Article Archive For
JAN2011
-
Curtis Faith And Trading From Your Gut by J. Gopalakrishnan & B. Faber
ARTICLE SYNOPSIS ...Curtis Faith is best known for getting his start as a member of the Turtles, the elite
Chicago trading group. In his early 20s, Faith earned more than $30 million as a
member of the renowned group that started as a bet between its founders, Richard
Dennis and William Eckhardt. Drawing from his experience as an original Turtle,
as well as a successful entrepreneur -- having founded several software and hightech startups -- Faith developed a "whole mind" approach that gives traders at
all skill levels the tools to become a master trader.
In Trading From Your Gut, his latest book, Faith ...
AUTHOR: J. Gopalakrishnan and B. FaberDATE: JAN2011SUBJECT: Interview
-
At The Close by Brandon H. VanLandingham
ARTICLE SYNOPSIS ...Has this ever happened to you? You go long the market or a particular
security and it immediately goes down; you go short and it immediately
goes up. That is two back-to-back losses. Now extremely anxious, you
ignore your trading rules and skip the
next signal and of course that trade
immediately becomes profitable. You
hesitate whether you should take that
last position this far after the trade signal.
You continue monitoring the trade
you failed to react to in the beginning,
and now see a support and resistance
trend developing. Every time the
price pulls back to the s...
AUTHOR: Brandon H. VanLandinghamDATE: JAN2011SUBJECT: At The Close
-
Books For Traders
ARTICLE SYNOPSIS ...Trading Options In
Tu r bu l e n t M a r k e t s
(254 pages, $50 hardcover, 2010, ISBN
978-1-576-60360-4)
by Larry Shover, published by Bloomberg
Press. This work reveals how volatility in
option trading relates
to today's stormy marketplace and shows
you how to manage risk and take advantage
of market volatility. The author addresses
how to use historical volatility to predict future
volatility for a security or the implied volatility,
and offers suggestions for dealing with
that odd feature of option trading known as
skew. Skew is uncertainty squared, and the
...
AUTHOR: Technical Analysis, Inc.DATE: JAN2011SUBJECT: Books For Trader
-
Breakaway Gaps by Kenneth Gillilan
ARTICLE SYNOPSIS ...A gap up in a stock's price is an exciting event. Usually,
such moves will be covered by the financial media,
creating hysteria and resulting in some people frantically buying the stock "before it's too late." Rarely do
the pundits provide a reasoned and thorough explanation as to why the large jump in price will lead to any sort
of substantial gains over the near future; they just report the
awe-inspiring numbers without touching on their technical
significance. Sometimes, armed with simply a headline, the
uninformed will buy the stock and get lucky. Over the long
term, howeve...
AUTHOR: Kenneth GillilanDATE: JAN2011SUBJECT: Charting
-
Chart Analong Scenarios by Sam Whitehill
ARTICLE SYNOPSIS ...Technical analysis is based on the theory that history will
repeat itself. What is not so obvious, however, is that these
historical repetitions may happen not just over a few months
but over a few decades. This is where chart analogs can be
of great value ...
AUTHOR: Sam WhitehillDATE: JAN2011SUBJECT: Trading Techniques
-
Combining RSI with RSI by Peter Konne
ARTICLE SYNOPSIS ...Optimization and stop-losses can help you
minimize risks and give you better returns.
ou would like to be long in a market that's
trending up, but what about when the trend
turns down? Do you exit and just watch from
the sidelines, or do you try to trade on the corrections in the downtrend? Here's a simple combination where you can trade long-term uptrends and
short-term corrections, all in one chart.
One of my previous strategies didn't allow me
to enter a trade and stay there in a long and strong
uptrend, since the strategy was designed to use the
relative strength index (Rs...
AUTHOR: Peter KonneDATE: JAN2011SUBJECT: Trading Systems
-
Explore Your Options by Tom Gentile
ARTICLE SYNOPSIS ...If I'm trying to manage option position
risk to reduce my maximum loss
exposure, is it better to tie a stop-loss
to the market price of the options or the
underlying stock?
Managed stops can be a good tool as
they act as an extra layer of portfolio
protection beyond our initial and known
risk assumption if we're dealing with
a limited risk strategy. The question of
exiting with a tighter managed loss based
on the underlying share price versus the
prevailing option market isn't as clear-cut.
This is largely up to the individual trader
and his or her risk acceptance, a...
AUTHOR: Tom GentileDATE: JAN2011SUBJECT: Explore Your Options
AUTHOR: Donald W. Pendergast, Jr.DATE: JAN2011SUBJECT: Forex Focus
AUTHOR: Carley GarnerDATE: JAN2011SUBJECT: Futures For You
-
Letters To S&C
ARTICLE SYNOPSIS ...Editor,
I just finished reading
L.A. Little's article "Price
And Volume Disconnect"
in the November 2010
issue of St o c kS & co mm o d i t i eS.
I have a general question I
was hoping he could answer for me. (I
loved the article, by the way.)
While I completely understand his
reasoning behind identifying disconnects
between price and volume as well as how
to act when a suspect trend is spotted, I
was hoping he could speak to why such
situations sometimes arise in the first
place. I know it's a loaded question and
I don't expect a lengthy response, but
I'm curi...
AUTHOR: Technical Analysis, Inc.DATE: JAN2011SUBJECT: Letters To S&C
AUTHOR: Anthony Trongone, Ph.D., CFP, CTADATE: JAN2011SUBJECT: Trading Techniques
-
Making A Good System Great by Donald W. Pendergast Jr
ARTICLE SYNOPSIS ...Once you have a trading system, you still need to evaluate
it. You can apply optimization strategies to increase
profitability, reduce drawdowns, and enhance the stability
of your system ...
AUTHOR: Donald W. Pendergast, Jr.DATE: JAN2011SUBJECT: Portfolio Optimization
-
Opening Position by Jayanthi Gopalakrishnan
ARTICLE SYNOPSIS ...The trading systems presented in Technical Analysis of Stocks & Commodities
are tested ones, which you can easily implement into the trading software
you use. Even if you choose to copy and paste the code via our Traders' Tips section
(available at our website), I encourage you to understand the system and test it on
the securities you wish to trade and the time frame you wish to trade. Only then
will you be able to determine if the performance of the system is something you
are comfortable with. Further, this is an excellent way to perform an out-of-sample
test, since it gives you an o...
AUTHOR: Jayanthi GopalakrishnanDATE: JAN2011SUBJECT: Opening Position
-
Product Review Bloomberg For The iPad by Wallace Wang
ARTICLE SYNOPSIS ...Most traders spend their time in
front of a desktop computer
with a high-speed Internet connection.
But when you're traveling or just
stepping away for lunch, you may not
want to cut yourself off from the latest
market news. Fortunately, with an iPad,
a wifi or 3G cellular Internet connection,
and this Bloomberg app, you can stay up
to date with the market wherever you
take your iPad ...
AUTHOR: Wallace WangDATE: JAN2011SUBJECT: Product Review
-
Product Review: Pristine Pattern Method Scan by Dennis D. Peterson
ARTICLE SYNOPSIS ...The Pristine Pattern Method
Scan plugin comes with screening filters, expert commentary,
chart annotation, and templates to help
find patterns that fit with the Pristine approach.
The Pristine Method was covered
in two earlier reviews in the February
and April 2010 issues of St o c kS &
co m m o d i t i eS.
MetaStock refers to its screening
filters as Explorations and its expert
commentary and chart annotation as
Expert Advisors. The CD comes with a
50-page manual that fits into the CD case.
There are brief explanations of each of
the pattern scans that you can use...
AUTHOR: Dennis D. PetersonDATE: JAN2011SUBJECT: Product Review
-
Q&A by Don Bright
ARTICLE SYNOPSIS ...Don, I have a question about order routing
that perhaps you can help me with. I trade
with a respectable brokerage that caters to
active traders. I've noticed in the last few
months that I have been charged fees referring
to "routing," "rerouting," and electronic
communications networks (Ecn) fees. I place
my orders to go to the Nyse, as suggested by
my peers. I am told that there may be fees
for taking of liquidity, and also that I may
be entitled to collect rebates for providing of
liquidity. I'm not sure what any of this means,
but now that I'm being charged fees, I would
like ...
AUTHOR: Don BrightDATE: JAN2011SUBJECT: Q&A
-
Traders' Resource: Trading Systems
ARTICLE SYNOPSIS ...Trading systems can help take the subjective
interpretation out of trading decisions by
providing automated buy and sell signals
based on preprogrammed rules. Trading
systems are usually computer programs
but can also be a real-time service issuing
signals or a set of published rules to follow.
They can rely on one or more trading disciplines,
such as artificial intelligence, Gann analysis, astrology,
indicator sets, or custom rules ...
AUTHOR: Technical Analysis, Inc.DATE: JAN2011SUBJECT: Traders' Resource
-
Traders' Tips
ARTICLE SYNOPSIS ...For this month's Traders'
Tips, the focus is Peter Konner's article in this issue,
"Combining Rs i With Rs i."
Code for the Scandinavian
technical analysis program
AvanzaVikingen is already
provided in Konner's article
elsewhere in this issue. (Subscribers will also find Konner's code at the Subscriber Area of our website, www.
Traders.com.) Presented here is an overview of possible
implementations for other software ...
AUTHOR: Technical Analysis, Inc.DATE: JAN2011SUBJECT: Traders' Tips
-
Working Money: Follow The Market Herd With Elliott Wave by Ryan Henry
ARTICLE SYNOPSIS ...Does this sound familiar?
You spend countless
hours analyzing a company's financial strength,
market position, and industry potential.
You decide that everything is on
the up and up, and that the company
deserves a place in your investment
portfolio. You buy the stock, waiting
for your payday -- and then watch
in horror as the stock does the same
thing that the stocks of its lesser
competitors are doing. If you're like most
traders, this is a common scenario. It's
true that financially strong stocks in
leading industries have the potential
to be great investments. ...
AUTHOR: Ryan HenryDATE: JAN2011SUBJECT: Traders' Notebook