download Best The (Mis)Behaviour of Markets: A Fractal View of Risk, Ruin and Reward Author Richard L Hudson – Andy-palmer.co.uk

The (Mis)Behaviour of Markets: A Fractal View of Risk, Ruin and Reward The author shows how modern financial theory underestimates risk in financial markets Famous as the father of fractal geometry, Mandelbrot is less well known for his contributions to financial market theory He is the tour de force behind Taleb s Black Swan writings.Misbehavior is of an introduction to fractal finance than a textbook about how to implement Mandelbrot s ideas into trading systems Nevertheless, it provides a foundation and introduction to new methods that many may find useful, with enough detail to begin incorporating same into quantitative models Other works by Mandelbrot go much deeper into the how to side of fractal finance.Beno t pronounced ben wah Mandelbrot writes in a clear, conversational style The text avoids mathematical formulas, using instead a combination of written descriptions and entertaining analogies to explain Chapter notes in an appendix present the mathematical formulas behind his descriptions, along with further clear, simple explanations.The book divides into three parts The Old Way, The New Way, and The Way Ahead The first part describes the history leading up to modern finance as still taught in most business schools It describes contributions by key figures such as Louis Bachelier, Paul Samuelson, William Sharpe, Harry Markowitz, Myron Scholes, and Fischer Black I found this summary quite interesting, a valuable lesson history Although we learned MPT modern portfolio theory in my MBA finance classes, it s background and potential shortfalls were not addressed.The second part steps back to examine the nature of markets turbulent, not Gaussian , identify contradictions between observation and modern theory extreme events way common than predicted , and then develop a better, multi fractal i.e scalable view of finance Here Mandelbrot excels Illustrations cartoons help get points across while entertaining analogies e.g Noah, Joseph, and Market Bubbles and a true story of engineering genius H.E Hurst s analysis of Nile River floods lead to insight into market trends useful to trend followers.The third part looks to the future It summarizes the previous material in Ten Heresies of Finance and points the way for future research.Overall, I loved this book Obviously, Nassim Nicholas Taleb did too the first book in economics that spoke directly to me It contains valuable information for every investor, professional or amateur, experienced or novice Rather than something for advanced level traders, I think it is the first book for anyone interested in investing or trading It will open your eyes like no other, and inject a dose of realism and humility about money and markets that otherwise might cost a lot than this book s price. This International Bestseller, Which Foreshadowed A Market Crash, Explains Why It Could Happen Again If We Don T Act Now Fractal Geometry Is The Mathematics Of Roughness How To Reduce The Outline Of A Jagged Leaf Or Static In A Computer Connection To A Few Simple Mathematical Properties With His Fractal Tools, Mandelbrot Has Got To The Bottom Of How Financial Markets Really Work He Finds They Have A Shifting Sense Of Time And Wild Behaviour That Makes Them Volatile, Dangerous And Beautiful In His Models, The Complex Gyrations Of The FTSE And Exchange Rates Can Be Reduced To Straightforward Formulae That Yield A Much Accurate Description Of The Risks Involved This is my first book by Mandelbrot and I was delighted by the ease to read and grasp new ideas and concepts at least to me.It also inspired my desired to learn on the topic.I strongly recommend it to anyone looking for different ways to look at some old problems of the financial world. I ve traded futures and options for 20 years, written for major financial publications, and worked for an exchange and advisory firm as an analyst My charts and market calls have been used by traders at the prop desks of many leading banks and funds And I worked for a while in marketing to retail traders including newbies So I am familiar with the conventional wisdom that goes into technical and fundamental analysis, the ways in which people are advised on buy and hold portfolio strategies, and the often contradictory statements regularly made on CNBC Much of that thinking is what left us vulnerable to the 2008 crisis and it s what will lead us into the next one.Mandelbrot s descriptions of what really happens will take a little time to process Some of the ideas are contrary to what we ve been told and what gets taught in Econ 101 The bell curve is not the norm, but the exception Wild fluctuations are the real norm If the market is well behaved at one moment, it won t be for long But within the seeming chaos are some reliable truths if we re willing to look This is the future And while it won t spell out a new way to beat the market hate that expression it might save you from the grief of chasing some holy grails that don t exist but are well advertised.Also, he writes beautifully You could read it just for the fun of watching a great mind. Great book albeit incomplete if you re looking for definitive answers that discusses the shortcomings of risk assessments for financial products and portfolios As others have said, the author has posed several questions regarding the validity of financial practitioners existing tools in corporate finance valuation , options, and portfolio theory One answer multifractal theory which the author posits could be the foundation for the next class of financial economists best case.My key takeaway from this book is that market participants tools underassess risk and thus market participants should be wary of becoming model dependent.Additionally, supporting research and proofs are in the appendix or on the book s designated website for the curious readers. Una hora leyendo a Mandelbrot te limpia el cerebro del milln de mentiras que lee uno en libros y blogs sobre inversiones, generalmente escritas por autores con una bajsima formacin matemtica.Es un libro interesante y divulgativo que no apabulla con matemticas sino que cuenta el proceso de descubrimiento del autor Aunque, eso s, suelta dos o tres perlas que hay que grabarse a fuego si uno quiere llegar a entender los mercados Recomendadsimo. Gran introducci n a los sistemas complejos en el mundo financiero Explica los sistemas convencionales y porque no funcionan Es uno de los precursores en el estudio de sistemas complejos El libro se lee con mucha facilidad, no es necesario tener conocimientos de econom a o matem ticos previos


About the Author: Richard L Hudson

Is a well-known author, some of his books are a fascination for readers like in the The (Mis)Behaviour of Markets: A Fractal View of Risk, Ruin and Reward book, this is one of the most wanted Richard L Hudson author readers around the world.


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