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• Determining Balance Points In Crowd Psychology by Carl Gyllenram

  ARTICLE SYNOPSIS ...Determining Balance Points In Crowd Psychology by Carl Gyllenram Balance points, the pivotal points between the swings of the bulls and the bears, turn out to be excellent ways to determine market moods and to spot breakouts from a trading range. People have banded together in groups since prehistoric times. Originally, it was necessary for the survival of the individual to belong to a group, tribe, or herd. If you as a solitary hunter had tried to bring down a mammoth with a wooden spear, your chances of success or even survival would have been very slim. But if you had joined with others ...

AUTHOR: Carl GyllenramDATE: JUN2000SUBJECT: Trading Techniques

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• How To Get In With The Trend ... by Bryan Strain

  ARTICLE SYNOPSIS ...How To Get In With The Trend And Out At The End by Bryan Strain Need a simple trend-following system to get you right with the market? Take a look at this. ""Good indicators must have an easily explainable, fundamental reason for working,"" trader and technician Don Fishback remarked once. ""If not, then the indicator is only a curve-fit whose performance just happens to be coincidental looking backward."" Generally, I have found that the most successful traders are those who don't pretend to be smarter than the market. They let the market tell them what and when to trade. The trend is your...

AUTHOR: Bryan StrainDATE: JUN2000SUBJECT: Novice Traders' Notebook

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• Interview:Bob And Don Bright Of Bright Trading by John Sweeney

  ARTICLE SYNOPSIS ...Tales Of Professional Daytraders Bob And Don Bright Of Bright Trading Bored in retirement from exploiting the Standard & PoorÕs OEX options spreads, Bob Bright got back into trading in 1992 by forming Bright Trading with partner Edward Franco as an off-floor venue for professional traders Ñ that is, licensed traders. Starting from a single office in Chicago, they offered traders top-drawer market access for as little as 5%of their former overhead plus trading costs of less than a penny a share. The concept was a hit: the combination of lower costs and local offices proved irresistible to the...

AUTHOR: John SweeneyDATE: JUN2000SUBJECT: Interview

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• Letters To S&C

  ARTICLE SYNOPSIS ...LETTERS TO S&C 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. Address your correspondence to: Editor, STOCKS &COMMODITIES, 4757 California Ave. SW, Seattle, WA 98116-4499, or E-mail to editor@traders.com. Letter-writers must include their full name and address for ver...

AUTHOR: Technical Analysis, Inc.DATE: JUN2000SUBJECT: Letters To S&C

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• Risk Management In The Real World by Ajay Jani

  ARTICLE SYNOPSIS ...Risk Management In The Real World by Ajay Jani An experienced trader takes his lumps in the market, but still comes out ahead. How? Prudent risk management. In order to generate long-term investment success, traders must adhere to several time-honored trading principles. Bruce Babcock summed up these principles concisely in his Four Cardinal Principles Of Trading: 1 Trade with the trend. 2 Cut losses short. 3 Let profits run. 4 Manage risk. No trading methodology is 100% accurate. Thus, it is important not to place all of your capital at risk on any given idea. When an idea is correct...

AUTHOR: Ajay JaniDATE: JUN2000SUBJECT: Money Management

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• The Volcanic Trader by Adrienne Laris Toghraie

  ARTICLE SYNOPSIS ...The Volcanic Trader by Adrienne Laris Toghraie Your temper can torpedo your profitability. Find out if itÕs a problem and how to handle it. When a trader buries his or her emotions because he does not know how to express himself appropriately, these emotions fester. Once the sum of these unexpressed feelings reaches a critical mass, a single, insignificant annoyance is enough to release them in an eruption of inappropriate anger. What was the occasional result from this? This volcanic eruption of anger creates the move that breaks the traderÕs account. The potential for emotional buildup...

AUTHOR: Adrienne Laris ToghraieDATE: JUN2000SUBJECT: Trading Psychology

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• Traders' Resource: Publications

  ARTICLE SYNOPSIS ...Traders' Resource Publications Where can traders turn for market insight, trade recommendations, and education about trading and investing? These days, financial information is put out in print, on TV, and over the Internet in various formats, but there's still nothing more readable, reliable, and researchable than a regularly published newsletter or magazine. This month in Traders' Resource, we present a listing of publications - printed on paper, on the World Wide Web, or delivered straight to your E-mail inbox - that may help you to improve your trading. As you can see, some publications ...

AUTHOR: Technical Analysis, Inc.DATE: JUN2000SUBJECT: Traders' Resource

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• Traders' Tips

  ARTICLE SYNOPSIS ...TRADERS' TIPS Here is this month's selection of Traders' Tips, contributed by various developers of technical analysis software to help readers more easily implement some of the strategies presented. Internet users will find these and some previous Traders' Tips on our home page at http://www.Traders .com. OMEGA RESEARCH EASYLANGUAGE In Traders' Tips this month, we take a look at the trend- following system and its accompanying indicators as presented in ""How To Get In With The Trend And Out At The End"" by Bryan Strain in this issue. A set of three indicators are used, and each contribut...

AUTHOR: Technical Analysis, Inc.DATE: JUN2000SUBJECT: Traders' Tips

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• Using The Simple Moving Average by Martin J.Pring

  ARTICLE SYNOPSIS ...Using The Simple Moving Average by Martin J.Pring Moving averages are the mainstay of technical analysis, and at the heart of moving averages is the perennially useful simple moving average. It can help smooth out random fluctuations in the financial markets, offering a better look at the trend. Technical analysts agree that prices move in trends, and that once under way, trends tend to continue. However, a quick glance at any freely traded financial market suggests that while trends do exist, there is a substantial amount of random noise that makes identifying trend reversals a challenging ...

AUTHOR: Martin J. PringDATE: JUN2000SUBJECT: Basic Techniques

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• Warehousing Data For Better Trading Systems by Joseph M. Fisher, M.D.,Ph.D.

  ARTICLE SYNOPSIS ...Warehousing Data For Better Trading Systems by Joseph M. Fisher, M.D., Ph.D. Technically based trading systems are generally back-tested with tens to hundreds of entry signals. Here's a method to develop robust trading systems using more than 2.5 million signals by applying data warehousing technology. In today's markets, the development and implementation of robust trading strategies is no simple task. One way to do this is to develop a set of trading rules and then backtest them on a small number of stocks (less than 50), in the expectation that the system will perform similarly with the ...

AUTHOR: Joseph M. Fisher, M.D.,Ph.D.DATE: JUN2000SUBJECT: New Techniques