STOCKS & COMMODITIES magazine. The Traders' Magazine

Article Archive For MAY2008

Beware The Greeks by Ron Ianieri

  • Explore Your Options by Tom Gentile

    ARTICLE SYNOPSIS ...Explore Your Options by Tom Gentile CRUDE AWAKENING Crude oil keeps moving to record highs, but I don't think it can stay above $100 a barrel for much longer. However, I don't trade commodities or futures. Do I have any other options if I think crude is going to fall during the second half of the year? If you don't want to trade futures, you can play crude oil in a few different ways -- directly and indirectly through your brokerage account. Indirectly, you can often profit from moves in oil through options on energy-related companies like Exxon Mobil (XOM) or Halliburton (HAL). Since the pr...

  • Forex Focus: Allied Currencies by Alexander Sabodin

    ARTICLE SYNOPSIS ...Forex Focus: Allied Currencies by Alexander Sabodin When trading, who or what can be your ally? Working in the financial markets as a trader can be fascinating, considering it gives you the opportunity to earn money and do so independently. You can trade from anywhere in the world with the help of a computer and the Internet. But any medal has its reverse. Such types of jobs come with their fair share of risks. First of all, there is the danger of losing money. Second, the responsibility of making the buying and selling decisions is entirely on your shoulders; you can't depend on anybody els...

  • Futures For You by Carley Garner

    ARTICLE SYNOPSIS ...Futures For You by Carley Garner As a futures trader, should I place stop orders in the electronic overnight markets or only in the day session? This is a personal preference and the decision should be made independently for each market. Several years ago, overnight sessions were extremely thin and often resulted in stops being triggered that arguably shouldn't have been. However, as the electronic markets have become more popular and trading increasingly global, the liquidity in the overnight sessions has picked up dramatically in most markets. The volume improvements make working stop orde...

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

    ARTICLE SYNOPSIS ...Letters To S&C by Technical Analysis, Inc. FINDING THE DOMINANT CYCLE Editor, I found John Ehlers' article in the March 2008 S&C, "Measuring Cycle Periods," a very interesting way to adjust my indicators. But I have a question: How do I find out what the dominant cycle is, and how do I calculate it? I am asking because this is the key thing to start with. KLEMEN VATOVEC, Slovenia John Ehlers replies: The default setting to display the dominant cycle is FALSE, as shown in the third line of code on page 18 of the March 2008 issue. When run in TradeStation, this input is easily changed to T...

Opening Position by Jayanthi Gopalakrishnan

  • Options: The Missing Link by Martha Stokes, CMT

    ARTICLE SYNOPSIS ...Options: The Missing Link by Martha Stokes, CMT What's the link between an option and a stock? growing numbers year after year. The Options Industry Council offers excellent free education on options, and there are good option courses out there. The lure of options is undeniable. Every year, thousands of traders attend seminars and buy books on options in their pursuit of profit. The desire to leverage a small amount of capital to make huge gains in the market draws people to options in ever-growing numbers year after year. The Options Industry Council offers excellent free education on opti...

  • Parallel Listings And True Price Value by Daryl Guppy and Chen Jing

    ARTICLE SYNOPSIS ...Parallel Listings And True Price Value by Daryl Guppy and Chen Jing In the second part of this series we continue to look at the differences in traders' perceptions by analyzing stocks listed in the Shanghai market and their counterpart listing in the Hong Kong market. Trends and their behavior provide an analysis of longer-term market behavior. Chart patterns are a reflection of trading psychology and provide a range of high-probability outcomes. The patterns develop in response to traders' perceptions of opportunity. Although the link with fundamental developments may be more tenuous, we w...

  • Stocks & Commodities V. 26:5 (58-61) Reducing Risk With Delta-Vega Hedging by Seongjin Cho & Ingyu Koh

    ARTICLE SYNOPSIS ...Reducing Risk With Delta-Vega Hedging by Seongjin Cho & Ingyu Koh Predicting market movements with options can be profitable but risky -- here's how to make it safer. The size of the option market has increased significantly, thanks to high leverage. Many investors have come up with various portfolios based on individual analysis in hopes of gaining profits. In particular, strategy combination of options is a popular method among traders and makes use of an option's time value for gains. Essentially, you take a short position and get rewarded for holding your position as time passes as long a...

  • Stocks & Commodities V. 26:5 (67) Q&A by Don Bright

    ARTICLE SYNOPSIS ...Q&A by Don Bright MARKET ON CLOSE What significance does the 3:40 pm ending order imbalances entail for daytrading? Also, can you recommend any books that will expound on the subject? Thank you in advance. -- Marcus MOC imbalances are fundamental to all types of trading. Suppose you're trading all day long, and you're long 2,000 shares at 3:30 or so -- you think you want to get out, but you might wait until 3:40 to see if there is a buy or sell imbalance. If it's a buy, wait; if it's a sell, sell immediately. Of course, you'll have to monitor each of your "children" (stocks you trade day in a...

  • Stocks & Commodities V. 26:5 (92) Books For Traders by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Books For Traders by Technical Analysis, Inc. ? A Beginner's Guide To Charting Financial Markets ? Hedge Fund Due Diligence ? Make Money Trading ? Mastering Trading Stress ? The Rookie's Guide To Options ? Technical Analysis Tools ? Trade Your Way To Wealth ? Trend Trading For A Living...

  • The Quest For Reliable Crossovers by Sylvania Vervoort

    ARTICLE SYNOPSIS ...The Quest For Reliable Crossovers by Sylvania Vervoort Moving average crossovers should be reliable and they need to have minimal lag. Here's a technique to achieve it. Generally, it's a contradiction to have a smooth reliable moving average crossover on one side while having a fast reaction to price turning points on the other. "Faster" normally refers to shorter moving averages, but that in turn will result in more choppy moves, creating more false buy and sell signals. So if you want to create fast and reliable crossovers, the first thing you have to look at is a way to smooth closing pri...

Traders Resource: Advisory Services by Technical Analysis, Inc.

  • Traders' Tips by Technical Analysis, Inc.

    ARTICLE SYNOPSIS ...Traders' Tips by Technical Analysis, Inc. Editor's note: This month's Traders' Tips are based on Sylvain Vervoort's article in this issue, "The Quest For Reliable Crossovers." Code written for MetaStock is already provided by the author in the article's sidebars. Additional code is presented here. Readers will find our Traders' Tips section in its entirety at the STOCKS & COMMODITIES website at www.Traders.com in the Traders' Tips area, from where the code can be copied and pasted into the appropriate program. In addition, the code for each program is usually available at the respective soft...

  • Trading Options With Anthony Saliba by Jayanthi Gopalakrishnan & Bruce Faber

    ARTICLE SYNOPSIS ...Trading Options With Anthony Saliba by Jayanthi Gopalakrishnan & Bruce Faber Anthony J. Saliba began his career trading equity options as an independent market maker at the Chicago Board Options Exchange (CBOE) in 1979. Over the next decade, he gained extensive experience in trading currencies, equities, and Standard & Poor's 500 and S&P 100 contracts. In each of these markets, he emerged as a leading and respected presence, and quickly acquired a reputation as one of the top traders. His trading accomplishments, most notably his success during the market correction of 1987, earned him a plac...

Working Money: The January Effect by John Devcic

Working Money: The Power Of Drawing Tools by Larry Swing








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