693
Index
Market(s):
agricultural, 351
bear (see Bear market)
bull (see Bull market)
correlated, leverage reduction and, 562
excitement and, 585
exiting position and, 584–585
free, 357
housing (see Housing market)
nonrandom prices and, 587
planned trading approach and, 560
trading results and, 317
Market characteristic adjustments, trend-following 
systems and, 251–252
Market direction, 449
Market hysteria, 585
Market-if-touched (MIT) order, 18
Market observations. See Rules, trading
Market opinion:
appearances and, 582–583
change of, 204
Market order, 16
Market patterns, trading rules and, 572–573
Market Profile trading technique, 585
Market psychology, shift in, 429
Market response analysis, 403–411
isolated events and, 409–410
limitations of, 410–411
repetitive events and, 403–410
stock index futures response to employment 
reports, 408–409
T -Note futures response to monthly U.S. 
employment report, 404–407
Market Sense and Nonsense: How the Markets Really Work, 
319
Market statistics, balance table and, 373–374
Market wizard lessons, 575–587
Market Wizards books, 575, 579, 580, 581, 585, 586
MAR ratio, 330, 335
MBSs. See Mortgage-backed securities (MBSs)
McKay, Randy, 576, 581, 583
Measured moves (MM), 190–193
Measures of dispersion, 597–599
Mechanical systems. See T echnical trading systems
Metals. See Copper; Gold market
Method:
determination of, 576
development of, 576
Limited-risk spread, 446–448
Limit order, 17
“Line” (close-only) charts, 40–42
Linearity, transformations to achieve, 666–669
Linearly weighted moving average (LWMA), 
239–240
Linked-contract charts, 45–56
comparing the series, 48
continuous (spread-adjusted) price series, 47
creation of, methods for, 46–48
nearest futures, 46–47
nearest vs. continuous futures, 39–40, 48–51, 
52–56
necessity of, 45–46
Linked contract series: nearest futures versus 
continuous futures, 39–40
Link relative method, seasonal index, 394–396
Liquidation information, 564
Live cattle. See Cattle
Livestock markets, 287. See also Cattle; Hog 
production
Long call (at-the-money) trading strategy, 491–492
Long call (out-of-the-money) trading strategy, 
493–494
Long futures trading strategy, 489–490
Long put (at-the-money), 503–504
Long put (in-the-money), 506–508
Long put (out-of-the-money), 504–506
Long straddle, 515–516
Long-term implications versus short-term response, 
432–435
Long-term moving average, reaction to, 181–182
Look-back period, 173
Losing period adjustments, planned trading 
approach and, 562–563
Losing trades, overlooking, 313
Losses:
partial, taking, 583
temporary large, 245
Loyalty/disloyalty, 583–584
Lumber, inflation and, 384
“Magic number” myth, 170
Managers:
comparison of two, 320–322
negative Sharpe ratios and, 325
MAR. See Minimum acceptable return (MAR)
Margins, 19