ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (98): At The Close by Dennis Peterson Trading The Qs One way to trade the NASDAQ Composite is to trade the QQQQ (NASDAQ 100 exchange traded fund). In recent days, trading out of my IRA has been challenging, since I can't short any stock in that account. Trying to find a long entry in a negative market can be a challenge. So what I did was abandon some indicators and I started to look for lines of support and resistance instead. I would trade those for just one or two bars of profit, but my indicators are designed for swing trading, and catching a few profitable...
BY: Dennis D. PetersonSUBJECT: At the Close PM
BY: Technical Analysis, Inc.SUBJECT: Books For Traders
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (40): Expore 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. BOX SPREAD Q: I know how to construct a box spread, but why does it work? Is there a way to tell which option...
BY: Tom GentileSUBJECT: Explore Your Options
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (14-16): Forex Focus by Darrell Jobman 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 has introduced Forex Focus to better prepare the retail trader to participate in the currency market. Euro Sparkling, But Faces Long-Term Chall...
BY: Darrell JobmanSUBJECT: Forex Focus
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (61): Futures For You by Dan O'Neil INSIDE THE FUTURES WORLD Want to learn how the futures markets really work? Dan O'Neil, a principal at online futures and forex broker XPRESSTRADE (www.xpresstrade.com), responds to your questions about today's futures markets. 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. ABANDON SHIP? Many commodity markets have enjoyed fabulous bull runs. More recently, though, the rallies have sputtere...
BY: Dan O'NeilSUBJECT: Futures For You
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (46-54): Interview: Thomas Bulkowski by Jayanthi Gopalakrishnan Trader and chart-pattern expert Thomas N. Bulkowski, former hardware and software engineer and current Contributing Writer for Technical Analysis of STOCKS & COMMODITIES (and best-selling author of the classic Encyclopedia Of Chart Patterns as well as Trading Classic Chart Patterns and Getting Started In Chart Patterns), realized the potential of the stock market when he opened a brokerage account to deposit the stock certificates he received from his employer's stock purchase plan. On 27 trades, he a...
BY: Jayanthi GopalakrishnanSUBJECT: Interview
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (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. IMPLIED VOLATILITY Editor, I enjoyed Sam Bhugaloo's recent article in STOCKS & COMMODITIES ("The Power Of Implied Volatility," July 2006)...
BY: Technical Analysis, Inc.SUBJECT: Letters To S&C
BY: Jayanthi GopalakrishnanSUBJECT: Opening Position
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (68-71): Playing The Index Market by Tom Gentile Sometimes, it helps to look beyond the market averages and at specific sectors or industry groups instead. Quiet and trendless markets often leave index traders sidelined. Without volatility, trading indexes become more challenging because often-used strategies like bull call spreads or straddles simply don't work. These types of strategies require vertical movement. Unfortunately, falling volatility and sideways trading have become more frequent in the current market environment. Fortunately, ways to generate prof...
BY: Tom GentileSUBJECT: Trading Options
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (26): Q&A by Don Bright 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. PRICING E-MINIS Where does ES price come from? ES = (SPY price)/factor + time premium Now that I know that e-mini price is not direct, what bids and asks should I look at to detect ...
BY: Don BrightSUBJECT: Q&A
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (62-66): Risk-Adjusted Return by MH Pee Comparing two different trading strategies can be a challenge. Here's a technique that does it. How do you compare stock trading without using leverage and trading something like futures, which does involve leverage? You could do two things. First, you can make both portfolios assume the same amount of risk by adjusting the account size for each portfolio. The larger the account size, the smaller is the risk. If both portfolios have the same risk, then the one with the larger return is better. Second, you can vary the accou...
BY: M.H. PeeSUBJECT: Trading Systems
BY: Technical Analysis, Inc.SUBJECT: Traders' Resource
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (72-81): 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. This month's Traders' Tips are based on Lee Leibfarth's article in this issue, "Trading With An Adaptive Price Zone." Code written in EasyLanguage for TradeStation is provided by the author in the article's sidebar. Additional code is presented here. Liebfarth's formulas are presented for TradeStation, MetaStoc...
BY: Technical Analysis, Inc.SUBJECT: Traders' Tips
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (19-24): Trading The Forex Wave by Raghee Horner Chart patterns are powerful tools and it is important to identify them by finding their building blocks. Here's how. Only after I embraced market cycles did I truly begin to understand what to do with all the lines and levels I had learned to draw on my charts. Early on, as I began teaching myself to trade in the late 1980s to early 1990s, there were few books available about technical analysis. I found myself gravitating toward price (instead of news) because my mother was a bit of a market timer (although not tra...
BY: Raghee HornerSUBJECT: Chart Patterns
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (42-44): Trading Wave 3 by Mircea Dologa, MD Trading wave 3 could prove to be the most profitable of all waves in Elliott wave analysis. Here's an example. In my previous two articles, I discussed various techniques you could apply to trading while a wave 3 was in process. In this, the third and final part of the series, I will walk you through a trade so you can see how to utilize everything I discussed in the first two parts. GETTING READY 1. Be alert to the possibility of an extended W3 trade ? Identify the profitable low entry. ? Price should be near the ...
BY: Mircea Dologa, MDSUBJECT: Anatomy Of A Trade
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (28-31): Trading With An Adaptive Price Zone by Lee Leibfarth When the markets are moving sideways, it is difficult to identify the turning points. Here's one indicator that can help you do that. Traders are always looking for innovative ways to look at the markets, ones that will give them a unique edge. The adaptive price zone provides a means of analyzing price action and spotting possible turning points in the market. In addition, this type of indicator may help traders decide when to stay in the market and when to jump ship. While there is no magical indicat...
BY: Lee LeibfarthSUBJECT: Indicators
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (27): Websites For Traders by Jayanthi Gopalakrishnan WWW.EMINIZ.COM Want to sit at home and trade for a few hours and then spend the rest of your time enjoying life? Who wouldn't want to? My guess is that if you didn't have this daydream at least once in your life, you wouldn't be reading this magazine. It isn't difficult to open up a futures trading account, online or otherwise, but before you do, you'll have to decide what you want to trade and how you want to trade it. Just like with anything else, you need a game plan. To help you create that game plan, long...
BY: Jayanthi GopalakrishnanSUBJECT: Websites For Traders
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:9 (67, 97): Websites For Traders: www.TradingTheCharts.com by David Penn What's in a message-board? Well, if that message-board is TradingTheCharts.com, then the answer is "A boon for technical traders," that's what. Increasingly, certain forms of communication like message-boards and personal web pages (or blogs) seem to have become the veritable architecture of the Internet cityscape. And the near-ubiquity of these two forms says a great deal about what people find most useful about the Internet. Insofar as I have pointed to a few of what I consider the most inte...
BY: David PennSUBJECT: Websites For Traders
BY: David PennSUBJECT: Working Money