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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, 584585
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, 251252
Market direction, 449
Market hysteria, 585
Market-if-touched (MIT) order, 18
Market observations. See Rules, trading
Market opinion:
appearances and, 582583
change of, 204
Market order, 16
Market patterns, trading rules and, 572573
Market Profile trading technique, 585
Market psychology, shift in, 429
Market response analysis, 403411
isolated events and, 409410
limitations of, 410411
repetitive events and, 403410
stock index futures response to employment
reports, 408409
T -Note futures response to monthly U.S.
employment report, 404407
Market Sense and Nonsense: How the Markets Really Work,
319
Market statistics, balance table and, 373374
Market wizard lessons, 575587
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), 190193
Measures of dispersion, 597599
Mechanical systems. See T echnical trading systems
Metals. See Copper; Gold market
Method:
determination of, 576
development of, 576
Limited-risk spread, 446448
Limit order, 17
“Line” (close-only) charts, 4042
Linearity, transformations to achieve, 666669
Linearly weighted moving average (LWMA),
239240
Linked-contract charts, 4556
comparing the series, 48
continuous (spread-adjusted) price series, 47
creation of, methods for, 4648
nearest futures, 4647
nearest vs. continuous futures, 3940, 4851,
5256
necessity of, 4546
Linked contract series: nearest futures versus
continuous futures, 3940
Link relative method, seasonal index, 394396
Liquidation information, 564
Live cattle. See Cattle
Livestock markets, 287. See also Cattle; Hog
production
Long call (at-the-money) trading strategy, 491492
Long call (out-of-the-money) trading strategy,
493494
Long futures trading strategy, 489490
Long put (at-the-money), 503504
Long put (in-the-money), 506508
Long put (out-of-the-money), 504506
Long straddle, 515516
Long-term implications versus short-term response,
432435
Long-term moving average, reaction to, 181182
Look-back period, 173
Losing period adjustments, planned trading
approach and, 562563
Losing trades, overlooking, 313
Losses:
partial, taking, 583
temporary large, 245
Loyalty/disloyalty, 583584
Lumber, inflation and, 384
“Magic number” myth, 170
Managers:
comparison of two, 320322
negative Sharpe ratios and, 325
MAR. See Minimum acceptable return (MAR)
Margins, 19