IN THIS ISSUE
Duane Davis
System Development - It All Starts with an Observation
Lee Gettess' Market Sense
Volatility Predictions Using Interest Rates
How to Make Money Day Trading
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DUANE DAVIS
 
 
Duane Davis 
 

Duane Davis has spent the past 20 years testing and fine-tuning trading systems.  Scientific research conducted by his firm, Investment Software Systems, is behind several of the most successful systems on the market.
 
OUR AUTHOR TEAM
 
Adam Oliensis 
Andy Chambers
Brian Schad 
Chuck Hughes
Darrell Jobman
Dave Caplan
Don Fishback
Ellie Taft
Gary Wagner
George Angell
George Fontanills
Glenn Neely
Jack Schwager
Jeff Horovitz
Joe Duffy
Jon Najarian
John Weston
Kathy Lien
Ken W. Chow
Larry Connors
Larry Williams
Lawrence McMillan
Lee Gettess
Mark Fisher
Murray Ruggiero
Paul Forchione
Peter McKenna
Ray Frazier
Russell Sands
Scott Krieger
Ted Tesser
Tom DeMark
Tony Catalfamo
Welles Wilder
July 21, 2010     

Duane Davis heads up our issue of Inside Trading this week.  In his article, Duane addresses how to develop your own trading system.

Next, Lee gives us another great video newsletter on what he expects from the S&P and bond markets for the coming week.

Then, Don Fishback discusses the correlation between interest rates and volatility.

Last, George Angell covers how you can make money day trading.
 
Enjoy!
 
Adrienne LaVigne
TradeWins Publishing
System Development - It All Starts with an Observation
 

By: Duane Davis

 

The following is an excerpt from Duane Davis' Never on Thursday 

 

Our approach to creating a successful day trading system is to combine many different 'observations' with 'common sense' rules that not only help to explain the observation, but also help us to trade it.  Let's look at an example.

 

First, you have to give the market's volatility a number.  A number that represents a market's recent volatility can be very useful.  We like to use it as sort of a 'yard stick'.

 

Building your own trading system
Lee Gettess' Market Sense
 
Lee Gettess is a top trader who is excited to bring you his new video newsletter. Each week, Lee will share his predictions on what he anticipates from the bond and S&P markets.
 
Volatility Predictions Using Interest Rates
 
By: Don Fishback
 

It's flattering to see your research eventually make it into the mainstream. . .more than five years after you first published research on the topic.
 
Back in November 2005, in that month's issue of Options For Investors, I noted that there was an amazingly synchronous relationship between interest rates and financial asset volatility.  The key, however, is that you have to time shift the rates about 2 to 2-1/2 years to get everything lined up.  That is, once interest rates start rising, volatility starts to rise about 24-30 months later.  At the time, I speculated that the very low interest rates promoted a "leverage-is-good-and-more-leverage-is-better" mentality. 
 
How to Make Money Day Trading
 
By: George Angell
 

The following is an excerpt from George Angell's  The Money Miracle 

 

Day trading is a popular market strategy often utilized by professional floor traders who understand the pitfalls and rewards of the market well.  There are primarily two types of day trading - "scalping" and "position trading" on a day basis.  To scalp properly you really need to be on the trading floor and to enjoy the absence of commissions, since the profits are so small.  A scalper makes his living from earning a quarter of a cent or a tick by buying the bid and selling the offer - known as the "edge" in trading circles.  These traders are important to the overall functioning of the trading since they "make a market." This means that for a price they will enable you to enter and exit the market at ease.  This also means that they will supply you with your profit when you want to take one.

 

How to make money day trading

Duane Davis Presents Never on Thursday

 

Day trading today's e-mini S&P 500 can be an exciting experience.
 

The development of a profitable low-risk day trading system should combine a basic common sense approach along with the analysis of historical market data.
 

Learn 26 statistical facts that should be the foundation for every dayNever on Thursday trading system. Including. . .

  • Individual Analysis of Bear Markets and Bull Markets
  • The Seasonal Tendencies in the Market
  • The Day of the Week Tendencies in the Market
  • The Best Time of the Day for a Day Trader
  • The Tendencies of Professional Fund Managers
  • The Effect of the Previous Day's Close
  • The Effect of Today's Open
  • Trying to Catch the 'Big Day'

Each pattern is fully illustrated with equity graphs depicting the hypothetical gains or losses for previous years.

 

If you're a seasoned day trader or just a beginner, the patterns revealed in this book often produce the best opportunities for day trading profits.

 

Learn successful day trading

 

PLEASE READ.  Past results are not necessarily indicative of future results.  There is a substantial risk of loss trading commodities 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.