Jim Wyckoff

Hello, my name is Jim Wyckoff, the chief technical analyst at FutureSource.com and eXtremeAg.com. I was also the head equities analyst at CapitalistEdge.com.

I want to share with you my philosophy on trading and markets, and a little about my professional and personal background.

I have spent the better part of two decades involved with the stock, financial and commodity futures markets. I was a financial journalist with FWN for many years. I cut my teeth as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York, covering every futures market traded in the U.S., at one time or another.

It didn’t take me long to realize the successful traders in every market—be it pork bellies, Treasury bonds or stock index futures—had a common thread among them: nearly all relied on technical analysis to give them a trading edge.

Not long after I began my career in financial journalism, I began studying technical analysis. I found it fascinating. By studying chart patterns and other technical indicators, I realized the playing field could be leveled between the “professional insiders” in the markets, and myself. How can this be? This is how: Market (or stock) price activity and price history, including volume, is a composite reflection of every news event and-or other fundamental factor known to all traders. Price activity also factors in ideas and speculation about the future prospects, and future news, for the market (or stock).

If an individual trader tried to study and learn all there is to learn about a stock or a futures market, including knowing all the fundamentals that impact, or could impact the stock or commodity, it would be nearly a full-time job. And even if a trader did spend all his time studying a market or stock, he still would not know as much, as soon, as the professional insiders. This is why successful traders employ technical analysis.

I believe traders who have been involved with commodity, financial and stock index futures markets have a trading advantage in today’s stock market environment. This is because the more volatile stock market environment of today is just like the volatile commodity and financial futures markets that have been around for many years. Being a successful trader in volatile markets requires specialized entry and exit strategies, in order to maximize profits. Successful futures traders have been forced to deal with volatility on a routine basis.

Following are just a few of my most important trading tenets:

---Like success at any other job, successful trading requires hard work. There are no short-cuts. Do your homework before initiating any trade.

---Simple trading strategies work the best. I have read the classic technical analysis books and talked face to face with the best trading professionals in the world. Most agree that, as my friend Stewart Taylor says, “Simple is Simply Better” when it comes to employing successful trading strategies. All the neural networks and powerful computers in the world won’t compare to a good, basic and well-researched trading plan. Don’t confuse simple strategies with easy trading. Simple trading methodologies still require a lot of preparation and work.

In an active stock market or commodity futures market, it’s critical to let trading profits run, and cut losses short. If my technical signals are on the mark, I will let the market work in my favor and profits will accrue. If the market turns against me, I will have had tight stops in place to get me out of the trade before any serious damage is inflicted.

I will share with my readers more of my ideas on trading and markets. My mission is not just to generate profits for you, but to also provide educational and insightful information to you. In this fascinating business, one never stops learning.

On the personal front, I was born and raised in Iowa, where I now reside. I have a wonderful wife and two great children—one in high school and one in college. I work very hard on the job, but also play hard after work, as I love adventures. From driving a Jeep across the highest mountain pass in the continental U.S., to extreme winter camping in the Boundary Waters, to hiking in the jungles of South America, I’m always up for a new challenge.

Right now, I am very busy keeping up with market analysis on two premiere Internet websites. However, I soon plan to publish three advisory newsletters: one on U.S. futures markets, one on hot U.S. stocks that may be ripe for a rally, and one on the popular futures markets that trade outside U.S. borders--such as the bund, the long gilt and the DAX, just to name a few. Key components in each newsletter will be pointing out to my readers the potential trading opportunities in markets and stocks, and (importantly) helping my readers become more successful traders, themselves, through my ongoing educational articles.

Drop me an email to say hi. I enjoy hearing from my readers all over the world.

Jim Wyckoff (jwyckoff@futuresource.com)