Beginners
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Exploding
the Myths - What your broker doesn't know or won't tell you,
Frank Watkins
A great book that addresses some of
the
myths that are peddled by people in the finance industry. The most used
myth is "It is time
in the market that is important, not timing".
Frank really blows this myth
apart,
and explains that "it is possible to time the market". And I have to add that many chartists
and
technical analysts would say the same - including yours truly.
Frank goes on to explode some other
famous myths,
and provides some really good information.
This book is a great read to help give
all of us confidence that the art of charting does have a lot of merit.
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Secrets
for Profiting in
Bull
and Bear Markets,
Stan Weinstein
This is an all-time classic, published in 1988, and is still
recommended reading for people starting out with charting.
Stan's
most popular concepts espoused in this book are to do with using a
30-week Simple Moving Average on a weekly chart - of either a market
index, or a stock. He also discusses the concept of Stage Analysis.
[See a practical application here, and more information about Stan's strategies (in the left hand column).]
Chapter 8 is great reading, "Indicators for spotting bull and
bear
markets". [See one of Robert's Presentations on Bear Markets for
more details.]
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Top
Stocks,
Martin
Roth
Martin publishes his updated copy of this book in about October each
year,
for the coming year.
This
book is great at explaining some very useful fundamental analysis
criteria for selecting quality stocks for your watchlist. It goes on
to list about 100 stocks which are essentially blue chip
stocks in
the Australian market. For anyone who is looking for a list of quality
companies in which to invest, or trade, this book is a great start.
However, there is no regard for the prevailing share price. So anyone
who purchases stocks that are listed in this book will need to be
buying for the long term or for
dividends, or because the chart shows an optimum time to buy. (See Robert's
views about buy-and-hold investing.)
This study of fundamental analysis is somewhat like the first stage of
Robert's 2-stage Funda-Technical Analysis, but
taken to the next level of
detail.
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Trend
Trading,
Daryl Guppy
Daryl's classic text on trading trends is just one of his
many books, and is an excellent one for the budding technical analyst.
This book goes into detail discussing Guppy's Multiple
Moving Average
indicator (the GMMA), as well as his CountBack Line (CBL)
technique for
entry and exit, plus many more topics.
It includes a running case study with in-built self-tests to test your
developing knowledge as you work through the book.
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The
Secret of Candlestick
Charting, Louise Bedford
Louise Bedford has authored a number of books over the years.
This one is a great introduction to the mysteries of candlesticks.
Some comprehensive information about candlesticks included in the
Toolbox here.
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Active
Investing,
Alan Hull
Alan Hull is an old hand at investing in the share market, and runs
a newsletter service based on some of his trading and investing
strategies.
This book explains how to profit from shares without advice and why
passive investing is a waste of time. It
explains a couple of key concepts including the ROAR
chart indicator
(Rate of Annual Return), and Alan's own Range+
chart indicator. (Both of
these are included in the BullCharts charting software.)
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Intermediate
information |
Introduction
to Technical Analysis, Martin Pring; 1998
This is a great book which provides a good introduction to the topic of
technical analysis. Includes: chart types, market cycle model,
support/resistance, indicators and patterns.
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Charting
Secrets, Louise Bedford
Louise believes there are a lot of secrets hiding in the charts.
In this workbook she offers to explain the secrets of: basic charts,
lines, volume, moving average, and chart and candle patterns.
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Trading
in a Nutshell,
Stuart McPhee
Trading in a Nutshell, 3rd Edition by Stuart McPhee provides the reader
even more trading tips than the original of this book published in 2001
and the 2nd Edition published in 2005. This new edition includes more
information about preparing your mind for the mental rigours of trading
as well as more guidance on how to develop your own trading plan that
you will be able to implement with confidence.
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The
Business of Share Trading,
Leon Wilson
This is a great book to start looking at some of the detail of
technical analysis indicators and strategies.
In 614 pages, Leon talks about Primary Analysis (no indicators) and
Secondary Analysis (using indicators), plus a whole lot more including
trading and strategies.
Leon also has a couple of other books.
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Technical
Analysis of Stock Trends, Robert D. Edwards and John Magee
This is accepted as the bible of technical analysis. 484 pages, first
published in 1948, and republished and reprinted a number of times over
the years. Contains lots of great information about TA.
Affectionately known as "Edwards and Magee".
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Japanese
Candlestick Charting Techniques,
Steve Nison
Steve Nison is often regarded as the person who picked up the
centuries-old
Japanese studies of candlestick charting and introduced it to western
society.
This big book is basically an encyclopedia of candlestick charting
patterns, and its application in conjunction with a number of classical
technical analysis concepts and indicators such as support and
resistance, moving average, RSI, Stochastic, Momentum and OBV.
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The book covers
shown here are
the scanned cover images of books that Robert has purchased,
or
borrowed - with credit and acknowledgments to the respective copyright
owners.
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Advanced
and
specialist topics |
Trade
Your Way to Financial Freedom,
Van K Tharp
Van Tharp is very highly regarded in trading circles.
This book covers a lot of trading topics including: judgmental biases,
developing a trading system, expectancy, risk and money management, trade setups, market timing, entry signals, taking profits,
opportunity cost and position sizing.
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How
I Made $2,000,000 in the Stock Market, Nicolas Darvas
This well-known best-seller was published in 1960 by Lyle Stuart Inc
(Kensington Publishing Corp), and re-printed several times.
It
contains information that most brokers would not want you to know
about. It includes graphic details of the methodology and approach that
Nicolas Darvas followed over just a couple of years to make two
million dollars in the market - all legit!
See some summary details about Darvas'
strategy in Brainy's
eBook (PDF) Articles (left hand column).
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Trade
with Passion and
Purpose, Mark Whistler
Many of the experts say that making money in the markets is not easy,
but that about 80% of the job is really down to emotions and
psychology. And without a good handle on one's own emotions, it is
likely to be difficult.
In this book, Mark talks extensively about many of the keys to becoming
a top trader with a good understanding of how to be in control of our
emotions, and our psychological well-being.
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The
Secret Life of Real Estate and Banking,
Phillip J Anderson
Phil spent many years researching and writing about the real estate
market in the US, covering property transactions and cycles since 1800.
Phil took all his research and lecture notes and published them in this
book that provides great insight into the property cycles, and the
underlying reason why property prices move in cycles of between 17 and
21 years.
A recommended read.
See more details here.
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A
Definitive Guide to Point and Figure,
Jeremy du Plessis
The sub-title on this book says it all: "A comprehensive guide to the
theory and practical use of the Point and Figure charting method".
This is a big book that explains how Jeremy transitioned from his
training in engineering and as an economist to become a technical
analyst, who founded Indexia Research in 1983, and developed PC-based
software that utilises Point and Figure charting that is very popular
today.
Many technical analysts today use Point and Figure charts to easily
spot trends, and identify potential market turning points.
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The
Great
Depression Ahead, Harry S Dent jr.
Harry
wrote and published this text in late 2008, in anticipation of a great
depression ahead (which at the time of updating this web page might
still occur).
Harry's studies and work over many years
has looked at the huge range of cycles that are evident within society,
and countries, and technologies, and in fact are everywhere.
For
anyone interested in understanding what sort of cycles are in
existence, and how they have played out and affected our lives over the
years, this text is a must.
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