These are extremely helpful because they allow you to develop specific strategies on your own. In fact, the book contains 9 different strategies for reviewing the market. They have been organized around three main issues. The first is the desire for security. This includes an analysis of market segments that include savings and investment, long-term bond investing, and money market funds. These segments all include some form of perceived risk in the markets.
The second strategy relates to price action. This aspect of the strategy focuses on making the most use of fundamental economic indicators. Price action can be used as part of a blend of technical and fundamental analysis. The book contains many different charts and graphs that illustrate how price action can provide solid information about economic sectors.
The third strategy is all about timing. This part of strategy deals with selecting when to enter and exit a position. This can often be difficult for traders who rely on indicators and back testing. However, Price has also included a number of manual strategies in his book which further emphasizes the importance of timing.
Price’s fourth strategy deals with price action being a key to predicting economic sector future directions. This aspect of the strategy also involves taking advantage of fundamental economic indicators. This strategy focuses on identifying economic strengths and weaknesses in sectors. Price’s book then develops a series of trading signals that target specific sectors.
The fifth and final strategy relates to leveraging. Leveraging is the process of borrowing financial assets and using them to create additional buying power. In this section, Price identifies some of the advantages of leveraged positions. He notes the benefits of using stop loss and leverage points. As well, he reviews the risks of taking on too much debt in an effort to gain additional economic buying power.
Strategy I Economics takes into account all of the strategies discussed in the text. The main theme throughout the text is the importance of using a variety of strategies in order to gain the greatest overall profit. The book ends by briefly reviewing some other important economic strategies. The strategy section concludes with a brief review of some other books and resources that can help students maximize their investment potential.
Overall, this is a very helpful guide to the area of economic theory and practice. The strategy section is well organized with clear writing style. Although I do not consider the strategies here to be “the” strategy, rather just a generic introduction, it does provide an excellent starting point for further study. The one flaw of the strategy is the focus on short term results. Other than this small flaw, I believe the author has created a valuable course of study for anyone who wishes to become a better economic thinker. I would recommend it to anyone wanting to learn more about strategies of the market economy.
Strategy I Economics takes into account many different topics from the theory chapter, but then goes even further in depth into the various strategies covered in the various chapters. For example, one of the strategies examines the effects of monetary policy on long term interest rates. It is very helpful to review this section before approaching the test. Then you will be prepared to answer the questions. You may want to also spend a few moments thinking about how central banks use interest rate policy and what effects, if any, these policies have on your own personal strategies for investment.
The third chapter is “Monetary Policy and the Business Cycle,” which is also a very useful chapter to review before taking the test. This chapter looks at the relationship between economic fundamentals, including inflation, output gaps, deflation, and financial market indicators such as the Fed funds rate. After reading this chapter you should also spend a few minutes thinking about how central banks use interest rate policy to affect the strength or weakness of the economy. Then you can go back and review the remaining chapters.
The book ends with a short case study and the last chapter, which are “The Political Economy of Monetary Policy.” This is a short survey of three major cases from economic history. You can save this book as a PDF or print it out and take notes as you read. You can also bookmark this page and refer to it for additional information about the book as you proceed to take the strategy I exams for me.