Investor and consultant Tom DeMark has invented a large number of proprietary technical indications through the years and relies totally on the technical rules of market timing for his analysis and trading. In fact at one point in his career, DeMark had the CFA system (certified financial expert), but thought we would never complete it. "Markets over the long haul are managed by principles. But, my signs calculate psychology--that's what specialized investigation does," DeMark explained.
DeMark's first faltering step in to the financial world got after graduate school in both business and legislation, when he joined National Investment Service, based in Milwaukee, Wisconsin, as significant analyst in early 1970s. The company maintained around $300 million in pension and profit-sharing resources, buying primarily fixed-income investments and equities.
National Investment Service's strength was market time. But DeMark said of his first task, "I was a specialist gofer.. I was low man in the organization, but I ascended quickly because I was great at industry timing."
"My objective was to be engaged with a small group of people have been progressive," DeMark said. The organization "avoided the stock exchange crash in 1973 and 1974," and assets under management became to $6 billion.
"1974 was critical... (The Dow Jones Industrial Average) went from over 1000 to 570 through the political situation with Nixon. There was a 50% drop in the stock market," DeMark recalled. However, the company eliminated that debacle through market timing. "They only offered me a license to accomplish whatever I desired to do," he said.
"I went off by myself and traded products. Easily varied for my own, personal account," my businesses did not mind DeMark said. Generally speaking, DeMark believes "the asset part (of the business) has got the more innovative people-because the influence required is so big."
In 1978, a financial markets consulting division was set up by DeMark within National Investment Service. "We had a Who's Who in the industry list of clients," DeMark mentioned. Fixed-income commodity moment and "i diversified, supplying stock... the profitability of the subsidiary was greater than the parent," DeMark said.
Nevertheless, in 1982, DeMark broke away and continued his consulting. "I had $120 million in assets collectively pursuing my attachment calls," DeMark said. Just prior to the U.S. Stock exchange crash in 1987, one of DeMark's indicators posted a collateral sell signal. Shortly afterwards, he joined Paul Tudor Jones's firm for a stint as an executive vice president and continued his market research and methods development there.
Regarding the basis of his study, DeMark said, "market moment is hundreds of. It is anti-trend, it is contratrend, it is pattern recognition and cost exhaustion." DeMark believes his technical symptoms change from others since "they are completely objective and mechanical and they are contrary to the grain of all technicians."
Certainly one of DeMark's well-known technical indicators, which he has copyrighted Sequendal--"is a cyclical approach to market evaluation, determinant on the market itself," DeMark described. "People who assist cycles generally get pieces of time and cause them to become similar. I'm stating that some trading days in the market are unimportant. I attempt to tag comparisons with price activity and activity of days ago," he added.
In a series in Futures magazine, beginning in August 1995, DeMark published articles detailing a lot of his technological signals, which readers may refer to for more in-depth details. A book was also authored by demark titled The Newest Science of Technical Analysis, published by John Wiley & Sons, Inc. RubberCalfskin Band Watch Fake
in 1994.
Longines Gold Plated Watches Fake
DeMark is putting the finishing touches on a named New Market Timing Techniques: Innovative Studies on Market Rhythm and Price Exhaustion, which he needs to be published in the spring of 1997 "I is likely to be publishing 20 new indications. Four of them were some I traded while I was at Tudor-plus the ones I created with Larry Williams," DeMark said.
When asked if there are some markets DeMark favors over others, DeMark reacted in the negative. "Everything I have done has application to all or any markets," he explained.
"I try to address every part of complex analysis and leave a number of the parameters open therefore people can research on their own," DeMark said. Nonetheless, his symptoms are "99% physical, objective and simplistic," he added. But, DeMark admits there is more to profitable trading than simply good indications or process. "Money administration and discipline are far more important than the system," he said. Actually "good discipline, an understanding of their (personal) limits and good money management are more vital compared to system or indicator," DeMark said.
Guidance DeMark has for beginning investors? "Read a whole lot. Check a great deal. Don't deal until you have done your research. Make certain you have made your process objective-it must be a conclusive process," DeMark determined.