High Probability Trading and the Search for Alpha
This weekend I got a chance to read a wonderful new book Finding Alpha: The Search for Alpha When Risk and Return Break Down (Wiley Finance) by Eric Falkenstein.
The book looks at ways that alpha can be found and possibly more importantly the many ways that professionals fool themselves into believing they have alpha when in fact they don’t.
This book is not for beginners. Eric has a PhD but he does a good job of keeping things on a level that can be understood by most traders with a few years of experience under their belt.
Coincidentally Eric and I have a mutual acquaintance who reached out to him yesterday for me and we’re scheduled to speak over the next few days. Ideally we’ll have Eric on the TradingMarkets website as a Big Saturday Interview so we can all learn further from him.
In the meantime, if you’re looking to expand your knowledge in the role that risk and return play (and Eric has some very unconventional yet truthful concepts on this topic), then I recommend you purchasing this book.
Join Larry Connors live, Thursday, September 10 at 4:30 pm for a special presentation for our upcoming Swing Trading College. The Swing Trading College remains our number one, most popular course and this is the seventh time we’ve offered it. The class runs 14 weeks and covers short term trading of stocks, ETFs (3 weeks of ETFs), options, e-minis’s and building a full trading plan – along with 4 weeks of live trading.
In this class Larry will be also introducing for the first time a new high probability stock trading strategy, along with trading additional strategies to trade ETFs including Leveraged ETFs.
If you’d like to attend the presentation, you can register here.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.