Unlike most other books, there was really nothing that I didn't like about this book, which is why I give this book such a high rating. It made me realize that if I was not looking at intermarket analysis, many market movements would seem random, and to come out of nowhere. The thing I liked the most about this book was that it gave me a more comprehensive understanding of the markets work, and I feel that I am a better investor because of it. John makes some daring predictions in his book that now, looking back, were spot on. The next section, which was the section I found most interesting, is about how the intermarket scene began to favour gold and hard assets after the the Nasdaq meltdown. From there, John goes into the Nasdaq bubble, and how there were signs of a peak beforehand. He then discusses the significant events that happened in the markets during the 1980's, and how various markets events during that time, that seemed move independently from each other, were actually interconnected.Īs you move deeper into the book, John Murphy discusses the 1997 currency crisis, and the global ramifications that had. John Murphy begins his book with a review of an earlier book he wrote on the topic. However, I believe if you want to truly comprehend what moves the markets, you need to become familiar with this new field. Intermarket analysis is a fairly new branch of technical analysis, so you may not have heard very much about it. After reading this book, it is clear that John Murphy is nothing less than a financial genius, which is why this is one of my favourite books of all time. With this ground breaking book, the author, John Murphy, has made an everlasting contribution to the field of technical analysis. If you wish to see a trailer of this movie, then please refer to the following post.
#STEVE NISON DVD REVIEW MOVIE#
If you are interesting in trading stocks or futures, then I would say that this movie will interest you as well, in all likelihood. It will show you the danger of letting fear and greed cloud your judgement, and it will show you the price you pay for fighting the trend, and not cutting losses. You can certainly learn a great deal by watching this movie. This movies delves deep into the emotional aspects of trading. Furthermore, the movie is really fast paced, and really well directed. What I liked about this movie was the excellent acting by Ewan McGregor, and also by the actors who played Nick's management. Ultimately, he ends up spending nearly five years in a gang infested prison in Singapore for unlawful trading and forgery. On the flight home, Nick is spotted by the police, and apprehended. Nick now realizes that it is game over, and he and his wife try to escape Singapore, and head back to Europe. However, as the market slides further against Nick, the management at Barings start to clue in to what is going on. Despite this, Nick Leeson manages to keep a straight face when talking to his superiors at Barings Bank, who at this time are oblivious to what is going on. The market continues to move against Nick, and the losses are now in the hundreds of millions of dollars. In a desperate and futile attempt, he tries to buy enough futures contracts to actually move the market in his favour by himself. This, by the way, was the exact same thing that happened to stocks in the United States during the 1904 San Francisco earthquake.Īnyway, as Nick's losses mount, he keeps betting that he will be able to trade out of them. There was a sort of time delay, a sort of calm before the storm, before the Nikkei really started to plunge. However, to Nick's chagrin, Tokyo experiences a major earthquake the next day, and the volatility on the Nikkei explodes, which means that the losses on his short straddle would have been immense.Īfter the earthquake, stocks did not fall that much right away. He sets up a short straddle, which means that he is betting that the market will not experience much volatility in the near term.
Nick then begins selling options on the Nikkei, hoping to generate enough premium to conceal his losses. Unfortunately for Nick, the trades he makes only exacerbates the problem, and the losses only mount. As the movie progresses, Nick accrues a relatively small loss from a trading error, and tries to rectify it by trading futures basically under his own account. The contracts that he and his team are trading are based on the Nikkei, the stock exchange of Tokyo.
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