Contrary Opinion by R.Earl Hadady
Description
Measure market sentiment and predict market trends.
Contrary opinion is the opposite opinion of the sentiment held by the majority. If eighty percent of traders are bearish then a bullish view would be a contrary opinion. As developer of the Bullish Consensus, R. Earl Hadady has fine-tuned sentiment, measuring the opinion of a specific majority, to a calculable figure. Traders can now develop a winning trading plan around the Bullish Consensus and buy or sell as warranted by its numbers.
Examines in-depth the workings of the futures markets and how market sentiment affects those markets.
* Demonstrates that the trend of the market is actually a reflection of the trend of market sentiment
Earl Hadady (Glendora, CA) is the author of the first edition of Contrary Opinion: How to Use it for Profit in Trading Commodity Futures. Mr. Hadady is a renowned expert in contrary opinion.
Table of Contents
Little-Known Facts.
Workings of the Futures Markets.
Market Parameters.
Using Sentiment to Analyze the Markets.
Contrary Opinion.
How Market Sentiment Is Compiled.
History of Market Sentiment.
Market Composition.
Trading to Win.
Market Sentiment in Action.
Glossary.
Index.
Reviews
“A provocative lesson by the master of Contrary Opinion.” –(James Grant, Editor of Grant’s Interest Rate Observer)
“There is more wisdom in this concise little classic than in ten typical books on futures trading. It will easily save you three years of painful study in the school of hard knocks.” –(Robert R. Prechter, Editor of The Elliott Wave Theorist)
“The supreme value of Hadady’s analysis is to see contrary opinion dealt with objectively in quantitative terms. Easy to read and informative with little known facts that focus on the principles involved.” –(James L. Fraser, C.F.A., Editor of The Contrary Investor)
“With this book, Earl Hadady becomes the natural successor to Humphrey Neill, the father of contrary opinion. This concise, highly readable account of why contrary opinion theory works is the best ever written.” –(George Angell, author of Winning in the Futures Market and seven other books )
“Clears up misconceptions of contrary opinion and makes it a valuable analytical tool for all commodity traders.” –(Walter Bressert, developer of ProfitTrader software and publisher of MarketWatch )
“A provocative lesson by the master of Contrary Opinion.” –(James Grant, Editor of Grant’s Interest Rate Observer)
“There is more wisdom in this concise little classic than in ten typical books on futures trading. It will easily save you three years of painful study in the school of hard knocks.” –(Robert R. Prechter, Editor of The Elliott Wave Theorist)
“The supreme value of Hadady’s analysis is to see contrary opinion dealt with objectively in quantitative terms. Easy to read and informative with little known facts that focus on the principles involved.” –(James L. Fraser, C.F.A., Editor of The Contrary Investor)
“With this book, Earl Hadady becomes the natural successor to Humphrey Neill, the father of contrary opinion. This concise, highly readable account of why contrary opinion theory works is the best ever written.” –(George Angell, author of Winning in the Futures Market and seven other books )
“Clears up misconceptions of contrary opinion and makes it a valuable analytical tool for all commodity traders.” –(Walter Bressert, developer of ProfitTrader software and publisher of MarketWatch )
Learn about Option (finance):
In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) “exercises” the option. An option that conveys to the owner the right to buy at a specific price is referred to as a call; an option that conveys the right of the owner to sell at a specific price is referred to as a put. Both are commonly traded, but the call option is more frequently discussed.
The seller may grant an option to a buyer as part of another transaction, such as a share issue or as part of an employee incentive scheme, otherwise a buyer would pay a premium to the seller for the option. A call option would normally be exercised only when the strike price is below the market value of the underlying asset, while a put option would normally be exercised only when the strike price is above the market value. When an option is exercised, the cost to the buyer of the asset acquired is the strike price plus the premium, if any. When the option expiration date passes without the option being exercised, the option expires and the buyer would forfeit the premium to the seller. In any case, the premium is income to the seller, and normally a capital loss to the buyer.
The owner of an option may on-sell the option to a third party in a secondary market, in either an over-the-counter transaction or on an options exchange, depending on the option. The market price of an American-style option normally closely follows that of the underlying stock being the difference between the market price of the stock and the strike price of the option. The actual market price of the option may vary depending on a number of factors, such as a significant option holder may need to sell the option as the expiry date is approaching and does not have the financial resources to exercise the option, or a buyer in the market is trying to amass a large option holding. The ownership of an option does not generally entitle the holder to any rights associated with the underlying asset, such as voting rights or any income from the underlying asset, such as a dividend.
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Course Features
- Lectures 0
- Quizzes 0
- Duration Lifetime access
- Skill level All levels
- Students 183
- Assessments Yes