|
|
This week's edition of Inside
Trading offers an article from Tom DeMark discussing when it is appropriate
for traders to use moving averages.
Next, Lee Gettess brings us his video newsletter on what he expects from
the S&P and bond for the coming week.
Then, Murray Ruggiero continues his discussion from last week on
developing a trading strategy by looking at entry points and
methodologies.
Last, Norman Hallett's weekly video features an interview with Obama and
Trump.
Enjoy!
Adrienne LaVigne
TradeWins Publishing
The following is an excerpt from Tom DeMark's The New Science of
Technical Analysis
For many years now, one of the most popular trend-following methods has been
the moving average. The simplicity of
its construction and the ease of its interpretation contribute to its
widespread usage and acceptance.
Unfortunately, this tool's success is derived from a particular market's
ability to trend. My research indicates
that markets generally move in trading ranges and trend much less
frequently. Historical observations
suggest that, approximately 75 to 80 percent of the time, price of a particular
security tends to move in a trading range.
On the other hand, 20 to 25 percent of the time, price trends are either
up or down. Furthermore, additional
research shows that price accelerates in a downtrend generally about two to two
and a half times faster than price in an uptrend. This phenomenon can be easily accounted for by the fact that
whereas investors typically accumulate a position over a period of time, their
recognition of a price decline is immediate and their tendency is to liquidate
the entire position at one time.
Using moving
averages
Lee Gettess' Market Sense
Lee Gettess is a top trader who is excited to bring you his video newsletter.
Each week, Lee will share his predictions on what he anticipates from the bond
and S&P markets.
Click the above image to
view the video
Selecting Methods for
Developing a Trading Strategy
This is an excerpt from Murray Ruggiero's Cybernetic Trading
Strategies
After you have developed your premise and selected the technologies that can be
used to support it, you must prove that your premise is valid and that you
actually can use it to predict the market you are trying to trade.
Another issue that you need to deal with is whether a system that
is based on your premise will fit your trading personality. This issue is often overlooked but is very
important. Let's suppose your premise
is based on the fact that the currency markets trend. This approach will not work for you if you cannot accept losing
at least half your trades or are unable to handle watching a system give up
half or more of its profits on a given trade.
Developing a trading strategy
Interview with Obama and
Trump
For
our special 100th episode of the 4-Minute Drill for Traders, Norman secures two
of the most influential people on the planet. Don't miss this MONUMENTAL drill!
And remember... Stay Disciplined!
Watch
video
|
Thomas DeMark has spent 28 years in the investment business. DeMark has been a consultant to large hedge
fund and mutual fund managers, and his many clients have included George Soros,
Paul Tudor Jones, Union Carbide, IBM and many others. The featured speaker at numerous conferences, he has also written
several articles for financial magazines and two successful books on market
timing, The New Science of Technical
Analysis and New Market Timing
Techniques.
Tom DeMark's The New Science of Technical Analysis
"This may be the most  imaginative, informative and valuable investment book ever
written!"
Tom's breakthrough methodology incorporates a number
of new technical indicators that, when used appropriately, are incredibly
accurate at forecasting changes in market direction. These indicators are price
anticipatory. They consistently and accurately identify market entry and exit
points to coincide exactly with upcoming turning points in market trends.
While highly scientific,
Tom's indicators are startling in their simplicity. You don't need a Ph.D. in
math to understand or apply them. All you need is a basic understanding of the
markets and the dynamics of price movement.
Learn to trade the DeMark
way
Andy Chambers
Chuck Hughes
Chris Verhaegh
Connors & Hayward
Dale Brethauer
Darrell Jobman
Dave Caplan
Ken W. Chow
Peter McKenna
Ray Frazier
Tom DeMark
Tony Catalfamo
|
PLEASE READ. Past results are not
necessarily indicative of future results. There is a
substantial risk of loss trading commodities, stocks, bonds and options with or
without this or any other advertised product, service or system.
Also hypothetical or simulated performance results have certain inherent
limitations. Unlike an actual performance record,
simulated results do not represent actual trading. Since
the trades have not actually been executed, the results may have under-or-over
compensated for the impact, if any, of certain market factors, such as lack of
liquidity. Simulated trading programs in general are also
subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is
likely to achieve profits or losses similar to those shown.
|
|
|
