Publisher's Synopsis
Understanding how the stock market works is important, whether you have a retirement account with your employer, or want to invest for a living. Using basic skills like addition and subtraction, the principles of economics are learned through guided practice in common trading and investing methods, auction theory and tax implications of various investment strategies. Students learn to then apply these basic math skills to undertake sophisticated economic analysis and gain the ability to estimate current values of a stock and anticipate its future value too. Includes brief history of the Stock Market for conceptual context to understand the reasons why the market is the way it is today.
CONTENTS: Chapter 1: Introduction to the Stock MarketsHistory of Stock and Exchanging Stock
Selling Stock Requires Monetization
Valuation of Money
When Stock Prices are Anticipatory: Bull and Bear Markets
When Stock Prices are Reactionary
The Stock Market Chapter 2: Introduction to Auctions
Swapping and Trading
Price Tags
English or Forward Auction
Dutch or Reverse Auction
Japanese Auction
Timed Auction
Free Market Behavior Chapter 3:
Basics of Predation
Crashes and Booms
Robots
Robot Apocalypse: May 6, 2010
Relative Strength Index (RSI)
Flash, Short, & Long Term Trends
Turning Points & Auction Behavior
PRACTICE - ANTICIPATE RESPONSES TO INFORMATION
PRACTICE - CRASH TEST
PRACTICE - BUY-AND-HOLD VS RSI
Critical question: why would there be a greater difference between RSI and buy-and-hold strategies over a shorter time period?
Critical question: is there such a thing as a hybrid strategy? Chapter 4:
Basics of Investing
Entry and Exit Strategy
Devaluation
Capital Investment
Distress
PRACTICE - INVESTING LEADERSHIP AND FOLLOWERSHIP
PRACTICE - IDENTIFY DIFFERENT LEADERS AND ATTEMPT TO EVALUATE THEIR USEFULNESS Chapter 5: Basics of Market Externalities
"OPTIMISM" is Reasonable
Depressions & the Great Depression
Cyclical Seasonality Chapter 6: Introduction to Options Conclusion Appendix 1: History and Future of Markets
Appendix 2: Calculations
Correlation: for Understanding, Anticipation and Prognostication of Economic Factors
Standard Deviation: Understanding What Factors Warrant Correlative Analysis, Understanding Individual Companies and Sectors in an Economy