Predatory Trading and Crowded Exits: New Thinking on Market
ISBN: , SKU: , AUTHOR: Clunie, James, PUBLISHER: Harriman House, In this book, the author looks at a series of market phenomena that involve security prices moving temporarily away from their 'fair value', creating opportunities for traders to profit (and the risk of losses for the unaware). The phenomena he examines have only recently begun to be well understood. They include 'predatory trading' and 'crowded exits'. He examines these on three levels: Firstly, he describes the basic principles and theory behind each phenomenon, to build a solid framework for the way a trader should think of these situations. Secondly, he examines the accumulated 'empirical' evidence on these situations. This gives an idea of what generally happens in these situations, and what the profit opportunity and the risks might be like. Finally, the author considers a number of individual cases to illustrate what can happen to traders in practice. Often, these will be special situations or extreme events from history, but always cases from which the trader can learn.