TradingMarkets Making Great Traders – The Best of This Week’s Trading Lessons

Dear Trader:

TradingMarkets’ mission is “Making Great Traders.” Each week we publish trading strategies and research from many of the best professional traders and educators in the world.

Here are the best of the articles we published this week. We hope you enjoy them and prosper from them!

This Week’s Top Lessons

King of the
Quants: A Conversation with Emanuel Derman, Part 3

Here is Part 2 of Larry Connors’ Big Saturday Interview with one
of Wall Street’s most brilliant minds Emanuel Derman. Derman is widely known
on Wall Street for his pioneering work in modeling financial behavior. Find
out what hidden quantitative patterns he sees in the markets.


Mastering the Art of Tape Reading,
Part 2

What makes you a successful daytrader? With all the strategies and
indicators at his disposal, full time day trader Kunal Vakil credits much of
his success his ability to interpreting Time and Sales. In this
lesson, he’ll show you real world examples of how tracking "size," "order speed," and "order
condition" helps you gain an edge. 



The Ultimate Technical Indicator

In
Chapter 10 of his book, Forex Patterns and Probabilities: Trading
Strategies for Trending and Range-bound Markets
, forex specialist Ed
Ponsi introduces what he calls "The Ultimate Indicator." Given the hundreds
of technical indicators available to traders, which one is the "ultimate"?
Read this article to find out.



The Easiest E-mini?

E-mini futures and ES’s are by far the most popular stock-index market
traded, by retail traders and institutions alike. In this article from
professional E-mini trade Austin Passamonte, you’ll find out which
alternative he believes provides a better edge.




PowerShares ETFs Make Great Trading and Investing Tools

If you are looking for strong runaway trends there’s no better place than
PowerShares ETFs. In this week’s lesson from trader Toni Turner, you will
learn how to identify high momentum ETFs that you can potentially hold for
weeks or even months at a time.




How to Use Options to Replicate a Futures Position

Are you a futures trader who has a strong opinion about the direction of a
market, but fears getting stopped due to high volatility. If so, let Kurt
Eckhardt teach you how to use a synthetic options strategy to simulate a
futures position and exert greater risk control.

Popular Past Articles




Should You Trade Mechanically or with Discretion?

There
are two types of traders, discretionary and mechanical. In this article from
professional trader and CEO of


Market Testing Wizards

Rob Davenport explains how to determine which approach could best maximize
your trading results.




Do Stops Hurt Your Trading Performance?




If you’re like most traders, you’ve been taught that you should place a stop
on every stock trade you do. But, is it helping you make money? Or are you
constantly getting stopped out only to see the stock rise sharply right
after you were stopped out of the position. Learn about new research from
Larry Connors about the disadvantages of using stops and how you can
overcome them.

Good luck and successful trading!

Eddie Kwong

Executive Vice President

TradingMarkets