In the world of trading, there are people who stand out, and Tom Demark is one of them. That is why I am going to dedicate a series of articles in which we will see the most outstanding concepts and indicators of this trader and consultant.
Thomas DeMark, born in 1947, is president of Market Studies LLC and is known throughout the world for his models and techniques of “market timing” (waiting for the right moment of entry based on the prediction of future movements ). DeMark has authored three books on market timing in equity markets that are among the best sellers on the subject. Its indicators are available in various financial networks such as Bloomberg , CQG , Thomson Reuters and Market Studies (DeMark Prime).
Tom DeMark graduated from Law and Business Administration and began his career in 1972 as an analyst at NN Investments Services, a subsidiary affiliate of Northwestern National Insurance, in the United States. In 1978 he took over a subsidiary within the same company dedicated to investment advice. DeMark’s success was unquestionable by continually demonstrating its skills: at the beginning of the 70s the company managed about 300 million dollars, it managed to overcome the crisis of the 70s and after these years the company managed more than 6 billion dollars. In 1982, he founded his own financial markets consulting and advisory company and his clients included Goldman Sachs, Illinois State Board, JP Morgan, Citicorp, George Soros and a long list of the largest companies and investors. At the same time, he founded the publications Quotron Futures Charts and Fundamental Government Chart Book. In 1988 DeMark became Executive Vice President of Tudor Investment Corporation and a subsidiary of this company, Tudor Systems Corporation, was created, dedicated exclusively to developing DeMark’s ideas and trading in markets as directed. He left Tudor in 1990 to work as an associate of Charlie DiFrancesco, a mythical and legendary Chicago Board of Trade trader. DiFrancesco dies shortly after, and DeMark forms an investment fund in commodities with Van Hoisington. When the Virginia Investment Board decided to withdraw money from investments in commodities, DeMark left the company to be an advisor to Omega Advisors, a company founded by Leon Cooperman, for two years. At this time DeMark wrote his first best-seller on market timing: The New Science of Technical Trading (1994). Subsequently, its indicators based on market timing were added to the CQG data service and shortly after to Bloomberg . Since 1995 DeMark has been a special advisor to Steve A. Cohen, president of SAC Capital, a hedge fund that manages more than $ 16 billion.
Among the most prominent indicators developed by DeMark is the TD Sequential, useful for detecting the exhaustion of a trend, the DeMarker and the Range Expansion Index. DeMark indicators have been taken as the market timing models of choice for institutional investors until they have become the standard for most institutional traders and fund managers.
So far this approach to the person of Tom DeMark. We are ready for the next articles about your indicators and market timing techniques.