ARTICLE SYNOPSIS ...A""map"" for the trading jungle by Grant D. Noble Most of the common methods used by traders can be classified under three main theories. Noble outlines these trading methods, then recommends a strategy for choosing those that best fit your trading style. His ""MAP"" allows you to Minimize the time and money you spend, Analyze and compare valid methods, and Personalize what you find to fit your own account. There are thousands of trading methods on the market, but many are worthless and most duplicate better methods. You need a ""MAP"" to: 1. Minimize the time and money you spend, 2. Anal...
BY: Grant D. Noble
ARTICLE SYNOPSIS ...Discount Broker Blues part 3 by Dan Weinberg The conclusion to Weinberg's experiences as a novice trader learning how to play the game the hard way. PURCHASE AND PANIC (PART TWO) Merger Mania is another form of Takeover Mania, but my example here is a wee bit different. As with Storer Communications, this time I thought I had an absolutely certain winner . . . (Are you starting to hear the melody of ""The Discount Broker Blues"" a little more clearly?) On January 31, I bought 100 shares of American Hospital Supply at the relatively low price of 315/8. The company manufactures and distribute...
BY: Dan Weinberg
ARTICLE SYNOPSIS ...Elements of charting Wyckoff method of trading stocks part 2 by Jack K. Hutson The second of a series which presents the Richard D. Wyckoff method of trading stocks. In this article, the different types of charts upon which the Wyckoff method is based are examined. Vertical line, figure and wave charts are all essential to the study of the market using Wyckoff's techniques. The two most desirable things to know about the stock market are when the final top of a bull market, an intermediate swing, or a minor move occur and when the final bottom of a bear market, an intermediate swing, or a m...
BY: Jack K. Hutson
ARTICLE SYNOPSIS ...Marshall wave theory by John Sweeney Yet another ""wave"" is being added to the futures lexicon: the Marshall Wave. Originated by John Marshall (Box 2302, Naples, FL33939 (813) 263-3114. Marshall Wave is a complicated system for trading futures in heavily diversified portfolios of contracts. Results for one 18-commodity portfolio actually traded since Christmas 1984 show an initial slow rise followed by a skyrocket rise beginning in March, 1985 As Marshall says, ""Heavy diversification is the key to success in trading commodity markets."" A completed Marshall portfolio would have 36 commodit...
BY: John Sweeney
ARTICLE SYNOPSIS ...Optimizing directional movement with cycles by John F. Ehlers Directional Movement, an approach which weighs the daily difference between highs and the difference between lows, can be optimized by applying cycle concepts. Ehlers explains the process and includes a BASIC computer program which features the optimized Directional Trend Indicator. Directional Movement is a technical analysis approach that weighs the daily difference between highs and the difference between lows. The principle of this approach is that the larger difference will influence the directional movement of the price. Wel...
BY: John F. Ehlers
ARTICLE SYNOPSIS ...Random walk prices by Clifford J. Sherry, Ph.D. Are your trades based on skill or luck? Sherry's simple ""Skill Score"" will show you how to determine whether your decisions are based on your trading prowess or the luck of the draw. A recent article by Tomek and Querin (Journal of Futures Markets 1984) highlights some of the questions that speculators and, particularly, technical analysts have or should have about how commodity prices are generated by a random walk process. This means that they believe that price generation is random and independent. A common example of a random and indepe...
BY: Clifford J. Sherry, Ph.D.
ARTICLE SYNOPSIS ...Skill or luck? by Clifford J Sherry Ph.D. Dr. Sherry examines the statistical concepts of randomness and independence as they affect prices in the markets. He outlines a method of determining whether or not prices are random and/or independent by using probability density functions, quantile analysis and chi-square methodology. Gambling, legal or illegal, whether in a Vegas or Atlantic City casino, a carnival, or the backroom of your neighborhood club, is based almost totally on chance or 'luck.' This is especially true of games like Wheel of Fortune, roulette, slot machines, and dice games ...
BY: Clifford J. Sherry, Ph.D.
ARTICLE SYNOPSIS ...Technical analysis of volume by Howard K. Waxenberg You don't need a computer for volume studies; the analysis presented here can be done with a calculator and The Wall Street Journal. This article provides an outline of technical tools derived from volume figures which can then be used for analysis to gauge the internal strength or weakness of a market. In my last article I wrote about the technical analysis of the equity markets that could be accomplished without the aid of a computer or on-line database. In that article I showed an analysis of advance-decline data. This article will conti...
BY: Howard K. Waxenberg