DeMark-On-Day-Trading-Options

This book is the option day trading blueprint you've been waiting for.


This book, which is prefaced and praised by Lawrence G. McMillan, who is himself quite an authority on options, is neither an introduction to options, nor is it a technical guide or text covering the topic. An introduction would not offer advanced indicators and concepts, which this book does, and a technical guide could not be read by a person who hasn't any previous knowledge of options, but this book can.

The first chapters of this book are for the reader who has never heard of an option before. Then the book moves to subject matter that is useful to all readers, and it finally ends with advanced methodology which is in easily understood, non-technical terms, and is available for the savvy option trader and the novice, who by simply reading this book has become just one notch down from the savvy investor.

DeMark’s business is technical trading strategies and indicators. When asked to summarize his techniques, DeMark quickly responds, “They’re all original, all mechanical and all objective.” These are the attributes on which DeMark hangs his hat, a response to what he has always believed was an unhealthy level of subjectivity and redundancy in much of the technical analysis world.

His inclination toward mechanical indicators and trading strategies is rooted partly in his own personality and partly in the unique trajectory of his career, which began on the institutional side of the business and broadened to reach the retail trading community, spanning equities, futures, interest rates, currencies and options. His three books, The New Science of Technical Analysis (John Wiley & Sons, 1994), New Market Timing Techniques (John Wiley & Sons, 1997) and DeMark on Day Trading Options (McGraw-Hill, 1999 — written with his son, Tom Jr.) are trading industry bestsellers. His indicators and techniques have continued to work their way into the mainstream, thanks to their presence on a number of popular trading platforms and networks — most recently Bloomberg, which added his tools in May of this year.

Although DeMark may not be a household name to the generation of traders who popped up online in the last few years, he’s been a major influence in the technical trading community, often behind the scenes, for quite a while.

DeMark started trading stocks in the late 1960s while still in college, DeMark’s first investment job in 1971 with Milwaukee-based NN Investment Services (NNIS) set the tone for his career. DeMark started out as a fundamental analyst at the company before becoming, almost by default, the company’s primary technical market timer. DeMark essentially found himself in the fortuitous position of working at a major investment firm that encouraged him to do the unthinkable: research and develop develop technical timing models.

DeMark’s discoveries brought him to two important conclusions: Much of technical analysis was useless, and almost all of it was subjective. DeMark’s mandate at NNIS was to find objective timing techniques that identified exhaustion points, and which could be applied tomorrow the same way they were yesterday. He decided the way to go was to develop his own ideas based on first-hand analysis of the markets.

In 1987, DeMark joined Paul Tudor Jones as executive vice president and head of system testing and market timing. Among the traders he worked with was Peter Borish, now head of Computer Trading Corp., with whom he set up a subsidiary company called Tudor Systems. Since then, DeMark has traded and advised numerous clients, including Omega Advisors and Cohen, whom he joined as a consultant and partner in the fund.

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