Contents For
JUL1999
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A System For Trading Fidelity Select Funds by Jay Kaeppel
ARTICLE SYNOPSIS ...A System For Trading Fidelity Select Funds by Jay Kaeppel
The key techniques for trading stocks, options, and
futures can also be applied successfully to mutual
funds. Here's a systematic approach to mutual fund
trading.
Several keys to investment and
trading success are universal;
these keys apply to stock, futures,
and options trading, and
they also apply to trading mutual
funds. The first key is to
identify opportunities with
above-average profit potential.
The second is to determine how
best to take advantage of those
opportunities without taking on too much risk. Achieving
the proper b...
BY: Jay KaeppelSUBJECT: Mutual Funds
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Correlation Among Stocks by Michael P. Turner
ARTICLE SYNOPSIS ...CorrelationAmong Stocks by Michael P. Turner
If you are trading stocks, you may find opportunities by
tracking the correlation between them. This can lead to
different strategies such as trading one company off of
another's news, spread trading, and sector trading. The
techniques described here were adapted from the book Day
Trading Into The Millennium, available from http://
www.tradersresource.com.
In today's financial markets, a relationship,
or correlation, exists
among all securities. Sometimes
there is a positive correlation,
sometimes there is a negative
correlation, and sometimes
the...
BY: Michael P. TurnerSUBJECT: Trading Techniques
How Great Traders Go Bad by John A. Sarkett
BY: John A. SarkettSUBJECT: Trading Psychology
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Identifying Crucial Support And Resistance Levels by Ned Gandevani
ARTICLE SYNOPSIS ...Identifying Crucial Support
And Resistance Levels
One tenet of technical analysis is the concept of support and
resistance. In it, markets stop declining, thereby establishing
a support level. A resistance level is set when a rally completes
its rise. Some support and resistance levels may be
more important than others. Here's a way to determine the
key levels.
A look at market movement tells
us that price fluctuates between
a level of support and a level of
resistance. Recognizing key support
and resistance levels can
improve our ability to enter, exit,
and manage our trades. So how
can we ...
BY: Ned Gandevani, Ph.D.SUBJECT: Novice Traders' Notebook
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Inherent Return In Futures Markets by Charles R. Lightner
ARTICLE SYNOPSIS ...Inherent Return In
Futures Markets
There has been a long-running controversy about the source
of returns to futures market investors. With that in mind,
consider new data in support of the theory that there is an
inherent return to the noncommercial investor group, one
that represents compensation for their acceptance of risk....
BY: Charles R. LightnerSUBJECT: Managed Futures
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Interview: From The Pit To The PC: Lewis J. Borsellino by Thom Hartle
ARTICLE SYNOPSIS ...From The Pit To The PC
Lewis J. Borsellino
The current, never-before-seen bull market in stocks has led to tremendous
growth in trading the Standard & Poor's 500 futures pits. One top S&P trader,
Lewis Borsellino, has been a runner, a clerk, a broker, an independent trader,
and now, a fund manager. Recently, Borsellino wrote about his life and time
in the pits in The Day Trader: From The Pit To The PC. STOCKS &
COMMODITIES Editor Thom Hartle interviewed Borsellino on April 21, 1999,
asking him about, among other things, his strengths, his mistakes, the future
of futures, and more.
Did your t...
BY: Thom HartleSUBJECT: Interview
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Momentum by Stuart Evens
ARTICLE SYNOPSIS ...Momentum
Trend-following methods and indicators have drawbacks:
One, they indicate a change in trend after the fact, thereby
missing a significant portion of the initial move. Two, markets
spend a lot of time not in trends, but in trading ranges --
and using trend-following methods with prices in trading
ranges can result in whipsaw losses. To avoid these pitfalls,
momentum indicators are used to forewarn of a change in
trend and the reversal of price at support and resistance
levels within a trading range. Momentum is not a perfect
method or indicator, but used appropriately, it can be extrem...
BY: Stuart EvensSUBJECT: Novice Traders' Notebook
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Pseudo Securities For Technical Analysts, Part 2 by Charles E. Miller
ARTICLE SYNOPSIS ...Pseudo Securities For
Technical Analysts - Part 2
Last time, we examined the idea of using pseudo securities,
based on artificial data with known properties, to map the
characteristics of various indicators. We then applied this
concept to the time domain of security analysis. In this, the
second of a three-part series, we explore the actual technique
used to generate pseudo security data.
When working with pseudo securities,
as with anything else new
on the computer, it is generally
common sense not to experiment
within your working application.
For ProTA, BeeSoft's
technical analysis softw...
BY: Charles E. MillerSUBJECT: New Techniques
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Traders' Notes
ARTICLE SYNOPSIS ...? ELECTRONIC DAYTRADING
Considering the increased interest in
daytrading and our interview with David
Nassar in the May 1999 STOCKS &
COMMODITIES, we thought that some
clarification of common terms used in
electronic direct access trading (EDAT)
might be helpful.
Archipelago: Also called Terra Nova,
this electronic communications network
(ECN) has the symbol of TNTO on the
Level II screen.
Bloomberg: An ECN with the symbol
BTRD for B-Trade on the Level II screen....
BY: Technical Analysis, Inc.SUBJECT: Novice Traders' Notebook
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V.17:7: Letters
ARTICLE SYNOPSIS ...WYCKOFF METHOD USEFUL
Editor,
I recently finished reading your wonderful
book, Charting The Stock Market:
The Wyckoff Method, and am send-ing
this letter to thank you for publishing
it and for making it available at a
very reasonable cost. Economy isn't
everything, but in this arena, spending
hundreds of dollars for books and products,
replete with appeals to human greed
and promises of ease of gain, is not
uncommon. I also appreciate the fact
that your book consistently states that
this method offers no magic formula or
indicator, but rather presents itself as an
aid to navigation of the mark...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
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Websites For Traders
ARTICLE SYNOPSIS ...This month, we begin a new section
called Websites For Traders, describing
Websites of possible interest to traders,
technical analysts, and investors.
Since this magazine's focus is technical
analysis, we'll begin by discussing some
Websites that offer charting.
ASK RESEARCH
www.askresearch.com
Ask Research is a free service providing historical
and real-time market data and charts. Select
daily or intraday charts, and select your preferred
settings for charts and indicator parameters.
Indicators include on-balance volume
(OBV), stochastics, Williams' %R, relative
strength index, moving aver...
BY: Technical Analysis, Inc.SUBJECT: Websites