FRED S GEHM

Article Archive For Fred S. Gehm

Does pyramiding make sense? by Fred Cehm
ARTICLE SYNOPSIS ...Does pyramiding make sense? by Fred Cehm The leverage obtained through pyramiding can be immense. But is it smart? Gehm examines the pyramiding technique and its possible consequences. Recently, well-known traders and trading advisors have argued that pyramiding is one of the most important-- if not the most important--money management techniques. Stanley Kroll, for example, attributes much of this success to pyramiding. ""If done correctly,"" he states, ""it is the trader's best tool for big profits in commodities."" Since Kroll apparently used this technique to turn $180,000 into more than ...

AUTHOR:�Fred S. GehmDATE:�FEB�1986

Crooks, Cranks and Honest Citizens: Trading Psychology by Fred S. Gehm
ARTICLE SYNOPSIS ...Crooks, Cranks and Honest Citizens: Trading Psychology by Fred S. Gehm In a competitive game like commodity trading, a player should hardly expect to receive good advice from the other players. It's like asking the poker player across the table from you how you can beat him. Yet there are men and women of good will in the market and good advice is available. Besides good will, one reason experienced traders will often give good advice is that they know that the better their advice the more certainly it will be ignored. One cannot spend much time talking with traders without hearing a trader a...

AUTHOR:�Fred S. GehmDATE:�DEC�1985

Decision Making by Fred Gehm
ARTICLE SYNOPSIS ...Decision Making by Fred Gehm One group of techniques that traders should know more about are those for multiple-criteria decision making. These techniques allow the trader to simultaneously analyze a number of alternatives in terms of a number of attributes or criteria, allowing the traders to simultaneously maximize rewards and minimize risks. Most of the powerful and interesting multiple-criteria decision making techniques require a computer, but some can be done freehand. One of the easiest and most valuable decision making techniques available is also one of the oldest. Tradeoff analysis...

AUTHOR:�Fred S. GehmDATE:�SEP�1984

Analyzing Risk/Reward Tradeoffs by Fred S. Gehm
ARTICLE SYNOPSIS ...Analyzing Risk/Reward Tradeoffs by Fred S. Gehm These days, more and more potential traders are avoiding the day-to-day problems of commodity trading by committing their funds to professional money managers. For many, perhaps most, this is a reasonable decision, although unfortunately it does not solve all of their trading problems. Deciding to use a money manager only replaces the many difficult and important problems of trading with a few very difficult and very important problems. The most obvious and most important problem is that of selecting a money manager in the first place. With sev...

AUTHOR:�Fred S. GehmDATE:�MAR�1984

Crooks, Cranks and Honest Citizens: Commodity Conferences by FRED S. GEHM
ARTICLE SYNOPSIS ...Crooks, Cranks and Honest Citizens: Commodity Conferences by FRED S. GEHM/ Technical Analysis staff writer I wanted to title this column ""How I Spent My Summer Vacation."" But the conferences were in Chicago and no reasonable individual would ever believe that another individual, reasonable or not, would go to Chicago for a vacation. Especially in the summer. Be that as it may, the National Association of Futures Trading Advisors (NAFTA) and Managed Account Reports (MAR) held conferences in Chicago this summer. Attending these conferences is either A) absolutely essential or, B) a complete ...

AUTHOR:�Fred S. GehmDATE:�SEP�1983

RISK MANAGEMENT: The Square Root of Sharpe's, Stone's and Okham's Ratios by FRED S. GEHM
ARTICLE SYNOPSIS ...RISK MANAGEMENT: The Square Root of Sharpe's, Stone's and Okham's Ratios by FRED S. GEHM One of the most important tasks of commodity market money managers is the measurement and control of risk. Currently, the most popular technique for measuring risk is Sharpe's ratio, named for financial theorist, William F. Sharpe. Despite its popularity (or perhaps because of it), Sharpe's ratio recently has received considerable criticism. For the trader it becomes important to ask, are these criticisms valid? And, if so, what alternatives are available? Sharpe's Ratio Sharpe's ratio (R) is defined as...

AUTHOR:�Fred S. GehmDATE:�NOV�1983

Crooks, Cranks and Honest Citizens: Commodity Periodicals by FRED S. GEHM
ARTICLE SYNOPSIS ...Crooks, Cranks and Honest Citizens: Commodity Periodicals by FRED S. GEHM (The first of a regular feature column) This is going to be a column of reviews of criticisms. It will be a consumer's guide to technical analysis. This includes books, magazines, newsletters, seminars and other products. Criticism is easy; any fool can criticize. However, responsible criticism is not easy. It is not easy to keep an open mind and, worse, it's almost impossible to know when your mind is not open. I have yet to meet a bigot who didn't think he (or she) was the voice of reason, for example. If it is imp...

AUTHOR:�Fred S. GehmDATE:�JUL�1983