Thomas R. DeMark

Trader and consultant Tom DeMark (Tom DeMark) recently invented dozens of original technical indicators and relies solely on the technical principles of timing in their research and trading.Once he even enrolled in a program of CFA (certified financial analyst – Certified Financial Analyst), but decided not to take it to the end. “Markets in the long term by fundamentals. But my indicators measure psychology – that’s what technical analysis “, – DeMark explained.

The first dive of Demark in the financial world came after graduate school in two professions – business and law, then it is in the early 70-ies was adopted at a fundamental analyst in the company National Investment Service, based in Milwaukee (Wisconsin).The firm managed pension assets and the assets to the joint profit of about $ 300 million by investing primarily in securities and equities with fixed income. Power of National Investment Service was timing. Demark, but said of his first work:”I was a professional gofer. I was low man in the company, but quickly got up, because I was good at market timing. ”

“My goal was to work with a small group of progressive-minded people”, – DeMark said. The company was able to avoid the stock market crash in 1973 and 1974;assets under management grew to $ 6 billion “in 1974 was very heavy. Dow Jones Industrial Average has fallen from over 1000 to 570 during the political crisis, with Nixon. The stock market fell by 50% “, – recalls Demark. However, the company has managed to avoid the debacle through time.”They just gave me permission to do whatever I want, – said Demark. – I went on my own and began working in the commodity market. My bosses did not object to diversification, which I spent alone. “In general, DeMark believes that “the commodity side (business) attracts more creative people, because the leverage is very high.”

In 1978, DeMark financial markets consulting division within the National Investment Service.”Our client list of a book” Who’s Who in the industry – said Demark. – I continued to diversify, providing the timing of transactions in stocks and commodities, fixed-income … profitability of the subsidiary was higher than that of the founder.However, in 1982, DeMark went out and continued his consulting work. “I had a total of $ 120 billion in assets maturity bonds” – he says.

On the eve of the stock market crash in 1987, one of DeMark sell signal stock.Shortly thereafter, Demark took the post of executive vice president in the firm of Paul Tudor Jones (Paul Tudor Jones), where he continued his market research and systems development.

Regarding the basis of his research, DeMark said that “it is – at 100% of the timing of operations.This antitrend is kontrtrend is pattern recognition and price. ” Demark believes that its technical indicators differ from others because they are totally objective and mechanical, as well as going against the main flow.

One well-known technical indicators Demark, which he has trademarked Sequendal, “is a cyclical approach to market analysis, where the determinant is the market itself. People who work with cycles, usually cut into pieces the same time.I contend that some trading days on the market does not play any role. I try to compare with price activity and past activity.

In a series of articles published throughout the year, beginning in August 1995, in the journal Futures, Demark outlining many of their indicators.Readers can refer to for more in-depth analysis. DeMark is the author of Technical Analysis – a new science “, published by John Wiley & Sons, Inc. in 1994 and “New Technologies Market Timing: Innovative Studies Market Rhythm and Price.”I unveiled 20 new indicators. Four of them were used by me in those few, when I worked at Tudor, plus those that I have developed with Larry Williams (Larry Williams) », – DeMark said.

When asked whether he gives preference to any particular market, Demark gave a negative answer.”All I did is applicable in all markets”, – he said.

“I try to cover all aspects of technical analysis and leave some variables open, so that the readers can research”, – DeMark said.Despite this, the LED by 99% “automatic, objective and simplified. However, he said, to secure good indicators or trading system is not enough. “Management of cash and discipline is more important than the system.In fact, good discipline, knowledge of their (personal) limits and good management of funds are much more important than the system or indicator, “- says Demark.

Demark tried to find a compromise between technical and fundamental analysis.Recognizing that the long-term trends are determined by fundamental factors, Demark however, argues that the moments of entry and exit from it are determined precisely technical analysis. Technical analysis is necessary in order to determine the beginning and end of the trend, rather than enter an existing trend.

The theory of DeMark’s built around a single axiom, which he himself developed: the basis of the trend based on two critical points, through which, as you know, you can draw a straight line. But the trend is not built from left to right, as usual, and right to left.Points through which conducted the trend, calls Demark TD – points (from the initials, Thomas DeMark).

DeMark, Thomas worked as a partner, consultant, officer in many major investment firms today.He was a consultant for companies, led by such outstanding personalities as George Soros, Michael Shtaynhardt, Leon Cooperman and Lawrence Tisch.

Council of Demark new traders? “More read. A little more experimenting. Do not handle the trading, without having done their homework.Make sure that your vehicle is objective – it must be completely defined process “, – said the completion of Demark.

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