Interview: Thomas R. DeMark by Thom Hartle
Thomas R. DeMark has been called "the ultimate indicator and systems guy" with the publication of his well-received book, The New Science of Technical Analysis. Who is he and what has he done that deserves such accolades? Stocks & Commodities interviewed DeMark about his trading philosophies and how he explored the frontiers of technical analysis using basic techniques.
Q: When did you first get interested in the markets?
A: I first got interested when I was a junior in college and a professor I admired introduced me to the markets. Then, after college I went on to law school, then graduate school for business. It was during a summer job during my business school days that I was introduced to technical analysis.
Q: Did you start out with an interest in fundamental analysis and then shift toward a technical approach?
A: Not really. It's just my nature to always be looking for something more than just what other people are doing.
Technical analysis was not a part of the academic forum. I was very intrigued that there could be another level of market analysis that was not being discussed at an academic level.
Q: What did you do after graduate school? Did you pursue your interest in technical analysis then?
A: I accepted a position with a money management firm. It didn't pay as well as other opportunities I was offered, but it was a job with a very progressive company.
Q: How was it progressive?
A: The president of the company was a visionary. He anticipated the growth in the pension business and the need for risk management. In 1970, we had $200 million under management. If you recall, the 1970s were a tough time in the stock market. We moved our accounts out of the stock market in the early 1970s and managed to miss the bear market. That enhanced our reputation, and the amount of money we had under management climbed to more than $4 billion. We were the go-go boys of the 1970s.