Free Download Trading Against the Crowd By John Summa
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According to proponents of efficient market theory, markets are unpredictable due to their randomness. However, renowned author, economist, and professional trader John Summa makes a strong case in Trading Against the Crowd that investor sentiment may be integrated into successful stock and stock market trading strategies.
In this ground-breaking book, Summa describes how to trade against or in opposition to the sentiment of the market using common indicators of crowd psychology, including put/call ratios, option-implied volatility, short sales, investor surveys, and advisory opinion. Using his own quantitative weekly bear and bull news-flow intensity indexes, which he constructs from news scans, he also presents strong arguments against the efficient markets hypothesis.
Profitable trading systems like Squeeze Play I & II, Tsunami Sentiment Wave, and the Fourth Estate are designed with unique indicators that process this data series and other well-known metrics of crowd psychology.
The first book to offer a thorough analysis of investor crowd psychology, Trading Against the Crowd offers useful trading strategies and market timing tools, such as: MetaStock and Trade Station system and custom indicator code; comparative statistical studies of CBOE, OEX, and equity-only put/call ratios; simple instructions for combining sentiment indicators with price triggers; a useful guide to understanding put/call ratios, short sales, investor surveys, newsletter opinion, and stock market news-flow intensity; how to use LEAP options as trading vehicles to avoid using stop loss orders; how to use put/call ratios when trading the Treasury bond futures market; test results and performance evaluation of trading systems.
For better market timing, a large number of today’s professional money managers rely on investor mood. They are aware that markets are typically the most predictable at extremes of market mood. Trading Against the Crowd demonstrates how you can start making money off of these sentiment waves that are created by the speculative crowd’s short- to medium-term activities. Use well-researched trading strategies to implement strong sentiment data and overcome the investor herd mentality to get potentially lucrative returns.
Reviews of Editorials
From the Flap Inside
According to proponents of efficient market theory, markets are unpredictable due to their randomness. However, John Summa, a well-known author, economist, and professional trader, demonstrates persuasively in Trading Against the Crowd that investor sentiment may be integrated into successful stock and stock market trading strategies. In this ground-breaking book, Summa describes how to trade against or in opposition to the sentiment of the market using common indicators of crowd psychology, including put/call ratios, option-implied volatility, short sales, investor surveys, and advisory opinion.
Using his own quantitative weekly bear and bull news-flow intensity indexes, which he constructs from news scans, he also presents strong arguments against the efficient markets hypothesis. Profitable trading systems like Squeeze Play I & II, Tsunami Sentiment Wave, and the Fourth Estate are designed with unique indicators that process this data series and other well-known metrics of crowd psychology. The first book to present a thorough analysis of investor crowd psychology, Trading Against the Crowd offers useful trading strategies and market timing tools, such as:
- Custom indicator code, MetaStock, and Trade Station system
- Comparative statistical analyses of equity-only put/call ratios, the CBOE, and the OEX
- Simple guidelines for integrating sentiment indicators with price triggers
- A useful manual for comprehending put/call ratios, short sales, investor surveys, newsletter sentiment, and the intensity of stock market news flow
- How to avoid using stop loss orders when trading LEAP options
- Utilizing put/call ratios in the trading of Treasury bond futures
- Test findings and performance assessment of the trading system
For better market timing, many of today’s professional money managers rely on investor mood. They are aware that markets are typically the most predictable at extremes of market mood. Trading Against the Crowd demonstrates how to start making money off of these sentiment waves that are created by the speculative crowd’s short- to medium-term actions. Use well-researched trading strategies to implement strong sentiment data and overcome the investor herd mentality to get potentially lucrative returns.
From the Back Cover
“The old saying, ‘do the opposite of the majority to gain money,’ still holds true. That’s exactly what Trading Against the Crowd teaches you to accomplish.
Larry Williams, author of Long-Term Secrets to Short-Term Trading and The Right Stock at the Right Time “Trading Against the Crowd by Mr. Summa gives traders unique insight into the technique of trading against the grain. Professional traders around the world should find his innovative method of converting news pieces into a bullish vs bearish intensity index to be a highly useful tool.
Stark Trader Analysis Report, Daniel B. Stark & Company, Publisher, Dan Stark, President
“One of the better books on the contrarian approach to trading is Summa’s recent work, Trading Against the Crowd, which is intelligent and perceptive. Everyone who invests, whether they are amateurs or seasoned institutional investors, should read this book because of the recent stock market catastrophe.
Jim Mazzola, Director of Thomson Financial’s Equity Strategies
About the Author
John F. Summa runs his own managed account program and commodity pool. He is a licensed series-3 options broker and a registered commodity trading advisor (CTA) with the NFA. OptionsNerd.com, one of the first option advising websites, was established by John in 1997. He has launched TradingAgainstTheCrowd.com, a new trading guidance website. He is a coauthor of the Wiley publications Options on Futures:
New Trading Strategies and Options on Futures Workbook. In addition to contributing frequently to Investopedia.com, John has had his trading concepts featured in Futures and Technical Analysis of Stocks & Commodities magazines. John, a former professional skier, graduated with a master’s degree in economics from New School University’s esteemed Graduate Faculty in New York City.
