Shock Markets: Trading Lessons for Volatile Times

Understand Today’s High-Volatility Markets: New Trading Strategies, Real Examples, Actionable Insights

“Investors beware. By detailing many diverse and interesting extreme market events, Shock Markets proves that the real world of trading is far riskier than assumed by the old paradigm world of efficient markets. In reality, markets are chaotic with small shocks sometimes causing very large moves. Without proper risk management, these shocks can be a path to financial ruin. This critical lesson makes the book a must-read.”
—Peter Matthews, PhD, Managing Partner, PJM Capital

“Shock Markets presents timely and valuable lessons during a period where I’m frequently surprised and shocked. My trading rules have been reviewed and improved by reading this book.”
—Jerry Parker, Founder and CEO of Chesapeake Capital

“Shock Markets is a veritable bible for aspiring, as well as seasoned, traders and investors. The book takes complex economic theory and applies it to financial markets in a way that makes it accessible to the reader. Shock Markets shows through examples how a practitioner can utilize a range of market shocks as opportunities, as well as providing a blueprint for how to avoid the many pitfalls therein. I recommend Shock Markets for anyone seeking to better understand the nature of markets and how to improve trading skills, both for the professional and the layman.”
—Michelle Kelner, Founder and CEO of Sandglass Capital Management

“This is a book that needs to be written. Well, it is here and delivered in a most entertaining and witty style. It is a wonderful read and hits the right balance between lessons for traders and classroom use. Great use of real-life examples to show the importance of always questioning: What is it that I know more than the market—or mark your opinion to market, not just your P&L.”
—Bill Fung, Visiting Research Professor, London Business School; Chairman, Board of Directors, Maple Financial Group; Vice Chairman, Research Foundation, CFA Institute

In a world where 80% of trades are done by lightning-fast machines, and the news from China hits markets in New York before you can read a headline, trading has never been this dangerous—or potentially profitable.

We live in the age of shock markets, where sudden sharp changes are common, crashes are unavoidable, volatility is off the charts, and anything can happen. This presents great risk—and great potential reward.

Seemingly distant factors can massively and instantaneously impact prices in today’s deeply interconnected, high-speed financial markets. Shock Markets illuminates these catalysts, helping you plan and react to fads, fashions, bubbles, crashes, and market crises—and uncover profit where others find only peril.

Through detailed, moment-by-moment analysis, Robert Webb and Alexander Webb upend conventional wisdom about trading and investing—revealing surprising and little-known trading relationships:

• Why Gold lost money in the 20th century’s largest crises
• Which political actions trump economic fundamentals
• How videogame reviews create predictable, tradable shocks
• When a shock is just a shock—and when it’s the beginning of a trend
• Why humans can still win at trading

The markets are moving faster than ever before—Shock Markets keeps you ahead of the curve.