OPENING POSITION
June 2002
The 20th century saw many radical changes in technology, one of the most significant being new forms of information distribution. With the use of computers, software, the Internet and, most recently, "smart" devices, we can now make near-instantaneous connections and immediately be a part of an interwoven global environment. We can send and receive information effortlessly, we can communicate with others of like mind all over the world, we can set up conferences with people we will never meet in person, make monetary transactions without ever filling out a deposit slip, even trade stocks, bonds, and currencies - and we can do all this from the comfort of our homes.
There's no doubt that these developments have had a real and permanent impact on the trading world. The ability to receive data, conduct analysis in real time, and complete transactions relatively quickly has certainly created an opportunity for more individuals to participate in the financial markets. As that door opened, however, competition among data providers and brokerage houses intensified, with the result that you can now get virtually all forms of market data on your desktop. Take, for example, Market Profile. This data format reveals valuable information that makes it possible for you to hear what the market is saying, without actually joining the commotion in the pits. In STOCKS & COMMODITIES' feature article this issue, "Auction Market Theory" by Donald Jones, you will get an overview of how Market Profile may be used to get a feel for the market. And thanks to technological advancements like the Internet, you can get this information right on your desktop through a variety of data vendors.
Another important contribution that information technology has made is the ability to bring people together from all over the world. Many web communities have formed in cyberspace, giving individuals the opportunity to share information, interests, and opinions. For our interview this month, we spoke with Doug Fairclough, cofounder of ClearStation.com, one of the more popular trading communities on the Internet. I highly recommend a visit to this site for anyone interested in trading. A quick read through the comments and discussions in ClearStation's message boards will tell you that this is one serious community, attracting numerous traders and investors. It might be because of its design: comprehensive, containing all relevant information on one page. And with the proliferation of individual traders, having a place to go to for support from others who engage in similar activities is certainly an advantage, just like STOCKS & COMMODITIES itself.
Jayanthi Gopalakrishnan,
Editor
Originally published in the June 2002 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2002, Technical Analysis, Inc.