Article Archive For
FEB2009
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At The Close by Moses Sanchez
ARTICLE SYNOPSIS ...At The Close by Moses Sanchez
Many people can be grouped into one of two categories.
I am an eternal optimist while my wife is
pessimistic and we complement each other perfectly.
Investors or traders need to know which category they
fall into and acknowledge it as soon as they get involved with
the market because it can have devastating effects on their
decisions otherwise.
In late 2007, a colleague of mine -- let's call him Optimistic
Oscar -- was buying what he considered good deals. He
did his homework and analysis both fundamentally and
technically, and concluded that purchasing stock of s...
AUTHOR: Moses SanchezDATE: FEB2009SUBJECT: At The Close
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Books For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc.
- A Way To Wealth: The
Art Of Investing In Common
Stocks
- Commodity Modeling
And Pricing: Methods
For Analyzing Resource
Market Behavior
- Enhanced Indexing
Strategies: Utilizing Futures
And Options To
Achieve Higher Performance
- The Forever Portfolio:
How To Pick Stocks
That You Can Hold For
The Long Run
- Keynes And The Market
- Commodity Trader's Almanac
2009
- Introduction To
AmiBroker: Advanced
Technical
Analysis Software
For Charting And
Trading System Development
...
AUTHOR: Technical Analysis, Inc.DATE: FEB2009SUBJECT: Books For Traders
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Discerning Portfolio Patterns Using Data Animation by Bruce Peterson, PhD
ARTICLE SYNOPSIS ...Discerning Portfolio Patterns Using Data Animation by Bruce Peterson, PhD
Here is a method using animation that helps you visualize
patterns of stock behavior for an entire portfolio.
Traders have long used technical indicators and
charts to identify patterns characterizing trading
opportunities for individual stocks. With the
advent of fast computers and easily available historical data, the number of indicators and charts available
has greatly expanded. This can become burdensome when
tracking a portfolio with many stocks. A dozen stocks with
five charts each result in 60 charts to be revi...
AUTHOR: Bruce Peterson, PhDDATE: FEB2009
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Elliott Wave Theory, Simplified by Koos van der Merwe
ARTICLE SYNOPSIS ...Elliott Wave Theory, Simplified by Koos van der Merwe
Elliott wave counts can get complicated,
but it doesn't have to. Here's a simplified
look at how to study Elliott wave theory.
IN the late 1920s, Ralph
Nelson Elliott came to the
conclusion that the movement
of the stock market
could be predicted by identifying
a repetitive pattern of waves. He
theorized that movement in the market
was the result of investors' reaction to
outside influences.
Over my years as a trader and investor
in the stock market, I came to realize that
the outside influences that Ralph Elliott
believed moved the mark...
AUTHOR: Koos van der MerweDATE: FEB2009SUBJECT: Charting
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Entering Trades At Pullbacks by Candy Schaap
ARTICLE SYNOPSIS ...Entering Trades At Pullbacks by Candy Schaap
When opportunities knock, tell them to come in! Here's how
pullbacks in trends offer opportunity.
Anybody who has ever bought an asset, whether it's
bonds, stocks, mutual funds, or real estate, knows
that prices go up and down. Prices fluctuate between
support and resistance most of the time.
This is information that technical analysts use for trend trading and countertrend trades. A countertrend trade is
also known as a scalp trade. As price moves back to support
in an uptrend, or up to resistance in a downtrend, there is an
opportunity to make m...
AUTHOR: Candy SchaapDATE: FEB2009SUBJECT: Trading Techniques
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Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile
BUY-WRITES?
A report in Baron's said now was a good time for ""buy-writes"" and said the trade was buying stock and selling calls. This sounds like covered calls. Is there a difference and, if not, do you think it IS a good time?
You are correct, the buy-write and the covered call are the same strategy. ""Buy-write"" refers to the fact that the trade involves buying shares and writing calls....
AUTHOR: Tom GentileDATE: FEB2009SUBJECT: Explore Your Options
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Futures For You by Carley Garner
ARTICLE SYNOPSIS ...Futures For You by Carley Garner
BUTTERFLY VS. CONDOR
What is the difference between an iron
butterfly and a condor?
Before examining the discrepancies
between these strategies along with their
advantages and disadvantages, let me
note that option terminology differs
depending on where you are. The two
US financial hubs, New York and Chicago,
have their own language when it
comes to option strategies. A broker on
the CME floor may have a slightly different
view on what exactly a condor is
relative to someone standing in a NYMEX
option trading pit. That said, you should
be familiar with the ...
AUTHOR: Carley GarnerDATE: FEB2009SUBJECT: Futures For You
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How I Stopped Holding And Learned To Love The Death Cross by Greg Gazurian
ARTICLE SYNOPSIS ...How I Stopped Holding And Learned To Love The Death Cross by Greg Gazurian
Check out this exit strategy, which may be what you
need when a specific stock or market is weakening or
bearish, compared to the (classic but not necessarily
desirable) buy & hold strategy.
Traditionally, buy & hold investors have
sought to buy low and sell high to
maximize returns. Although this sounds
attractive, there are several problems in
using only this approach in the stock market. One of
the most common is the round trip, where the investor
buys the stock at a relatively low price, holds the
stock as it goes...
AUTHOR: Greg GazurianDATE: FEB2009SUBJECT: Trading Strategies
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Interview: Classic Swing Trading With Linda Bradford Raschke by J. Gopalakrishnan and B. R. Faber
ARTICLE SYNOPSIS ...Interview: Classic Swing Trading With Linda Bradford Raschke by J. Gopalakrishnan and B. R. Faber
Hers is a name that you've probably heard or read any number of
times if you've been interested in or involved in technical analysis for
very long. Linda Bradford Raschke began her trading career in 1981
on the floor of the Pacific Coast Stock Exchange before moving to the
Philadelphia Stock Exchange, eventually trading her own account from
home. StockS & commoditieS Editor Jayanthi Gopalakrishnan (JG)
and Staff Writer Bruce Faber (BF) spoke to Raschke via telephone on
December 4, 2008.
Linda, h...
AUTHOR: J. Gopalakrishnan and B. FaberDATE: FEB2009SUBJECT: Interview
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Letters To S&C by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc.
TAXES AND TRADING
Editor,
I have been a subscriber to
STOCKS & COMMODITIES
for about two years now. I
find some of the articles
very useful and it's the only
magazine that I actually
keep in a library.
The point at which I started subscribing
was about the time I switched from
being an investor to a trader. I am looking
for a tax service that understands
that, unlike investors, traders make
more than a few trades a year and who
won't run away at the sight of a trader's
ledger.
Your magazine has many great articles
on trading systems, indicators,
f...
AUTHOR: Technical Analysis, Inc.DATE: FEB2009SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: FEB2009SUBJECT: Opening Position
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Q&A by Don Bright
ARTICLE SYNOPSIS ...Q&A by Don Bright
DAYTRADING CRITERIA
What time frame bars and other criteria
are used for daytrading? --dafong
Entry and exit points for daytrading
tend to be determined by a couple of
things. First, we look at the premium
(PREM) or discount (DISC) to fair value
on a emini tick chart. This will tell us
when the money is going after the stocks.
When futures houses can sell futures at
a high PREM, they will hedge with underlying
securities. This can be seen
with any spreadsheet.
Then we look to see where the peers
are trading, which helps to determine
the strength of the stock in relation to...
AUTHOR: Don BrightDATE: FEB2009SUBJECT: Q&A
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Support & Resistance Axioms by David G. Ondercin, Phd
ARTICLE SYNOPSIS ...Support & Resistance Axioms by David G. Ondercin, Phd
Here are seven axioms for the practical application of support
and resistance levels to your trading.
Support and resistance are of central importance to all
traders and a necessary starting point for new traders.
There are self-evident truths concerning support and
resistance of financial markets, so let us examine some of these axioms for their practical application to trading.
AXIOM 1
The concept of support and resistance is important because
traders believe it is important.
The belief is self-fulfilling. Traders are certain, for ...
AUTHOR: David G. Ondercin, PhdDATE: FEB2009
Traders' Resource: Exchanges
AUTHOR: Technical Analysis, Inc.DATE: FEB2009SUBJECT: Exchanges
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Traders' Tips by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc.
Most of this month's Traders' Tips are
based on Markos Katsanos' article in
this issue, "Trading The Aussie." Other
tips are on a topic of the contributors'
choosing.
Code for MetaStock for implementing
the forex intermarket strategy from
Katsanos' article is included at the end
of this document. Additional code is presented
here as contributed by software
developers.
Readers will find our Traders' Tips section in its entirety
the StockS & commoditieS website at www.Traders.com
the Traders' Tips area, from where the code can be copied
and pasted int...
AUTHOR: Technical Analysis, Inc.DATE: FEB2009
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Trading The Aussie by Markos Katsanos
ARTICLE SYNOPSIS ...Trading The Aussie by Markos Katsanos
This system exploits the traditionally
strong correlation between
the Australian dollar and
commodities.
The Australian dollar,
along with the
Canadian dollar,
the New Zealand
dollar, and the South African rand, is regarded
as a "commodity currency," owing
to the sizable role of commodity
production in the Australian
economy. In 2008?09,
iron ore is forecast to be
Australia's largest export commodity
(in value terms), followed
by coal, gold, and crude
oil. The country's largest agricultural
export commodity is
wheat, ranked 10th overall in
commodity expo...
AUTHOR: Markos KatsanosDATE: FEB2009SUBJECT: Forex Focus
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Websites For Traders by Technical Analysis, Inc.
ARTICLE SYNOPSIS ...Websites For Traders by Technical Analysis, Inc.
WWW.TRADERPLANET.COM
With social networks such as Facebook,
MySpace, and Twitter gaining so much
popularity, I have no doubt that one dedicated
to traders and investors could do the
same. TraderPlanet.com, founded by Lane
Mendelsohn, was created to provide traders
and investors specifically a place to
interact and network with like-minded
individuals. Some of you may recall Lane
Mendelsohn from TraderEducation.com
and Market Technologies. You'll see some
similarities between TraderEducation.com
and TraderPlanet.com. The difference is
that Trad...
AUTHOR: Technical Analysis, Inc.DATE: FEB2009SUBJECT: Websites For Traders
Working Money: Using The RSI
AUTHOR: Danish KapurDATE: FEB2009SUBJECT: Novice Traders' Notebook
Working Money: Weinstein's Theory Of Relativity
AUTHOR: Larry SwingDATE: FEB2009SUBJECT: Novice Traders' Notebook