OPENING POSITION
March 2004
There's no doubt that changes and innovations in technology have changed the way we go about our day-to-day activities. These changes, not surprisingly, have also made their mark in the trading arena, making it easier for individuals to participate in the markets and giving us all the ability to take control of our own finances.
During the time the markets displayed a bearish trend -- between 2000 and early 2003 -- we didn't hear much in the way of technological developments. But now that the rally appears to be taking off -- although I have to admit I expected the broader indexes to fall even further before seeing this rally sustain -- we may start seeing new technological developments enter the trading field.
The introduction of new technology, as you can find out from reading David Penn's article in Technical Analysis of STOCKS & COMMODITIES this month, "DAT To The Future," has seen unprecedented growth in online brokerages, direct-access trading, the introduction of electronic markets such as the GLOBEX, and 24-hour currency trading, to name a few. We have come such a long way that it is difficult to imagine what more we can expect. But there is a lot more, and to get some idea what, we spoke with David Norman, director of electronic market development at Illinois Institute of Technology. After reading the interview, which starts on page 76, you'll realize that the world of trading has a lot of catching up to do.
But with more and more information comes complexity. And one of those complexities arises in the reliability of data -- volume data, for example. In James Kellndorfer's article, "Will The Real XAU Volume Please Stand Up?" starting on page 56, the author states that volume data doesn't necessarily provide an accurate picture. But that doesn't mean you can't depend on your data provider. From this article you will find out that there are ways around any existing unreliability -- this is just an example of something to be mindful of. With more technology there'll be more options, and with more options, there will always be more complexities.
So brace yourself for new technological innovations. There's a lot in store, and plenty to come that you may never have expected.
Jayanthi Gopalakrishnan,
Editor
Originally published in the March 2004 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2004, Technical Analysis, Inc.
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