Hidden Collective Factors in Speculative Trading: A Study in Analytical Economics
| Author | : | |
| Rating | : | 4.24 (796 Votes) |
| Asin | : | 3540412948 |
| Format Type | : | paperback |
| Number of Pages | : | 229 Pages |
| Publish Date | : | 2017-12-23 |
| Language | : | English |
DESCRIPTION:
a The book is an excellent example of why the econophysics approach is so very welcome in the finance field. a the book in general is an interesting and satisfying read." (Jessica James, Quantitative Finance, November 2001) . a I found myself quite fascinated by the multitude of market events which are tabulated and carefully related to each other. From the reviews of the first edition: "This book promises a lot
"A prediction about the NASDAQ and other great stories" according to A Customer. Published in January 2001 this book contains(p. 176) a prediction about the course of theNASDAQ that up to now (i.e. 27 October 2002) isfairly well matched by the actual fall of theNASDAQ Composite Index over the period 2000-2002.Strangely enough, that prediction is not basedon a sophisticated stochastic model, but ratheron the observation of previous stock pricepeaks such as the one in Paris in 1882, the crashin Paris in early 1929, the crash in New York in late1929 and several others.You may think that such an approach based on the analysi
In particular, it highlights the following regularities:(i) During a speculative episode, the price of expensive items increases more than the price of less expensive items. Such regularities pave the way for a mathematical theory of speculation. Besides analyzing stock markets, the book considers a wide range of speculative markets for various items such as real estate, commodities , postage-stamps, antiquarian books. Being mainly empirical, the book is easy to read and does not require technical prerequisites in finance, economics or mathematics.. This is referred to as price multiplier effect.(ii) Price peaks for stocks and most commodities on average follow a well-defined pattern that we call the sharp peak - flat through pattern; in contrast real estate price peaks follow a flat peak pattern.(iii) The stocks whose prices experience the strongest increase during a bull market, better resist during the subsequent bear market, an effect referred to as the resilience pattern