ARTICLE SYNOPSIS ...At The Close by Moses Sanchez Many people can be grouped into one of two categories. I am an eternal optimist while my wife is pessimistic and we complement each other perfectly. Investors or traders need to know which category they fall into and acknowledge it as soon as they get involved with the market because it can have devastating effects on their decisions otherwise. In late 2007, a colleague of mine -- let's call him Optimistic Oscar -- was buying what he considered good deals. He did his homework and analysis both fundamentally and technically, and concluded that purchasing stock of s...
BY: Moses SanchezSUBJECT: At The Close
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. - A Way To Wealth: The Art Of Investing In Common Stocks - Commodity Modeling And Pricing: Methods For Analyzing Resource Market Behavior - Enhanced Indexing Strategies: Utilizing Futures And Options To Achieve Higher Performance - The Forever Portfolio: How To Pick Stocks That You Can Hold For The Long Run - Keynes And The Market - Commodity Trader's Almanac 2009 - Introduction To AmiBroker: Advanced Technical Analysis Software For Charting And Trading System Development ...
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Discerning Portfolio Patterns Using Data Animation by Bruce Peterson, PhD Here is a method using animation that helps you visualize patterns of stock behavior for an entire portfolio. Traders have long used technical indicators and charts to identify patterns characterizing trading opportunities for individual stocks. With the advent of fast computers and easily available historical data, the number of indicators and charts available has greatly expanded. This can become burdensome when tracking a portfolio with many stocks. A dozen stocks with five charts each result in 60 charts to be revi...
BY: Bruce Peterson, PhD
ARTICLE SYNOPSIS ...Elliott Wave Theory, Simplified by Koos van der Merwe Elliott wave counts can get complicated, but it doesn't have to. Here's a simplified look at how to study Elliott wave theory. IN the late 1920s, Ralph Nelson Elliott came to the conclusion that the movement of the stock market could be predicted by identifying a repetitive pattern of waves. He theorized that movement in the market was the result of investors' reaction to outside influences. Over my years as a trader and investor in the stock market, I came to realize that the outside influences that Ralph Elliott believed moved the mark...
BY: Koos van der MerweSUBJECT: Charting
ARTICLE SYNOPSIS ...Entering Trades At Pullbacks by Candy Schaap When opportunities knock, tell them to come in! Here's how pullbacks in trends offer opportunity. Anybody who has ever bought an asset, whether it's bonds, stocks, mutual funds, or real estate, knows that prices go up and down. Prices fluctuate between support and resistance most of the time. This is information that technical analysts use for trend trading and countertrend trades. A countertrend trade is also known as a scalp trade. As price moves back to support in an uptrend, or up to resistance in a downtrend, there is an opportunity to make m...
BY: Candy SchaapSUBJECT: Trading Techniques
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile BUY-WRITES? A report in Baron's said now was a good time for ""buy-writes"" and said the trade was buying stock and selling calls. This sounds like covered calls. Is there a difference and, if not, do you think it IS a good time? You are correct, the buy-write and the covered call are the same strategy. ""Buy-write"" refers to the fact that the trade involves buying shares and writing calls....
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Futures For You by Carley Garner BUTTERFLY VS. CONDOR What is the difference between an iron butterfly and a condor? Before examining the discrepancies between these strategies along with their advantages and disadvantages, let me note that option terminology differs depending on where you are. The two US financial hubs, New York and Chicago, have their own language when it comes to option strategies. A broker on the CME floor may have a slightly different view on what exactly a condor is relative to someone standing in a NYMEX option trading pit. That said, you should be familiar with the ...
BY: Carley GarnerSUBJECT: Futures For You
ARTICLE SYNOPSIS ...How I Stopped Holding And Learned To Love The Death Cross by Greg Gazurian Check out this exit strategy, which may be what you need when a specific stock or market is weakening or bearish, compared to the (classic but not necessarily desirable) buy & hold strategy. Traditionally, buy & hold investors have sought to buy low and sell high to maximize returns. Although this sounds attractive, there are several problems in using only this approach in the stock market. One of the most common is the round trip, where the investor buys the stock at a relatively low price, holds the stock as it goes...
BY: Greg GazurianSUBJECT: Trading Strategies
ARTICLE SYNOPSIS ...Interview: Classic Swing Trading With Linda Bradford Raschke by J. Gopalakrishnan and B. R. Faber Hers is a name that you've probably heard or read any number of times if you've been interested in or involved in technical analysis for very long. Linda Bradford Raschke began her trading career in 1981 on the floor of the Pacific Coast Stock Exchange before moving to the Philadelphia Stock Exchange, eventually trading her own account from home. StockS & commoditieS Editor Jayanthi Gopalakrishnan (JG) and Staff Writer Bruce Faber (BF) spoke to Raschke via telephone on December 4, 2008. Linda, h...
BY: J. Gopalakrishnan and B. FaberSUBJECT: Interview
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. TAXES AND TRADING Editor, I have been a subscriber to STOCKS & COMMODITIES for about two years now. I find some of the articles very useful and it's the only magazine that I actually keep in a library. The point at which I started subscribing was about the time I switched from being an investor to a trader. I am looking for a tax service that understands that, unlike investors, traders make more than a few trades a year and who won't run away at the sight of a trader's ledger. Your magazine has many great articles on trading systems, indicators, f...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Q&A by Don Bright DAYTRADING CRITERIA What time frame bars and other criteria are used for daytrading? --dafong Entry and exit points for daytrading tend to be determined by a couple of things. First, we look at the premium (PREM) or discount (DISC) to fair value on a emini tick chart. This will tell us when the money is going after the stocks. When futures houses can sell futures at a high PREM, they will hedge with underlying securities. This can be seen with any spreadsheet. Then we look to see where the peers are trading, which helps to determine the strength of the stock in relation to...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...Support & Resistance Axioms by David G. Ondercin, Phd Here are seven axioms for the practical application of support and resistance levels to your trading. Support and resistance are of central importance to all traders and a necessary starting point for new traders. There are self-evident truths concerning support and resistance of financial markets, so let us examine some of these axioms for their practical application to trading. AXIOM 1 The concept of support and resistance is important because traders believe it is important. The belief is self-fulfilling. Traders are certain, for ...
BY: David G. Ondercin, Phd
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. Most of this month's Traders' Tips are based on Markos Katsanos' article in this issue, "Trading The Aussie." Other tips are on a topic of the contributors' choosing. Code for MetaStock for implementing the forex intermarket strategy from Katsanos' article is included at the end of this document. Additional code is presented here as contributed by software developers. Readers will find our Traders' Tips section in its entirety the StockS & commoditieS website at www.Traders.com the Traders' Tips area, from where the code can be copied and pasted int...
BY: Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Trading The Aussie by Markos Katsanos This system exploits the traditionally strong correlation between the Australian dollar and commodities. The Australian dollar, along with the Canadian dollar, the New Zealand dollar, and the South African rand, is regarded as a "commodity currency," owing to the sizable role of commodity production in the Australian economy. In 2008?09, iron ore is forecast to be Australia's largest export commodity (in value terms), followed by coal, gold, and crude oil. The country's largest agricultural export commodity is wheat, ranked 10th overall in commodity expo...
BY: Markos KatsanosSUBJECT: Forex Focus
ARTICLE SYNOPSIS ...Websites For Traders by Technical Analysis, Inc. WWW.TRADERPLANET.COM With social networks such as Facebook, MySpace, and Twitter gaining so much popularity, I have no doubt that one dedicated to traders and investors could do the same. TraderPlanet.com, founded by Lane Mendelsohn, was created to provide traders and investors specifically a place to interact and network with like-minded individuals. Some of you may recall Lane Mendelsohn from TraderEducation.com and Market Technologies. You'll see some similarities between TraderEducation.com and TraderPlanet.com. The difference is that Trad...
BY: Technical Analysis, Inc.SUBJECT: Websites For Traders
BY: Larry SwingSUBJECT: Novice Traders' Notebook