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This book is a simple, practical guide to how you can use some of the newer investment products like spread betting, binary betting, contracts for difference, covered warrants and exchange-traded funds, as well as older ones like futures and options, to help your investing.
In different ways, each of these products allows you either to:
- boost the returns you get in exchange for taking on greater risk;
- hedge your bets in exchange for slightly lower returns;
- use much less capital to achieve the same market exposure; or
- move money into and out of a range of markets and sectors efficiently.
The author believes they are tools that all investors need to know about and be able to use when the occasion demands it. They should help you successfully confront any lengthy period of trendless or volatile markets.
While the past three years has seen a generally strong upward trend in stock markets, this is not bound to continue. Periodic volatility is the natural order of things. Interestingly enough - despite what appears to have been a bull market - recent years have also seen increased use by private investors of many of the tools described in this book. Proof, if needed, that they work, and can be applied, in all market conditions.
1. Derivatives History
2. Basic Concepts
4. Contracts for Difference (CFDs)
5. Spread Betting
8. Exchange-Traded Funds (ETFs)
10. Trading Strategies I - Futures, CFDs and Spread Betting
11. Trading Strategies II - Options and Warrants
12. Developing Your Plan
1. Derivatives Comparison Chart
2. Finding the Information
4. Further Reading
5. Glossary of Web Sites
Posted November 17, 2008
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This book should really be titled "Derivative Investor's Toolbox" since it describes derivative tradable instruments like spread bets, warrants, and (not quite a derivative in the same sense) ETFs. A change of title would also help to distinguish it from another book New Investor's Toolbox: Using the Right Tools to Fine Tune Your Financial Future (Investor's Guide) <BR/><BR/>Never mind, this is still a good book. The first part of the book has an acedemic feel about it, as it describes the various derivative products in complete and accurate detail -- yet in a readable style. The later chapters present some concrete trading strategies and deal with good trading / investment practices such as money management. <BR/><BR/>If you have traded equity stocks in your portfolio and you'd like to move to the next level -- for increased returns, or capital protection -- then this book is for you. It will tell you everything you need to know about the more exotic 'derivative' tradable instruments and their value in your portfolio.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.