Article Archive For
AUG2004
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
? Beating The Business
Cycle
? Futures For Small
Speculators
? How To Get Started In
Active Trading & Investing
? Optimal Investing: How To Protect And
Grow Your Wealth With Asset Allocation
? The Motley Fool's Money After 40:
Building Wealth For A Better Life...
AUTHOR: Technical Analysis, Inc.DATE: AUG2004SUBJECT: Books For Traders
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Boosting Profitability by Lawrence Chan and Louis Lin
ARTICLE SYNOPSIS ...Boosting Profitability by Lawrence Chan and Louis Lin
Here's how you can use advance issues momentum to create
an end-of-day trading system with superior profitability.
The stock exchanges broadcast the number of
advancing issues each trading day. This
advancing issues data has proven useful
for analyzing market breadth. In fact, for
many traders it is an essential indicator for
everyday trading because it represents the sentiment of the entire market. For our purposes here, I
will refer to the advancing issues data as broad market
advancing issues, since it represents the advancing issues
o...
AUTHOR: Lawrence Chan and Louis LinDATE: AUG2004SUBJECT: Indicators
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Enhanced Returns With Mutual Funds by Norman J. Brown
ARTICLE SYNOPSIS ...Enhanced Returns With Mutual Funds by Norman J. Brown
Is buy and hold the best strategy when
it comes to mutual funds? Here's a
mutual fund switching technique that
uses multiple-fund ranking to improve
returns.
In my earlier articles, I
showed it was possible
to switch a persistent
fund using a
technique I called
one rank, or OR. The technique resulted in a significant
improvement in annual return (Ann)
and a reduction in maximum drawdown
(Mdd). The term one rank
implies ranking a single mutual fund
daily, buying on an up day (return
of fund positive), and selling any
day the fund is down (...
AUTHOR: Norman J. BrownDATE: AUG2004SUBJECT: Market Timing
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
DIVIDENDS AND OPTIONS PRICES
How does a company's dividend affect
the option price? -- Newman
The dividend can be an important
influence on a stock option's price.
Obviously, if the company pays no dividend,
it makes no difference. However,
all else being equal, a dividend will
lower the value of a call option and
make a put option more expensive.
Why? Because after the dividend is
paid, the share price will fall to reflect
the dividend payment. Further, the fact
that the stock falls after the dividend is
paid makes calls less valuable and puts
more expens...
AUTHOR: Tom GentileDATE: AUG2004SUBJECT: Explore Your Options
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Fine-Tuning Your Money Management System by Bennett A. McDowell
ARTICLE SYNOPSIS ...Fine-Tuning Your Money Management System by Bennett A. McDowell
Acknowledge the risks in trading the markets by making sure
your money management system is sound.
When you hear of someone making a huge killing
in the market on a relatively small trading
account, more likely than not it was a fluke: The
trader was not using sound money management
techniques. The trader probably exposed
his trading account to obscene risk due to an abnormally large trade size. The trader may have just gotten
lucky and experienced a profit windfall. Trading like this
means it's just a matter of time before huge...
AUTHOR: Bennett A. McDowellDATE: AUG2004SUBJECT: Money Management
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Interview: George Fontanills Of Optionetics by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Interview: George Fontanills Of Optionetics by Jayanthi Gopalakrishnan
You might assume that graduates of Harvard Business School know
everything they need to know, but George Fontanills, cofounder of
Optionetics, is an active trader and Harvard grad who learned quickly
that he had a lot more to learn.
Disbanding his real estate business in the 1980s, George Fontanills
made a decision: his new business would be trading. After years of study
and practice, he developed a new method of making money: delta-neutral
options trading. He called his technique optionetics, and now Optionetics
is a lea...
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2004SUBJECT: Interview
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Letters To The Editor by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To The Editor by Technical Analysis, Inc.
ZIGZAG INDICATOR VS. FILTERED WAVES
Editor,
As one who has more gray
in his beard than he'd like,
I wanted to point out that
the "zigzag indicator" or
"zigzag filter" referred to
in Norman J. Brown's June 2004 article
is misnamed. I believe the mistake
started when Equis included this indicator
in the first version of its MetaStock
charting software. CompuTrac did not
include the indicator in its package (I
told you there was too much gray in my
beard).
At any rate, the concept was introduced
before IBM had even introduced
the first PC. It ...
AUTHOR: Technical Analysis, Inc.DATE: AUG2004SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2004SUBJECT: Opening Position
Predicting Turning Points With Cobweb Theory by Chris Satchwell, Ph.D.
AUTHOR: Chris Satchwell, Ph.D.DATE: AUG2004SUBJECT: New Techniques
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
TRADING PREPARATION
Do you prepare for the day, or do you
simply start trading? I've heard you
mention that you respond to the market,
but is that always enough? -- JS
That's a good question, and sometimes
I wonder if it's ever "enough"!
However, we do our best to prepare our
traders for each trading day. Our traders
are connected each morning to a live
chat that originates in New York,
Vancouver BC, North Carolina, and Las
Vegas. Four traders (me included) share
the "numbers" for the day (support,
resistance, pivots, and so on), and conduct
a market commentary. By having
m...
AUTHOR: Don BrightDATE: AUG2004SUBJECT: Q&A
AUTHOR: L. Chan & L. LinDATE: AUG2004SUBJECT: Sidebar
AUTHOR: Chris Satchwell, Ph.D.DATE: AUG2004SUBJECT: Sidebar
Spotting Index Tops And Bottoms
AUTHOR: Leigh StevensDATE: AUG2004
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Strength-Rated Candlestick Patterns by Mitch E. Mulhall
ARTICLE SYNOPSIS ...Strength-Rated Candlestick Patterns by Mitch E. Mulhall
Perfectly formed candlestick patterns are not
common. By ordering the criteria for a candlestick
pattern from most important to least
important, you can rate pattern strength by
the number of criteria met.
The criteria for a candlestick
pattern may seem prescriptive,
but a given pattern may
require a series of subtle
qualifications. This is particularly
true of multiplecandlestick
patterns. By carefully ordering the
qualities of a pattern, you can determine a
strength factor that can add perspective to your
candlestick analysis.
Streng...
AUTHOR: Mitch E. MulhallDATE: AUG2004SUBJECT: Chart Patterns
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The New Volatility Futures by Larry McMillan
ARTICLE SYNOPSIS ...The New Volatility Futures by Larry McMillan
They just might be the stock owner's delight.
The CBOE has created a new futures exchange
(the CBOE Futures Exchange, or CFE) to trade
volatility products. Its first and only product
at this time is futures on VIX, the CBOE
volatility index, but the CBOE plans to introduce
more volatility-related products soon.
Some traders might dismiss these products as simply an
opportunity for option-crazed investors. But in reality, these
products will find application for a far wider audience than
speculators: stock owners can benefit from the ability to
...
AUTHOR: Larry McMillanDATE: AUG2004SUBJECT: Options
Traders' Resource: Brokerages by Technical Analysis, Inc.
AUTHOR: Sharon YamanakaDATE: AUG2004SUBJECT: Traders' Resources
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
? NEOTICKER: ADVANCE ISSUES MOMENTUM (AIM)
Editor's note: Lawrence Chan and Louis Lin of TickQuest
(developer of NeoTicker) contributed the article to this issue
on which this month's Traders' Tips is based ("Boosting
Pro?tability"), and they have included NeoTicker code in the
article. Thus, please see the article starting on page 28 in this
issue for NeoTicker code for the advance issues momentum
(AIM) indicator.
--Kenneth Yuen, TickQuest Inc.
www.tickquest.com
TickQuest...
AUTHOR: Technical Analysis, Inc.DATE: AUG2004SUBJECT: Traders' Tips
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Websites For Traders: ChartPattern.com by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Websites For Traders: ChartPattern.com by Jayanthi Gopalakrishnan
WWW.CHARTPATTERN.COM
Dan Zanger is well known in the trading
community, and for good reason. Zanger,
who uses chart patterns to find highvolatility
stocks, is often quoted in popular
financial magazines such as Forbes
and Fortune, hosts his own radio shows,
and has been interviewed in several trading
magazines, including the one you are
reading (but not this particular issue).
He piqued the interest of technicians in
2000 when he discussed how he turned
$11,000 into $18 million in a year and a
half, an unofficial world record ...
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2004SUBJECT: Websites For Traders
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Websites For Traders: FuturesKnowledge.com by David Penn
ARTICLE SYNOPSIS ...Websites For Traders: FuturesKnowledge.com by David Penn
FUTURESKNOWLEDGE.COM
Are you interested in finding a futures
broker? How about scoring some solid
analysis of the markets? Quotes and
charts? Are you curious about forex
trading, electronic trading, or systems
trading? Got a thing for options (or like
to know where you could get one)?
If you answered "yes" to any of these
questions, then knowledge about futures
may be what you are after. And if
it is futures knowledge that you are
looking for, then perhaps Futures
Knowledge.com should be among your
destinations.
FuturesKnowledge.com i...
AUTHOR: David PennDATE: AUG2004SUBJECT: Websites For Traders
Working Money: Candlesticks And Trendlines by Ashwani Gujral
AUTHOR: Ashwani GujralDATE: AUG2004SUBJECT: Working Money
Working Money: Chart Reading Basics by John Devcic
AUTHOR: John DevcicDATE: AUG2004SUBJECT: Working Money
Working Money: The '94 Rules by David Penn
AUTHOR: David PennDATE: AUG2004SUBJECT: Working Money
Working Money: Trading Market Conditions by Steve Palmquist
AUTHOR: Steve PalmquistDATE: AUG2004SUBJECT: Working Money