Monday, October 02, 2006

Traders Virtual Online Conference

Subscribers of Traders World Magazine.

I need your help and opinion on this.

Over that last year we have been asked by several subscribers and partners to host a Virtual Traders Conference Webinar on the topic of successful trading of the markets with technical analysis.

I have finally decided to hold one in November-December time period, but now I have a problem... I can't decide which speakers and topics to focus on because their is so much to discuss.

So, instead of just guessing, I decided to write to our subscribers for help in picking the speakers and topics that we will talk about during this conference.

Could you please reply with at least two topics you would like to have talked about and the speakers you want to hear. Also would you like demonstrations of any trading technique or software programs. What platform do you want them on, such as eSignal, TradeStation, etc.

If you help me to formulate the agenda and topics covered, I promise to send you a no charge pass to the virtual trading conference once I get it nailed down.

Please reply at or use this form.

Thanks for any help you can provide...

Larry Jacobs - Editor
Traders World Magazine
2508 W. Grayrock St.
Springfield, MO 65810

Wednesday, April 26, 2006

40 - Boston Tea Party By T.H. Murrey

An extract of an article from Traders World Magazine issue #40

Boston Tea Party

By T.H. Murrey

Fibonacci Ratio "traders" predict reverses off: 38.2% - 61.8% of random extremes.Oxymoron: Make Exact Future Predictions off random chance extremes: highs and lows you are allowed to choose yourself, when you are not qualified, nor do you have the track record, that proves you know you are setting your life’s savings against the "pros" who, "laugh when you lose."

Vegas would go broke in 13 weeks, if they offered you games of chance, set to the same rules, "traders" use to trade (invest).

Harrah’s and Steve Wynn would go broke into Chapter 11, in 128 gambling days, if they didn’t know, within ½ of one percent, their odds they would have their odds in the favor of the house.

WYNN and HET….Chart # 1.0a, 1.0b

Vegas will invite you to come to their city, house you, feed you, entertain you, and give you the exact odds, for every game, and you will (still) hear them "laugh when you lose."

Howard Hughes, Elvis, The Mafia, The Mormon Church and Frank Sanatra and the Rat Pack, enjoyed the fruits of pleasure, of cash made from "laughing when you lose."

Adults enjoy their mature (end) of their lives, giving back undeserved profits, by gambling at games of chance, with the worst odds over time. Which church gets yours?

Losing is a major part of life. "Losers" confirm they are what they do.

Maslow, Freud and Karen Horney surmised that Man was not (really) in his search for meaning, but was struggling to gather (gain) profits, in early life, so they could give them back, through games of chance, for the "guilt from ill gained profits." Why do old people get dumber?

The SAT Test for high school seniors asks:

Which gambling method would produce the most profits, using the Buy and Hold Trading Strategy?

1) invest $250.00 per week into a slot machine for $1,000,000 pay off.

2) Invest $ 250.00 per week into a 2 cent stock on the pink sheets?

Every, mature, retired adult will tell you, your odds are better in the slot machine, since they feed you free, plus all the alcohol you can drink, as long as you don’t fall off your seat: The American Dream.

Sir John Templeton, Billionaire used this method, after World War ll and it worked.

He had a simple trading technique: buy low. He was willing to risk 2 cents per trade. He knew the exact bottom, so he didn’t care about the future highs: the skies the limit.

He bought 34 bankrupt stocks and only four failed. He made millions. He opened his Templeton Growth Fund is 1954.

Books have been written about john Templeton, from Tennessee. He bought worthless stocks worth 2.4414 cents.

Victor Johnson from Nashville bought a garbage dump, near the river, downtown, which turned into millions, by buying it 2 cents on the dollar. Every child in the US knows about Aladdin "lunch" boxes. Mr. Johnson made millions for 25 years. Murrey sat behind Mr. Johnson at V. University basketball games for 17 years. His son is the City’s District Attorney.

Murrey told Mr. Johnson about Murrey Math and the fact that all markets, reverse off one number. We used to walk at Radnor Lake early mornings, and talk about commodities: Natural Gas. Mr. Johnson’s father and other men brought Natural Gas to Nashville in 1949.

Chart 1.0a

Chart 1.0b

40 - Trading Methodology By Larry Jacobs

An extract of an article from Traders World Magazine issue #40

Trading Methodology

By Larry Jacobs

Newport Coast Capital Methodology uses a Stage One trend following and money management system with additional filtering rules to select and manage entries and exits. They use behavioral price patterns and explore the relationship between short term and long term fundamental direction, investor psychology, price trends, price behavior and the balance of supply and demand. Clients in the Newport Coast Capital community invest in accordance with the following guidelines:

Diversification - Their approach is to trade a balanced portfolio of a basket of more than 30 instruments and to diversify into multiple sectors like financials, energies, currencies, grains, indices, meats, metals, softs, etc.

Recommended Trading Capital - The minimum trading capital per account is $15,000, and they recommend a trading capital of $50,000. The subscriber may trade more capital by having multiple accounts; each account will be trading multiple instruments being allotted up to one contract per instrument. The money management guidelines will only allow the open of new positions if the current open positions, in conjunction with the new position, do not exceed 50% of the net asset value at the time the trade is being placed. Their approach is to trade a basket of instruments and to diversify into multiple sectors to create a balanced portfolio to control and manage risk, this also gives the subscriber a reasonable staying power to withstand realized or unrealized drawdown when it occurs.

40 - There's Time On Your Side By Joel Rensink

An extract of an article from Traders World Magazine issue #40

There's Time On Your Side

By Joel Rensink

To accomplish anything worthwhile, it requires a plan that is understandable and has elements that are reasonable and effective for the user. This especially applies with trading. No trader should ever wonder if they’re gambling instead of trading with an edge. I want you to have that edge.

Back in 1975 when I started trading in earnest, it was a part-time endeavor. When you start with small capital—like many of us have had to— it better be part-time or you could be carried out soon after you start.

But now, successful trading is definitely becoming a more-than full-time job. It used to take about 5 hours a day, then 9… now, I need to get up twice in the night for about 5 – 10 minutes each time just to check where my positions stand in the overnight markets. Last week I placed 20% of my trades in the night markets. A rarity for me now, but I doubt it will be the last time. The world is getting to be a smaller yet richer place. Financial consequences for world events are getting quicker in many ways, as people around the world are realizing that they have to embrace the changes and opportunities that a robust world has to contend with. And it is all because of cycles.

40 - Thirty Six Day Winning Streak By Larry Jacobs

An extract of an article from Traders World Magazine issue #40

Thirty Six Day Winning Streak

By Larry Jacobs

Franz Shoar runs an online internet alert trading room through The alert room is for intraday trading of the S&P e-mini. I monitored the room several days and was very impressed. What brought me to his room was that I had heard that he had a 36-day winning streak. I wanted to know how he did it. That’s in the interview in this article.

In Addition to Traders International methodology, Franz uses several different technical tools to give him his signals to trade with. One of the signals is called HP which stands for High Probability trades. It is an indicator of fear and greed, an intraday pivotal signal in the channel for scalping. Another one he uses is his master piece indicator called the Bulls Eye. The Bulls Eye was the talk of the alert room. I was amazed on how good it actually worked. If you look at the chart #2 below, you can see the green circle, which is the buying Bull’s Eye at the bottom of the chart and the red one is the selling Bulls Eye at the top. Franz seems to get around 5-10 of these signals per day. I watched and saw Franz take trades with these signals several times during every day.

40 - Interview with James Mound

An extract of an article from Traders World Magazine issue #40

Interview with James Mound

By Larry Jacobs

I have been a principal of two commodity brokerages, a trader, a head analyst and a writer. I have written a commodity trading book, "7 Secrets", published through Traders Press. I also write a weekly commodities review read by thousands of commodity enthusiasts each week and published on over 20 websites.

Why have you created this calendar?

Because the industry is so caught up in online this and online that, I think the average trader wants something he can look at and touch that he would be proud to have and at the same time offers some seriously valuable information.

What is its purpose?

The purpose of the calendar is two fold. The wall calendar is a presentation piece, not only because of the beautiful cover art provided by Traders Press, but also because of the rich content that is provided by some of the industries most respected sources. Also, the calendar is a reference guide for the entire year, offering insight into industry events, trading strategies and important industry facts.

40 - The Squaring of Price Key to True Analysis By Joe Rondinone

An extract of an article from Traders World Magazine issue #40

The Squaring of Price Key to True Analysis

By Joe Rondinone

How can it be that all charted prices are equally charted as to width, regardless of the total price move of that period? If you charted a 10 cent move in any grain, charts a 5 cent move the next day, 8 cents the next day and a 13 cent move the 4th day; what justification can you give that these posted prices will have equal value in the projection of prices. How can you draw a trend line that can be a valid line. Now let’s remember that there is no law against drawing any trend line, anywhere or anyhow.

First, allow me to introduce myself, my name is Joe Rondinone. I am now 84 years old and I have been trading since 1948. I remember the days when it was an insult to go into a place of trading with charts. I remember when I carried my charts in a trumpet case so I would not look foolish carrying the charts under my arm. If you told your banker you traded grains or eggs, you get no loans from the bank. You were called a gambler. Now all banks and investment houses are trading grains to gold. What a change!

40 - Option Spreads: Pawn Tickets By Greg Donio

An extract of an article from Traders World Magazine issue #40

Option Spreads: Pawn Tickets
& Trojan Gold

By Greg Donio

Occasionally my mind’s eye sees the color of bronze. It envisions a bronze plaque bearing words of wisdom that should hang on the wall of every financial trader. The words change from time to time because there is more than one quotation— candidate that would really fit. Right now the one most worthy to be etched in metal appears on page 204 of David L. Caplan’s book The New Options Advantage where he quotes Gil Blake:

"Traders lose because they don’t have a winning strategy. Second, even among those traders who do, many don’t follow the strategy. Trading puts pressure on weaker human traits and seems to seek out each individual’s Achilles heel."

That latter sentence should be engraved in bronze and. tattooed on the skin of traders.

Many a horse—player has said, "I wish I could make out like a bookie. He gets most of my money anyway." Such envy from the multitudes of the empty-pocketed makes sense but fails to take a closer look at the differences between he who has the "weaker human traits" and he who makes money off said traits. Specifically, the horse—player craves instant riches while the bookmaker aims for realistic profits. Summed. up on a bronze plaque upon a speculative trader’s wall the advice would be, "Trade for a living, not to get rich overnight."

40 - Perfect Storm Eric S. Hadik

An extract of an article from Traders World Magazine issue #40

Perfect Storm

By Eric S. Hadik

Carley, Frances, Ivan & Jeanne. Katrina, Ophelia & Rita. 7 Storms in 13 months representing the costliest and/or most intense storms in many categories. Is this a normal cycle, an anamoly or a new model?

In some respects, all of the above.

However, an in-depth understanding of climate cycles - and cycles in general - is necessary to better comprehend this. Since a single article could barely scratch the surface of this entire discussion, I want to focus on one aspect of climate cycles. This should aid in understanding where we are now… and where we are headed. Hopefully, this will also spur the desire for each reader to research these cycles in greater detail.

The first part of this explanation comes courtesy of Raymond Wheeler, a climate researcher and author in the early-to-mid-20th century. He is author of: Climate: The Key to Understanding Business Cycles, a fascinating book on climate (& business) cycles.

40 - Trading with a Plan By Larry Pesavento

An extract of an article from Traders World Magazine issue #40

Trading with a Plan

By Larry Pesavento

You would not send a son or daughter off to college without them having a curriculum for study. But most speculators (investors) give the application of sound trading or investing strategies very little thought. They either listen to their broker, neighbor, colleagues and friends for tips on the market. Or they listen to one of the financial channels or trade publications such as Wall Street Journal, Barrons or Investors Business Daily, totally unaware that the news follows the prices. By the time the good news hits the airwaves prices have already been moving in that direction (bullish or bearish).

A sound trading plan can take you out of the news loop. There are three elements in a trading plan:

40 - Interview with Adrienne Toghraie

An extract of an article from Traders World Magazine issue #40

Interview with Adrienne Toghraie

By Larry Jacobs

Adrienne Toghraie produces the Trading on Target series of books and her web site can be found at

Adrienne how did you get started in this?

From the time I can remember, I have been studying the art of success. What makes some people fabulously successful in life? What do they do and how do they think? What makes them different from everyone else? How can I learn their secrets and pass them on to others?

Eventually, this passion for learning the secrets of success led me to the study of Neuro-Linguistic Programming (NLP), which is the science of modeling. NLP is based on the two basic principles: first, that the fastest and most effective way to increase success is to model successful behaviors and attitudes, and second, that humans react to their early experiences by making unconscious associations (called anchors), either good ones or bad ones, that determine later attitudes and decisions. Having completed my training in NLP, I was armed with a set of illuminating principles and two powerful success-building techniques: success modeling and anchor transformation. I realized that I had found the key to not only the secrets of success but the means of passing those secrets on to the people who were motivated enough to use them.

40 - Trading Psychology By Bennett McDowell

An extract of an article from Traders World Magazine issue #40

Trading Psychology

By Bennett McDowell

This is an interesting paradox I found from working with many traders over the years. Many people who start out in trading have been successful in other careers or business ventures before trading. Since it is a fact that you need discretionary money to trade, you need to have been successful in the past to make enough to fund a trading account with risk capital.

The tools that made these people successful in the business world may not be a strength in the trading world. Some new traders who had to be aggressive in their chosen businesses tend to think they need to be aggressive with the markets. It seems logical. In fact, that is what made them successful before as sales people, managers, executives, doctors, business owners, entrepreneurs, etc.

In trading however, this aggressive type of behavior can actually be your biggest weakness. The belief that you can force the market to do what you want and make your trade work, just won’t happen! The markets are too big.

In fact some of the most successful traders I know approach the market passively! They tend to "Follow" the Markets and not force an outcome. There are times to be aggressive in your quest for knowledge, but the aggressiveness I am talking about here is different.

40 - Algorithm Trading By Larry Jacobs

An extract of an article from Traders World Magazine issue #40

Algorithm Trading

By Larry Jacobs

Trading in the market with algorithms basically breaks up orders into smaller ones and feeds them electronically in different ways straight into the marketplace over a defined period of time. It is used mainly by large institutions. An attractive thing is that these orders can be tuned to implement almost any trading strategy.

I interviewed Ramirez and Company a full service securities firm about their Algorithm Trading? They recently formed Ramirez Trading Solutions, a division of Ramirez and Company, which focuses on algorithm trading solutions. This division was created through a joint venture with TradeTrek Securities to combine their forces and offer a variety of robust algorithm trading solutions to their institutional clients.

40 - Samsung SyncMaster 190mp By Larry Jacobs

An extract of an article from Traders World Magazine issue #40

Samsung SyncMaster 190mp

By Larry Jacobs

The Samsung SyncMaster 910mp is a 19-inch analog TFT-LCD monitor delivering crisp, clean text and bright, vivid colors. This display offers a 700:1 contrast ratio, 350 cd/m2 brightness, 1280 x 1024 resolution, 160/160 degree viewing angle, scanning frequency of 31-81 kHz horizontal and 56-75 Hz vertical and 0.294mm pixel pitch. This 19-inch flat-panel display functions as a computer monitor, a TV and a video monitor – all in one. In our review we felt that this monitor had the clearest pictures, sharpest images and most vivid colors. Armed with a built-in TV tuner, this display is capable of allowing viewers to watch two sources of input at the same time with its Picture-In-Picture feature. The SyncMaster 910mp also features built-in speakers and built-in power. Input connectors for this display include 15pin D-sub, CVBS, S-Video and TV (antenna/cable). Available in silver, the SyncMaster 910mp delivers a maximum of 16.2 million colors. This monitor is excellent for the trader as a trading monitor as well as for watching CNBC or another financial TV channel while trading. Because it has it’s own TV tuner it does not drain any computer power. The monitor is VESA compatible and therefore can be mounted on a LCD stand. It can be also used as a LCD exercise monitor mounted on an LCD exercise stand and easily placed in front of a treadmill, elliptical trainer or exercise bike. Traders must get the necessary exercise to reduce their stress and improve alertness. It is now recommended that one should get at lease 45 minutes of aerobic exercise daily. For more information go to:

40 - Dynamic Trading the Forex Markets By Jaime Johnson

An extract of an article from Traders World Magazine issue #40

Dynamic Trading the Forex Markets

By Jaime Johnson

Robert Miner, my boss and mentor, has perfected the comprehensive Dynamic Trading approach to trading the financial markets. His book Dynamic Trading, as well as the two Dynamic Trader financial advisory reports teaches this approach which uses a combination of simple and practical Elliott Wave pattern, price and time support and resistance using Fibonacci and other ratios. This approach has been used for our analysis and trade strategies of the indexes, interest rates, precious metals, and other futures markets in our DT Futures/Forex Report, as well as stocks and ETFs in our DT Stock/ETF Report.

With the recent explosion of popularity of the Forex market, we have recently expanded our DT Daily Futures Report to the DT Daily Futures and Forex Report. We do analysis and trade strategies on the Euro, British Pound, Australian Dollar, Yen, and Swiss Franc/Dollar crosses on a daily basis. The following charts are examples of how the Dynamic Trading approach can be applied to the Forex markets.

40 - How to Apply Pyrapoint By Scott Iverson

An extract of an article from Traders World Magazine issue #40

How to Apply Pyrapoint

By Scott Iverson

The following article will attempt to give a brief glimpse of how my students and I apply Pyrapoint and analyze markets on an intra-day basis, namely the S&P 500 e-mini futures. Pyrapoint works on all markets and time frames, but our trading and teaching has been almost exclusively on the e-minis.

I am often asked, "Is there a rhythm to the markets? Is there really a way to catch intra-day turning points?" The answer is YES! Not only can we capture intra-day turning points, we CAN OFTEN NAIL THEM TO THE TICK!

Pyrapoint is the creation of Donald Hall after spending decades studying the works and writings of W.D. Gann and his peers. Don believes, as do I, that he has found the basis for price movement using the correct mathematics of the Square of Nine (SQ9). The standard tools found in many charting packages like Gann Fans and unsophisticated Gann lines such as the 1 x 1, 1 x 2, etc., leaves a lot of to be desired and in my opinion are not consistent enough to use in actual trading. In other words, they work fine one time and utterly fail another, and seldom give us our intra-day turning points to the tick the way Pyrapoint does. The following discussion is my interpretation of Don’s fine work as well as my own discoveries of how price moves intra-day.