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COPYRIGHTED MATERIAL Bindex Elder Final.Qxd 3/19/06 9:51 PM Page 334 Bindex Elder Final.Qxd 3/19/06 9:51 PM Page 335 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 333 INDEX COPYRIGHTED MATERIAL bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 334 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 335 A Brenke, Michael, 136–157 advisory services, 120, 138, 210 Briese, Steve, 50 age, 116, 238, 310 brokers, 68, 86, 120, 159–160 Appel, Gerald, 9, 118–135 Bruns, John, 10, 247 arbitrage, 120 bubble, financial, 68, 129 asymmetrical tolerance for profits Buffalin, Dr. Diane, 176–191 and losses, 239 bulls and bears, 206 Australian Technical Analysts bear market, 17, 55, 73, 86, 103, Association, 242, 257 120, 135 Autoenvelope. See envelopes bull market, 17, 20, 73, 86, 89, 210, 231, 235 B buy-and-hold, 69, 98 back-testing, 32, 47, 99, 102, 236, 309 bar height, 126 C Bollinger bands (standard deviation Cameron, Peter, 329 channels). See envelopes campers’ meetings, 4, 13, 85, 99, 137, bottom fishing, 23 277, 280 breakout, 9, 13, 16, 51, 54, 86, 127, candlestick charts, 15, 16, 26, 52, 105, 195, 206, 209 142 false breakout, 96, 184 casino, 29 335 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 336 336 Index channels. See envelopes Doane, William, 208–223 charting, 81–82, 129, 193, 207, 209, Douglas, Mark, 54 223 drawdown, 40, 308 base, 209–210 chart patterns, 173 E classical charting, 64 earnings announcement, 139, 178 double bottom, 53, 95, 150 eccentricity, 106 double top, 153 Eckhardt, William, 200 fish-hook pattern, 294–295 education, 125, 155 head-and-shoulders top, 87, 88 Efficient Market theory, 222 reversals, 226 Elliott Wave theory, 194, 207 triangle, 59 emotions in trading, 47, 107, 122, wedge, 123 135, 157, 202, 222, 317 Come into My Trading Room,7,45, emotional maturity, 222, 310 56, 116, 155, 255, 280 fear of pulling the trigger, 138, Commitments of Traders (COT), 50, 308 56, 227 hope, 23 Commodities. See futures engineers, 101, 102, 106, 107 computerized analysis, 64 envelopes (or channels), 9, 98, conspiracy theory, 271 123–125 contrary opinion, 211 Autoenvelope, 243, 283 Cook, Wade, 103 Bollinger bands (standard crowd, behavior, 64, 81, 98 deviation channels), 9, 34, 35, currencies, 39, 316 41, 98, 142, 163 cycles, 223 Donchian channel, 35, 41 price targets, 97, 98, 114, 149, D 254 damaged account, 308. See also expenses of trading, 121 trader’s rehab commissions and fees, 82 dealing, 225–226 DeMarco, Jr., Paul (Bucky), 32, 40, F 91, 290 “Fallen Angels”,215, 219, 294 developing a system, 29, 121, 157 Fibonacci numbers, 51, 207 discipline, 29, 32, 40, 65, 75, 80, 83, Force Index (FI), 10. 173, 195 (Almost every daily chart by discretionary trading, 37, 38, 41, 43, Dr. Elder includes FI.) 45, 82, 98, 242. See also system forecasting, 77, 81 trading freedom. See also impulsivity, 65, 79 divergences, 9, 10, 18, 24, 36, 53, 56, front running, 68 59, 73, 95, 126, 132 fun, 79 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 337 Index 337 fundamental and technical analysis, hard and soft signs, 80 8, 44, 51, 82, 241, 247, 267 MACD (Moving Average futures, 20, 25–26, 50–51, 69, 210 Convergence-Divergence), 9, commercial traders, 51 16, 119 futures featured in trading MACD-Histogram, 9, 15, 21, 22, examples 35, 53, 58, 104–106, 110–112, British pound, 233–237 142. (Almost every chart coffee, 27–28 by Dr. Elder includes corn, 52–57 MACD-Histogram.) cotton, 41–44, 243–255 MACD Lines, 9, 35. (Almost euro, 35–38, 211, 229–233 every chart by Dr. Elder gold, 129 includes MACD Lines.) silver, 58–63 Momentum, 142 sugar, 196–200 moving averages (MA), 9, 40, 86 Treasury bonds, 201–205 exponential moving average (EMA), 9, 10, 104–106, G 110–112. (Almost every chart gamblers, 179 by Dr. Elder includes an EMA.) games of chance or skill, 82 simple moving average (SMA), Granville, Joseph, 290 34, 41 Greater Fool theory trades, 9, 24, 98 parameters, 169 Grove, Nic, 280, 291 RSI (Relative Strength Index), 15, gurus, 53, 82 16, 21, 22, 105 Stochastic, 15, 16, 21, 22, 104–106, H 110–112, 142 Haskell, Sherri, 12–29 indicators in trading examples hedge fund, 32, 45–46, 211 (page numbers refer to the first hedging, 241, 242, 248 chart in the chapter where the homework, 14, 280–281, 291, example appears.) 312–314 Active Boundaries, 273 Hound of the Baskervilles signal, 173 Autoenvelope, 243, 283 (also included on most I daily and intraday charts Impulse system, 10, 11, 110, 296 by Dr. Elder) (All charts by Dr. Elder include Bollinger bands, 35, 142, 163, 181 the Impulse system.) Candlesticks, 15, 53, 105, 142 impulsivity, 79 Donchian channels, 35 independence, 65, 79 envelope, 104, 123, 163 indicators, Effective Ratio, 264 confirmation, 128 Effective Volume, 263 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 338 338 Index indicators in trading examples, IPO (initial public offering), 17 continued Force Index, 163, 242, 282 K (also included on daily and key reversal, 44, 214 intraday charts by Dr. Elder) Keynes, John Maynard, 81, 228 Forex Club Sentiment Index Knapp, Martin, 276–305 (FCSI), 229 Kiyosaki, Robert, 86 Impulse system, 104, 162, 282 (also included on all charts L by Dr. Elder) limit orders, 71 Momentum, 142 Livermore, Jesse, 25, 29 moving averages, exponential, 15, losses, cutting, 23, 40, 67, 83, 91, 102, 70, 87, 104, 162, 242, 282 116, 123, 154, 186, 188 (also included on all charts Lovvorn, Kerry, 158–175 by Dr. Elder) low-priced stocks, 210 moving averages, simple, 35, 142, 181, 229 MACD-Histogram, 15, 35, 70, 87, M 104, 142, 162, 181, 242, 282 Makhmudov, Damir, 240–257 (also included on all charts managing other people’s money, 33, by Dr. Elder) 34, 45–46, 120, 122 MACD Lines, 15, 35, 70, 87, 104, Market Wizards, 200 123, 162, 181, 242, 282 mass psychology. See psychology (also included on all charts McMahon, James (Mike), by Dr. Elder) 100–117 MACD-Oscillator, 53 money management, 39, 65, 80, 140, RSI, 105 167, 246, 251, 311 Stochastic, 104, 142, 181 the 2% Rule, 7–8, 80, 101, 116, TSV, 15, 87 138–139, 140, 155, 290, 302 volume, 15, 52, 163, 197 the 6% Rule, 8, 80, 101, 116, 290, industry groups, 86, 99, 293 304 Internet Software & Services, 92 Morningstar, 86, 121 Medical Instruments and Murphy,John J., 31 Supplies, 89 mutual funds, 86, 103, 121 insider trading, 271 Intershow (Traders’ Expos and N Money Shows), 6–7, 20, Nasdaq, 86, 123–133 102, 329 New High—New Low Index, 70, 76, intuition, 134 290, 314 counterintuitive trading, 256 news, trading, 179, 181, 185, 238 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 339 Index 339 O risk options, 9, 69, 75, 120–121, 177–180, limiting, 53, 133, 162 189–191 risk/reward, 33, 213, 283, 287, 300 in/out-of-the-money, 71, 75 round numbers, 62 on the S&P, 70–72 Rule of Five, 146 versus stocks, 189 rules for traders, 26, 29, 47, 65, 70, writing options, 191 80, 140, 157, 238, 290, 312 options in the trading examples on the Nasdaq, 123–125, S 129–131 Schutzman, Fred, 30–47, 290 on KLAC, 75 Schwager, Jack, 239, 329 on the S&P, 70 seasonals, 51 overbought, 43 secrets, 3, 160, 317 oversold, 123 Seitz, Clayton, 318 Sentiment Index, 227 P short-selling, 125 paper trading, 7, 138, 157, 205, 308 sideways movement, 70 Perolo, Andrea, 48–65 size of trades, 242, 311 price large positions, 197, 223 extremes, 150 small positions, 157 meaning of, 9 software used by interviewees price/earnings ratio, 129 Charles Schwab, 84 probabilistic versus deterministic CQG, 118 processes, 173 Effective Volume, 258 profit, 102, 115, 145, 156, 180 Elder-disk, 240, 278 taking, 54–55, 266 eSignal, 12, 136, 149 target, 18, 94, 114, 287 Excel, 25, 30, 258 psychology, 239 Futuresource, 49 individual, 81, 139, 257 MetaStock, 118, 136, 149, 278, 240 mass, 68, 226 Qcharts, 66, 176, 192 pullbacks, 86, 126, 162 Quicken, 136 Quotelinks, 258 R Rugg & Steele, 118 Rabbani, Sohail, 66–83 Rumus, 224 range, 162, 196 Stockcharts, 12 rating trades, 250, 255–256 TC2005, 12, 84, 100, 158, 208, 276 entries and exits, 109, 255–256 TFC-charts, 49 real estate, 70, 83, 211 Trader’s Governor, 100, 276 record-keeping, 20, 102, 116, 311 TradeStation, 30, 100, 118, 158, 276 re-entry into a trade, 245–246 (almost all charts by Dr. Elder) bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 340 340 Index S&P, 139, 142–143, 150, 152, 153 Surowiecki, James, 315 Sperandeo, Victor, 53 sweet zone, 111 Spike group, 282, 314–316 system trading, (see also sports, 134–135, 141, 223, 241, 256, Discretionary trading) 32, 37, 294, 300 38, 41, 42, 43, 45, 47, 99, sports, continued 227–228 fishing, 194, 201 Systems and Forecasts, 119 squeeze play, 162 squinting at a chart, 108, 132, 184, 187 T stocks in trading examples Tatarnikov, Peter, 224–239 AMZN, 92–97 taxes, 129 ASKJ, 15–19 Taylor, Lou, 10, 24, 310 BSX, 87–91 Technical Analysis of Stocks and CECO, 185–189 Commodities, 278 CKR, 110–115 Testa, Jr., Ray, 84–99 DRAX, 217–220 three M’s of trading (Mind, Method, DYN, 263–266 Money), 7, 116 GEF, 286–290 tick, 165 GNCMA, 104–109 time, 109, 129, 191, 210, 310, 316 GRMN, 21–25 timeframes, 8, 95 KCS, 267–270 Trader’s Governor, 101, 106, 116 KLAC, 75–79 trader’s rehab, 308, 310–312 KMRT, 168–173 traders LAYN, 162–167 an average private trader, 79 OPWV, 262 beginners and amateurs versus QQQQ, 282–285 experienced, 3, 7, 102, 116, RSH, 150–155 128, 168, 173, 202, 227, 233, SINA, 212–216 238, 307 TMR, 273–274 female and male, 4, 13, 178 TZOO, 28 individual and institutional, WEN, 181–184 83 YHOO, 143–145, 147–149 Traders’ Camps, 4, 101, 103, 119, stops, 25, 39, 57, 70, 71, 163, 170, 226, 159, 162, 177, 193, 206, 221, 244 255, 280 break-even, 79 traders’ families, 120, 122 hard and soft, 80, 134, 284 parents, 17, 26–27, 85, 119–120, SafeZone, 80 134, 137, 159, 179 trailing, 60 spouses, 85, 106, 122, 137, support and resistance, 98, 129–130, 141, 161, 177, 228, 206, 248 260, 317 bindex_Elder_Final.qxd 3/19/06 9:51 PM Page 341 Index 341 trading, 167 value trades, 9, 24, 43, 126.
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