How Is A Great Trader Made? Nature vs. Nurture

I have often talked to our TradersBlog visitors about one of my favorite authors, Linda Raschke. However, I just finished watching a seminar by a gentleman that was in an experimental trading group. I was so interested in the idea of this experiment that I had to watch the whole thing.

In the early 80s, two men were in a debate about how great traders are made. Is it nature or nurture? Are great traders born with a natural intuition for economics, human psychology and self-discipline, or are great traders a product of intense education and practice? Out of this question emerged an experimental trading group called the "Turtles". These people, with little to no trading experience were put through a vigorous training in trend following and then were provided funded accounts.

http://tv.ino.com/free/?blog

Out of this experimental group, Russell Sands was one of the first trainees. In this INO TV presentation, "I Am A Turtle," Sands shares the lessons and methodologies that his professional trainers taught him. Sands was just one of the trainees that within a four year period aggregated a sum of over $100 million dollars.

It's a great seminar and I hope you check it out. Send me any feedback you may have and stay tuned to INO TV for our next set of complimentary videos.

http://tv.ino.com/free/?blog


Best,

Lindsay Thompson
Director of New Business Development
INO.com

"Saturday Seminars" - Advanced Fibonacci Applications and the Price Axis...

Advanced Fibonacci Applications and the Price Axis in the Forex, Stock Index, and Interest Rate Futures.

Joe’s techniques result in significantly higher percentages of winning trades through more accurate stop placement, market entry and profit objective location. Joe’s high-accuracy trading approach depends on the proper mix of both leading (Fibonacci) and lagging indicators.

You will learn where and how to apply Fibonacci analysis. This context determines the real bottom-line difference. Joe devotes a significant part of his lecture to trend analysis and directional techniques using variations of Stochastics, MACD and displaced moving averages. Technical analysis software packages can simulate all of these unique and specific variations through pre-programmed studies or by inserting the formulas Joe provides for you.

Joe will explain the three categories of a winning futures trading plan:

  • Management (Yourself & Your Capital)
  • A Competent Trend & Direction Analysis Tool
  • Proper Applications of Fibonacci Retracement & Objective Analysis

Joe DiNapoli is a veteran trader with over twenty-five years of solid market trading experience. He is also a dogged and thorough researcher, an internationally recognized lecturer, and a widely acclaimed author. Joe’s formal education was in electrical engineering and economics. He received his informal education in “the Bunker,” an aptly named trading room packed full of electronics and communications equipment. This is where most of Joe’s early research began. Joe is one of today’s most sought-after experts for his exhaustive investigations into displaced moving averages, his creation of the proprietary “Oscillator Predictor,” and in particular, his practical and unique method of applying Fibonacci ratios to the price axis. A registered CTA, Joe has taught his techniques in the major financial capitals of Europe and Asia, as well as in the United States. His articles have appeared in a wide variety of technical publications across the nation and worldwide. In 1996 alone, Joe taught capacity audiences in twenty-three financial centers around the globe. Joe was a contributing author to High Performance Futures Trading: Power Lessons From the Masters, selected 1990 book of the year by Super Trader’s Almanac. He also wrote the Fibonacci Money Management and Trend Analysis In-Home Trading Course, which has been lauded by professional and novice traders alike. Joe published his newest and most complete work, DiNapoli Levels, in 1997. The book has been hailed by Futures Truth as “one of the best new technical books to come along in a long time.” When Chuck LeBeau (Technical Traders Bulletin) asked his readers for names of successful traders they wanted to see interviewed, Joe DiNapoli’s name came up more often than any other. The Atlanta Constitution cited Joe’s work by referring to the “magical power” of Fibonacci ratios in the marketplace. Joe has often made use of this magic to make both startling and uncannily accurate market predictions, particularly in stock market indexes and interest rate futures. As the president of Coast Investment Software, Inc., located on Siesta Key in Sarasota, Florida, Joe continues to develop and deploy “high accuracy” trading methods, using a combination of leading and lagging indicators in unique and innovative ways. He conducts a limited number of private tutorials each year at his trading room and he also makes his trading approach available to others via software and trading course materials.

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For more audio and video seminars visit INO TV

"Saturday Seminars" - Researching Your Trade

Various technical indicators my be used to complement and refine such strategies. One little-known but exceptionally useful technique is Howe's Limit Rule, applicable in especially volatile markets where there is so much opportunity - and risk.

Linda believes strongly in market tendency patterns and the predictability of price direction, though not magnitude. Prices tend to form a distinct three-day swing trading pattern, one which consistently repeats itself in tradable fashion.

Linda will discuss why this swing pattern sets up, how to recognize it, the tendencies of the underlying theories, and the philosophy behind trading it. She will then teach a sound method for trading this cyclic phenomenon, one which builds confidence to trade any market on any day.

Finally, Linda will illustrate how, based on these patterns, you can develop mechanical systems that are applicable to various length market periods. This presentation will give you a new perspective on price behavior and chart patterns.

The study of price behavior lends itself to various avenues of research. Can correlation studies project future price movement? What similarities exist in the price behavior of different markets, for instance, futures vs. equities? This workshop is intended to help the intelligent trader make good decisions.

Rashcke explores the importance of how to research your trades through...

  • Historical (Seasonal) Trading
  • Historical Correlation Studies
  • Researching Derivatives

Linda Raschke has been a full-time professional trader for over 20 years. She began her trading career on the Pacific Coast Stock Exchange and later moved to the Philadelphia Stock Exchange. Linda was written up in Jack Schwager's book, "The New Market Wizards" and in "Women of the Street" by Sue Herera. In 1995, she co-authored the best selling book "Street Smarts - High Probability Short Term Trading Strategies." Linda continues to trade every day.

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For more audio and video seminars please visit INO TV

Using Ratio Charts to Gain an Edge

Today’s guest blogger comes from Gary of Biiwii.com, a site that provides top notch analysis and commentary on stocks, currencies, commodities and bonds. I'm a frequent reader of the blog and HIGHLY encourage you to check out Gary's site for more analysis.

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Long time readers of the Biiwii.com blog know that I rely on ratio charts to the max. In fact, I find these ratios between different markets to be absolutely vital to being on the right side of the trade where macro themes are concerned. A recent example is the Dow/Gold ratio, which allowed me to navigate the oncoming - and entirely predictable - rally in stocks (both in nominal terms and in 'real' terms as measured in gold) that began in the fear filled days of March. Our April Letter from the main website, Reset/Recalibrate explained the process by which market sentiment needed to be reset. Here is the monthly ratio chart that was used in the letter:

Of interest now is the Gold/Oil Ratio, which appears to be in the bottoming process amid bullish divergence by RSI & MACD. This is an absolutely vital ratio to gold stock traders as oil is a major cost input to mining operations and with the likelihood of the ratio bottoming, gold miners' bottom lines stand to benefit as their product (gold) begins to outperform one of their major cost drivers (oil). Here is a current daily chart showing the status of the ratio. Gold, while having been pummeled in oil terms recently (along with nearly everything else), may well turn up from here in terms of crude:

I also routinely use the Gold/Silver Ratio to gauge general market confidence or lack thereof, along with more traditional sentiment indicators like the VIX and Put/Call Ratios. Other ratios which have appeared on the blog have included the S&P500/Nikkei Ratio, NDX/Dow and even SOX/NDX. All provide hints as to sentiment and/or macro-fundamentals and hence future market direction.

To summarize, you can trade any market but it is very important to be aware of the major trends and turning points between different markets and assets classes so that you may be aware of whether or not you are on the right side of the trade in the bigger picture. As traders and investors, we need every edge we can get.

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Read more Biiwii.com TA & Commentary by Gary at Biiwii.com

"Saturday Seminars" - Avoiding Trading Mistakes

Whether you are a novice or an experienced trader, sometimes the markets leave you feeling like either an idiot, a moron or both. Trading professional Mark Cook shows you how to conquer trading mistakes and get back on the right track.

In his workshop he shows you what to do when your winning percentage drops, how to adjust position size for different trading environments and how to build your confidence. His methods will help you achieve trading consistency but, should your capital erode, his insights will also show you how to rebuild your capital base.

Mark will explain the importance of knowing...

  • Your Market Environment
  • Your Unique Trading Style
  • The Speed of the Horse
  • The Capital Needed

A trader for twenty-two years, Mark Cook operates from his family's 1870s farmhouse in East Sparta, Ohio. He manages his own and client's accounts and offers a fax advisory service, Mark D. Cook's Trader's Fax, on S&P and T-Bond futures and OEX options, that is specifically dedicated to helping people become better traders. His own early trading years were difficult, but as he struggled for success, he gained valuable experience and learned what makes - and breaks - a trader. Mark developed the Cook Cumulative Tick™ Indicator and gained acclaim by winning the 1992 U.S. Investment Championship with a 563.8% return. He has written numerous articles for industry publications including Futures magazine, Financial Trader and Barron's and was featured in Forbes magazine (January 1994). In addition to his trading activities, he conducts workshops and teaches traders from around the globe, helping them learn how to make the most of their natural talents. Mark D. Cook was selected for Jack D. Schwager's new book, Stock Market Wizards, due for release shortly. Mr. Schwager previously wrote the best selling books, Market Wizards and The New Market Wizards. Now Mr. Schwager is placing emphasis on traders proficient in the stock market with years of successful track record, which characterizes Mark D. Cook's market timing techniques.

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For more audio and video seminars please visit INO TV