OPENING POSITION
September 2001
It's a big step! As many of you already
know, John Sweeney, who has been the Editor of Technical Analysis of
STOCKS & COMMODITIES for a chunk of the magazine's existence (1986-90;
1999-2001), has stepped down from his post, deciding to check out what
else life has to offer. This issue is his final one as far as editing goes,
and I'll be taking over the task starting next issue.
And it's going to be a challenge. I flipped through issues over the
years, and after I did so I realized that capturing your interest will
be no small task. Take a look at this issue, for example. There are articles
on trading systems, cycles, indicators, charting techniques, and trading
psychology.
It is a lot to digest, and it's not easy -- but nothing worthwhile is;
understanding all these topics is necessary to become a master trader.
And you have to learn it all yourself, without relying on what analysts
say; given their share of negative press, they aren't going to be much
help anyway. In fact, in recent days the Securities and Exchange Commission
(SEC) warned individuals to not rely on Wall Street analysts when picking
stocks, while other sources have opined that Wall Street recommendations
are biased toward helping brokerage firms move billions of dollars into
stocks. Not only that, a recent article in The Wall Street Journal
implied that investors could do better picking stocks randomly by throwing
darts. None of this inspires a lot of confidence.
And to regain that confidence -- or at least try -- several of the large
brokerage firms have banned analysts from owning any stocks they cover.
This, they say, will reduce the bias, but the effect of such an action
has yet to be seen. With all this going on with the analysts, who better
to turn to, who better to trust, than yourself? You shouldn't be at all
surprised if you find that a trading system you created produces far better
results. And that's why we're here, to teach you how to read the charts
on your way to becoming master traders.
Trading is often referred to as both an
art and a science. Trading goes beyond just studying charts; it requires
understanding market behavior, plus your own, and incorporating that into
what the charts are telling you. Traders who can master this skill are
ready to take on any market, no matter what changes occur in the physical
market. Having some insight into market behavior will tell you when to
enter a position and when to exit -- something you will very rarely hear
a Wall Street analyst recommending.
Objectivity, independence, control over your decisions, and flexibility
are what's going to make the difference for you as a trader. And at S&C,
our intention is to help you get there. Let us know what you want to read
and know about. Let us hear from you.
Good Trading!
Jayanthi Gopalakrishnan,
Technical Editor
Excerpted from an article originally published in the September
2001 issue of Technical Analysis of STOCKS & COMMODITIES magazine.
All rights reserved. © Copyright 2001, Technical Analysis, Inc.
Return to September
2001 Contents
