Recommend me a Technical Analysis book
 

Basically, I want to start learning technical analysis for stocks. I did some searching on Amazon and there are quite a few books with good (4+ stars) rating, but not sure if I trust all the reviews.

So, recommend me something you have personally read/used or one that is highly recommended by people in the know.

TIA

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
“I realized that technical analysis didn’t work when I turned the chart upside down and
didn’t get a different answer.”

Warren Buffett



[/ QUOTE ]

Read "The Intelligent Investor" instead.

Re: Recommend me a Technical Analysis book
 

I would start with John Murphy. Technical analysis of the financial markets.

There are a zillion TA books out there but I think Murphy is about as good a place as any to get the basics. He explains many different methods such as chart patterns, oscillators, moving averages etc.

Once you get the basics down you may want to look for something more specific. A lot also depends on the time frame you are interested in. Day trading, swing trading, long term trades etc.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
Read "The Intelligent Investor" instead.

[/ QUOTE ]

Hmmm? I didn't realize that was a technical analysis book? What kinds of TA methods does it focus on?

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
Read "The Intelligent Investor" instead.

[/ QUOTE ]

Hmmm? I didn't realize that was a technical analysis book? What kinds of TA methods does it focus on?

[/ QUOTE ]

Just the greatest and most effective TA method ever, the "not using TA" method.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
Just the greatest and most effective TA method ever, the "not using TA" method.


[/ QUOTE ]

OP said he wanted to "learn" about technical analysis. Learning is typically a good thing. Once you "learn" you can decide whether you want to "use" it or not. Ignorance of technical analysis is probably not a good idea even if you never plan to to use it.

I'll bet you even Buffett knows a thing or two about chart patterns, trend channels, support, resistance and overbought/oversold indicators even if it isn't his main or even tertiary focus.

Re: Recommend me a Technical Analysis book
 

Just throwing this out here.........

A subscription to INVESTORS BUSINESS DAILY newspaper.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Read "The Intelligent Investor" instead.

[/ QUOTE ]

Hmmm? I didn't realize that was a technical analysis book? What kinds of TA methods does it focus on?

[/ QUOTE ]

Just the greatest and most effective TA method ever, the "not using TA" method.

[/ QUOTE ]

DC, I know you're a FA investor, but have you ever worked on or studied TA extensively?

I believe both methods can compliment each other. FA can provide you with set-ups and TA can privide your entries and exits.

TA, when used properly, can act like a looking glass mapping the patterns of buying and selling which often points towards impeding moves.

Completely disregarding TA surely will make you lose some edge when using FA for set-ups.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Read "The Intelligent Investor" instead.

[/ QUOTE ]

Hmmm? I didn't realize that was a technical analysis book? What kinds of TA methods does it focus on?

[/ QUOTE ]

Just the greatest and most effective TA method ever, the "not using TA" method.

[/ QUOTE ]

You've gotta love the open mindedness of the Finance section. So, if Buffet can't figure it out or use it, I guess it just doesn't work. So, I guess Steven Cohen and Bruce Kovner are on the Forbes riches people by sheer and freak luck.

THE HUN.

Re: Recommend me a Technical Analysis book
 

As a quick reply, the Murphy book is the best place to get started to give you a nice overall look at things. Martin Pring's Technical Analysis Explained, is also a good beginners book, but that focuses more on chart patterns. The Murphy book has patterns but alos has a lot of material on various indicators and more, so that makes it the better book to get an overall feel for things.

THE HUN.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
“I realized that technical analysis didn’t work when I turned the chart upside down and
didn’t get a different answer.”

Warren Buffett



[/ QUOTE ]

Read "The Intelligent Investor" instead.

[/ QUOTE ]

another vote for NOT reading TA here:

benoit mandelbrot's MMAR is able to produce price change and asset price charts that fool people into seeing patterns.

he believes, and i agree, that human beings are built to try to find patterns in life and in charts. thus technical analysts come about claiming (and having) success by following patters in markets.

these "chartists" as BM calls them, are the but of many jokes he's played on them as they've found support levels, varying degrees of trends (some unbelieveably long), and other TA type factors from charts he generated with his (completely randomly seeded) model.

the point he tries to make is that the markets are so random as to make chartists useles..

now, that being said, he has acknowledged the surprising ability for chartists to make money, as do i since one logical explanation for it does come to mind: if 100% of the market followed charts and acted on them, that woudl move the market. if 0 people did it obviously it woud have no affect.

so 2 things can be going on 1) enough participants can be doing it (TA) so that the results are then reinforced by the participants; and 2) there might be a very complex hand behind movement of "chartists success" that does not converge and is constantly changing just like variance of price charts (variance doesn't converge for the most part). so this change might be very slow and we may be in a boom of technical analysts success right now that may not continue or be successful itno the future.

this 2nd one can be going on now, but may not be expected to persist into the future.

thus, i prefer to put my money behind logic and reason vs. chartists that can be fooled by a 100% random model and their historical results.

Barron

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
these "chartists" as BM calls them, are the but of many jokes he's played on them as they've found support levels, varying degrees of trends (some unbelieveably long), and other TA type factors from charts he generated with his (completely randomly seeded) model.

[/ QUOTE ]

Well? There are pyscholgical effects at play. Support and resistance being key. The market is made up of people and these support and resistance areas coupled with volume can tell you what these people are doing and thinking which all shows up on the chart.

There is no Holy Grail in TA. Just a lot of information when understood as a whole can give certain insights into what might be happening. It's a lot of work putting together a reasonable technical picture.

Besides what is the short term player or the market maker to use? The market is currently experiencing some very volatile swings. Are these swings based on fundamentals? Or are they based on human nature, fear and greed? TA is a graphical representation of human nature, fear and greed.

Re: Recommend me a Technical Analysis book
 

Some books I'll add to the list.

1. Trading for a Living
2. High Porbablity Trading

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
Some books I'll add to the list.

1. Trading for a Living
2. High Porbablity Trading


[/ QUOTE ]

These are both great. I especially like High Probability Trading. But OP mentioned nothing about trading merely an interest in learning about TA. Therefore I think a book like Murphy's which pretty much touches on everything is an important base for the novice. The trading books get a bit more involved and assume a base knowledge of TA going in.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
these "chartists" as BM calls them, are the but of many jokes he's played on them as they've found support levels, varying degrees of trends (some unbelieveably long), and other TA type factors from charts he generated with his (completely randomly seeded) model.

[/ QUOTE ]

Well? There are pyscholgical effects at play. Support and resistance being key. The market is made up of people and these support and resistance areas coupled with volume can tell you what these people are doing and thinking which all shows up on the chart.

There is no Holy Grail in TA. Just a lot of information when understood as a whole can give certain insights into what might be happening. It's a lot of work putting together a reasonable technical picture.

Besides what is the short term player or the market maker to use? The market is currently experiencing some very volatile swings. Are these swings based on fundamentals? Or are they based on human nature, fear and greed? TA is a graphical representation of human nature, fear and greed.

[/ QUOTE ]

i realize this and we've all hashed this out before, fear and greed and human emotion/psychology contribute to market actions and may be able to be broken down. but the human mind is disproportionately likely to see, incorrectly, that fear and greed in a chart that may not have it (and is just the product of a random model).

like i said, TAs can be extremely successful and i don't want to have another conversation about this. my personal leaning is obviously away from something that can be so easily fooled.

Barron

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
Just the greatest and most effective TA method ever, the "not using TA" method.


[/ QUOTE ]

OP said he wanted to "learn" about technical analysis. Learning is typically a good thing. Once you "learn" you can decide whether you want to "use" it or not. Ignorance of technical analysis is probably not a good idea even if you never plan to to use it.


[/ QUOTE ]

If people want to discuss TA, I'll stay out of the way of your fun. But he sounds like a novice so I wanted to point out the "other approach" to him.


[ QUOTE ]

I'll bet you even Buffett knows a thing or two about chart patterns, trend channels, support, resistance and overbought/oversold indicators even if it isn't his main or even tertiary focus.

[/ QUOTE ]

He has said he studied them early in his career and found them useless.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Read "The Intelligent Investor" instead.

[/ QUOTE ]

Hmmm? I didn't realize that was a technical analysis book? What kinds of TA methods does it focus on?

[/ QUOTE ]

Just the greatest and most effective TA method ever, the "not using TA" method.

[/ QUOTE ]

DC, I know you're a FA investor, but have you ever worked on or studied TA extensively?

I believe both methods can compliment each other. FA can provide you with set-ups and TA can privide your entries and exits.

TA, when used properly, can act like a looking glass mapping the patterns of buying and selling which often points towards impeding moves.

Completely disregarding TA surely will make you lose some edge when using FA for set-ups.

[/ QUOTE ]

My returns say otherwise:) I'm not holding positions above IV, nor am I selling at well below IV. I've been doing this long enough to know I have no insight into price patterns.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Read "The Intelligent Investor" instead.

[/ QUOTE ]

Hmmm? I didn't realize that was a technical analysis book? What kinds of TA methods does it focus on?

[/ QUOTE ]

Just the greatest and most effective TA method ever, the "not using TA" method.

[/ QUOTE ]

You've gotta love the open mindedness of the Finance section. So, if Buffet can't figure it out or use it, I guess it just doesn't work. So, I guess Steven Cohen and Bruce Kovner are on the Forbes riches people by sheer and freak luck.

THE HUN.

[/ QUOTE ]

just because you, and a few experts can succeed at TA doesn't mean most will. The worlds great investors list (guys who've proven their skill over decades) is full of FA types.

And LOL at SAC's success being due to TA.

[ QUOTE ]

The payments grease the superpowerful information machine that Cohen has built at SAC. The firm's credo, says a former SAC trader, is to "try to get the information before anyone else." The torrent of commissions wins Cohen the clout that often makes him privy to trading and analyst information ahead of rivals. Says one analyst: "I call Stevie personally when I have any insight or news tidbit on a company. I know he'll put the info to use and actually trade off it." Cohen expects to get the first call when an analyst upgrades or downgrades a stock, and if he doesn't, offenders have been known to get a tongue-lashing from SAC traders. Brokers lavish plenty of other privileges on him. For instance, SAC was a big beneficiary of allocations of red-hot initial public offering shares during the Internet boom, according to several former SAC traders.

[/ QUOTE ]

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
my personal leaning is obviously away from something that can be so easily fooled.

Barron

[/ QUOTE ]

This is why I responded in this thread, as I know Desert Cat feels the same way as you. Yes, both of you use FA in your analysis of stocks. I am one of a handful of people here who do use TA instead. We have been over this pissing contest before of TA vs. FA and I don't want to go over it either.

That being said, what is disconcerting is the fact that the two of you have said that you both lean to FA, and that is fine. The OP had asked for some TA books. Why chime in? Why not let the TA's out there give the OP advice and move on? Instead, it is both you and DC that jump into the fray of "oh TA is nothing but tea leaves and FA rules all because it's logical and depends on numbers, and of course EVERY single trader on the planet is using the EXACT same models acting rationally all the time, so if those models state something is undervalued jump right on in, look at Buffett as aparently no one else on the planet can make money in the stock market using any other type of analysis". That is what is disconcerting. I keep hearing of how that type of analysis is what you use, and Desert Cat. Fine. Use it. But if someone wants to learn TA, and know some books, then let those who are knowledgeable about the subject be helpful and post some suggestions without starting up the usual pissing fight.

[ QUOTE ]
like i said, TAs can be extremely successful and i don't want to have another conversation about this.

[/ QUOTE ]

Then don't chime in.

THE HUN.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
just because you, and a few experts can succeed at TA doesn't mean most will. The worlds great investors list (guys who've proven their skill over decades) is full of FA types.


[/ QUOTE ]

just because you, and a few experts can succeed at FA doesn't mean most will. The worlds great traders list (guys who've proven their skill over decades) is full of TA types.

Too often we blur the line between trading and investing in these discussions. It really is an apple and oranges comparison.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
my personal leaning is obviously away from something that can be so easily fooled.

Barron

[/ QUOTE ]

This is why I responded in this thread, as I know Desert Cat feels the same way as you. Yes, both of you use FA in your analysis of stocks.

[/ QUOTE ]

i don't trade stocks. i don't analyze stocks. and thus, i tend to steer fairly clear of individual stocks. i implement my views of equities though in indices or derivatives on indices.

[ QUOTE ]
I am one of a handful of people here who do use TA instead. We have been over this pissing contest before of TA vs. FA and I don't want to go over it either.

[/ QUOTE ]

that's all i meant when i said "don't wanna hash it out again." etc.

[ QUOTE ]


That being said, what is disconcerting is the fact that the two of you have said that you both lean to FA, and that is fine. The OP had asked for some TA books. Why chime in? Why not let the TA's out there give the OP advice and move on?

[/ QUOTE ]

the best argument i can give is kimchi's i think: ignorance of TA may hamper returns. ignorance of FA (or more precisely, the faults of TA) may also hamper returns. thus it is worth pointing out the faults of both when requests to learn about one come up.

[ QUOTE ]

Instead, it is both you and DC that jump into the fray of "oh TA is nothing but tea leaves and FA rules all because it's logical and depends on numbers, and of course EVERY single trader on the planet is using the EXACT same models acting rationally all the time, so if those models state something is undervalued jump right on in, look at Buffett as aparently no one else on the planet can make money in the stock market using any other type of analysis". That is what is disconcerting. I keep hearing of how that type of analysis is what you use, and Desert Cat. Fine. Use it. But if someone wants to learn TA, and know some books, then let those who are knowledgeable about the subject be helpful and post some suggestions without starting up the usual pissing fight.

[/ QUOTE ]

thats fair and i apologize for jumping in with the pissing fight. i just wanted to point out the faults so OP is aware.

i've stated very clearly that it is possible to make money off TA and that, while i personally don't advise that direction, there is nothing wrong with learning about it. just know both sides.

[ QUOTE ]


[ QUOTE ]
like i said, TAs can be extremely successful and i don't want to have another conversation about this.

[/ QUOTE ]

Then don't chime in.

THE HUN.

[/ QUOTE ]

again, sorry for bringing this up again. i just felt both sides should always be heard and known. note that i never said one is better than the other. i just said that some of the smartest people, nobel prize holders, fields metal (and various other prizes for math & physics) holders all feel similarly about "chartists." knowing both viewpoints is important and that was my intention.

just as i've studied TA briefly in at least finding how it works, what may drive returns, and talking with mrbaseball and yourself on this board to learn about options usage and strategies in that context, it may behoove a newcomer to learn about why TA may have false positive returns.

i think i've been wrong in chiming in as i should leave well enough alone. DC also, but the fact remains that i'm a human, just the same that drive markets, and make mistakes and post by emotion at times.

this thread being one of those times.

so i'm sorry for bringing my views here. if you really don't think i should point out anything about the views of others, let me know and i'll 100% steer clear of all TA postings. i think knowing what i've learned from reading intelligent people's thoughts is important, but i can see where it may not be appropriate in a thread entitled: "recommend me a TA book"

Barron

Re: Recommend me a Technical Analysis book
 

You might want to check out technical analysis of stock trends by robert edwards.

It is not a flashy glossy book, rather boring and somewhat complex sometimes but great material.

Re: Recommend me a Technical Analysis book
 

Evidence-Based Technical Analysis is a good read that present some of the philosophical problems with TA. It also presents a more statistics-based alternative approach to analyzing markets that can lead to actual edges in the market.

Most large hedge funds don't "depend" on TA to make money. But most large hedge funds use it to varying degrees.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
my personal leaning is obviously away from something that can be so easily fooled.

Barron

[/ QUOTE ]

This is why I responded in this thread, as I know Desert Cat feels the same way as you. Yes, both of you use FA in your analysis of stocks.

[/ QUOTE ]

i don't trade stocks. i don't analyze stocks. and thus, i tend to steer fairly clear of individual stocks. i implement my views of equities though in indices or derivatives on indices.

[ QUOTE ]
I am one of a handful of people here who do use TA instead. We have been over this pissing contest before of TA vs. FA and I don't want to go over it either.

[/ QUOTE ]

that's all i meant when i said "don't wanna hash it out again." etc.

[ QUOTE ]


That being said, what is disconcerting is the fact that the two of you have said that you both lean to FA, and that is fine. The OP had asked for some TA books. Why chime in? Why not let the TA's out there give the OP advice and move on?

[/ QUOTE ]

the best argument i can give is kimchi's i think: ignorance of TA may hamper returns. ignorance of FA (or more precisely, the faults of TA) may also hamper returns. thus it is worth pointing out the faults of both when requests to learn about one come up.

[ QUOTE ]

Instead, it is both you and DC that jump into the fray of "oh TA is nothing but tea leaves and FA rules all because it's logical and depends on numbers, and of course EVERY single trader on the planet is using the EXACT same models acting rationally all the time, so if those models state something is undervalued jump right on in, look at Buffett as aparently no one else on the planet can make money in the stock market using any other type of analysis". That is what is disconcerting. I keep hearing of how that type of analysis is what you use, and Desert Cat. Fine. Use it. But if someone wants to learn TA, and know some books, then let those who are knowledgeable about the subject be helpful and post some suggestions without starting up the usual pissing fight.

[/ QUOTE ]

thats fair and i apologize for jumping in with the pissing fight. i just wanted to point out the faults so OP is aware.

i've stated very clearly that it is possible to make money off TA and that, while i personally don't advise that direction, there is nothing wrong with learning about it. just know both sides.

[ QUOTE ]


[ QUOTE ]
like i said, TAs can be extremely successful and i don't want to have another conversation about this.

[/ QUOTE ]

Then don't chime in.

THE HUN.

[/ QUOTE ]

again, sorry for bringing this up again. i just felt both sides should always be heard and known. note that i never said one is better than the other. i just said that some of the smartest people, nobel prize holders, fields metal (and various other prizes for math & physics) holders all feel similarly about "chartists." knowing both viewpoints is important and that was my intention.

just as i've studied TA briefly in at least finding how it works, what may drive returns, and talking with mrbaseball and yourself on this board to learn about options usage and strategies in that context, it may behoove a newcomer to learn about why TA may have false positive returns.

i think i've been wrong in chiming in as i should leave well enough alone. DC also, but the fact remains that i'm a human, just the same that drive markets, and make mistakes and post by emotion at times.

this thread being one of those times.

so i'm sorry for bringing my views here. if you really don't think i should point out anything about the views of others, let me know and i'll 100% steer clear of all TA postings. i think knowing what i've learned from reading intelligent people's thoughts is important, but i can see where it may not be appropriate in a thread entitled: "recommend me a TA book"

Barron

[/ QUOTE ]

Barron, excellent post. It's not about not chiming in. Just the fact is, this was a very simple thread asking for TA books, and I think somewhere along the line, assumptions were made about the OP. For all we know the OP could be an equity analyst sick of using fundamental models and wants to try something new, we don't know, nor should anyone have made those assumptions.

What irked me about this thread was that two seconds in ( for someone looking to learn about TA, which was encouraging to me so that I can help someone and have a discussion about the analysis that I'm comfortable with )all of a sudden it becomes, "well don't use it, it's useless, use FA because that's what Buffett uses and bla bla bla Buffet Buffet Buffet" It irked me because those kinds of posts really go in the opposite direction of what these discussions boards are for, and how they can be most useful. I'm not saying that TA is the only thing and to completely disregard FA, but for Desert Cat to come in and state, oh don't use it, use FA because Buffet...those kinds of posts limit the mind and restrict the usefulness of these boards, and then you came into the fray as well. My original upset does lie solely with Desert Cat by trying to limit someones mind and limit their learning about the market. My way or the highway posts make for lousy boards. If the post was along the lines of "I have found FA to be useful and here is a good book recommendation" then that's fine and in the spirit of a good discussion, but to dismiss it because some investment hero doesn't do that makes for lousy conversation and detracts from the usefulness of these boards. At the end of the day, I know your intentions are well, and that you are trying to present both sides, but in this case, I think the it wasn't in the right context.

THE HUN.

Re: Recommend me a Technical Analysis book
 

Wow! I didnt mean for this to start a TA vs FA thread.
FWIW, I consider myselft a novice investor. I used to subscribe to IBD a few years back, but have not read it since due to work and spending more time with family. Not sure if I want to subscribe again as they raised the price quite a bit.
Anyways, thanks for all those who responded with recommendations. Pring and Murphy were the two books I had written down before making this thread. I will checkout the others when I go to the book store.
I think will get Murphy's, but will decide on the others.

Re: Recommend me a Technical Analysis book
 

Guys, if someone asks for TA books that's REALLY not the place for this TA vs. FA holy war. I think it would make a fine thread of it's own, but I don't get why it's going on here.

Re: Recommend me a Technical Analysis book
 

IBD has very little T/A imo, and doesn't really "teach" it.

You can subscribe to Chart of the Day for free, and get some things from that. Also TeleChart 2000 (or whatever it's called now) has free seminars/sales pitches throughout the country, and their products have instruction as well. Same for Esignal.

As for the Murphy book first recommended, I consider that a reference, which is usually hard to learn from. Murphy's The Visual Investor is geared towards beginners and easy-reading. I would suggest getting both of those books.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
Wow! I didnt mean for this to start a TA vs FA thread.
FWIW, I consider myselft a novice investor. I used to subscribe to IBD a few years back, but have not read it since due to work and spending more time with family. Not sure if I want to subscribe again as they raised the price quite a bit.
Anyways, thanks for all those who responded with recommendations. Pring and Murphy were the two books I had written down before making this thread. I will checkout the others when I go to the book store.
I think will get Murphy's, but will decide on the others.

[/ QUOTE ]

Good choice. As I said, the Murphy book gives you a better and broader scope of TA, not only chart analysis. The Pring book gives you mostly chart reading. However for THE primer on momentum indicators, Market Momentum is an awesome book. Pring is a nice guy; I met him after a lecture he was giving.

THE HUN.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]

My original upset does lie solely with Desert Cat by trying to limit someones mind and limit their learning about the market. My way or the highway posts make for lousy boards.

[/ QUOTE ]

I didn't try to limit anyone. I just pointed out to a novice that there is another approach used by very successful investors that he might want to examine. I did make a snarky response to Mr. Baseball's snarky response.

I'm happy to have all the TA guys here have their TA discussions. But for every successful TA practitioner there are also unsuccessful ones, probably many. And I think you all know that TA is beloved by and promoted by brokerage firms because it promotes heavy turnover and reaps lots of commissions from their customers. I think those firms propagate a lot of misinformation because of that. So when a newbie comes onto the board I like to counter some of this brokerage propaganda to make sure they first try to read a general purpose investing book.

And I'm not telling people "TA sucks, do FA". My standard advice is to practice passive portfolio investing with index funds. Just because I might be successful with FA doesn't mean everyone can be, there is a lot more to it than reading financial statements, esp. psychologically, and few people are willing and able to make the proper commitment to succeed at it. Most people should just not be active investors or traders.

When I first started posting here I definitely thought TA was worthless, given the large amount of academic research that showed little evidence it works. But Sniper and others here convinced me I don't know everything about TA, and there can be some successful individual TA practitioners. Just as academic research shows that most "value investment" funds have trouble beating the market while the skilled guys like buffett crush it. I think that both TA & FA are dangerous in the hands of a newbie who doesn't know what they are doing.

I'll leave the remainder of this thread to TA folks talking about TA.

Re: Recommend me a Technical Analysis book
 

Desert,

Well said...I'm thinking group hug?

THE HUN.

Re: Recommend me a Technical Analysis book
 

DC has always been the man in this forum [img]/images/graemlins/cool.gif[/img]

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
And I think you all know that TA is beloved by and promoted by brokerage firms because it promotes heavy turnover and reaps lots of commissions from their customers.

[/ QUOTE ]

And the mutual fund companies beat the 'buy and hold' drum because they don't want a high turnover of stock.

As the the FA and TA debate. They are both +EV strategies when used correctly and the majority of people fail to beat the indexes using both broad strategies.

The bottom line is this: There are 1000001 different approaches to trading and investing. Each approach can be +EV when used properly with emotions and check and proper risk management.

It is important to choose an approach that suits your style. Some people will find Day Trading too stressful whereas others will find long-term value investing mind-numbingly dull.

I find FA way too subjective, whereas TA suits my more scientific and creative (OK-a little subjective) way of looking at things. It stimulates my mind and I enjoy looking at a chart and indicators and choosing where to buy, how much to buy why/where to sell etc etc.

I would rather have my eyelids ripped off than pour over a stale accounts sheet. This method, whilst probably being +EV, would not be profitiable for me as I wouldn't be able to trade/invest this way.

It's different strokes, and you have to choose a method that is compatible with your personality.

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
I'm happy to have all the TA guys here have their TA discussions.

[/ QUOTE ]

But not without you jumping in to tell people it's worthless.

[ QUOTE ]
But for every successful TA practitioner there are also unsuccessful ones, probably many.

[/ QUOTE ]

Yeah, there are strategies where that's untrue and EVERYONE beats the market!

[ QUOTE ]
And I think you all know that TA is beloved by and promoted by brokerage firms because it promotes heavy turnover and reaps lots of commissions from their customers.

[/ QUOTE ]

Ha, just the opposite. The big brokerages are always saying T/A sucks so people will want to see their analysts' recco's. If people use T/A they will just go to cheap online brokerages.

[ QUOTE ]
When I first started posting here I definitely thought TA was worthless, given the large amount of academic research that showed little evidence it works.

[/ QUOTE ]

Say what? What research, and by whom? The only stuff I've seen was ridiculous and didn't come near being a scientific study.

[ QUOTE ]
Just as academic research shows that most "value investment" funds have trouble beating the market while the skilled guys like buffett crush it.

[/ QUOTE ]

When your argument is weak all you have to do is whip out the Buffett. Never mind that most people know that a lot of his investing is not in the stock market.

Re: Recommend me a Technical Analysis book
 

NOOB ALERT!

what does FA stand for?

Re: Recommend me a Technical Analysis book
 

[ QUOTE ]
NOOB ALERT!

what does FA stand for?

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Fundamental Analysis (Everything non-technical, stuff like news)

Re: Recommend me a Technical Analysis book
 

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DC has always been the man in this forum [img]/images/graemlins/cool.gif[/img]

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As far as FA goes....

THE HUN.