GOLISH CAPITAL MANAGEMENT LLC

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TRADING

AN OVERVIEW

GCM's technical trading systems are designed to forecast and take advantage of trends and counter-trends. At the same time, the systems suppress risk by limiting positions in closely related markets, by avoiding initiation of positions when the likelihood of a loss is higher than normal, and by trading in many different companies. The systems have been back tested on a group of diversified products, including commodities and equities, for a period of ten years. The hypothetical results of this testing have shown an annual profit during each of these years. The systems are designed to limit drawdowns by identifying situations in which responding to initiation signals is more likely than usual to lead to a losing trade. Hence, the systems are expected to preserve more capital for opening positions that are, in the judgment of GCM, more likely than usual to be profitable.

  • The systems approach eliminates the component of human emotion allowing the hard trade to be made
  • No single system works well under all market conditions, so GCM follows a diversification of systems which can offset losses suffered in one system by gains made in another system
  • GCM employs systems that can follow different trends based on a well-defined period of time.
  • Systems diversified for trending, counter-trending, and non-trending markets.
  • Time periods are broken down into intraday, short term, intermediate, and long term.
  • A short-term system, (based on a one to five day period), is designed to capture slight changes in market behavior, regardless of whether the direction of the market is trending, counter-trending, or non-trending.
  • A longer-term system, which is designed to follow a market for a longer period of time, (ranging from a few weeks to several months), captures longer trends and overlooks the slight daily fluctuations in market behavior.

Futures/Securities and Options Trading may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your broker. This is because Futures/Securities and Options trading are highly leveraged, with a relatively small amount of money used to establish a position in assets having a much greater value. If you are uncomfortable with this level of risk, you should not trade Futures/Securities and Options contracts.

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TOOLS

GCM can help you choose the appropriate tools for you. GCM is dedicated to finding new, cost-efficient and knowledgeable alternatives for traders.

GCM gives you access to the most advanced trading platforms and filtering systems. Also GCM utilizes the latest hardware such as: Pentium Servers, High Speed Connections, and Video Conferencing.

In the old days, active traders only had one choice - they hired a broker. With the advent of online trading, an exciting new avenue was opened up to active traders, whereby they could circumvent the middleman and trade directly on their own screens.

Private active traders no longer have to use a broker to have real direct access to the markets in which they trade. Instead, they can have access to the very same information and technology as their brokers, at a fraction of the cost. This advancement allows individual traders to trade at their own speed, when they want, with all of the information and security that they need, from the comfort of their own home or office.

The system GCM offers is real Direct Access Trading. These systems provide multiple NASDAQ Level II screens, as well as access to NYSE, AMEX, NASDAQ, INSTINET, SOES, SELECTNET, and other ECN's as well as all major futures exchanges. The systems also provide graphs, charts and analysis in order to maximize and organize the information which every serious trader needs to stay ahead. Equally important, as a LEVEL II system, we offer real-time quotes, and rapid executions with immediate confirmations.

While once it was prohibitively expensive for a private trader to gain all of the advantages of a professional broker, it is now tantalizingly affordable. The G-Trader system is available for a low monthly cost. In addition, we offer extremely competitive ticket prices, which we can individualize based on your trading style and volume.

Don't continue to sacrifice your earnings on every trade by going through a middleman. And don't throw away any chances at an advantage by trading with an inferior system. Demand the same technology and options as the professional brokers, and demand it at a great price.


Futures/Securities and Options Trading may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your broker. This is because Futures/Securities and Options trading are highly leveraged, with a relatively small amount of money used to establish a position in assets having a much greater value. If you are uncomfortable with this level of risk, you should not trade Futures/Securities and Options contracts.

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PHILOSOPHY

Integrated "technical" and "fundamental" approach

The technical analysis of markets is the primary basis for GCM's trading approach, although fundamental analysis periodically influences a trade or series of trades. The technical components analyzed by GCM include pattern recognition and algorithms, emphasizing risk control through disciplined money management techniques.

Charting and computer enhanced calculations

Golish utilizes charts and mathematical calculations on computers to analyze and monitor past and present price movements in the markets, with a view to predicting short, medium, and long-term price movements. GCM's trading recommendations are based in part on such computer-generated information, chart interpretation and manual calculations.

Informed trading

GCM exercises limited judgment and discretion in interpreting the technical information generated by the trading approach and makes other subjective judgments and decisions. GCM determines the number of shares of each stock or futures contracts to be bought and sold at any given time, the time at which orders are to be placed and execute, the method by which orders are to be placed, and the types of orders that are to be placed. Those types of decisions require consideration of, among other things, the volatility of a particular market, the pattern of price movements, open interest, trading volume, and overall portfolio balance and risk exposure.

Let profits run and cut losses quickly

GCM's technical trading approach seldom directs market entry or exit at the top or bottom in a particular market trend. Rather, GCM's trading approach seeks to close out losing positions quickly and to hold portions of profitable positions for as long as GCM determines that the particular market trend will continue to exist. There can be no assurance, however, that profitable positions will be liquidated at the most favorable price in a particular trend. As a result of GCM's trading approach, the number of losing transactions may be expected to substantially exceed the number of profitable transactions. However, if the approach is successful, such losses should be small and should be more than offset by a few large gains.

Close adherence to trends and counter trends

GCM generally initiates positions only when the price is moving in the direction predicted by its trading strategy. Therefore, GCM normally avoids initiating positions that are counter to perceived medium and long term price trends. However, when GCM's analysis indicates a change in the prevailing price trend, it may initiate positions that are counter to such trend. Given the importance placed on participating in sustained trends, however, a large counter trend position is normally initiated only when charts and price movements indicate strong signs of a reversal in prices. Sometimes for overriding news or technical reasons, GCM has liquidated all existing positions and withdrawn from all markets for varying periods several times during a year.

Diversification and limiting of risk

GCM's technical trading systems are designed to forecast and take advantage of trends and counter-trends. At the same time, the systems suppress risk by limiting positions in closely related markets, by avoiding initiation of positions when the likelihood of a loss is higher than normal, and by trading in many different companies or commodities.

The systems have been back tested on a group of diversified products, including commodities and equities, for a period of ten years. The hypothetical results of this testing have shown an annual profit during each of these years. The systems are designed to limit drawdowns by identifying situations in which responding to initiation signals is more likely than usual to lead to a losing trade. Hence, the systems are expected to preserve more capital for opening positions that are, in the judgment of GCM, more likely than usual to be profitable.

Exceptions to systems

GCM follows the mechanical rules of the systems very closely; however, there are important exceptions:

  • Initiation of positions may be delayed, and liquidation of positions may be accelerated, shortly before a scheduled financial report is released
  • Liquidation of positions may sometimes be accelerated in order to secure profits and/or reduce drawdowns
  • Liquidation of positions may sometimes be accelerated so as not to hold a position overnight
  • Liquidation of positions may sometimes be accelerated in the event of major news reports, fundamental activity, natural disasters, etc.
  • Options may be used due to limited liquidity or increased volatility.

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Futures/Securities and Options Trading may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your broker. This is because Futures/Securities and Options trading are highly leveraged, with a relatively small amount of money used to establish a position in assets having a much greater value. If you are uncomfortable with this level of risk, you should not trade Futures/Securities and Options contracts.

CONSIDERATION

Regulatory Considerations:

  • GCM will follow all industry standard risk disclosure practices.
  • GCM only recives payments for training, trading, money menagement, consulting, and any other type of trading related business.
  • GCM is not a Clearing firm or a broker dealer, commissions can never be paid directly to GCM.

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