Welcome to Lessons 1, 2 & 3 of New Market Analysis. This report is broken down into individual sections. You can pick any of them and read from your screen or print them out. Everything is in ASCII format.

Also, all sections have an alphabetic identifier tag, A through K. This section, lists the rest. B. Outline is an outline of the Home- Study program. C. NEWMA is a general introduction to New Market Analysis, and so on. The alphabetic first character gets the files listed in alphabetic order, a convenience for orderly study.

A complete listing of frequently asked questions, FAQ's, is on our home page in the Home Study section.

Start Quarter 1 Outline

New Market Analysis

Lesson 1. The Major Auction

    Review Month 0, steps 1., and 2.
        1. Reread the information in sections C. NEWMA and D. NMADEMO on the
            Month 0 report. Be sure you understand reference points, expected and
            unexpected market behavior, the concept of the Overlay Demand Curve (why
            does it show demand?), responsive day trading, trend and swing trading
            and the Trader Control database.

        2. Restudy the Month 0 section H. Visual Graphic. Review all data on the
            Visual Graphic, particularly the reference points for the Overlay, the
            Internal Trend and the commercial traders.

        3. Exercises. Historical Trader Control data for the first 4 months of
            1995 are in weekly sections

    Test data for 1995
    F0103 Trader Control Trading Data, week of January 3, 1995
    F0109 " " " " " " 9 "
    F0117 " " " " " " 17 "
    F0123 " " " " " " 23 "
    F0130 " " " " " " 30 "
    FM0195 Swing Trades listed for January, 1995

 
    F0206 Trader Control Trading Data, week of February 6, 1995
    F0213 " " " " " " 13 "
    F0221 " " " " " " 21 "
    F0227 " " " " " " 27 "
    FM0295 Swing Trades listed for February, 1995

 
    FO306 Trader Control Trading Data, week of March 6, 1995
    F0313 " " " " " " 13 "
    F0320 " " " " " " 20 "
    F0327 " " " " " " 27 "

 
    FO403 Trader Control Trading Data, week of April 3, 1995
    F0410 " " " " " " 10 "
    F0417 " " " " " " 17 "
    F0424 " " " " " " 24 "

Important!!!
    Now: Start yourself a notebook (loose leaf). Set it up with at least
    two sections. In one section, keep track of every trade you do, paper or real.
    LIST YOUR REASONS FOR ENTRY, FOR HOLDING AND FOR EXIT.
    That is, list your strategy for each step of the way. In another section
    keep your notes; anything significant that you pick up as you go along.

Procedure
    a. Run through the January 1995 data, generating the reference points and
        your trading for each day. Compare your findings with section FB0195.
        What are the differences in the trades? Why?
    b. Do same as in a) for February. Compare with section FB0295.
        Reconcile the differences as before.
    c. Do the same for March and April. There is no comparison section
        for these months. Are you comfortable with your results? If
        not, why not?
    d. What is the primary reference point in Lesson 1?

    Swing Trading Basic Model
    1. Review the section F. BREAKOUT from the Month 0 Report.
    2. Are you clear on the Basic Rules?
    3. In the table labeled IC, do you see anything about the returns
        that makes you uncomfortable? If so, what is it? Why?
    4. The CISCO volatility, CV, seemed to improve the returns. How
        do you feel about a return of $165 per trade before slip and
        commissions?
    5. Have you looked over the 3+ pages of trade by trade data? Do you
        agree with the trading summary table at the bottom of the 4th page?
    6. Can you follow the data in the table at the end of the report?
        Do you have any opinions or suggestions?

Lesson 2, The Minor Auction

    1. New/reviewed reference points
        a. Volume
        b. Volatility
        c. Trade Facilitation Factor
        d. Commercial Activity
            Capping, balanced market
            Capping, end of day
            Not capping, end of day
    2. Are you beginning to apply market condition to your analysis
        of reference points?
    3. Make a list of all the reference points you are familiar with.
        How many do you have?
        Can you differentiate how they are all used in various market conditions?

Lesson 3, Part 1. Fluctuation and Volatility

    1. Fluctuation
    2. Long Time-Base Volatility
    3. Short Time-Base Volatility
    4. Volatility as a Reference Point

Lesson 3, Part 2. Responsive trading

    1. Review the section E. RESPON from the Month 0 DEMO report.
    2. Are you clear on the Basic Rules?
    3. In the table labelled IC, do you see anything about the returns
        that makes you uncomfortable? If so, what is it? Why?
        How does this table differ from the one for swing trading?
    4. The CISCO volatility, CV, seemed to improve the returns in the
        swing trading. How does this case compare? How do you feel
        about a return of $100 per trade before slip and commissions?
        Do you understand putting in a minimum stop (say 4 points, $125
        for T-bonds)? A too small stop will be hit at random by market
        fluctuation or noise.
    5. Have you looked over the 3+ pages of trade by trade data? Do you
        agree with the trading summary table at the bottom of the 4th page?
    6. At the end of the report a number of ideas are presented in brief
        form. Your job is to flesh out these ideas with ideas of your
        own. Expand on each item. How can it be made to help your market
        understanding?

Lesson 3 Part 4. Hourly LDB downloads: T-bonds

    A. Hourly downloads for November 24, 1992
    B. Hourly downloads in a breakout market, August 15, 1996
    C. Fifth download for 8/5, 8/7, 8/8 and 8/9 1996
    D. Hourly downloads for August 1, 1996

End Quarter 1 Outline