Thomas R.. Demark / Thomas R. DeMark

Trader and consultant Tom DeMark (Tom DeMark) recently invented dozens of original technical indicators and relies solely on technical timing principles in his research and trading. He even signed up for the CFA program once. (certified financial analyst - certified financial analyst), but decided not to go through it to the end. “Markets in the long term are characterized by basic. But my indicators measure psychology - that's what, what does technical analysis», - Demark explains. DeMarke's first immersion in the world of finance occurred after graduating from graduate school in two specialties - business and legal, after which, in the early 70s, he was hired as a fundamental analyst at the National Investment Service, located in Milwaukee (PCS. Wisconsin). The firm managed pension assets and assets with a joint profit of about 300 million. Doll., investing mainly in securities and fixed income shares. The strength of the National Investment Service was in timing. Demark, however, this is how he remembers his first job: “I was a professional errand boy. I was the lowest in the company, but rose quickly, because he knew how to choose the time for operations ". "My goal was to work with a small group of progressive minded people.", Says Demark. The firm was able to avoid a stock market crash in 1973 And 1974 years; assets managed by it increased to 6 billion. Doll. “1974 was a very difficult year. The Dow Jones fell from a slightly higher mark 1000 to 570 during the political crisis, associated with Nixon. Stock market decreased by 50 %», Demark recalls. However, the company managed to avoid disaster thanks to the skillful timing.. “They just gave me permission to do everything, what do I want, Said Demark. - I went on an independent voyage and started working in the product market. My bosses didn't mind diversification, which I spent on my own ". Generally, Demark believes, what "commodity part (Business) attracts more creative people, because the leverage inherent in these operations is very large ". IN 1978 Demark organized a financial consulting division within the National Investment Service. “Our client list was like a Who's Who book in the industry, Demark remarked. - I continued to diversify, ensuring the timing of transactions with stocks and goods, had a fixed income ... the subsidiary's profitability was higher, than the founder ". However, in 1982 Demark left the firm and continued his consulting activities. “I had a total of 120 billion. dollars of assets on bonds to be redeemed ", He says.. On the eve of the stock market crash in 1987 year one of Demark's indicators gave a signal to sell shares. Shortly thereafter, DeMark took over as executive vice president at the firm of Paul Tudor Jones. (Paul Tudor Jones), where he continued his market research and systems development. Regarding the fundamentals of his research activities, Demark says, what is it - on 100 % timing for operations. This is an anti-trend, this is a counter trend, it is the recognition of patterns and the fall in price ". Demark believes, that its technical indicators are different from the rest because, that they are “completely objective and automatic, and also go against the mainstream ". One of the well-known Demark technical indicators, which he registered under the trademark Sequendal, is a “cyclical approach to market analysis, where the determinant is the market itself. People, working with cycles, usually cut the time into equal pieces. I affirm, that individual trading days on the market do not matter. I am trying to make comparisons with price activity and past activity ". In a series of articles, published during the year, starting from August 1995, in Futures magazine, Demark covered many of his indicators in detail.. Readers may refer to these publications for more in-depth analysis.. Demark is the author Books "Technical analysis – new science ", published by John Wiley & Sons, Inc. in 1994 year and "New Technologies of Timing for Market Operations: innovative research of the market rhythm and price fall ". “I made public 20 new indicators. Four of them were used by me among several, when i worked for tudor, plus you, which I developed with Larry Williams (Larry Williams)», Says Demark. When asked, does he give preference to any specific markets, Demark gave a negative answer. " Everything, What did I do, applicable in all markets ", He said.. “I aim to cover all aspects of technical analysis and leave some variables open., so that readers can do their own research ", Says Demark. In spite of this, its indicators on 99 % "Automatic, objective and simplified ". However, According to him, good indicators or a system are not enough for safe trading. “Cash management and discipline are more important than the system. Really good discipline, knowledge of their (Personal) limits and good cash management are much more important, than a system or an indicator ", - Demark thinks. Demark tried to find a compromise between technical and fundamental analysis. Recognizing, that long-term market trends are determined by fundamental factors, Demark nevertheless, approves, that the moments of entering and exiting the market are determined precisely by technical analysis. Technical analysis is needed to , to determine the beginning and end of a trend, and not enter the existing trend. Demark's theory is built around one axiom, he himself developed: the trend is based on two critical points, through which, as known, you can draw a straight line. Only the trend is not built from left to right, normally, and from right to left. Point, through which the trend is carried out, Demark calls TD – dots (from own initials, Thomas DeMark). Thomas DeMark worked as a partner, Consultant, an employee in many of the largest investment companies of our time. He was a consultant to companies, led by such outstanding personalities, like george Soros, Michael Steinhardt, Leon Cooperman and Lawrence Tish. Demark's advice to novice traders? “Read more. Experiment more. Don't start trading, without doing your homework. Make Sure, that your technique is objective, - it must be a completely definite process ", - said in conclusion Demark.