STOCKS & COMMODITIES magazine. The Traders' Magazine

Article Archive For JUL2004

  • Books For Traders by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. ? Trend Following: How Great Traders Make Millions In Up Or Down Markets ? A Complete Guide To Technical Trading Tactics ? Investments: 6th Edition ? Hedge Fund Of Funds Investing: An Investor's Guide ? Fund Your Future: Winning Strategies For Managing Your Mutual Funds And 401(K)...

Charting The Market by David Penn

  • Creating Your Own Trading System by Rene Koch, Ph.D.

    ARTICLE SYNOPSIS ...Creating Your Own Trading System by Rene Koch, Ph.D. It can be done -- and without the headache you would expect. IN technical analysis, when you hear the word band it consists of two boundaries: one above and one below the price series similar to what you see in Figure 1. In that, the daily price chart for Nextel (NXTL), the thick red line is the lower boundary of a "constant" band. Whenever prices go below the red line, a buy signal (blue circle) is generated. One or two bars later, the position is closed (red circle). The green background identifies the profitable trades. Usually, prices ...

  • Elliott Wave Risk And Reward by Tony Beckwith

    ARTICLE SYNOPSIS ...Elliott Wave Risk And Reward by Tony Beckwith Establish your exit stop strategy before placing your next trade. Traders have no business trading if risk/reward analysis is not at the top of their concerns. If a trader has no idea of the potential profit return on any given trade relative to the initial risk of taking the trade at all, his long-term profitability is in question. Elliott wave (EW) analysis has come in for its fair share of criticism over the years, due at least in part to the inevitable overcomplication by analysts and the fallibility of some of their forecasting. However, by...

  • Explore Your Options by Tom Gentile

    ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile BUYING VS. SELLING What's the difference between buying an option and selling one? Buyers of options have rights, and sellers have obligations. The buyer of a call has the right to buy the underlying security at an agreed-upon price (the strike price). The seller of the very same call has the obligation to the buyer to deliver shares of the underlying security if the buyer decides to exercise his rights. The same is true of puts, but in reverse. The buyer of a put has the right to sell a stock at an agreed price (called the strike price). The seller of tha...

  • Intermarket Review by David Penn

    ARTICLE SYNOPSIS ...Intermarket Review by David Penn EURO Originally poised to be both rival and complement to the US dollar in the world of foreign exchange, the euro's miserable start in 1999 has become a stunning bull market by 2004. The euro is the currency of the 12 nations that make up the European Union (Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, and Finland). AUSTRALIAN DOLLAR Heavily influenced by the role that commodity production and export play in the Australian economy, the Australian dollar (or "aussie," as forex traders refer to it) ...

  • Interview: Daytrading With Toni Turner by Jayanthi Gopalakrishnan

    ARTICLE SYNOPSIS ...Interview: Daytrading With Toni Turner by Jayanthi Gopalakrishnan Toni Turner is the best-selling author of A Beginner's Guide To Day Trading Online and A Beginner's Guide To Short-Term Trading. An investor/trader with 14 years' experience, she is a popular educator and speaker at financial conferences across the country. Turner has appeared on NBC, MSNBC, CNN, CNNfn, and CNBC's "Power Lunch." She has also been interviewed on dozens of radio programs and featured in CBS MarketWatch.com, Fortune magazine, and Bloomberg Personal Finance. Currently, she is writing her third book, to be publishe...

  • Letters To S&C by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. REVERSAL DATES Editor, I'm a regular reader of your magazine and very much look forward to it each month. I rarely read the Letters to S&C column, and I don't think I've ever written a letter to any editor, except for this one to you now. In the May 2004 S&C, I happened to read a letter to the editor wherein a reader wrote disparagingly about the article "Reversal Date Indicator: Predict, Identify, And Trade Future Market Swings" by John Crane (S&C, February 2004). I couldn't believe what I was reading, as the writer was trashing the article as ba...

Opening Position by Jayanthi Gopalakrishnan

  • Overnight Trading by Anthony Trongone, Ph.D.

    ARTICLE SYNOPSIS ...Overnight Trading by Anthony Trongone, Ph.D. Trading that occurs after the regular trading session can dictate future action. Here's how you take advantage of this information. Many readers wrote to me about my article in the January 2004 STOCKS & COMMODITIES. Since my findings were unsupportive of the earlier writings of some other "authorities," they were curious as to why such a phenomenon was unfolding. In this article, I'll begin by discussing possible causes responsible for or contributing to recent unorthodox pricing patterns that appear to contradict traditional expectations of techn...

  • Price Vs. Speed by Don Bright

    ARTICLE SYNOPSIS ...Price Vs. Speed by Don Bright Here's a look at the order handling of the New York Stock Exchange versus over-the-counter equities. Over the last few months, I've been following the discussion, and even controversy, surrounding the best way to handle equities orders. In recent years we have seen the evolution of customer-initiated order flow. The Internet has opened up the world of trading to Main Street, and the increase in activity has spawned additional scrutiny into the way orders are handled. THE SPECIALIST AND THE OTC From a trader's perspective, I would like to discuss one of the tw...

  • Q&A by Don Bright

    ARTICLE SYNOPSIS ...Q&A by Don Bright PENNY ENVELOPE When enveloping intraday using the New York open book, would it make sense to place a bid (say, 200 shares) a penny above a really big bidder (20,000- plus shares) and offer a penny or so below a really big offer, in hopes of getting price improvement when (and if) the specialist cleans up those big blocks? Aren't the bigger blocks likely to be completed as negotiated trades (and therefore offer the opportunity for price improvement)? Is this a good way to place envelopes? Thanks -- Guy Truicko...

  • Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos

    ARTICLE SYNOPSIS ...Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos DIVERGENCE LRS INDICATOR IN METASTOCK This indicator is plotted in the article's Figure 3 for FMXI....

  • Sidebar: Select your own comfort zone by Rene Koch, Ph.D.

    ARTICLE SYNOPSIS ...Sidebar: Select your own comfort zone by Rene Koch, Ph.D. SELECT YOUR COMFORT ZONE...

  • Traders' Resource: Publications by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Traders' Resource: Publications by Technical Analysis, Inc. Where can traders turn for market insight, trade recommendations, and education about trading and investing? Perhaps the question should be where can't you? These days, financial information is put out in print, on TV, on your handheld, over the Internet in various formats, but there's still nothing more readable, reliable, or researchable than a regularly published newsletter or magazine. In Traders' Resource this month, Technical Analysis of STOCKS & COMMODITIES presents a short listing of publications in a variety of methods and ...

  • Traders' Tips by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. ? TRADESTATION: VFI PERFORMANCE Markos Katsanos' article in this issue, "Volume Flow Indicator Performance," provides four strategies for trading the volume flow indicator (VFI). All four strategies are provided here in TradeStation EasyLanguage. In addition, Katsanos introduced a new indicator, the VFI-price divergence, which is also coded here. Most of the calculations are performed in the function "VFISmoothed," which was given in the TradeStation tip in the May 2004 Traders' Tips column. When using these strategies, please remember to format yo...

  • Volume Flow Indicator Performance by Markos Katsanos

    ARTICLE SYNOPSIS ...Volume Flow Indicator Performance by Markos Katsanos Find out how well the volume flow indicator performs in this, the second of a two-part series on the VFI. Last month, I introduced a long-term money flow indicator I call the volume flow indicator (VFI). The VFI is based on the on-balance volume? (OBV), but with three important modifications: ? Positive readings indicate a bullish state and negative readings a bearish state. ? The calculation is based on the day's median instead of the closing price. ? A threshold was introduced to take into account minimal price changes and another thr...

  • Websites For Traders: DayTradingCoach.com by David Penn

    ARTICLE SYNOPSIS ...Websites For Traders: DayTradingCoach.com by David Penn DAYTRADINGCOACH.COM Which recommendation haunts fledgling traders the most? Is it the notion of having to raise tens of thousands of dollars in starting capital? Is it the thought of having to spend hundreds of dollars on complicated computer hardware and software in order to be competitive with other dedicated, high-tech traders? Maybe it's the invocation to find a singular method and stick with it. ? Maybe it's learning to take small losses early -- even if it means not making a dime for months. ? I suspect the answer is different for...

  • Websites For Traders: Portals.WallStreetTape.com by Jayanthi Gopalakrishnan

    ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:7 (90): Websites For Traders: Portals.WallStreetTape.com by Jayanthi Gopalakrishnan Portals.WallStreetTape.com -- as you may have guessed -- is a portal, but something that financial market junkies will benefit from. It is not a site that provides buy/sell signals, nor is it one that particularly focuses on technical analysis. As with many other portals, you can customize the financial content, creating as many as five custom pages. Registration is free and the site is easy to navigate. All you have to do is supply some information about yourself, submit a username an...

  • Where Will The Markets Open? by Ihor Vysotskyy

    ARTICLE SYNOPSIS ...Where Will The Markets Open? by Ihor Vysotskyy Here's how you can use fair value to determine where the market will open. Turn on CNBC before the market opens and you will see the S&P futures quotes. How important are they? If you are an experienced trader, you know that the Standard & Poor's 500 futures contract, which is based on the S&P 500 index, is a valuable forecasting tool. But what exactly is the connection between the S&P 500 index and futures on this index, and how can this connection help define where the market will open? FUTURES VS. CASH The S&P 500 is a capitalization-weight...

Working Money: Bearish Confirmations by David Penn

Working Money: Do P/E Ratios Really Matter? by Matt Blackman

Working Money: Market Indicators: Useful Tools by James A. Maccaro

Working Money: The Politics Of Money Management by Mark Whistler







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