Trading Catalysts

"Trading Catalysts takes you into the market and recounts moment-by-moment price action. From an almost 14% rise in the Nasdaq following a surprise Fed rate cut to an incredible (and temporary) 22% decline in the S&P 500 futures price folliwng a single large sell order, Trading Catalysts is loaded witih real-life examples of how events move markets. Must reading for traders and investors alike."  --Victor Canto, Pd.D., founder of La Jolla Economics and a columnist for The National Review

"At last...an invaluable investment book that shows in detail how markets actually behaved during extreme events, times when fortunes were won or lost in the blink of an eye. This is the real world of trading and risk, not academic theory.  Read, learn and prepare yourself because these types of extraordinary events will happen again." --Peter Matthews, Managing Partner, Optimation Investment Management LLC

Understand the Triggers of Market Volatilityand Take Advantage of Them

• Actionable lessons from 25 years of major eventsand the markets reactions to them
• Predicting the market impact of everything from Fed statements to natural disasters
• Separating real information from noise, major market movers from trivia

In Trading Catalysts, Robert I. Webb examines the various factors that move markets. Webb focuses on the catalysts that spark the biggest price changesand the greatest potential for substantial profits or losses. Using numerous real market examples, Webb demonstrates the often inconsistent response of prices to similar trading catalysts across markets and over time, the occasional significantly delayed response, and the frequent market overreaction. Whether traders bet directly on a trading catalyst, on the presumed market reaction (or overreaction) to it, or not at all, the potential impact on market prices and volatility means that all traders must pay attention to trading catalysts and the market reactions that they induce. At the very least, the prospect of significant volatility around some event may affect the timing of a traders entry or exit of positions and may cause a trader to reduce his position size. If youre a serious trader, this book will help you understand the influence of trading catalysts and identify potential trading opportunities.

Volatile financial markets create both the risk of substantial losses and the opportunity for substantial gains. Sudden jumps or breaks in prices can impart a roller-coaster-ride-like quality to trading or investing in financial markets. Trading Catalysts is the first complete guide to the events that spark large changes in prices. These include: central bank actions; ill-advised comments by policymakers; news of natural disasters; elections; certain economic reports; terrorism; company specific announcements; the unwinding of la...