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• 10 Rules For Options Traders by Joe Luisi

  ARTICLE SYNOPSIS ...10 Rules For Options Traders by Joe Luisi The success of your trading career is determined by profitability. And this profitability lies in the way you follow your trading plan. Here are 10 rules you should always consider before making a trade. It's a good idea to take some time each year to reflect on your trading successes and failures. What have you done right? What have you done wrong? Did your trades work out as planned? Did you make money? Don't let another year go by with failed dreams and hopes. Make this your year of change and financial advancement, one that offers many profitable...

AUTHOR: Joe LuisiDATE: MAR2002SUBJECT: Options

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A Market Maker's Perspective by Don Bright

AUTHOR: Don BrightDATE: MAR2002SUBJECT: Real World

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• Books For Traders by Technical Analysis, Inc.

  ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. ? Bulls Make Money, Bears Make Money, Pigs Get Slaughtered: Investment Wisdom That Stands The Test Of Time by Anthony M. Gallea ? The Busy Woman's Guide To Financial Freedom by Vickie L. Bajtelsmit, JD, PhD ? Gann: Simplified by Clif Droke ? Maestro: Greenspan's Fed And The American Boom by Bob Woodward ? The New Fibonacci Trader: Tools & Strategies For Trading Success by Robert Fischer and Dr. Jens Fischer ? The Trading Athlete: Winning The Mental Game of Online Trading by Shane Murphy, PhD, and Doug Hirschhorn, MS ? Trading Strategies For ...

AUTHOR: Technical Analysis, Inc.DATE: MAR2002SUBJECT: Books for Traders

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• Determining Equity Growth Performance by John F. Ehlers and Mike Barna

  ARTICLE SYNOPSIS ...Determining Equity Growth Performance by John F. Ehlers and Mike Barna What are the merits of using technical analysis trading systems? Evaluate them here. Technical analysts have the option of trading with either discretionary or systematic techniques. Discretionary traders tend to integrate life experience, knowledge, and technical indicators to make trading decisions. In this way they can, and have, made spectacular amounts of money. System traders, on the other hand, rely on trading signals automatically generated by computer programs. They don't really need to know much about the market...

AUTHOR: John F. Ehlers and Mike BarnaDATE: MAR2002SUBJECT: Quantitative Analysis

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• If At First You Don't Succeed by John Clayburg

  ARTICLE SYNOPSIS ...If At First You Don't Succeed by John Clayburg Systems you create don't always work quite right at first. And when you revise them, your "improvements" don't necessarily help. It's what you ordered ? but not what you wanted. What to do? For those who use EasyLanguage, here's the solution. Sooner or later, those who write computer program code, whether for personal strategies or for programming for others, must face the task of correcting errors or making changes in their work. The process of finding and correcting program errors, often referred to as debugging, can be as challenging and frus...

AUTHOR: John ClayburgDATE: MAR2002SUBJECT: System Design

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• Interview: David Landry Of TradingMarkets.com by Jayanthi Gopalakrishnan

  ARTICLE SYNOPSIS ...Interview: David Landry Of TradingMarkets.com by Jayanthi Gopalakrishnan Ever heard of "grandma money management"? If not, ask David Landry, a sometime Technical Analysis of STOCKS & COMMODITIES contributor, to explain. Landry is a cofounder and director of research of TradingMarkets.com. In addition, as a Commodity Trading Advisor (CTA), Landry is president of money management firm Sentive Trading, LLC, and a principal of the Harvest Capital Management. He has designed a number of trading systems, including the 2/20 EMA breakout system and the volatility explosion method, and he is the autho...

AUTHOR: Jayanthi GopalakrishnanDATE: MAR2002SUBJECT: Interview

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

  ARTICLE SYNOPSIS ...Letters to S&C by Technical Analysis, Inc. CALCULATING MOVING AVERAGES Editor, Is there a program on the market that calculates moving averages with different filters and nothing else? JOHAN RISBERG, via e-mail The moving average itself is a low-pass filter. There are several programs that calculate moving averages with filters, including MESA, VIDYA, KAMA, MAMA, Gaussian filters, and Butterworth filters, among others.--Editor...

AUTHOR: Technical Analysis, Inc.DATE: MAR2002SUBJECT: Letters To S&C

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Opening Position by Jayanthi Gopalakrishnan

AUTHOR: Jayanthi GopalakrishnanDATE: MAR2002SUBJECT: Opening Position

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• Q&A by Don Bright

  ARTICLE SYNOPSIS ...Q&A by Don Bright PAIRS TRADING I read your article and your Q&A section in STOCKS & COMMODITIES this month. In both, you referred to "pair trading." When I read that it was a strategy used successfully by your niece, I was intrigued. Would you please explain the strategy? -- Scott Memmott Many of our successful traders use one form or another of a "pairs" trading strategy. There has been quite a bit of research into the subject, and even an article in a previous issue of S&C. Let's start with the basic premise: Many stocks within the same or similar sectors tend to "track" one another -- tha...

AUTHOR: Don BrightDATE: MAR2002SUBJECT: Q&A

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• TRIX Is For Traders by David Penn

  ARTICLE SYNOPSIS ...TRIX Is For Traders by David Penn This momentum indicator keeps you in trends for as long as you like. A drawback of moving average? based indicators has always been the lag: Moving averages often provide buy and sell signals long after much of a big move has already occurred. Although this is a relative complaint -- is it better to be early and often wrong, or late and often correct? -- it is significant enough that some traders seek to get more out of moving averages. Weighting and exponentially smoothing moving averages are among the methods used to get moving averages to yield buy/sell sig...

AUTHOR: David PennDATE: MAR2002SUBJECT: Basic Techniques

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Traders' Tips by Technical Analysis, Inc.

AUTHOR: Technical Analysis, Inc.DATE: MAR2002SUBJECT: Traders' Tips

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Traders' Resource: Online Trading Services

AUTHOR: Technical Analysis, Inc.DATE: MAR2002SUBJECT: Traders' Resource

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• Trend Continuation Factor by M.H. Pee

  ARTICLE SYNOPSIS ...Trend Continuation Factor by M.H. Pee Yes, trends are important: They help you make money and they help you recover your losses. Because trends are an important component of the market, it is imperative you can detect them. However, it's not enough to just identify a trend. It's also crucial to be able to tell the direction of the current trend. Although trends can make you the most money in the shortest time when you are in sync with them, they can also cause you to sustain heavy losses if your position is in the opposite direction. To avoid getting caught in such a situation, I created the...

AUTHOR: M.H. PeeDATE: MAR2002SUBJECT: Indicators

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• TrendVUE.com by David Penn

  ARTICLE SYNOPSIS ...TrendVUE.com by David Penn TRENDVUE.COM "Get yourself a mentor." Of all the advice that professional traders give aspiring traders, that suggestion must be the most daunting piece of wisdom to translate into action. After all, not unlike an aspiring artist from the small country town who finally saves up enough to move to the big city, apprentice traders often find it difficult to cultivate relationships with traders successful and talented enough to serve as trading mentors....

AUTHOR: David PennDATE: MAR2002SUBJECT: Websites For Traders

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• Websites For Traders: www.LitWick.com by Jayanthi Gopalakrishnan

  ARTICLE SYNOPSIS ...Websites For Traders: www.LitWick.com by Jayanthi Gopalakrishnan WWW.LITWICK.COM For all you candlestick enthusiasts, here's a site that has everything you need to know about candlesticks. Yes, it has charts -- candlestick charts powered by Prophet Finance -- but wait! There's more. There's the candle query where you can scan the entire database of stocks by selecting a specific trading day, an indicator, a pattern (continuation or reversal), the trend (bullish or bearish), reliability, price range of stock, and volume range. Once you specify the criteria, a list of stocks that meet your requ...

AUTHOR: Jayanthi GopalakrishnanDATE: MAR2002SUBJECT: Websites For Traders

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• Working Money: Average True Range by Sharon Yamanaka

  ARTICLE SYNOPSIS ...Working Money: Average True Range by Sharon Yamanaka Average or extraordinary, "true range" is often referred to in stocks and commodities trading. But what is it? T rader, author, and technician J. Welles Wilder developed average true range (ATR) in the 1970s as a measurement of price volatility. Wilder believed that the range was directly proportional to volatility, and that range -- the high and low of a stock for a given period, be it intraday, daily, weekly, or monthly -- was indicative of a trend. If the volatility of a stock increased, it was entering a trend, and if it slowed down, it ...

AUTHOR: Sharon YamanakaDATE: MAR2002SUBJECT: Novice Traders' Notebook

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• Working Money: Those Ubiquitous Fibonacci Ratios by Rudy Teseo

  ARTICLE SYNOPSIS ...Working Money: Those Ubiquitous Fibonacci Ratios by Rudy Teseo How do I use thee? Let me count the ways. What do nature, astronomy, and the stock market have in common? They have something in common you may have heard of, but never really known what it is: a number sequence discovered by a 13th-century mathematician named Leonardo of Pisa and spelled out in his work Liber Abacci. I doubt that he ever considered the sequence, later known as the Fibonacci series -- zero, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and so on -- would have the long-lasting effect it did, eventually finding its way into ...

AUTHOR: Rudy TeseoDATE: MAR2002SUBJECT: Working Money

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• Working Money: Writing Covered Calls by Michael Dunham

  ARTICLE SYNOPSIS ...Working Money: Writing Covered Calls by Michael Dunham If you think that options trading is only for short-term traders and speculators, think again. By taking advantage of an option strategy known as covered call writing (selling), you can gather small, consistent returns, which, when compounded over time, can give you a respectable overall return. Not only that, writing covered calls with a buy-and-hold strategy can protect your portfolio from major losses. Considering there are more than 2,000 stocks with listed options, as well as options on some depository receipts (MDY, QQQ, and so on)...

AUTHOR: Michael DunhamDATE: MAR2002SUBJECT: Novice Traders' Notebook