The Chicago trading pits were a scrappy place in the 1980s: a sea of runners, clerks, brokers, and local traders sporting trading jackets of different colors. The decibel levels resounding from the pits sometimes offered clues about market dynamics. Legendary trading giants emerged from these pits, which often rewarded physical size and stamina, sure, but […]

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Editor’s note: This is part two of a three-part series on Richard Dennis and his “turtle traders,” and what traders can learn from the 1980s experiment. Part 1 tells the turtle traders’ story and offers a few tips on how to trade like a turtle. We’ve all heard the saying “the trend is your friend,” […]

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We recently discussed some of the technical indicators that many professional traders harness to determine their opinion of a stock’s valuation and decide when to buy and sell. That article covered some pretty complex stuff, including the Relative Strength Indicator (RSI), the stochastic oscillator, and the Commodity Channel Index (CCI). Those techniques, although somewhat arcane, […]

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Editor’s note: This is the final part of a three-part series on Richard Dennis and his “turtle traders,” and what traders can learn from the 1980s experiment. Part 1 tells the turtle traders’ story and offers a few tips on how to trade like a turtle. Part 2 explains how turtle traders follow the trend. […]

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Risk control. It may not be the most glamorous aspect of a trading opportunity, but some traders say it’s among the most critical elements. In a recent article, fund manager and Market Wizards author Jack Schwager said the most important investment advice he ever received was this: “Know where you will get out before you […]

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Technology has turned us into a non-stop, 24/7 society. News and information flow never ceases, and you can buy almost anything you want, anytime you want, from the convenience of your smartphone. And yet, the stock market is still only open for 6 1/2 hours a day, from 9:30 a.m. to 4:00 p.m. ET. Not […]

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Question: What do time travel and trading have in common? Answer: In both cases, it’s critical to know what type of environment you’re entering. Step out of your time machine into the Jurassic badlands, expecting 1950s New York City, and it’s going to be a long day. Try to trade a range-bound stock like a […]

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In a time before mobile phones and coast-to-coast cell coverage, roadside diners and gas stations did good business selling fold-out maps to the travelers who passed through their towns. These maps were crucial instruments of navigation, showing you not only were you currently were, but also, where you came from and possibly where you were […]

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Editor’s note: This is part 2 of a 4-part series explaining domestic and international stock markets. Part 1 introduced the series. Future installments will look at the markets in Asia and Europe.  Once upon a time, the world’s financial markets consisted of small, regional exchanges whose hours depended on the whims of local merchants. And […]

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Back in the 1980s and 90s when JJ Kinahan, chief market strategist for TD Ameritrade, traded in the storied Chicago futures and options pits, there were certain days he had to be more wary than usual about potential risk to his pocketbook. Those were the so-called “triple witching” sessions, which come up every quarter as contracts […]

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