Posts Tagged ‘Tom DeMark’

Tom DeMark

Financier Tom DeMark – one of the most famous and successful investors and consultants, who created several dozen original technical indicators. The very famous trader relies only on the technical principles of operation. Once he was even recorded in a program called “Certified Financial Analyst”, but he did not listen to the end of the course, since, according to the trader, the markets in the long term by fundamentals, and its indicators measure psychology – exactly what technical analysis.
First trader acquainted with the world of finance at the end of graduate studies in law and business. In the early 70s Tom got a job in the company National Investment Service – he took a job as a fundamental analyst. Company engaged in the management of pension assets and assets with co-production profit of about $ 300 million. Funds are invested in debt and equity securities with a fixed return.
The main success of the National Investment Service wings in the right timing. About his first job Demark recalls with ease, telling them that the boy was a professional “errand”, which was on the lowest rung of the company, but has risen quite rapidly, as much as possible, which is able to choose the time for transactions.
The main goal of Tom was working with a small group of people who had progressive views. By 1974, the company managed to avoid falling stock market, and the volume of assets under management rose to unimaginable 6 billion dollars.
Tom DeMark
Investor recalls that 1974 was very heavy. Dow Jones Industrial Average has fallen from 1,000 to 570 during the political crisis, which has been associated with the reforms Nixon. And the stock market fell by about half.
But the National Investment Service avoid disaster – again, thanks to the right choice of time. Leadership enabled Demark do whatever he sees fit, and the trader went to an independent way, starting to work on the product market, where he spent diversification.
In 1978, Tom DeMark within the company was organized financial markets consulting division. While the list of customers was more like the book “Who’s Who” in the field. Demark continued diversification, provided the right timing for the implementation of transactions with shares and commodities. Through such actions profitability subsidiary exceeded profit founder.
By 1982, the famous trader left the company, continuing to engage in consulting activities. In total it was about USD 120 billion of assets on bonds, which were redeemable. In 1987, before the stock market crash, Tom Demark indicator signaled about the need to sell the shares. After a while, Tom was promoted to executive vice president of Paul Jones. There investor continued to develop their systems and explore the market.
Tom DeMark
One of the well-known technical indicators, created DeMarco is Sequendal. It reflects the cyclical approach to market analysis, where the determinant of the market itself acts. Work with cycles traders tend to cut to the same period pieces, but Demark said that the market is individual trading days no role. He tried to make comparisons with previous activity, activity prices.
The famous trader described in detail the custom indicators in a series that go on throughout the year in exchange Futures magazine since 1995. He wrote a fairly well-known book called “Technical Analysis – new science,” as well as a book about the right timing for the implementation of market transactions.
Investor unveiled about two dozen new indicators. This and indicators used by him in the work at Tudor developed with Williams. Demark tried to cover all aspects of technical analysis, leave open certain variables that readers turned to independent researchers. Despite this, most of the indicators are objective, simplified and automaticity.
Tom DeMark tried to find the best compromise between technical and fundamental analysis. He recognized that the long-term market trends to better identify with the fundamental factors. But here’s the point of entry and exit, in his opinion, it is best to determine the technical analysis. This analysis is needed in order to be able to determine the beginning and end of the trend, to avoid the entrance of the existing trend.
The famous trader builds his theory around the axiom that has been developed by them as: the basis of the trend are two critical points, through them, you can draw a straight line. But the trend is not drawn as always (left to right) – from right to left. Point through which to conduct trend, Tom calls TD (the initials of the investigator). Practice shows that his theory work, so modern trading knows many followers Demark.
Thomas Demark worked as a consultant, partner, employee in a variety of modern large-scale investment companies. He has been a consultant to companies, managed by George Soros, Michael Steinhardt, Leon Cooperman, Laurence Tisch, indicating that his extraordinary abilities.