OPENING POSITION
June 2002
The 20th century saw many radical changes
in technology, one of the most significant being new forms of information
distribution. With the use of computers, software, the Internet and, most
recently, "smart" devices, we can now make near-instantaneous
connections and immediately be a part of an interwoven global environment.
We can send and receive information effortlessly, we can communicate with
others of like mind all over the world, we can set up conferences with
people we will never meet in person, make monetary transactions without
ever filling out a deposit slip, even trade stocks, bonds, and currencies
- and we can do all this from the comfort of our homes.
There's no doubt that these developments have had a real and permanent
impact on the trading world. The ability to receive data, conduct analysis
in real time, and complete transactions relatively quickly has certainly
created an opportunity for more individuals to participate in the financial
markets. As that door opened, however, competition among data providers
and brokerage houses intensified, with the result that you can now get
virtually all forms of market data on your desktop. Take, for example,
Market Profile. This data format reveals valuable information that makes
it possible for you to hear what the market is saying, without actually
joining the commotion in the pits. In STOCKS & COMMODITIES' feature
article this issue, "Auction Market Theory" by Donald Jones,
you will get an overview of how Market Profile may be used to get a feel
for the market. And thanks to technological advancements like the Internet,
you can get this information right on your desktop through a variety of
data vendors.
Another important contribution that information
technology has made is the ability to bring people together from all over
the world. Many web communities have formed in cyberspace, giving individuals
the opportunity to share information, interests, and opinions. For our
interview this month, we spoke with Doug Fairclough, cofounder of ClearStation.com,
one of the more popular trading communities on the Internet. I highly recommend
a visit to this site for anyone interested in trading. A quick read through
the comments and discussions in ClearStation's message boards will tell
you that this is one serious community, attracting numerous traders and
investors. It might be because of its design: comprehensive, containing
all relevant information on one page. And with the proliferation of individual
traders, having a place to go to for support from others who engage in
similar activities is certainly an advantage, just like STOCKS & COMMODITIES
itself.
Jayanthi Gopalakrishnan,
Editor
Originally published in the June 2002 issue of Technical Analysis
of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright
2002, Technical Analysis, Inc.
