Article Archive For
MAY2008
Beware The Greeks by Ron Ianieri
AUTHOR: Ron IanieriDATE: MAY2008SUBJECT: Options
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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...
AUTHOR: Tom GentileDATE: MAY2008SUBJECT: Explore Your Options
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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...
AUTHOR: Alexander SabodinDATE: MAY2008SUBJECT: Forex Focus
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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...
AUTHOR: Carley GarnerDATE: MAY2008SUBJECT: Futures For You
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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...
AUTHOR: Technical Analysis, Inc.DATE: MAY2008SUBJECT: Letters To S&C
Opening Position by Jayanthi Gopalakrishnan
AUTHOR: Jayanthi GopalakrishnanDATE: MAY2008SUBJECT: Opening Position
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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...
AUTHOR: Martha Stokes, CMTDATE: MAY2008SUBJECT: Options
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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...
AUTHOR: Daryl Guppy and Chen JingDATE: MAY2008SUBJECT: Indicators
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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...
AUTHOR: Seongjin Cho & Ingyu KohDATE: MAY2008SUBJECT: Trading Techniques
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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...
AUTHOR: Don BrightDATE: MAY2008SUBJECT: Q&A
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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...
AUTHOR: Technical Analysis, Inc.DATE: MAY2008SUBJECT: Books For Traders
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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...
AUTHOR: Sylvain VervoortDATE: MAY2008SUBJECT: Trading Techniques
Traders Resource: Advisory Services by Technical Analysis, Inc.
AUTHOR: Technical Analysis, Inc.DATE: MAY2008SUBJECT: Traders' Resource
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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...
AUTHOR: Technical Analysis, Inc.DATE: MAY2008SUBJECT: Traders' Tips
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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...
AUTHOR: J. Gopalakrishnan and B. FaberDATE: MAY2008SUBJECT: Interview
Working Money: The January Effect by John Devcic
AUTHOR: John DevcicDATE: MAY2008SUBJECT: Traders Notebook
Working Money: The Power Of Drawing Tools by Larry Swing
AUTHOR: Larry SwingDATE: MAY2008SUBJECT: The Chartist