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approach to the market
in this interview but he is generally known as a fundamentalist,
one of the very few left in the analysis and newsletter arenas.
Perhaps the reason Bill is not super well known is that he does
not present himself as a guru who knows all and sees all.
This interview clearly
shows Bill as a person who approaches the markets from a pragmatic
point-of-view. He keeps calling his techniques "tools" and doesn't
make outrageous claims about them. Nowhere does he claim that they
are infallible. About the strongest comment he made was that his
techniques "gave him a place to hang his hat"!
We interviewed him back
in 1990 but wanted to interview him again with more of a focus on
his techniques. He has compiled a consistently profitable track
record throughout the years. His longevity and ability make him
well worth listening to.
Fundamental analysis
is the study of the supply and demand for the underlying commodity.
Back in the old days, say until the mid-1980's, nearly everyone
was a fundamentalist. Then technical analysis became much more popular.
I remember working at banks in the 1980's and trying to interest
other traders about technicals and finding little interest. I was
treated like a leper. Now, when I go into trading rooms, I find
it hard to find a fundamentalist among the traders under the age
of 30. Although the focus has been on technical analysis and mechanical
systems over the last ten years, fundamental analysis still is an
important way to make money. Perhaps the greatest trader of all
time, George Soros, is a fundamentalist. Other top hedge fund managers,
such as Julian Robertson of the Tiger Fund, are also fundamentalists.
As Bill mentions below, you may find it useful to add even rudimentary
fundamentals to your technical trading as a way of reducing whipsaws.
If you can come to a
general conclusion of the futures direction of the market through
fundamentals, then you can reduce the number of losing whipsaws.
Of course, this is easier said than done. Bill outlines his key
techniques in the interview below. He gives practical advice on
how to apply fundamental analysis to your trading.
Bill is currently one
of the top futures brokers for Prudential Securities and operates
out of Oklahoma City, OK. He started his futures career with the
trading legend Roy Longstreet (see sidebar on this page) in the
1960's. It was from Longstreet that Bill learned the basic techniques
that he uses to this day. Longstreet started Bill out by having
him pore over charts of past price action, looking for similar years.
Bill will let CTCR members
receive a three month subscription to Price Perceptions for the
special price of $57.50. That's a 50% price reduction from the regular
price. You don't need fundamental analysis to know that's technically
a good deal.
Continue...
(Part
I) (Part II) (Part
III) (Part IV) (Part
V) (Return to CTCR People)
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