Million Dollar
Trading Articles*
Stocks, Futures, Commodities, Options, Forex

"Gain Insight Into Some Of The
Lesser Known Areas Of Trading."


Do Professional Traders Exhibit Loss Realisation Aversion (140KB)
Author: Peter R Locke, Steven C Mann
Date: Nov 2000
Synopsis: Recent evidence suggets that investors and experimental subjects exhibit behaviours that are comewhat at odds with the predictions of traditional economic and financial theory. For example, Odean (1998a and 1999) provides evidence that small investors trade "too much", and that while trading, they sell winners and hold losers.
Complexity: Moderate

The Gamblers' Fallacy (201KB)
Author: James Montier
Date: Jan 2003
Synopsis: "If the market goes down for four years in a row, it just has to go up next year!" Have you heard of this, or perhaps say it yourself? The gamblers' fallacy is a flawed way of thinking which is common amongst most traders and investors.
Complexity: Easy

Profiles & Motivations of Habitual Commodity Speculators (165KB)
Author: WB Canoles, SR Thompson, SH Irwin, VG France
Date: May 1997
Synopsis: A good article which focuses on habitual speculators in the commodity markets. The driving question behind this article is "What motivates traders?".  
Complexity: Moderate

Essentials of Winning Psychology (39KB)
Author: Ray Barros
Date: N/A
Synopsis: A solid introduction on the essential elements of winning psychology in the trading and investing arena. This is a must read for all levels of traders. 
Complexity: Beginner

Psychology of Trading (27KB)
Author: Walter T Downs
Date: N/A
Synopsis: This article attempts to address the question: "What is the difference between a winning trader and a losing trader?". This is a strong article with good solid content, Walter highlights the difference between the two types of traders by commenting on his own observations.  
Complexity: Moderate

The Secrets to Emotion Free Trading (485KB)
Author: Larry Levin
Date: Unknown
Synopsis: Learn valuable lessons how you can take emotion out of your trading. A good read for any trader or investor wanting to learn how to reduce the effects of negative emotion in trading. 
Complexity: Easy

Who Are You? (169KB)
Author: Linda Raschke
Date: 2003
Synopsis: Success in the markets is 10% knowing the markets and 90% knowing yourself. Do you know what kind of person you are? 
Complexity: Easy

Managing your Money (280KB)
Author: Gibbons Burke
Date: July 2000
Synopsis: In this activetradermag article from July 2000 Gibbons Burke goes through the topic of managing your own money. This is a great introductory article on the importance of money management and portfolio management.
Complexity: Beginner

Fine-Tuning Your Money Management System (174KB)
Author: Bennett A McDowell
Date: Unknown
Synopsis: Acknowledge the risks in trading the markets by making sure your money management system is sound. 
Complexity: Beginner

Position Sizing Effects on Trader Performance (144KB)
Author: Johan Ginyard
Date: 2001
Synopsis: A masters thesis written by the renowned Johan Ginyard. This thesis discusses at length the effects of various position sizing models on traders. A very interesting white paper on the power of money management and the performance results obtained when applied to various trading systems. 
Complexity: Moderate

Money Management (1,503KB)
Author: Ryan Jones
Date: March 1999
Synopsis: Ryan Jones introduces the concept of money management in this extensive book. Suitable for all readers this book covers all the basics with enough here to stimulate the thought of advanced traders. 
Complexity: Moderate

The Math Behind The System (28KB)
Author: Richard L. Weissman
Date: Unknown
Synopsis: This is a three page article which Richard explains the benefits of various types of mechanical trading systems and goes into explaining the mathematical reasons behind his observations and the benefits of mechanical trading systems. 
Complexity: Moderate

A New Interpretation of Information Rate (101KB)
Author: J L Kelly
Date: March 21 1956
Synopsis: Read the original AT&T paper submitted by JL Kelly on signal noise. This spawned the Kelly Criterion formula described above. This article contains some pretty advanced maths. 
Complexity: Advanced

The Effect of Tick Size on Volatility, Trader Behaviour and Market Quality (173KB)
Author: Tavy Ronen, Daniel Weaver
Date: 1998
Synopsis: White paper which explores the effect that tick-size has on market volatility, trader behaviour and overall market quality.  
Complexity: Advanced

Market Profile Basics (472KB)
Author: Jayanthi Gopalakrishnan
Date: 2002
Synopsis: Perfect article to learn how to master the Market Profile. 
Complexity: Beginner

Introduction to Market Profile (117KB)
Author: Peter Steidlmayer, Ted Hearne
Date: 1994
Synopsis: Learn about market profile and capital cash flows into the market from the man that developed Market Profile in the 1980's.
Complexity: Advanced

Behavioural Economics (124KB)
Author: Sendhil Mullainathan, Richard H Thaler
Date: Unknown
Synopsis: What is behavioural economics? How do all market participants behave in the market when faced with limitations and complications? The human element to any financial market cannot be underestimated, human actions in the market can alter our perceptions about traditional economic theory. 
Complexity: Advanced

Behavioural Finance - and the speculative bubble at the end of the 1990s (482KB)
Author: Melena Johnson, Henrik Lindblom, Peter Platan
Date: January 2002
Synopsis: During the late 1990s we saw a speculative bubble in technology stocks. This is an article which describes the possible reasons for a speculative bubble and the impact which all market participants play in fueling the bubble. This article draws direct comparison to the speculative bubble of the late 1990s and behavioural finance. 
Complexity: Advanced

Losing to Win (43KB)
Author: Matt Blackman
Date: N/A
Synopsis: The hardest but also the most important lesson in trading is how to handle losses gracefully. Matt Blackman talks about managing the loss and how traders can begin to understand the importance of being able to handle a loss. 
Complexity: Beginner

Winners & Losers of the Zero-Sum Game (81KB)
Author: Lawrence Harris
Date: May 7th 1993
Synopsis: Trading in commodity and futures markets is a zero-sum game. In other words no trader can win without another trader losing. Lawrence Harris examines this phenomenon a little closer. 
Complexity: Moderate

Trend Determination using the Relative Strength Indicator (560KB)
Author: John Hayden
Date: 1999
Synopsis: Learn about identifying trends in price patterns with the Relative Strength Indicator (RSI). 
Complexity: Advanced

Are Investors Reluctant to Realize their Losses (136 KB)
Author: Terrance Odean
Date: 1998
Synopsis: Odean exploring investor’s behavior under different circumstances by carefully analyzing Disposition effect.  
Complexity: Advanced

Some Quantitative Tests for Stock price Generating Models and Trading Folklore (2180 KB)
Author: M.F.M Osborne
Date: 1967
Synopsis: In this paper Osborne has taken the model for the dynamics of stock trading from the level of qualitative conclusion to more quantitative examination and in doing so he has also tested some properties of other price models like random walk model. 
Complexity: Advanced

On Technical Analysis (2165KB)
Author: David P. Brown and Robert H. Jennings
Date: 1989
Synopsis: A very High quality technical paper on Technical analysis i.e. to use past prices to infer private information.Also look outfor two-period dynamic model of equilibrium. 
Complexity: Advanced

“Fibonacci” The man and the markets (217 KB)
Author: Alex Douglas and MMS Singapore
Date: 2001
Synopsis: Standard and Poor’s paper on Leonardo Fibonacci, the person who gave Fibonacci numbers and the significance of these numbers in the present financial market. A very interesting reading even for that person who has not much interest in market. 
Complexity: Beginner

Risk Analysis techniques (97 KB)
Author: Ian Hawkins
Date: 1998
Synopsis: A must read for any Risk management Professional as a very descriptive review of the technique for risk analysis has been given in it. There have been numerous number of references are also given which extends the concepts much further. 
Complexity: Advanced

Stock-Market “Patterns” and Financial Analysis: Methodological suggestions (892 KB)
Author: Harry V Roberts
Date: 1959
Synopsis: A paper written in 1959 but still has the same or may be with more relevance now. “the history of market itself contains patterns that give clues to the future, if only these patterns can be properly understood” 
Complexity: Advanced

Ed Seykota Of Technical Tools (103 KB)
Author: Interview
Date: N/A
Synopsis: "Everybody Gets What They Want"….Interview with legendry Ed Seykota and know more about his personal life, how he started and about his views on different topics like trading systems.
Complexity: Moderate

In Defense of Technical Analysis (1196 KB)
Author: Jack L. Treynor and Robert Ferguson
Date: 1985
Synopsis: A paper dealing with the investors assessment of the likelihood about the knowledge of market with some insight information With the help of propagation model
Complexity: Advanced

Secrets of Today's Top Traders (162 KB)
Author: Neal Weintraub
Date: N/A
Synopsis: A very interesting interview with an “anonymous” successful person and about his views on real time quotes and trading systems.
Complexity: Moderate

*Disclaimer:

Most of these articles have been emailed to us and as such it is our belief that they are in the public domain. Where known, the author is noted and an email contact provided. If your article has been supplied to us and used without permission then please contact us to arrange for immediate removal.


Ultimate Trading Systems Home
© 2004 Ultimate Trading Systems. All rights reserved.