ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (98, 82): At The Close by Jayanthi Gopalakrishnan Here's an informal question and answer with Sohail Asghar, president of PennyStockAction.com and a pioneer of two independent home-based activities, penny stock trading and sports investing. How did you get interested in the markets? In 1986 I visited Canada and saw my cousin daytrading on a regular basis. He introduced me to some others who were daytrading as a home-based activity. At that time, daytrading wasn't a popular activity in France. What did you find exciting about active trading? When I saw how popular ...
BY: Jayanthi GopalakrishnanSUBJECT: At the Close
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (94): Books For Traders by Technical Analysis, Inc. Economic And Financial Decisions Under Risk (244 pages, $35 softcover, 2005, ISBN 0-691-12215-6) by Louis Eeckhoudt, Christian Gollier, and Harris Schlesinger, published by Princeton University Press. Understanding and dealing with risk is an essential part of modern economics. This book represents a summary of basic multiperiod decision-making under risks. The authors start with the fundamentals of risk measurement and risk aversion, then apply these concepts to insurance decisions and portfolio choice in a on...
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (62, 83): Charting The Market: Piercing Patterns by David Penn Writing about dual candle lines in his book ""Beyond Candlesticks,"" Steve Nison recalls a particularly vivid (and metaphoric) description of a "piercing pattern" in Japanese candlestick analysis: ""? [T]he last of the bulls that were backed into a corner and came out fighting in a heroic fight. Kamikaze fights are always frightening, so the bears seeing this take to the sidelines for the moment. In this quiet period, the bulls may get reinforcements, or after all the selling that has occurred, the su...
BY: David PennSUBJECT: Charting The Market
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (22-23, 28-31): Commitment Of Traders Report: Demystified by Jason Braswell Debunking the myths about the COT, its traders, and their markets can help you build indicators for your own trades. Most traders know that the Commitment of Traders (COT) essentially is a report of the open interest held by the major categories of traders. Despite this basic knowledge, there seem to be some pervasive misconceptions about the report when it comes to understanding the relationship between the market and these categories of traders. I'm going to first give a quick backgroun...
BY: Jason BraswellSUBJECT: Commodity Central
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (43): Explore Your Options by Tom Gentile Got a question about options? Tom Gentile is the chief options strategist at Optionetics (www.optionetics.com), an education and publishing firm dedicated to teaching investors how to minimize their risk while maximizing profits using options. To submit a question, post it to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. S&P 500 INDEX OPTIONS SETTLEMENT Are Standard & Poor's 500 ($SPX) options settled American-style or European...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (46-47): Forex Focus by Kathy Lien Access to foreign exchange trading has opened up exciting trading options for the retail trader. You can now trade alongside corporations and institutions in a highly liquid market that is global, traded around the clock, and highly leveraged. Before jumping into this market, however, we must understand the factors that affect the forex market. With that in mind, STOCKS & COMMODITIES is introducing Forex Focus to better prepare the retail trader to participate in the currency market. WHAT MOVES THE US DOLLAR? Many factors are r...
BY: Kathy LienSUBJECT: Forex Focus
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (70-73): Home, Home On The Range by Andrew Tomlinson Price ranges are used in signaling both reversals and breakouts. Looking at how stochastics perform in breakouts sheds light on several key characteristics of the indicator. One of the trading systems I use is based on changes in momentum. There's nothing particularly high-tech or unique about it, but it means that I've been looking at a lot of breakouts. And one of the interesting things about breakouts is that they often affect indicators in unexpected ways. They act as a kind of stress test, pushing market m...
BY: Andrew TomlinsonSUBJECT: Chart Patterns
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (52-56): Int: Which Option Strategy Should You Use? Guy Cohen Tells You by J. Gopalakrishnan Guy Cohen, creator of the OptionEasy software and author of the books ""Options Made Easy"" and ""The Bible Of Options Strategies,"" has had extensive experience in trading and analyzing both the US and UK derivatives and stock markets. Specializing in trading and analytics applications ranging from real estate to derivatives, Cohen has developed some of the most comprehensive business, trading, and training models, all specifically designed for maximum user-friendliness. ...
BY: Jayanthi GopalakrishnanSUBJECT: Interview
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (10-13): Letters To S&C by Technical Analysis, Inc. The editors of S&C invite readers to submit their opinions and information on subjects relating to technical analysis and this magazine. This column is our means of communication with our readers. Is there something you would like to know more (or less) about? Tell us about it. Without a source of new ideas and subjects coming from our readers, this magazine would not exist. SWING TRADING Editor, After trying VectorVest, TC2000, MetaStock, and other programs, I can't seem to win in swing trading options. I hea...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (14-20): Persistent Option Volatility by Roger Ison, Ph.D. Do you really understand what your options model is doing? Let's find out. If you trade options, you know that mathematical option models are essential tools and, generally, very good. Market makers rely on option models explicitly; for example, at least one well-known broker provides tight, mechanically derived, online bid and ask prices for any option, and usually executes trades at their model prices instantly, without human intervention. Brokers' models can be quite sophisticated, taking into account ...
BY: Roger Ison, Ph.D.SUBJECT: Options
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (21): Q&A by Don Bright SINCE YOU ASKED Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. MINIMIZING RISK IN PAIRS TRADING When selecting a portfolio of pairs to minimize market risk, what tools do you use to minimize or diversify away the specific risk? D...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (24-27): The Cash Cow by Carley Garner with Paul Brittain Here's a look at a side of short option trading that you cannot ignore. On the surface, selling options for the sole purpose of premium collection appears irrational. After all, the strategy involves unlimited risk and limited reward. However, a closer look into the reality of the options market reveals a side of short option trading that even cynics cannot ignore. EVER THOUGHT OF TRADING NAKED? Industry veteran Paul Brittain of the Commodity Trading School and Alaron Trading is convinced that short opti...
BY: Carley Garner with Paul BrittainSUBJECT: Options
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (76-82): Traders' Tips by Technical Analysis, Inc. Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software, all to help readers more easily implement some of the strategies presented in this issue. Andrew Tomlinson's article in this issue, "Stochastics And Price Range Dynamics: Home, Home On The Range," reviews two techniques for evaluating price ranges: price bands and stochastics. In addition, he compares the use of current-day and previous-day price ranges for both price bands and stochastics. The code ...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (48-51): Turbocharge It! by Marge Sherald Tired of spending too much time in front of your computer? Here's how you can cut that time and fine-tune your indicators and trading rules. As a trader, you know the process of developing and testing trading systems never ends if you want to keep up with changing markets. You spend countless hours in front of your computer fine-tuning indicators and trading rules to fit your trading style and increase your profits. In this article, you'll learn how to let a genetic algorithm do a lot of your work, save time, and turbocha...
BY: Marge SheraldSUBJECT: Trading Systems
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (36-39): Volume Shapes And Chart Patterns by Thomas N. Bulkowski Do volume shapes predict postbreakout performance from chart patterns? In the second edition of my Encyclopedia Of Chart Patterns, I introduced a concept that I call volume shapes. I reviewed 38,500 chart patterns and catalogued each according to one of five volume shapes: flat, receding, rising, U, and dome, and then measured performance after the breakout. Here, I will examine the various volume shapes and some of the chart patterns, and discuss performance. VOLUME SHAPES Flatliners: Figure 1 s...
BY: Thomas BulkowskiSUBJECT: Chart Patterns
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (63-64): Websites For Traders: www.TimerTrac.com by David Penn WWW.TIMERTRAC.COM Investment newsletter writers have Mark Hulbert and his digest; the followers of market folklore, arcana, and shibboleths have Yale Hirsch and his almanac, and now, the world of market timers has TimerTrac.com. What is Timer Trac? Quite simply, Timer Trac provides an amazing cross-section of data on some of the country's most savvy and often under-the-radar market timers, traders, and money managers whose job it is to be in the market when it's moving up and out of the market--or sho...
BY: David PennSUBJECT: Websites For Traders
BY: David PennSUBJECT: Dow Theory
BY: Clem ChambersSUBJECT: Working Money
BY: Roberto ChahinSUBJECT: Working Money