Article Archive For
AUG2005
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At The Close by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (98, 82): At The Close by Jayanthi Gopalakrishnan
Here's an informal question and answer with Sohail Asghar,
president of PennyStockAction.com and a pioneer of two
independent home-based activities, penny stock trading and
sports investing.
How did you get interested in the markets?
In 1986 I visited Canada and saw my cousin daytrading on
a regular basis. He introduced me to some others who were
daytrading as a home-based activity. At that time, daytrading
wasn't a popular activity in France.
What did you find exciting about active trading?
When I saw how popular ...
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2005SUBJECT: At the Close
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (94): Books For Traders by Technical Analysis, Inc.
Economic And Financial Decisions Under Risk (244 pages, $35 softcover, 2005, ISBN 0-691-12215-6) by
Louis Eeckhoudt, Christian Gollier, and Harris Schlesinger, published by Princeton University Press.
Understanding and dealing with risk is an essential part of modern economics. This book represents a summary of basic multiperiod decision-making under risks. The authors start with the fundamentals of risk measurement and risk aversion, then apply these concepts to insurance decisions and portfolio choice in
a on...
AUTHOR: Technical Analysis, Inc.DATE: AUG2005SUBJECT: Books For Traders
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Charting The Market: Piercing Patterns by David Penn
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (62, 83): Charting The Market: Piercing Patterns by David Penn
Writing about dual candle lines in his book ""Beyond
Candlesticks,"" Steve Nison recalls a particularly
vivid (and metaphoric) description of a "piercing
pattern" in Japanese candlestick analysis:
""? [T]he last of the bulls that were backed into
a corner and came out fighting in a heroic
fight. Kamikaze fights are always frightening,
so the bears seeing this take to the sidelines
for the moment. In this quiet period, the
bulls may get reinforcements, or after all the
selling that has occurred, the su...
AUTHOR: David PennDATE: AUG2005SUBJECT: Charting The Market
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Commitment Of Traders Report: Demystified by Jason Braswell
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (22-23, 28-31): Commitment Of Traders Report: Demystified by Jason Braswell
Debunking the myths about the COT, its traders, and their markets can help you build indicators for your own
trades.
Most traders know that the Commitment of Traders (COT) essentially is a report of the open interest held by the major categories of traders. Despite this basic knowledge, there seem to be some pervasive misconceptions about the report when it comes to understanding the relationship between the market and these categories of traders. I'm going to first give a
quick backgroun...
AUTHOR: Jason BraswellDATE: AUG2005SUBJECT: Commodity Central
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (43): Explore 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.
S&P 500 INDEX OPTIONS SETTLEMENT
Are Standard & Poor's 500 ($SPX) options settled American-style or European...
AUTHOR: Tom GentileDATE: AUG2005SUBJECT: Explore Your Options
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Forex Focus by Kathy Lien
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (46-47): Forex Focus by Kathy Lien
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 is introducing Forex Focus to better prepare the retail trader to participate in the currency market.
WHAT MOVES THE US DOLLAR?
Many factors are r...
AUTHOR: Kathy LienDATE: AUG2005SUBJECT: Forex Focus
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Home, Home On The Range by Andrew Tomlinson
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (70-73): Home, Home On The Range by Andrew Tomlinson
Price ranges are used in signaling both reversals and breakouts. Looking at how stochastics perform in breakouts sheds light on several key characteristics of the indicator.
One of the trading systems I use is based on changes in momentum. There's nothing particularly high-tech or unique about it, but it means that I've been looking at a
lot of breakouts. And one of the interesting things about breakouts is that they often affect indicators in unexpected ways. They act as a kind of stress test, pushing market m...
AUTHOR: Andrew TomlinsonDATE: AUG2005SUBJECT: Chart Patterns
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Int: Which Option Strategy Should You Use? Guy Cohen Tells You by J. Gopalakrishnan
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (52-56): Int: Which Option Strategy Should You Use? Guy Cohen Tells You by J. Gopalakrishnan
Guy Cohen, creator of the OptionEasy software and author of the books ""Options Made Easy"" and ""The Bible Of Options Strategies,"" has had extensive experience in trading and analyzing both the US and UK
derivatives and stock markets. Specializing in trading and analytics applications ranging from real estate to derivatives, Cohen has developed some of the most comprehensive business, trading, and training models, all specifically designed for maximum user-friendliness.
...
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2005SUBJECT: Interview
Intermarket Review by David Penn
AUTHOR: David PennDATE: AUG2005SUBJECT: Intermarket Review
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Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (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.
SWING TRADING
Editor,
After trying VectorVest, TC2000, MetaStock, and other programs, I can't seem to win in swing trading options. I hea...
AUTHOR: Technical Analysis, Inc.DATE: AUG2005SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: AUG2005SUBJECT: Opening Position
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Persistent Option Volatility by Roger Ison, Ph.D.
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (14-20): Persistent Option Volatility by Roger Ison, Ph.D.
Do you really understand what your options model is
doing? Let's find out.
If you trade options, you know that mathematical
option models are essential tools and, generally, very good. Market makers rely on option models explicitly;
for example, at least one well-known broker provides tight, mechanically derived, online bid and ask prices for any option, and usually executes trades at their model prices instantly, without human intervention. Brokers' models can be quite sophisticated, taking into account ...
AUTHOR: Roger Ison, Ph.D.DATE: AUG2005SUBJECT: Options
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (21): Q&A by Don Bright
SINCE YOU ASKED
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.
MINIMIZING RISK IN PAIRS TRADING
When selecting a portfolio of pairs to minimize market risk, what tools do you use to minimize or diversify away the specific risk? D...
AUTHOR: Don BrightDATE: AUG2005SUBJECT: Q&A
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The Cash Cow by Carley Garner with Paul Brittain
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (24-27): The Cash Cow by Carley Garner with Paul Brittain
Here's a look at a side of short option trading that you
cannot ignore.
On the surface, selling options for the sole purpose
of premium collection appears irrational. After all, the strategy involves unlimited risk and limited reward. However, a closer look into the reality of the options market reveals a side of short option trading that even cynics cannot ignore.
EVER THOUGHT OF TRADING NAKED?
Industry veteran Paul Brittain of the Commodity Trading
School and Alaron Trading is convinced that short opti...
AUTHOR: Carley Garner with Paul BrittainDATE: AUG2005SUBJECT: Options
Traders' Resource: Brokerages by Technical Analysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: AUG2005SUBJECT: Traders' Resource
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (76-82): 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.
Andrew Tomlinson's article in this issue, "Stochastics And Price Range Dynamics: Home, Home On The Range," reviews two techniques for evaluating price ranges: price bands and stochastics. In addition, he compares the use of current-day and previous-day price ranges for both price bands and stochastics.
The code ...
AUTHOR: Technical Analysis, Inc.DATE: AUG2005SUBJECT: Traders' Tips
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Turbocharge It! by Marge Sherald
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (48-51): Turbocharge It! by Marge Sherald
Tired of spending too much time in front of your computer? Here's how you can cut that time and fine-tune your indicators and trading rules.
As a trader, you know the process of developing and
testing trading systems never ends if you want to keep up with changing markets. You spend countless hours in front of your computer fine-tuning indicators and trading rules to fit your trading style and increase your profits. In this article, you'll learn how to let a genetic algorithm do a lot of your work, save time, and turbocha...
AUTHOR: Marge SheraldDATE: AUG2005SUBJECT: Trading Systems
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Volume Shapes And Chart Patterns by Thomas N. Bulkowski
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (36-39): Volume Shapes And Chart Patterns by Thomas N. Bulkowski
Do volume shapes predict postbreakout performance from chart patterns?
In the second edition of my Encyclopedia Of
Chart Patterns, I introduced a concept that I call volume shapes. I reviewed 38,500 chart patterns and catalogued each according to one of five volume shapes: flat, receding, rising, U, and dome, and then
measured performance after the breakout. Here, I will examine the various volume shapes and some of the chart patterns, and discuss performance.
VOLUME SHAPES
Flatliners: Figure 1 s...
AUTHOR: Thomas BulkowskiDATE: AUG2005SUBJECT: Chart Patterns
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Websites For Traders: www.TimerTrac.com by David Penn
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:8 (63-64): Websites For Traders: www.TimerTrac.com by David Penn
WWW.TIMERTRAC.COM
Investment newsletter writers have Mark Hulbert and his digest; the followers of market folklore, arcana, and shibboleths have Yale Hirsch and his almanac, and now, the world of market timers has TimerTrac.com.
What is Timer Trac? Quite simply, Timer Trac provides an amazing cross-section of data on some of the country's most savvy and often under-the-radar market timers, traders, and money managers whose job it is to be in the market when it's moving up and out of the
market--or sho...
AUTHOR: David PennDATE: AUG2005SUBJECT: Websites For Traders
Working Money: Confirmation Comeback? by David Penn
AUTHOR: David PennDATE: AUG2005SUBJECT: Dow Theory
Working Money: From Plain Vanilla To Exotic: So Many Options by Clem Chambers
AUTHOR: Clem ChambersDATE: AUG2005SUBJECT: Working Money
Working Money: Self-Discipline Vs. Self-Sabotage by Roberto Chahin
AUTHOR: Roberto ChahinDATE: AUG2005SUBJECT: Working Money