Synergistic Trading

Veteran Traders Share Their Secrets and Strategies
by Jim Wyckoff

1 Trick To Stock Trading Riches? I used to lose money hand over fist until I discovered this 1 weird, old trick. Watch my strange presentation here.

An elite group of traders and technical analysts gathered in Las Vegas to educate and enlighten several hundred attendees of the 21st annual TAG (Technical Analysis Group) conference. For two and one-half days, these respected market watchers shared their trading secrets and strategies. These secrets and strategies are just as valid in today's market climate as they were when this conference took place.

Following are some trading and technical tidbits this writer picked up from this conference, which was put together by Tim Slater, a respected technician in his own right, and was sponsored by INO.com.

* One of the themes coming out of the conference was the increased volatility in the stock market, and how traders with a futures-related trading background have used their experience with volatility to obtain better entry and exit points in stock trading. Most agreed that whether one trades stocks, or financial futures, or commodity futures, there are key trading techniques and tenets that apply to all three.

* All the speakers heard by this writer pointed out that successful traders must have a specific trading plan before they execute a trade--and show keen discipline in following through on the plan. This includes entry points and potential exit strategies--including setting stops. Always set a stop when trading.

* Keep a diary when trading. This helps identify any trading mistakes, or trading successes, in future decision-making on trades.

* Have a money-management plan. This is a must. Know what your financial risk tolerance is and trade accordingly.

* Don't add to a losing position.

* If you are in a trading slump, take a break for a few days or weeks, in order to reflect upon your trading methodology.

* Do not overtrade. This is a common mistake among many traders.

* Take advantage of market trends. "The trend is your friend" saying rings true. Use extra caution when trading against the prevailing trend of the market. Don't try to pick tops or bottoms.

* Let your profits run and cut your losses quickly.

* The fundamentals in any given market are always most bullish at market tops and most bearishat market bottoms. This is where the "buy the rumor, sell the fact" anecdote sometimes comes into play.

* There is no Holy Grail in trading. There is no "free lunch." Trading successfully is hard work.

* Most speakers said their methodologies should be used as one "tool" amid a variety of tools in your own trading "toolbox."

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About the Author

Jim Wyckoff has been involved with the stock, financial and futures markets for more than 20 years. He was born and raised in Iowa, where he still resides.

Wyckoff became a financial journalist with Futures World News for many years, cutting his teeth as a reporter on the futures trading floors in Chicago and New York, where he covered every futures market traded in the United States at one time or another.

Not long after he began his career in financial journalism, he began studying technical analysis. By studying chart patterns and other technical indicators, he realized this approach to analyzing and trading markets could level the playing field between “professional insiders” in the markets and individual traders.

His extensive studies of technical analysis and knowledge of markets led to several positions, including chief technical analyst at several well-known companies. He says his mission is not just to generate profits for traders but to also provide them with educational and insightful information because, in the fascinating business of trading, one never stops learning.

Wyckoff received a Bachelor of Science degree at Iowa State University, graduating in 1984 with a major in journalism and a minor in economics. He and his wife have two children, a son in high school and a daughter in college.

When he’s not analyzing markets and educating traders, Wyckoff says he loves adventures, from driving a Jeep across the highest mountain pass in the continental United States to extreme winter camping in the Boundary Waters to hiking in the jungles of South America.

Oct 12, 2009
Volume 18 Issue 2

Synergistic Trading is the only newsletter in the world that incorporates all three types of analysis. Other aspects of trading including discipline, money management, risk/reward factors, psychology etc. Synergistic Trading covers these topics an...

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