the odds and expectationssay you can't win.

Sonny was born in the city of San Francisco. He lived near Golden Gate Park. Thepark taught Sonny how to know a streak when he saw one and how to make the mostof it.

In his early teens, Sonny spent a lot of time in the park. The park had 22tennis courts and attracted many world-class tennis players. Guys would comefrom all over the world to play tennis there. Sonny spent a lot of time on thosecourts on his way to becoming a world-ranked tennis player.

Sonny was a self-made player. He honed his technical tennis skills by watchingothers play. Sonny's specialty was street ball; he could hook with the best ofthem. He played the mind game and never backed down when challenged. He was alsophysically gifted in a way that suited the demands of tennis well.

Within sight of the tennis courts were the old guys playing backgammon. Like thecourts, the park attracted many outstanding backgammon players. Thus, in onespot, you had many of the world's best tennis and backgammon players. As a 13-year-old,Sonny could not resist the temptation to wander from the courts andinto the world of backgammon. He would play backgammon for hours and hoursagainst the older guys. At any one time, there would be six games going at once.Players would pair off according to ability and move up and down the line ofboards on the basis of their winnings. Gambling was always part of the game andsharpened Sonny's concentration.

As good a tennis player as Sonny was, he became an even better backgammonplayer. Like all the best players, he knew exactly what to do on every singleroll of the dice. Six hours a day of backgammon on the weekends and in thesummers can do that to a person. The odds favored Sonny against anyone who didnot understand the underlying probabilities and subtleties of the gameperfectly. Sonny was a street-smart kid who was a natural when it came tointuitively understanding odds and risk management. Sonny's combination of amathematical brain, street savvy, and not flinching or backing down whenchallenged emerged as a powerful combination of skills that served him well inlarger venues such as Wall Street and Las Vegas.

Sonny began betting before investing. In sports, there was always gambling withSonny. Betting on sports migrated into the more disciplined betting associatedwith world-class backgammon. Backgammon was interrupted by occasional trips toReno and Tahoe. Everyone Sonny knew gambled. Although it might seem like a lotof money to most, Sonny felt he started small with an average bet at theblackjack table of about $500 to $1,000 per hand.

On one of Sonny's first trips to Las Vegas, he won 20 blackjack hands in a row.His average bet was $1,000. His winnings reached $20,000. He stopped. Sonny knewthe odds were stacked against him in the casino. Without emotion, he understoodthat one of his few protections was to just stop playing. Rather than lettingthe excitement and emotions of a big win overwhelm his thinking, Sonny remainedcool and firmly grounded in probabilistic math. Whereas most first-time Vegaswinners give it all back by feeling good and getting careless, Sonny just walkedaway. His early years playing some of the best in backgammon, often withmeaningful bets at stake, prepared him for seeing this streak as just anotherday at the office.

Sonny came to Wall Street during the time of Michael Milken's fall from graceand the junk bond market collapse in the late 1980s. Government-backed bonds,including municipal bonds, were selling for pennies on the dollar. Sonny's firmwould put a sizable markup on the bonds and sell them to individual investors.Whereas Sonny's profit from the markup was significant, his client base made outlike bandits as almost all the distressed bonds purchased ended up paying out at100 cents on the dollar.

Two years later, Sonny was sitting on the trading desk of one of the fastest-growinginvestment banks in the world, selling growth stocks to investors duringone of the greatest boom cycles ever experienced in the financial markets. Hisclients loved him for his tenacity in protecting their interests on tradeexecutions and deal allocations. From a base of $40,000 per year, Sonny was soontaking home seven figures and enjoying a hot streak of epic proportions.

While the stock market raged, Sonny found time to continue his regular trips toLas Vegas. His average hand had grown from roughly $1,000 to $50,000. Yellowchips ($1,000) were being replaced with brown ($5,000), orange ($25,000), andwhite chips ($100,000). With one, two, or three hands of blackjack goingsimultaneously, Sonny would play an average of 400 hands per hour, seven timesthe amount of most Vegas gamblers. At $50,000 per hand and 400 hands per hour,Sonny was moving roughly $20 million an hour.

With splits and doubles,...

Details zur Ausgabe

• Verlag: McGraw Hill
• Erscheinungsdatum: 2013
• Sprache: Englisch
• ISBN 10: 0071812903
• ISBN 13: 9780071812900
• Einband: Gebundene Ausgabe
• Anzahl der Seiten: 288
• Kontakt zum Hersteller: McGraw-Hill Education; https://www.mheducation.co.in/; ; Via Verdi, 8; Assago Milano; 20090; Italien