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Estimating Future Drawdowns by Tushar S. Chande

AUTHOR: Tushar S. Chande, Ph.D.DATE: JUL2001SUBJECT: Real World

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• Going Vertical by Don A. Singletary

  ARTICLE SYNOPSIS ...Going Vertical by Don A. Singletary If you're trading options, here's a management tool that can offer you less risk. Ever sell out of a trade too early because it ran against you, only to have the market turn the instant you sold? Or maybe your stops get hit a little too often? To many traders, these scenarios are all too familiar. If this happens to you, it could be your trades are not matching your risk tolerance. At a certain point -- and that point is different for everybody -- an emotional buzzer goes off when you have reached your limit for risk tolerance. Very few investors can success...

AUTHOR: Don A. SingletaryDATE: JUL2001SUBJECT: Options

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• Interview: Bob Farrell by John Sweeney

  ARTICLE SYNOPSIS ...Interview: Bob Farrell by John Sweeney Probably no one has seen the big picture of technical analysis' growth and increasing legitimacy quite the way that Bob Farrell, a fixture at bellwether brokerage Merrill Lynch for nearly half a century, has. He seemed to be the ideal subject to summarize that growth and the winnowing out of what works and what doesn't. Farrell is senior investment advisor of Merrill Lynch and one of Wall Street's most highly respected stock market analysts. He's seen it all and done most of it, too; he is a many-time First Teamer in the market timing category of Instit...

AUTHOR: John SweeneyDATE: JUL2001SUBJECT: Interview

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• Letters To S&C

  ARTICLE SYNOPSIS ...V. 19:7 (10-14): Letters To S&C Editor, I would like to know if there is any way to learn to read charts without indicators or systems -- just the open, close, high, low, and volume. and volume. RICARDO AIVADO, via e-mail In addition to the above letter, this month's column answers questions on auditing backtested returns, code for ProTA Gold, S&C special subscriber area, and more on spot/cash commodity schemes....

AUTHOR: Technical Analysis, Inc.DATE: JUL2001SUBJECT: Letters To S&C

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Opening Position by John Sweeney

AUTHOR: John SweeneyDATE: JUL2001SUBJECT: Opening Position

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• Q&A by Don Bright

  ARTICLE SYNOPSIS ...Q&A by Don Bright READING THE TAPE You often mention "reading the tape" in your articles. What do you mean by that? Please explain. Also, what trading software do you recommend? Thanks for your help. -- Moses Mannaa, via e-mail Reading the tape is probably the single most important talent traders can develop. Each trader has a dedicated ticker that shows every trade on each individual stock (one tape for each security). After you know the players and the things to look for on the tape, you can successfully identify short sellers (extremely valuable!), institutional buying, company buyback pr...

AUTHOR: Don BrightDATE: JUL2001SUBJECT: Q&A

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• Relative Strength by Martin J. Pring

  ARTICLE SYNOPSIS ...Relative Strength by Martin J. Pring What to short and what to buy -- you should always know the choices the market's giving you. Relative strength measures the relationship between two securities. By security, I am referring to any freely traded entity, be it a market, stock, currency, commodity, and so forth. Note that relative strength, as used here, has nothing to do with J. Welles Wilder's relative strength indicator (RSI). RSI is an indicator that measures a security's price relative to itself over a specific period and is plotted as an oscillator. Relative strength, as discussed here,...

AUTHOR: Martin J. PringDATE: JUL2001SUBJECT: Novice Traders' Notebook

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• Traders' Resource: Brokerages

  ARTICLE SYNOPSIS ...Traders' Resource: Brokerages Self-directed traders, as STOCKS & COMMODITIES readers usually are, have more choices than ever in their ongoing search for speed, pricing efficiency, and good accounting when it comes to brokerages. First, you have to find a brokerage that handles your tradable; full-service brokerages dealing with equities, options, futures, bonds, mutual funds, foreign exchange, and cash goods are usually full-priced as well. A little scouting, however, will get you a brokerage targeted on your market of interest. After that, your first question these days might be, "How fast...

AUTHOR: Technical Analysis, Inc.DATE: JUL2001SUBJECT: Brokerages

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• Traders' Tips

  ARTICLE SYNOPSIS ...Traders' Tips This month's tips include Tradestation EasyLanguage code for the 2001 Bonus Issue of STOCKS & COMMODITIES article titled "Three-Line Break Reversal Signals""; EasyLanguage code for the Midas support and resistance indicator presented in "Volume- Weighted Average Price" by George Reyna in the May 2001 STOCKS & COMMODITIES; and the code for R.G. Boomer's variable-interval moving average (VIMA) as described in this issue, for EasyLanguage, Wealth-Lab, and TechniFilter Plus....

AUTHOR: Technical Analysis, Inc.DATE: JUL2001SUBJECT: Traders' Tips

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• Variable-Interval Moving Averages by R.G. Boomers

  ARTICLE SYNOPSIS ...Variable-Interval Moving Averages by R.G. Boomers Time is the most difficult variable to capture in an indicator. Here's a way to have a responsive, adjustable-length moving average without a lot of high-level math. Simple moving averages are, perhaps, the best-known and utilized tool of technical analysis. Yet they do have limitations. One such limitation becomes painfully apparent when you try to choose an interval for the moving average. After all, different intervals have different strengths; a long interval for the moving average is great for smoothing random fluctuations, while a short...

AUTHOR: R.G. BoomersDATE: JUL2001SUBJECT: Indicators

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• Your Crash Potential by Wolf von Ronik

  ARTICLE SYNOPSIS ...Your Crash Potential by Wolf von Ronik One of the fundamental realities of successful trading is the fact that the longer you can stay alive financially in the market, the greater your chance of monetary gain. The key to improving your chance of doing so is the implementation of a sound money management policy. Unfortunately, many neophytes -- as well as a few old hands -- invest most of their energies into trying to create the ultimate, foolproof trading program instead. Money management alone can increase your chances of trading survival. Here's a practical explanation....

AUTHOR: Wolf von RonikDATE: JUL2001SUBJECT: Statistics