SEP 1999 STOCKS & COMMODITIES Magazine

Article Archive For SEP1999

Anxiety Cure by Ruth Barrons Roosevelt

ARTICLE SYNOPSIS ...Anxiety Cure Here are some tips on not letting those feelings of anxiety affect your trading. ""Hope is not a strategy; it's a simple emotion," a retired army general remarked. He was talking about a war, but his comment reminded me of trading. I remembered trading situations when hope was the only strategy I had. That could be said about almost any emotion and trading. Greed is not a strategy; it's a simple emotion. Fear is not a strategy; it's a simple emotion. Sometimes, unfortunately, fear, or greed, or hope, or determination does become a trader's basic strategy. Trading becomes dictate...

AUTHOR: Ruth Barrons RooseveltDATE: SEP1999SUBJECT: Trading Psychology

Combining Technical And Fundamental Analysis by Mark C. Snead, Ph.D.

ARTICLE SYNOPSIS ...Combining Technical And Fundamental Analyses The two forms of analysis approach market forecasting in radically different styles. Can they be combined? Few topics generate as much heated discussion as the time-honored debate of technical vs. fundamental analysis. The two schools do, in fact, offer radically different approaches to market forecasting; fundamental analysis is concerned with identifying the relevant variables underlying price action, while technical analysis attempts to extract tradable information from price action itself. What is most interesting about this is the tendency fo...

AUTHOR: Mark C. Snead, Ph.D.DATE: SEP1999SUBJECT: Trading Techniques

Exploiting Positions With Money Management by Daryl Guppy

ARTICLE SYNOPSIS ...Exploiting Positions With Money Management Here's a trading technique for stops, including money management guidelines. ven in a bull market, there is a feeling of triumph when a trade goes our way. When this happens, the novice trader feels that getting the trade right is enough in itself and that profits will automatically follow. He is invariably disappointed when profits turn out to be smaller than expected, and often, he will redirect his attention to derivative markets to try to leverage winning trades into larger profits. This in turn exposes him to a higher level of risk than he antic...

AUTHOR: Daryl GuppyDATE: SEP1999SUBJECT: Basic Techniques

Interview: Moe Ansari Of Compak Trading by Bruce Faber

ARTICLE SYNOPSIS ...Following The Road Map Of The Market - Moe Ansari Of Compak Trading Discipline and determination are key to succeeding as a trader, or anything else, for that matter. Moe Ansari of Compak Trading started off his college years as an architecture major before he discovered his true calling in the financial markets, only to be told he couldn't make it as a broker. He not only proved that prediction wrong, he proved it very wrong. Despite being told that his accent was too thick for him to be understood clearly, he went on to become a radio personality with a nationally syndicated weekend program...

AUTHOR: Bruce R. FaberDATE: SEP1999SUBJECT: Interview

Multiple-Indicator Techniques For Index Funds by Andrew Abraham

ARTICLE SYNOPSIS ...Multiple-Indicator Techniques For Index Funds Traders expect uncertainty in the markets; it comes with the territory of trading. But with the Standard & Poor's 500 hitting new highs after a gut-wrenching decline, is there more uncertainty today? Here's a set of multiple-indicator procedures for trading an index fund, complete with historical examples. We have all heard market experts advise us to be long-term investors. However, if you began investing in 1973 or 1929, could you have held on long enough to earn a profit? It took approximately 25 years to reach levels seen prior to 1929 and ap...

AUTHOR: Andrew AbrahamDATE: SEP1999SUBJECT: Novice Traders' Notebook

Stochastics by Stuart Evens

ARTICLE SYNOPSIS ...Stochastics As originally introduced by George Lane, the classic stochastic oscillator is not a normalized relative strength indicator, like most other momentum oscillators. However, it does use closing price in its calculation, but in a way slightly different from other oscillators. Here's a refresher for the veteran traders and an introduction for the novices. The stochastics oscillator was originally introduced by George C. Lane in STOCKS & COMMODITIES in 1984. Since then, it has become a popular indicator, included in most technical analysis software programs. That, combined with the wid...

AUTHOR: Stuart EvensDATE: SEP1999SUBJECT: Novice Traders' Notebook

TRADER'S TIPS

ARTICLE SYNOPSIS ...?TRADESTATION/SUPERCHARTS This month in Traders' Tips we take a look at stochastics as defined in this issue's article "Stochastics" by Stuart Evens. The calculation of the %K line, as defined in the article, is identical to the way in which it is calculated in EasyLanguage. The %D line, though, differs slightly. With this in mind, I have presented the calculation for the %K and %D, using both the regular and slow calculations. In addition, I have included two EasyLanguage indicators, one that plots the regular version of the pair and one that plots the slow version of the pair....

AUTHOR: Technical Analysis, Inc.DATE: SEP1999SUBJECT: Traders' Tips

The Dead Cat Bounce by Thomas Bulkowski

ARTICLE SYNOPSIS ...The Dead Cat Bounce If you trade stocks long enough, you might have an event take your stock down 25% to 70% in a single session. Then the situation gets grim. Here's a review of the dead cat bounce chart pattern and a strategy to minimize any additional losses. Warren was a novice investor who'd never suffered some of the ups and downs of a volatile market. He called me shortly after the market closed one day, and he was so excited, it took me a moment to recognize his voice: "Oxford just went from 69 to 26. That's a decline of 62%! I'm thinking of buying because after such a large drop it'...

AUTHOR: Thomas BulkowskiDATE: SEP1999SUBJECT: Real World

V.17:9: LETTERS

ARTICLE SYNOPSIS ...CHARTS & GRAPHICS Editor, I read and enjoy your magazine each month with great enthusiasm. I have learned a lot from it and will continue to do so. There is nothing else that compares. My complaint is that the size of the charts is way too small. This is technical information with a lot of detail. Can you make the charts and text larger? I'll bet you'll get many compliments. JOE GNANDT, via E-mail Our intent is certainly to make Technical Analysis of STOCKS & COMMODITIES, The Traders' Magazine, as easy to read as possible. At the same time we want to make sure that each magazine issue has a ...

AUTHOR: Technical Analysis, Inc.DATE: SEP1999SUBJECT: Letters To S&C

Websites For Traders

ARTICLE SYNOPSIS ...IQC.COM - www.iqc.com IQC.com is a data source for the technically oriented investor. IQC Corp. offers free stock charts, quotes, stock scans, and market information. The Website is straightforwardly laid out and easy to navigate. The homepage gives you today's index data and a five-minute chart of the DJIA, with news headlines below. View a market summary with charts of indices, or enter a symbol to display a quote or chart. In keeping with IQC's technical focus, two types of free quotations are available: Detailed quotes include a complement of technical indicators, while basic charts are q...

AUTHOR: Technical Analysis, Inc.DATE: SEP1999SUBJECT: Websites