Trader Tom DeMark

Often, the biographies of famous traders offer nothing in terms of achievements beyond seven-figure profits. Many were simply lucky, while others simply had skillful management skills and assembled an excellent team around them.

These traders may make it onto the rich list and be invited on television for a few appearances, but once their careers are over, the world simply forgets them.

Trader Tom DeMark is the most ardent inventor and ardent ideologist of technical analysis. Among Tom's achievements, we can confidently mention the dozens of trading indicators he created, which are actively used in both the forex and stock markets.

DeMark also shared his knowledge and skills by writing a remarkable practical book on trading, " Technical Analysis – A New Science ." This book has become a guide for many beginners in mastering short- and medium-term trading, as it is on these timeframes that, according to DeMark, technical analysis is most effective.

Since then, Tom DeMark has written his name in the history of technical analysis, but his life's journey is just as interesting as his achievements.

Tom DeMark was introduced to the world of stock trading as a mature adult, after completing graduate school. His education included a background in business and law. He was an active young man, and his two law degrees and one in business sparked great interest among representatives of the National Investment Service.

The company specialized in managing pension assets as well as various securities, so Tom was offered a prestigious position as a fundamental analyst.

Years later, at a press conference, Tom DeMark admitted that his high-sounding job title, "analyst," concealed the fact that he was at the very bottom of the company hierarchy, taken advantage of, and felt like an errand boy. However, unlike others, he managed his time wisely, which allowed him to quickly climb the career ladder. Realizing that he couldn't achieve much alone, Thomas DeMark began to gather a number of specialized specialists around him and formed a strong team.

The end of 1973 and the beginning of 1974 went down in history as some of the most critical periods, as it saw a sharp decline in the Dow Jones Industrial Average and a decline in the overall stock market of approximately 50 percent. In such a crisis, virtually all companies suffered losses, but not the National Investment Service.

During this period, the company's market capitalization grew significantly, reaching 6 billion. While everyone was losing money, Thomas was given carte blanche, and his team successfully passed their exam, earning the company hundreds of millions of dollars.

1978 marked a special year in Tom DeMark's career, as he led the creation of a consulting department, specifically a separate division called National Investment Service. This department, and Tom as its head, focused on asset diversification. After four years of successful work, Thomas DeMark decided to leave the company, retaining over $120 billion in assets under management.

The reputation he earned in this company, as well as his experience, allowed Tom not only to live comfortably for a long time, but also to earn money through consulting and his own developments.

In 1987, before the stock market crashed, Thomas DeMark's indicators were blaring signals for investors to sell their holdings, and believe me, many took his advice. After this incident, Thomas became quite famous, and he was offered a vice president position at Tudor Jones, an offer he couldn't refuse.

In his current position, Tom continued his research, as he was interested in creating a tool that would serve as a compromise between technical and fundamental analysis. Incidentally, Thomas DeMark believed that fundamental analysis quite effective for long-term trading and investing when technical analysis allows you to choose profitable entry points and is suitable for a medium-term trader.